While European activity in particleboard facility investment has been low, the same can’t be said for regions in the rest of the world, particularly Asia.
India, China and Thailand are some of the countries investing significant sums to add PB capacity, increase efficiency and satisfy customer demands.
This Part 2 Focus on Particleboard report focuses on the Rest of the World – namely Asia, Africa, the Middle East, South America and Oceania and follows our Part 1 survey which centred on Europe and North America.
Our main listing tables feature installed capacity as at the end of 2023, so projects which went online during 2024 will be added to the main listings in next year’s survey and are currently featured in the table of future capacity.
India, of course, is growing in the composite panels arena and we can expect further activity here in the years to come. Several Indian projects are mentioned in this update as either having been completed or in construction / planning. Our expectation is that there will be more to come.
The trend towards PB and away from MDF in China continues and the popularity of hybrid panels, such as so-called “Super PB” is very much a feature in the market. The production process of Super PB mixes standard core-layer flakes with slender, long core-layer flakes, enabling a lower board density with substantial savings in raw materials such as straw, wood and resin, and energy.
At the recent Symposium in Hamburg, Afry pinpointed Asia Pacific to be the strongest growth region going forward driven by exports, but also by regional demand, specifically highlighting India and Vietnam for wood-based panels business activity and trade.
This year’s figures show that particleboard estimated installed capacity outside Europe and North America for the year ended December 31, 2023, increased, after adjustments from last year, to 49,914,000m3.
Our future capacity estimate for 2024 and beyond (for known projects planned) is 53,294,000m3.
Adding our Part 1: Europe and North America results to Part 2: Rest of the World we arrive together at an estimated global particleboard installed capacity of 118,431,000m3 as at the end of 2023. The 2024 and beyond global future capacity is 125,836,000m3 – so a decent capacity increase is projected in the next few uears.
INDIA
India’s economic growth has been strong in recent years and while there has been evidence of a slowdown during 2024, GDP growth for 2024 is expected to be at around 7%, with 6.6% currently forecast for 2025.
Greenlam South Ltd, a subsidiary of Greenlam Industries Ltd, is one of the global leaders in laminates production. It currently is constructing a new PB facility in Andhra Pradesh. The stated annual capacity of the new plant is 265,000m³, though it’s possible this may be slightly higher in reality. Dieffenbacher is the supplier of the forming line with prepress, the CPS+ continuous press with press emission control system, the raw board handling system and the dryer.
The plant will also feature EVORIS, Dieffenbacher’s digital platform.
With more than 5,000 employees, a network of over 14,000 channel partners and a production capacity of 15.62 million sheets of HPL per annum, Greenlam is among the world’s top three producers of laminates.
The new particleboard plant marks its third production unit in India and puts it on a path to becoming a leading wood-panel producer in India.
Merino Industries, another large laminates supplier which has made a foray into woodbased panels production, has completed its first PB plant in Halol, Gujarat, with the first board produced in October 2023 – this project has therefore been moved into our main listings. The product is being marketed under the Fabwood brand.
Over 850 Crore was invested in the project, with European technology partners including Dieffenbacher, AnThon, Pallmann, Wemhöner Surface Technologies, IMAL PAL Group and SCM Woodworking Technology. Acknowledging that PB was new to Merino, the company said it decided to partner with these European leaders to guarantee stateof- the-art technology.
Merino directors gave an interview to Indian media where they confirmed that E0.5 & E1 raw chipboard capacity would be 330,000m3 annually, with pre-laminated chipboard capacity at 270,000m3.
In addition to the Dieffenbacher CPS+ continuous press, Merino ordered a MAIER chipping line and flake preparation, as well as Dieffenbacher forming station and forming line, press emission control system and raw board handling and the pneumatic transport and exhaust system with all necessary safety equipment.
The Halol plant also features mass-scale production lines for modular furniture components manufacturing.
Merino has signalled that potential additional future investment will be coming to the plant – increasing production capacities, refining processes for improved efficiency, and implementing more ecofriendly practices.
The plant, say the directors, is playing a role in transitioning India from an importer to an exporter of chipboards.
Century Plyboards is a major producer of wood-based panels, with significant plywood and MDF operations and one existing PB factory in Chinnappolapuram, Gummidipoondi, Tamil Nadu.
Its new greenfield PB plant project Chennai, Tamil Nadu has experienced some delays but is still expected to be completed later in 2025, adding 240,000m3 of PB capacity to the 72,000m3 of the existing plant.
The 550-crore investment is one of four investments being made by the group.
In its annual report, CenturyPly says Century’s most recent financial results show the PB operation revenue growing strongly from a year ago, though still representing a fraction of its plywood and MDF business.
The company completed an MDF plant in Andhra Pradesh with Siempelkamp in 2024.
Sudama Wood Panel is another company that is expanding. It completed an MDF facility this year Sitarganj in Udham Singh Nagar district of Uttarakhand and there is talk of a PB facility being planned as well.
