Structural Engineered Wood Products in
the Pacific Rim and Europe:
2009 – 2013
“The markets for laminated veneer lumber (LVL), laminated strand lumber (LSL), glue laminate
beams (glulam) and I-joists are in the early stages of the product life cycle. While the global
economic and financial crisis has had a negative impact on production and consumption, the
forthcoming upturn will present significant opportunities for market and industry development
in North America, Australasia, Europe, Russia and North Asia.”
Extract to indicate the general nature of the report
FORESTRY
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
Contents
EXECUTIVE SUMMARY ............................................................................................................i
1.
INTRODUCTION ..............................................................................................................1
1.1
2.
Product descriptions ..............................................................................................................3
1.1.1
Laminated veneer lumber.......................................................................................3
1.1.2
Parallel strand lumber.............................................................................................4
1.1.3
Oriented strand lumber/Laminated strand lumber..................................................4
1.1.4
Engineered strand lumber ......................................................................................4
1.1.5
Glue laminated lumber ...........................................................................................4
1.1.6
Wooden I-joists .......................................................................................................5
1.2
Industry developments...........................................................................................................5
1.3
Objectives ..............................................................................................................................6
1.4
Methodology...........................................................................................................................6
1.5
Organisation of report ............................................................................................................7
NORTH AMERICA ...........................................................................................................9
2.1
2.2
2.3
2.4
2.5
2.6
Economic forecasts, North America.....................................................................................11
2.1.1
United States ........................................................................................................11
2.1.2
Canada .................................................................................................................12
Building industry forecast, North America............................................................................13
2.2.1
United States ........................................................................................................14
2.2.2
Canada .................................................................................................................14
The forest industry and resource base, North America .......................................................14
2.3.1
United States ........................................................................................................14
2.3.2
Canada .................................................................................................................15
Structural engineered wood products industry overview, North America ............................16
2.4.1
Laminated veneer lumber production facilities, North America............................17
2.4.2
I-joist production facilities, North America ............................................................20
2.4.3
Glue laminated lumber production facilities, North America ................................22
2.4.4
Laminated strand lumber, oriented strand lumber and parallel
strand lumber production facilities, North America...............................................23
Production of structural engineered wood products, North America ...................................25
2.5.1
Laminated veneer lumber production forecasts ...................................................25
2.5.2
I-joist production forecasts....................................................................................26
2.5.3
Glue laminated lumber production forecasts........................................................28
Consumption of structural engineered wood products, North America ...............................29
2.6.1
Laminated veneer lumber consumption forecasts................................................30
2.6.2
I-joist consumption forecasts ................................................................................31
2.6.3
Glue laminated lumber consumption forecasts ....................................................32
© BIS Shrapnel Pty Limited 2009
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
2.7
2.8
Exports and imports of structural engineered wood products, North America ....................34
2.7.1
LVL exports and imports.......................................................................................34
2.7.2
I-joist exports and imports ....................................................................................34
2.7.3
Glulam exports and imports..................................................................................34
Capacity utilisation ...............................................................................................................35
2.8.1
2.9
LVL capacity utilisation .........................................................................................36
Cost of production ................................................................................................................36
2.10 Price forecasts, engineered wood products, North America ...............................................37
2.10.1
LVL prices, North America....................................................................................37
2.10.2
I-joist prices, North America .................................................................................38
2.10.3
Glulam prices, North America...............................................................................39
2.11 Product characteristics, North America ...............................................................................39
2.11.1
Wood species, North America ..............................................................................39
2.11.2
Resins, North America..........................................................................................39
2.11.3
Product dimensions, North America .....................................................................39
2.11.4
Product performance, North America ...................................................................40
2.12 End uses ..............................................................................................................................40
2.12.1
LVL end uses, North America...............................................................................40
2.12.2
I-joist end uses, North America ............................................................................41
2.12.3
Strand lumber end uses, North America ..............................................................41
2.12.4
Glulam end uses, North America..........................................................................42
2.13 Potential new applications ...................................................................................................42
2.14 New product developments .................................................................................................43
2.14.1
Hardwood LVL ......................................................................................................43
2.14.2
Scrimber ...............................................................................................................43
2.14.3
Delta strand ..........................................................................................................43
2.14.4
Glulam ..................................................................................................................43
2.15 Distribution channels............................................................................................................43
2.15.1
LVL and I-joists .....................................................................................................43
2.15.2
Glulam ..................................................................................................................45
2.16 Product promotion................................................................................................................45
3.
