Plywood Production and Consumption

Plywood production and consumption Plywood production and consumption 2000, 2005, 2010, and 2014 (million m3)  120,0

 Year  2000 2005 2010 2014

 100,0  80,0

CAGR 2000 – 2000  –   2014: 3,8%

 60,0  40,0  20,0 2000

2005 Production

2010

2014

Production

Consumption

(million m3)

(million m3)

58,4 73,3 81,5 98,9

Plywood production by market area 2000, 2005, 2010, and 2014 (1,000 m3)

Consumption 100,0

Plywood consumption by end-use category 2014 Total 94.1 million m3

2000

2005

2010

2014

90,0 80,0 70,0

Other 15 %

60,0 Construction 38 %

Transport 7%

50,0 40,0 30,0

Packaging 9%

20,0 10,0

Flooring 5%

0,0 NAM Furniture 26 %

Source: Indufor

59,6 72,5 79,4 94,1

EMEA

Russia

LAM

China

Rest of    APAC

Total

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Focus on emerging emerging markets North America

Europe and Africa

The world’s largest LVL producing area and the world's second largest plywood manufacturing area. Economy is growing. Construction remains at a low level.

Developed market with a generally high level of production technology.

11%

their production processes in the long term. ►Production efficiency and quality improvements.

To strengthen its position through automation expertise

strategic investments of customer industries and technology services.

Market area’s share of Raute’s order intake in 2013-2015 %

Plywood production by market area in 2014. Raute’s position

► Growth potential %

Large raw material reserves and developing economy in the long term.

5%

Excellent competitiveness in the export markets.

The biggest operator. The objective is to maintain the leading position and to deepen cooperation with customers in order to boost

Investments focus on modernization projects to boost efficiency and replacement investments.

► Comprehensive

Russia

The market leader forest resources and ► Extensive

developing economy. Technology services.

China The world’s largest producer of plywood.

South America

Production mostly based on manual labor,

One of the biggest and most potential growth areas in plywood production

simple tehchology and local machine suppliers.

Strong position in Chile and deliveries to Brazil. ► Structure of local forest industry, abundant plantation wood resources and investments in value products with a high added.

5% 5%

4%

To become a significant operator. ► Higher quality requirements.

56%

Rest of the AsiaPacific area Strong shift from natural forests to plantations The strength: Processing of raw material from smalldiameter plantation trees. ► New growth of plywood production enabled by plantation forests.

18%

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EMEA Plywood production and consumption in

EMEA

Europe (million m3)

• Strong plywood industry in Finland • Low level of new capacity building • Future focus on projects targeting at improving production efficiency and quality •  Africa surprisingly large, future potential

Plywood production 1 production 1 000 m3

Raute ja EMEA

EUROPE TOTAL % world total Finland Baltic s tates (Es tonia, Latvia, Lithuania) Spain Italy France Poland Sweden Romania Bulgaria Portugal

• Raute suurin toimija Euroopassa • Palveluliiketoimi Palveluliiketoiminta nta kasvaa •  Asiakaspohjaa laajennetaan pienempiin ja mahdollisiin uusiin toimijoihin sekä Afrikkaan Share of Raute’s order

intake 2013-2015  2013-2015 

Cz ec h Republic Other Source: Indufor

2005

2010

2014

3 331 6% 1 308 298 360 390 389 144 92 98 36 40

2 496 3% 980 266 248 310 222 145 84 64 31 20

2 927 3% 1 188 373 340 234 226 252 98 79 42 22

38 138

19 108

21 52

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Russia Russia • Large raw material resources and developing economy • Strong market area where plywood production has doubled in the recent years

Share of Raute’s order intake 2013-2015  2013-2015 

• Economy does not grow grow,, which slows down investments. • However, However, export of and domestic demand for plywood is expected to grow moderately Plywood production and consumption in Russia (million m3)

Raute and Russia • Raute is the market leader in Russia • Large forest resources and developing economy create good future growth potential • Raute has growth potential also in technology services thanks large installed machine baseto the

Source: Indufor

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 APAC  AP AC China Plywood production and consumption in Asia-Pacific (million m3)

• Biggest plywood manufacturer • Manual production and simple technology,, local producers technology p roducers are strong • Increased quality requirements

Rest of the Asia-Pacific Asia-Pacific area • Plantation forests enable new growth for plywood production

Raute and Asia-Pacific area • Raute’s strength is in handling of small-diameter plantation wood • In China, increased quality requirements of the end product offer opportunities.

Share of Raute’s order intake 2013-2015  2013-2015 

Plywood pro Plywood production duction 1 000 m3

2005

2010

 APAC  APAC TOTAL % world total China Indones ia Malays ia Japan India New Zealand Republic of Korea Philippines Other

43 0 056 56 59 % 25 965 4 534 5 006 3 212 2 130 405 680 314 810

58 759 759 72 % 45 327 2 996 3 901 2 287 2 154 366 494 253 981

Source: Indufor/Faostat 

2014 73 245 245 74 % 55 137 5 768 4 154 2 902 2 521 345 482 317 1 619

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