58 | Sector Focus: Panel Products
◄ Opening presenter Martin Brettenthaler, chairman of the European Panel Federation (EPF), set the tone for proceedings by tackling head on the current industry challenges, admitting the sector was facing a “perfect storm” due to soaring energy prices, heavy increases in resin prices and also increased wood raw material costs because of less timber being exported from Belarus and Russia. A ”complicated” winter was ahead, he admitted.
The war in Ukraine, he added, was a “game-changer” for the entire industry in exacerbating these impacts, though he said this was not all a fault of the conflict. Mr Brettenthaler criticised the German government’s heavily green energy focused policies (so-called “Energiewende”) over recent years as causing an acceleration of the energy crisis facing the industry. Such policies, he said were “delusional”. “The real issue is not the boycott on Russian gas but that there is no realistic substitute available for nuclear power and fossil fuels. We need to increase energy supply and use nuclear power and restart coal-fired power plants and instead of importing Canadian shale gas use our own.” He shared statistics with delegates showing how the cost of European MDF production had doubled since 2019.
“Demand for our products is going down with dramatic speed,” he added, explaining that part of this was due to the Covid effect having pulled demand forward. He predicted a major economic downturn in the next 6-12 months but a sharp rebound in a V-shaped curve.
Despite the bleak short-term picture, Mr Brettenthaler remained optimistic for the future of the wood-based sector. Mr Brettenthaler, who also heads up Swiss Krono as CEO, shared his own personal experience of the conflict, with Swiss Krono operating wood-based panels plants in Ukraine and Russia.
The multiple challenges he said had caused a “dire situation” for plants in Ukraine and Russia.
Swiss Krono has two plants in western Ukraine, which re-opened in May and currently have a 75-80% capacity utilisation rate.
Top: Over 300 delegates attended the event PHOTO PATRICK LUX /FRAUNHOER WKI Centre: EPF chairman Martin Brettenthaler warns of a perfect storm
Above left: Edi Snaidero outlines falling demand in the European furniture sectors Above right: Martin Langen covers construction, renovation and real estate
TTJ | November/December 2022 |
www.ttjonline.com
Mr Brettenthaler said OSB produced in Ukraine was currently finding a sad application area – covering window openings that have been war damaged. “Ukraine was already a complicated country before, but the way they are dealing with the situation is incredible,” he said. Beyond Ukraine, Mr Brettenthaler said if energy prices stayed high then costs would have to be passed onto customers. And he believes the biggest cost increases were yet to come.
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