AUSTRALASIA ..............................................................................................................47
3.1
3.2
Economic forecast, Australasia............................................................................................49
3.1.1
Australia................................................................................................................49
3.1.2
New Zealand.........................................................................................................50
Building industry forecast, Australasia .................................................................................51
3.2.1
Australia................................................................................................................51
3.2.2
New Zealand.........................................................................................................52
© BIS Shrapnel Pty Limited 2009
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
3.3
3.4
3.5
3.6
3.7
The forest industry and resource base, Australasia ............................................................53
3.3.1
Australia................................................................................................................53
3.3.2
New Zealand.........................................................................................................54
Production facilities, Australasia ..........................................................................................54
3.4.1
Laminated veneer lumber production facilities .....................................................54
3.4.2
I-joist production facilities .....................................................................................56
3.4.3
Glulam production facilities...................................................................................56
3.4.4
Strand lumber production facilities .......................................................................58
Production of engineered wood products in Australasia .....................................................59
3.5.1
Production of LVL .................................................................................................60
3.5.2
Production of I-joists .............................................................................................61
3.5.3
Production of glulam.............................................................................................61
Consumption of engineered wood products, Australasia ....................................................62
3.6.1
Consumption of LVL .............................................................................................62
3.6.2
Consumption of I-joists .........................................................................................64
3.6.3
Consumption of glulam.........................................................................................65
Imports and exports of engineered wood products, Australasia..........................................65
3.7.1
Imports and exports of LVL ..................................................................................66
3.7.2
Imports and exports of I-joists ..............................................................................66
3.7.3
Imports and exports of glulam ..............................................................................66
3.8
Cost of production ................................................................................................................67
3.9
Product pricing .....................................................................................................................69
3.10 Product and quality characteristics, Australasia ..................................................................71
3.10.1
Wood species and resins, Australasia..................................................................71
3.10.2
Product dimensions, Australasia ..........................................................................71
3.10.3
Product performance, Australasia ........................................................................71
3.11 End uses ..............................................................................................................................73
3.11.1
Building applications using engineered wood products .......................................73
3.11.2
Potential new applications ....................................................................................74
3.12 Distribution channels............................................................................................................74
3.13 Product promotion................................................................................................................75
4.