CHINA & SOUTHEAST ASIA
China remains a big investor in PB, with an estimated 28% of current global PB capacity. Management consultant Afry estimates that Chinese producers are looking to add around 20 million m3 in of PB capacity in the next five years.
China has been shutting down older, inefficient sites in the MDF sector and there is a strong move towards PB.
The country’s GDP growth rate is at around 4.8% for 2024, with a similar rate projected in 2025. Stronger furniture industries and the growing middle class are expected to lead development and higher consumption levels within the coming years.
There are a number of new PB projects in China to mention.
First of all, the Wanhua No.10 line, a project with Dieffenbacher, has now been added to the main listings after completion in 2023. Wanhua Ecoboard Co Ltd, founded in 2006, is reputed to be the largest largest straw board supplier worldwide and puts a big emphasis on the sustainability of its products.
Dieffenbacher reports three additional mill projects which it says are currently under construction and add to the company’s already strong presence and long history supplying China.
These projects include two Super PB facilities – Yantai G Health New Material Technology co in Yantai City and Yuzhou Dingfeng Newmaterials Technology in Fanggang Town.
A further project – Guangxi Guiping Lelin Forestry Development Co Ltd in Guiping City is for PB production and will feature an 80m-long CPS+.
All these projects are cited in our future capacity listing, and we await on a progress report and capacity confirmation during 2025.
Moving on, Guangxi Xiangsheng Household Material Technology Co Ltd has been building a 600,000m3 capacity PB mill, which is scheduled to go into operation in early 2025.
Siempelkamp signed a contract with Guangxi Xiangsheng in June 2024, with Xiamen Jianyida Co Ltd – Xiangsheng’s import agency also involved – for the delivery of a super strength particleboard line. The “Super strength” term is derived from the core layer of the boards featuring flakes twice as long as usual to achieve a higher bending strength.
The plant will be at Xiangsheng’s High- End Green Household Furnishing Industrial Park. With this project, the partners are intensifying their co-operation in order to successfully develop the Chinese particleboard industry together. In addition to the signatories of the three participating companies, representatives from politics and other leading personalities also took part in the ceremony.
The Chinese company ordered its first Siempelkamp particleboard plant with Xiangsheng in 2000 – featuring an annual capacity of 300,000m3.
The latest project is designed to further expand Xiangsheng’s position in China and Southeast Asia.
The scope of supply includes knife ring flakers, automated setting and sharpening robots, a knife ring washing cabin, dryers, drum screens, double stream mills, oscillating screens, blenders, and the forming and press line with the continuous ContiRoll Generation 9i.
The plant will produce customized chipboard in a thickness range from 8 to 40mm in various specifications and sizes, tailored to market and customer demand.
It is again worth noting that figures relating to China require a degree of estimation due to the size and scope of the Chinese wood-based panels manufacturing industry, the proliferation of many smaller mills and the presence of Chinese technology suppliers also supplying the market – information from the latter is not always consistenly available.
ASIA
Elsewhere in Asia, there are projects to note in Thailand and Japan, but first some news updates from Thailand.
Thailand is expected to record a 2.4% GDP growth in 2024, with growth of 2.8% in 2025, following on from 1.9% growth in 2023. Inflation is currently at a low level.
Egger made an announcement earlier in 2024 that it was taking a stake in Thai panels producer Panel Plus Co Ltd. For Egger, the move was acknowledgement that the Asian market is playing an increasingly important role.
To further strengthen its own market position in Asia, the Egger acquired a 25.1% stake in Panel Plus, founded in 1990 and which produces a wide range of wood-based materials such as particleboard and MDF boards, both laminated and unlaminated. The main production plant is located in Hat Yai in the southern Thai province of Songkhla.
Another Thai producer Vanachai, which has four PB plants, recently shared its Q3/2024 results, disclosing total revenue of THB3.511.4bn – a 17% increase or THB508.1m from a year ago. Profits increased by 74% due to the sales volume of MDF and particleboard growing by 29% and 17% respectively, while the average price of MDF Board and particleboard have decreased by 2% and by 6% respectively.
Meanwhile, the Metro-Ply Group’s new PB plant in Surat Thani, Thailand, has now been moved to the main listings, following the first board production in March 2023. The plant has a 450,000m3 PB capacity and Siempelkamp was the main project supplier.
The greenfield project features a ContiRoll in 8ft x 40.4m format, with raw material coming from local rubberwood plantations.
Metro Ply, one of the largest wood-based panel producers in Southeast Asia and the region’s largest particleboard producer, operates a total of four particleboard plants They are located in Sai Noi/Nontaburi, Kanchanaburi and now Surat Thani.
More recently, Siempelkamp and Metro-Ply announced that the former will be supplying additional machinery and equipment for a 25% expansion of the existing particleboard lines at the Nonthaburi site, increasing by 220,000m3, thus further strengthening Metro-Ply’s market position.
Moving to Japan, we finally have confirmation of the completion of the ENboard PB facility in Shizuoka with an annual capacity of 350,000m3, with thanks to Novopan for confirming this. The plant went operational in 2023 and has now been moved to the main listings.
