High-quality processed hardwood and softwood wood fibre for MDF manufacturing
Medium-Density Fibreboard - generally referred to as MDF - has become the material of choice for carpentry, cabinet-making and other joinery applications. Formed from a combination of hardwood and softwood wood fibres, which are glued under heat and pressure, it is stronger than plywood or chipboard and can be easily cut, drilled, machined and filed.
Since large-scale manufacturing commenced in the early 1980s, MDF production has grown dramatically, and today stands at circa 85 million m3 per annum; 50% of it produced in China, and 25% in Europe.
Turkey is the largest manufacturer of MDF in Europe, producing over 5 million metric tonnes in 2014 from six major plants, most of which are located close to the Black Sea. In that year, the country’s MDF output was estimated to be worth more than US$2.5 billion, and is forecast to grow 8% per annum to reach over US$3 billion in 2017.
Although much of its MDF production is destined for overseas markets - one manufacturer operates the largest MDF manufacturing complex in the world, and exports its products to over 40 countries - Turkey is also the largest European consumer of MDF panels, with local consumption in 2013 increasing by 7% to 4.4 million m3.
Over the past few years, Active Energy Group’s wood fibre processing division, AEG WoodFibre, has become a major supplier of raw material - in the form of high-quality wood chip - to several of the leading Turkish MDF manufacturers; and is now the largest exporter of processed wood products from Ukraine.
AEG WoodFibre operates from a dedicated state-of-the-art production facility at Yuzhny Port, near Odessa on the Black Sea, from where it produced and shipped over 150,000 metric tonnes of industrial wood chip in 2014, more than double the volume that it achieved in 2013, and this growth is expected to continue into 2015 and beyond.
Under the direction of an expert local management team, AEG WoodFibre has secured long-term hardwood and softwood supply contracts - primarily non-saw logs/technical lumber and forestry thinnings - with the State Forest Resources Agency of Ukraine; and now receives and handles some 200 rail wagons, each containing more than 40 tonnes of raw timber, at its Yuzhny Port facility every week.
Having demonstrated to its clients that it can reliably supply bulk quantities of high-quality fresh material in one-tenth of the time taken by alternative transatlantic supply sources - thus providing them with significant freight cost savings and cashflow advantages - AEG WoodFibre has committed to a large-scale investment programme to significantly increase its wood chip manufacturing capacity, and to introduce a new softwood product range.
The impact of this investment is already being reflected in its results from Q4:2015 onwards, and AEG WoodFibre expects to continue to grow both its volumes and operating margins - as well as its share of the Turkish MDF raw material supply market - over the coming years.
For more information on AEG WoodFibre and how we may be able to work together, please complete our Contact Us form.
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