EUROPE.........................................................................................................................77
4.1
Economic forecast, Europe..................................................................................................79
4.2
Building industry forecast, Europe .......................................................................................80
4.3
Resource base and forest industry overview.......................................................................81
4.3.1
Finland ..................................................................................................................81
4.3.2
Austria...................................................................................................................82
4.3.3
Sweden.................................................................................................................83
4.3.4
Germany ...............................................................................................................83
4.3.5
Russia...................................................................................................................84
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Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
4.4
4.5
4.6
4.7
4.8
4.9
Production facilities ..............................................................................................................85
4.4.1
Laminated veneer lumber.....................................................................................85
4.4.2
I-joists ...................................................................................................................86
4.4.3
Glulam ..................................................................................................................87
Production ............................................................................................................................91
4.5.1
Laminated veneer lumber.....................................................................................91
4.5.2
I-joists ...................................................................................................................92
4.5.3
Glulam ..................................................................................................................93
Consumption ........................................................................................................................94
4.6.1
Laminated veneer lumber.....................................................................................95
4.6.2
I-joists ...................................................................................................................96
4.6.3
Glue laminated beams..........................................................................................96
Exports and imports .............................................................................................................97
4.7.1
Laminated veneer lumber.....................................................................................97
4.7.2
I-joists ...................................................................................................................98
4.7.3
Glue laminated beams..........................................................................................98
Cost of production ................................................................................................................99
4.8.1
LVL and I-joists .....................................................................................................99
4.8.2
Glulam ..................................................................................................................99
Price forecasts, engineered wood products, Europe ........................................................ 100
4.9.1
LVL prices, Europe ............................................................................................ 100
4.9.2
I-joist prices, Europe.......................................................................................... 101
4.9.3
Glulam prices, Europe ....................................................................................... 102
4.10 End uses ........................................................................................................................... 103
4.10.1
The United Kingdom.......................................................................................... 104
4.10.2
Western Europe................................................................................................. 104
4.10.3
Scandinavia ....................................................................................................... 105
4.11 Product characteristics, Europe ........................................................................................ 105
4.11.1
Wood species .................................................................................................... 105
4.11.2
Resins................................................................................................................ 105
4.11.3
Product performance ......................................................................................... 106
4.11.4
Product dimensions ........................................................................................... 106
4.12 Distribution channels......................................................................................................... 106
4.13 Product promotion............................................................................................................. 108
5.
NORTH ASIA................................................................................................................109
5.1
Economic forecast, North Asia.......................................................................................... 111
5.1.1
China ................................................................................................................. 111
5.1.2
Japan ................................................................................................................. 112
© BIS Shrapnel Pty Limited 2009
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
5.2
5.3
5.4
5.5
5.6
5.7
Building industry forecast.................................................................................................. 113
5.2.1
China ................................................................................................................. 113
5.2.2
Japan ................................................................................................................. 115
Resource base and forest industry overview.................................................................... 116
5.3.1
China ................................................................................................................. 116
5.3.2
Japan ................................................................................................................. 117
Production Facilities .......................................................................................................... 119
5.4.1
Laminated veneer lumber and I-joist production facilities ................................. 119
5.4.2
Glue laminated lumber production facilities....................................................... 123
Production ......................................................................................................................... 126
5.5.1
Japan ................................................................................................................. 126
5.5.2
China ................................................................................................................. 130
Consumption ..................................................................................................................... 131
5.6.1
Japan ................................................................................................................. 131
5.6.2
China ................................................................................................................. 133
Exports and imports .......................................................................................................... 135
5.7.1
Japan ................................................................................................................. 135
5.7.2
China ................................................................................................................. 137
5.8
Cost of production ............................................................................................................. 138
5.9
Product pricing .................................................................................................................. 138
5.9.1
Japan ................................................................................................................. 138
5.9.2
China ................................................................................................................. 140
5.10 End uses ........................................................................................................................... 141
5.10.1
Japan ................................................................................................................. 141
5.10.2
China ................................................................................................................. 142
5.11 Product characteristics...................................................................................................... 143
5.11.1
Wood species .................................................................................................... 143
5.11.2
Resins................................................................................................................ 143
5.11.3
Product performance ......................................................................................... 144
5.12 Distribution channels......................................................................................................... 144
5.13 Product promotion............................................................................................................. 145
6.
SOUTH EAST ASIA .....................................................................................................147
6.1
6.2
Economic forecast, Southeast Asia .................................................................................. 149
6.1.1
Indonesia ........................................................................................................... 149
6.1.2
Malaysia............................................................................................................. 150
Building industry forecast, Southeast Asia ....................................................................... 150
6.2.1
Indonesia ........................................................................................................... 150
6.2.2
Malaysia............................................................................................................. 151
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Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
6.3
6.4
7.