The ENboard project represents a joint venture of the furniture manufacturer Eidai Co Ltd and Japan Novopan Industrial Company Ltd, with Siempelkamp as the main technology supplier. At the heart of the project is a 7ft x 47.1m ContiRoll Generation 9 press.
Japan Novopan Industrial Company Ltd has been a leader among Japanese engineered wood manufacturers for decades.
The plant operates mainly with recycled wood and will mainly serve the local market with formaldehyde-free chipboard.
The site of the plant is notable for its prominent position in the Shizuoka prefecture at the foot of Fuji Mountain, Japan’s World Heritage Site and landmark.
SOUTH AMERICA AND OTHER REGIONS
Brazil has been a positive business environment for the wood-based panels industry of late, with the country recording decent GDP growth in 2023 (+2.9%) and an expected +2.8% in 2024, before moderating in 2025 at around 2.2%.
Brazilian wood-based panels producer Dexco has reported good market conditions for its panels business, with sales of 833,000m3 in Q3, 2024 – a 23.7% boost on a year ago.
Group proforma adjusted and recurring EBITDA of R$676.7m was recorded in 3Q 24 and R$1,791.8m for the nine-month period. Its wood division volume sales for the ninemonth period totalled – 2,342,300m3, an increase of 18.1% vs 9M23, while high rates of factory utilization were also reported in the quarter to meet the demand for panels.
The wood panels business shipped 427,117m3 of standard panels in Q3, up 18.3% on a year ago, while coated panels shipments were 406,181m3, up 30% on a year ago.
The Brazilian Tree Industry (IBÁ) concurs with the positive assessment.
“The Wood Business continued to show its resilience with a strong performance, led by the wood panels market, which remained buoyant over the period, showing growth of 20.5% for the quarter and 19.7% year to date versus the same period in 2023,” it said.
Brazilian medium-density particleboard (MDP) sales in Q3 rose by 16% to 784,000 m³, according to IBÁ.
On projects, the Aglomerados Cotopaxi PB mill investment plan in Ecuador has progressed with machinery orders, but we still await confirmation of the construction timetable and completion.
The company, formed in 1978 by a group of entrepreneurs led by Juan Manuel Durini Palacios, produces MDF, PB, sawn timber and mouldings.
The Berneck PB project at the Curitibanos site in Santa Catarina has been the subject of extensive improvement work, with a central feature being a new drum dryer and 84MW energy system from Dieffenbacher. These extensive improvements to the Curitibanos plant will double the production capacity from 1,200m3 to approximately 2,700m3 a day.
The works completion was scheduled for 2024, so the project will likely be added to the main listings next year.
In Africa, the Ghamoud PB project in Algeria (115,000m3 capacity) has been a long-running one since the original plans and order of machinery.
Initially held up by the pandemic, the main equipment was supplied by Dieffenbacher, but the customer installation process was delayed and expected to progress in 2024, so we expect this one to be see completion confirmation in 2025.
In Australia, the largest PB mill project in the country is taking shape at Borg (Australian Panels) in Mount Gambier, South Australia. With an annual capacity of more than 650,000m3, the new PB facility is being supplied by Siempelkamp, which is supplying the forming and press line including the 8ft x 55.5m ContiRoll with NEO infeed. Siempelkamp Group companies Pallmann and Büttner, will also be supplying the project.
In 2016, the Australian company ordered a particleboard line with an almost identical scope from Siempelkamp (8′ x 50.4m ContiRoll press) for its site in New South Wales.
To end this latest WBPI survey report, we continue to invite all stakeholders to notify us of news, mill line additions and changes to mill capacities.
HOW THE LIST WAS COMPILED
The WBPI listings published in 2024 were reviewed and modifications made using other published sources and data received directly from the mills. Published information was reviewed for news of mill capacity changes.
The mills’ own reported capacities are used wherever possible but where this information is not available, published sources are used, usually on the basis of 330 operating days per year.
Conversion of ft2 to m3/year is made with 1,000 ft2 equal to 1.77m3. With regard to press types, the following abbreviations have been used in the listings:
MO=multi-opening/multi daylight
SO=single opening/single daylight
C=continuous
Mende=Bison-Mende (Calender)
na=not available
The following press makes have been identified and are shown in the listing as:-
Bison (pre and post-Metso acquisition)
BVH Becker & van Hüllen
C Compak
Dieff Dieffenbacher
Fjellman
Küsters (pre and post-Metso acquisition)
Mende Bison Mende
Metso
Motala
NKK
Pagnoni
Raute
Siemp Siempelkamp
WIW Washington Iron Works
na Information not available
We remain pleased to accept any and all contributions to this survey. Please send them to Stephen Powney, the group editor of WBPI, at stephen.powney@wbpionline.com
We are grateful to the CPA for the use of a small part of its figures. If you wish to become a member of this organisation and have access to its comprehensive data, go to www.CompositePanel.org. We are similarly grateful to the EPF and the same applies. Go to www.europanels.eu
