Brussels, 5 December 2005
TO THE PRESS
PRESS RELEASE
FEIC Board Stresses Increasingly Severe Impact of Chinese Plywood Imports
During their Board Meeting on 25 November 2005 in Brussels , the FEIC members expressed their continued concern about the increasingly severe impact of foreign competition, in particular regarding the growing market distortion by imports from China .
The FEIC quarterly statistics for plywood pointed out that production experienced an exceptionally good start during the first half of 2005 and despite a minor slowdown during the summer months, the total plywood output increased by nearly 2% in the first 9 months of this year. Broadleaved plywood remains the leading type in Europe and registered a striking upsurge by nearly 7% between January and September 2005. Coniferous plywood registered a minor decline of some 2%, while tropical plywood faced a sharp setback after its recovery in 2004 and contracted by more than 11%. This is due to continued difficulties in France and Italy , which are mainly caused by the imports from China .
European consumption of plywood peaked in the first quarter of 2005, but decelerated in the subsequent months. Nevertheless, demand improved by 5.8% during the first 9 months of this year and achieved as such a new record level. This increased demand level has, however, also spurred imports, which accelerated by 6.4%, while exports improved by 1.3%.
While plywood imports from Brazil , Indonesia and Malaysia all declined during the first 8 months of 2005, imports from China continued to skyrocket and soared by 131% from 144,000 m³ up to 333,000 m³ . As such, the volumes imported from China during the first 8 months of this year already exceed the full year-end volume of 2004 by 16%. Moreover, there was a clear shift regarding the plywood products. Imports of okoumé plywood continued to decline, while the volumes of other tropical plywood and in particular of broadleaved plywood expanded massively. In addition, also coniferous plywood imports from China are becoming increasingly important. Therefore, the FEIC members decided to continue monitoring these import trends very closely and remain vigilant for unusual developments.
Another main issue during the meeting was the, according to the members, unsatisfactory quality situation of plywood on the British market. Concerns were expressed that construction applications would be allocated to plywood, which would not qualify for these purposes. The risk for such erratic applications would relate to the increasing offer of foreign plywood products. In several overseas areas, the correctness of the quality marking is doubted and therefore it is necessary to verify to what extent the CE marked goods actually dispose of the specified characteristics. However, an increased level of control by the British authorities seems to be impossible according to these authorities due to failing resources. Therefore, FEIC is currently checking the possibilities to establish a market surveillance group in the UK in co-operation with the British authorities, to check the plywood imports more thoroughly and frequently.
Furthermore, FEIC will develop a brochure to support the control mechanisms, in which the correct CE marking together with the necessary requirements will be specified. This brochure should be prepared for the next FEIC Board meeting in February 2006 and thereupon distributed among the member states. One of the problems is that the CE marking is not compulsory in the UK for applying plywood in construction. The fitness for purpose in accordance with the British building regulations and the EU construction products directive may also be proven by other means.
Finally, the FEIC Board was pleased to accept the application of the Russian company Chudovo-RWS Ltd and of the new association of Turkish plywood producers KONÜDER, which represents 13 companies with a total production capacity of 66000 m³ per year in Turkey . FEIC President Mr Uldis Bikis was pleased to conclude: “This brings the total number of FEIC members to 89 companies in 22 countries and widens the scope and structure of the federation further.”
For more information, please contact :
Kris Wijnendaele, FEIC Secretary General
Tel: +32 2 556 25 84
E-mail : info@europlywood.org |