The forest industry and resource base, Southeast Asia ................................................... 152
6.3.1
Indonesia ........................................................................................................... 152
6.3.2
Malaysia............................................................................................................. 153
Production of LVL in Southeast Asia ................................................................................ 154
6.4.1
Indonesia and Malaysia..................................................................................... 154
6.4.2
Timber species utilised ...................................................................................... 155
6.5
Production and consumption of LVL ................................................................................. 155
6.6
Potential for glulam and I-joist production in Southeast Asia ........................................... 156
SOUTH AMERICA........................................................................................................157
7.1
Economic forecast, South America................................................................................... 159
7.1.1
Brazil.................................................................................................................. 159
7.1.2
Chile................................................................................................................... 160
7.2
Building industry forecast, South America ........................................................................ 161
7.3
The forest industry and resource base, South America.................................................... 162
7.4
7.3.1
Brazil.................................................................................................................. 162
7.3.2
Chile................................................................................................................... 163
Potential for producing structural engineered wood products in South America.............. 163
7.4.1
Chile................................................................................................................... 163
7.4.2
Brazil.................................................................................................................. 164
© BIS Shrapnel Pty Limited 2009
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
Tables
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
XIII
XIV
XV
XVI
XVII
XVIII
XIX
XX
XXI
Real GDP forecasts, selected countries, 2004–2013 ..................................................................... iii
Housing construction forecasts, selected regions, 2004–2013 ...................................................... iv
Global production of engineered wood products: 2004–2013 .........................................................v
Production of structural LVL by region, 2004–2013........................................................................ vi
Production of I-joists by region, 2004–2013................................................................................... vii
Production of glulam by region, 2004–2013 ................................................................................. viii
Global consumption of structural engineered wood products, 2004–2013......................................x
Consumption of structural LVL by region, 2004–2013.....................................................................x
Consumption of I-joists by region, 2004–2013................................................................................ xi
Consumption of glulam by region, 2004–2013 .............................................................................. xii
Exports and imports of glulam, United States and Canada, 2004–2013 ....................................... xv
Net exports of LVL, glulam and I-joists, Australasia, 2004–2013 ................................................. xvi
Export capacity and net exports, LVL, Europe, 2004–2013......................................................... xvii
Net exports, I-joists, Europe, 2004-2013......................................................................................xviii
Export capacity and net exports, glulam, Europe, 2004–2013 ....................................................xviii
Imports of structural glulam by country of origin, Japan, 2004–2008 ........................................... xix
Imports of glulam, Japan, 2004–2013............................................................................................ xx
Exports of LVL and glulam, China, 2004–2013 ............................................................................ xxi
Price forecasts, structural LVL 2004–2013 .................................................................................. xxii
Price forecasts, I-joists, 2004–2013 .............................................................................................xxiii
Price forecasts, glulam, 2004–2013............................................................................................ xxiv
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
Economic forecast, United States, 2004–2013..............................................................................11
Economic forecast, Canada, 2004–2013 .......................................................................................12
Housing commencements, North America, 2004–2013 ................................................................13
LVL manufacturers’ share of production capacity, North America, 2008.......................................17
Laminated veneer lumber production facilities North America, 2008 ............................................18
I-joist production facilities, North America, 2008............................................................................21
Glue laminated lumber production facilities, North America, 2008 ................................................22
Timberstrand (LSL), parallam (PSL) & oriented strand lumber (OSL) production facilities,
North America, 2008 ......................................................................................................................24
North American production of laminated veneer lumber, 2004–2013 ...........................................26
North American production of I-joists, 2004–2013.........................................................................27
North American production of glue laminated beams, 2004–2013................................................28
North American consumption of laminated veneer lumber, 2004–2013........................................30
North American consumption of I-joists, 2004–2013 .....................................................................32
North American consumption of glue laminated beams, 2004–2013 ............................................33
Exports and imports of glulam, United States and Canada, 2004–2013 .......................................35
Capacity utilization, export capacity and net exports, LVL, North America, 2004–2013 ...............36
Cost of production, LVL, glulam, and I-joists, North America, 2008 ..............................................37
LVL, glulam and I-joist prices, North America, 2004–2013............................................................38
End Uses for LVL, glulam and I-joists, North America, 2008.........................................................40
Key economic indicators, Australia, 2004–2013 ............................................................................49
Key economic indicators, New Zealand, 2004–2013.....................................................................50
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
3.1
3.2
© BIS Shrapnel Pty Limited 2009
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15
3.16
3.17
4.1
4.2
4.3
4.4
4.5
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
Housing commencements, Australasia, 2004–2013......................................................................52
Laminated veneer Lumber production facilities, Australasia, 2008 ...............................................55
I-joist production facilities, Australasia, 2008 .................................................................................56
Glulam production facilities, Australasia, 2008 ..............................................................................57
OSL planned production facilities, Australia...................................................................................58
Production of structural engineered wood products, Australasia, 2004–2013...............................59
Production, consumption, capacity utilization and exports, LVL Australasia, 2004–2013.............60
Production, consumption and exports, I-joists, Australasia, 2004–2013 .......................................61
Production, consumption and exports, glulam, Australasia, 2004–2013 .......................................62
Consumption of Structural LVL, glulam and I-joists, Australasia, 2004–2013 ...............................63
Net exports of LVL, glulam and I-joists, Australasia, 2003–2012 ..................................................65
Production Costs, Engineered Wood Products, Australasia, 2008................................................67
Mill door price ($AU) of structural engineered wood products, Australasia, 2004–2013...............68
Mill door price ($US) of structural engineered wood products, Australasia, 2004–2013...............70
Material use in housing applications, Australia, 2007 ....................................................................72
Economic forecast, Europe, 2004–2013 ........................................................................................79
Housing completions, Europe, 2004–2013 ....................................................................................80
LVL production facilities, Europe, 2008..........................................................................................86
I-joist production facilities, Europe, 2008 .......................................................................................87
Glulam production facilities, Europe 2008......................................................................................88
Production of LVL, glulam and I-joists, Europe, 2004–2013..........................................................91
Production, consumption, capacity utilization and exports, LVL, Europe, 2004–2013 ..................92
Production, consumption and exports, I-joists, Europe, 2004–2013 .............................................93
Production, consumption, capacity utilization and exports, glulam, Europe, 2004–2013..............94
Consumption of LVL, glulam and I-joists, Europe, 2004–2013......................................................95
Export capacity and net exports, LVL, Europe, 2004–2013...........................................................97
Net exports, I-joists, Europe, 2004–2013.......................................................................................98
Export capacity and net exports, Glulam, Europe, 2004–2013 .....................................................98
Exports of glulam by European countries to Japan, 2004–2008 ...................................................99
LVL prices, Europe, 2004–2013.................................................................................................. 101
I-joist prices, Europe, 2004–2013 ............................................................................................... 102
Glulam beam prices, Europe, 2004–2013................................................................................... 103
Glulam distribution Europe: 2000 and 2008................................................................................ 108
Economic forecast, China, 2004–2013 ....................................................................................... 111
Economic forecast, Japan, 2004–2013....................................................................................... 112
Housing commencements, North Asia, 2004–2013.................................................................... 114
Log imports by country of origin, China, 2006–2008 .................................................................. 116
Laminated veneer lumber producers by location and production capacity, Japan, 2008........... 119
I-joist producers, Japan, 2008..................................................................................................... 120
Major laminated veneer lumber producers, China, 2008 ............................................................ 121
Other laminated veneer lumber producers, China, 2008 ............................................................ 122
I-joist producers, China, 2008 ..................................................................................................... 123
Glulam producers, Japan, 2008 .................................................................................................. 124
Major structural glulam producers, China, 2008 ......................................................................... 124
Production of structural LVL, glulam and I-joists, Japan, 2004–2013......................................... 125
Production, consumption, capacity utilization and exports, structural LVL, Japan, 2004–2013 . 126
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Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
5.14
5.15
5.16
5.17
5.18
5.19
5.20
5.21
5.22
5.23
5.24
5.25
5.26
6.1
6.2
6.3
6.4
7.1
7.2
LVL production, Japan, 2004–2013 ............................................................................................ 127
Structural and non-structural glulam production, Japan, 200–2013 ........................................... 128
Structural glulam production by type, Japan, 2002–2006........................................................... 129
Production of LVL, glulam and I-joists, China, 2004–2013 ......................................................... 130
Consumption of Structural LVL and glulam, Japan, 2004–2013 ................................................ 131
Consumption of LVL, Japan, 2004–2013.................................................................................... 132
Production, consumption and imports, structural glulam, Japan, 2004–2013 ............................ 133
Consumption of LVL, glulam and I-joists, China, 2004–2013 ..................................................... 134
Imports of glulam, Japan, 2004–2013......................................................................................... 135
Imports of structural glulam by country of origin, Japan, 2004–2008 ......................................... 136
Exports of LVL and glulam, China, 2004–2013 .......................................................................... 137
Glulam and LVL Prices, Japan, 2004–2013................................................................................ 139
LVL, glulam and I-joist prices, China 2004–2013 ....................................................................... 140
Key economic indicators, Indonesia, 2004–2013 ....................................................................... 149
Key economic indicators, Malaysia, 2004–2013......................................................................... 150
Housing construction, Southeast Asia, 2004–2013 .................................................................... 151
LVL production facilities, South East Asia, 2008 ........................................................................ 154
Key economic indicators, Brazil, 2004–2013 .............................................................................. 160
Key economic indicators, Chile, 2004–2013............................................................................... 161
Charts
2.1
2.2
2.3
3.1
3.2
5.1
Product life cycle ............................................................................................................................16
LVL manufacturers’ share of production capacity, North America, 2008.......................................19
Distribution system for LVL, I-joists and glulam in North America .................................................44
Estimated variable production costs for LVL, Australasia, 2008....................................................69
Distribution system for LVL, I-joists and glulam in Australia ..........................................................75
Distribution system for LVL and glulam in Japan........................................................................ 144
Figures
1
2
3
Application of engineered wood products to the first floor of a residential house............................3
Parallel strand lumber ......................................................................................................................4
Engineered wood products, LVL, OSL and I-joists ..........................................................................5
© BIS Shrapnel Pty Limited 2009
Introduction
1.
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
INTRODUCTION
This is the fourth edition of Engineered Wood Products in the Pacific Rim and Europe. The
study has evolved from our original focus on laminated veneer lumber, to a more
comprehensive assessment of structural engineered wood products, including laminated
veneer lumber (LVL), I-joists and glue laminated lumber (glulam) in each of the key producing
and consuming countries. The study assesses trends and prospects for demand, supply,
investment and trade for each of these products. It complements the first edition of our study
Oriented Strand Board (OSB) and Lumber (OSL) in the Pacific Rim and Europe: 2008-2012.
1.1
Product descriptions
Products such as glue laminated beams have been common in many markets for over 100
years, with their origins said to date back several centuries. However, most other engineered
wood products have emerged over the past three decades as alternatives to the dwindling
supplies of heavy structural solid sawn timber. Other factors that have influenced the growth in
the use of engineered wood products include cost and superior performance.
The following provides a brief description of some of the major engineered wood products.
Laminated veneer lumber (LVL)
Figure 1: Application of engineered wood products to
the first floor of a residential house
OSB
L
LVL is an engineered wood
composite produced from rotary
peeled veneers, glued together with
grain orientated along the length of
the panel. It is similar to plywood,
although the grain of adjacent layers
of veneer is typically aligned in the
same direction, unlike plywood
which has alternative layers aligned
at right angles. The panel is then
resawn into sawn timber
dimensions. LVL will compete with
sawn timber where either high
strength is required, in particular in
longer lengths, or where stability is
an important component. LVL is
commonly used in I-joist
manufacture where it offers superior
strength and stability over traditional
sawn timber.
LV
1.1.1
I-J o is t
P ara llel S tra n d
Lum ber
Courtesy of APA-EWS
© BIS Shrapnel Pty Limited 2009
3
Structural Engineered Wood Products in the Pacific Rim and Europe 2009–2013
1.1.2
Parallel strand lumber (PSL) (Parallam®)
PSL is manufactured from long
strands of veneer, between 60 cm
(2 ft) and 2.4 m (8 ft) in length, with
the strips pressed and glued
together into large dimension
beams. The product is very strong
and used in applications such as
headers and beams. It is currently
only manufactured by
Weyerhaeuser (TrusJoist) in the
United States and Canada.
1.1.3
Introduction
Oriented strand
lumber/Laminated strand lumber
(OSL/LSL) (TimberStrand®)
Figure 2: Parallel Strand Lumber (Parallam)
Courtesy of APA-EWS
OSL and LSL are similar products and are also similar to oriented strand board (OSB). In the
production of OSL and LSL panels, chips are aligned in the same direction and, like LVL, the
panel is resawn into lumber sized dimensions. OSL and LSL are differentiated by the
dimensions of the constituent strands. PSL and LSL require the length of strands to be a
minimum of 150 times the least dimension of the strand. The average length of the OSL strand
needs to be between 75 and 150 times the least dimension. Timberstrand reportedly conforms
to the LSL specification. Both LSL and OSL can be used in a wide range of applications
including timber framing and utilise species such as aspen and poplar that are not generally
suitable for the production of solid timber products.
1.1.4
Engineered strand lumber (ESL)
ESL is a new product currently being developed by Lignor in Australia. The product is similar to
LSL and OSL, but will be manufactured from eucalypt and will have longer strands. It is
expected to be a special product with high strength characteristics, and inherent , water and
termite resistant characteristics, while the strength, water and termite resistance of LSL and
OSL will depend on the type of resource that is used. A wide range of strength and durability
characteristics are likely to emerge in these products over the next decade.
1.1.5
Glue laminated lumber (Glulam)
Glulam consists of sawn timber shorts, usually without defect, finger-jointed and face-glued to
produce large dimension beams. The finger-joints and use of defect free timber provide a high
strength product, usually superior to sawn timber of the same species. The process also allows
for the production of large dimensional timber and very long spans. As well as heavy structural
applications glulam can be curved and is often used for appearance applications, or in
situations such as exposed beams that take advantage of both the structural and appearance
qualities of the product.
4
© BIS Shrapnel Pty Limited 2009
Introduction
1.1.6
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
Wooden I-joists
Figure 3: Engineered wood products
Wooden I-joists are manufactured by
LVL, OSL and I-joists
combining a flange, of LVL, solid
timber, or strand lumber, and a web,
of OSB or plywood. The top and
bottom chord/flange typically has
dimensions of 40mm to 65 mm. The
depth of the joist is determined by the
width of the web, with the depth
typically ranging between 150 mm
and 450 mm. The use of strand
lumber in the flange of I-joists has the
potential to increase strongly in the
next few years, as new strand lumber
facilities are developed in North
America, Europe, Australasia and
possibly China. This may enable the
Courtesy of APA-EWS
production of an I-joist with the flange
and the web made of the same material, as strand lumber and OSB are manufactured using a
similar process.
1.2
Industry developments
There has been considerable change in the industry over the past decade.
The industry in North America consolidated in the late 1990’s and the early part of the new
century, with very limited addition to production capacity from 2005 to 2008. Despite the lack of
new production facilities over this period, consumption continued to strengthen until the recent
sub-prime mortgage crisis and the ensuing economic and housing construction slump in the
United States. While much of the overcapacity that was weighing down the industry had been
absorbed by 2007, with high capacity utilisation rates, the subsequent downturn has resulted in
significant overcapacity, which will need to be absorbed quickly during the forthcoming upturn if
capacity is to expand further. The LVL and glulam industries will also need to compete with
the development and expansion of strand lumber over the forecast period, while the I-joist
industry will have the option of incorporating strand lumber as a competing product to LVL and
solid timber.
Production capacity of LVL and I-joists in Australasia has expanded rapidly over the past
decade, and the past three years has been characterized by the absorption of new capacity
and growth in imports. Growth in production capacity and consumption in Australasia will likely
strengthen over the next five years, as the economy and construction industry moves into an
upswing following the current cyclical low. The prospect of increased exports will contribute to a
more positive environment for expansion in production capacity, as will constraints on the
availability of domestically produced sawn timber. The development of strand lumber will
compete with LVL and glulam for market share, and is a potential product to incorporate into Ijoists.
By 2005, Europe had absorbed much of its available LVL production capacity, and there has
been considerable expansion in Finland in 2004 and 2005, and more recently in Germany and
Russia. There has also been considerable expansion in I-joist and glulam production capacity
since 2006, and a restructuring of the industry. Following the current downturn in housing
construction, there will be further opportunities to expand production capacity.
© BIS Shrapnel Pty Limited 2009
5
Structural Engineered Wood Products in the Pacific Rim and Europe 2009–2013
Introduction
While the current economic and housing downturn has created a climate of uncertainty, the
underlying fundamentals suggest that over the longer term, there will be significant potential to
expand I-joist capacity, and the capacity to produce products such as LVL and OSL. Much of
the increase in glulam production capacity has been targeted at Japan. Exports of glulam to
Japan grew rapidly in the three years to 2007, but have more recently been subdued.
The market for LVL in Japan has been relatively flat over the past five years, and is likely to
remain so over the next five years. While glulam consumption in Japan grew rapidly in the
three years to 2007, the market has become very competitive, with the increased availability of
glulam from exporters in Europe.
1.3
Objectives
The main purpose of this report is to provide an assessment of the global prospects for LVL,
I-joists and glulam, to allow companies to make informed decisions with respect to production,
trade and investment.
The report aims to:
1.4

Forecast demand and supply of LVL, I-joists and glulam, taking into account the expanding
market share of these products in key end use applications;

Identify the existing players in the industry

Identify key end use applications within each of the main consuming countries and the
potential to increase consumption within these applications by substitution for other
materials;

Identify potential new applications for LVL, I-joists and glulam within each of the key
consuming countries;

Identify opportunities for investment in LVL, I-joist and glulam production capacity and the
timing of investments to best take advantage of capacity utilisation requirements.
Methodology
The general methodology used for this study is the product of 30 years of methods research
and development by BIS Shrapnel, combined with the experience and background of the
author.
The report compiles both publicly available and private company data on the engineered wood
products industry from a variety of sources. A key element of the methodology was the field
research, which included interviews with major producers, industry associations, distributors,
and research organisations in the key producing and consuming countries. These interviews,
together with published data, provide the basis for the analysis and forecasts for the engineered
wood products industry in each country.
6
© BIS Shrapnel Pty Limited 2009
Introduction
1.5
Structural Engineered Wood Products in the Pacific Rim and Europe 2009 – 2013
Organisation of report
The report is organised into chapters by six regions, including North America, Australasia,
Europe, North Asia, Southeast Asia, and South America. The LVL, I-joist and glulam industries
are analysed separately by country within each region. For each country the report provides
economic and building industry trends and forecasts, an overview of the resource, and
historical data and forecasts for production, consumption, and prices where they are available.
The executive summary brings together the key conclusions and findings, and provides an
interregional comparison and global overview of the industry. The regions and key countries
are:

North America: Canada, United States

Australasia: Australia, New Zealand

Europe: Finland, Germany, United Kingdom, France

North Asia: Japan, China

Southeast Asia: Malaysia, Indonesia, Vietnam

South America: Chile, Brazil.
© BIS Shrapnel Pty Limited 2009
7
Structural Engineered Wood Products in
the Pacific Rim and Europe:
2009 – 2013
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