Panel investments in the Asia Pacific regionFriday 4 May 2012 Asia’s dominant position in the global panel demand and supply cannot be challenged, but in the future the real game changes will be raw material supply security, uncertain and high cost energy, access to the state-of-art technology and best-in-class industry practices.The demand for wood panels originating from Asia Pacific accounted for more than half of the global demand in 2010, by far overtaking Europe, the historical leader. 76% of the 2010 Asian Pacific demand came from China. Undoubtedly, China is set to experience the highest growth rates in the next decade making the gap between them and the Western world even more pronounced. At the same time, China has an insufficient domestic wood fibre supply, and massive new demand for energy, which create a huge challenge for local panel producers. In response, the renewable bioenergy appetite for woody biomass has started to add pressure to the already felt fibre supply imbalance. For a number of industry leaders Asia Pacific remains earmarked as the strategic direction, however the region continues to be both an opportunity and a huge challenge for investors. The new investment hot spots continue to emerge in Asia Pacific, although many investors either had their fingers burnt in the past or continue to wait for the return on investment. Nevertheless, the local producers are in acute need of the access to the state-of-art technologies as well as best-in-class management practices, especially supply chain management and sustainability. Against this background, Pöyry Management Consulting has decided that it is the right time to publish the new Pöyry Viewpoint report entitled ‘The Asia Pacific Panel and Surfacing Industry – Investment Hot Spots.’ The report will be ready in autumn this year and, based on an extensive programme of direct dialogue with key industry players, will provide an in-depth analysis of the fundamentals of the local market, industry and fibre supply dynamics. Dr George Goroyias, the newly appointed Head of Wood Products Asia Pacific at Pöyry Management Consulting said: "This industry Viewpoint report aims to address key questions for investors and to provide direction on where growth opportunities in the Asia Pacific region are. It also identifies challenges and how best to address them. It is a strategic analysis that every CEO who is planning investment in the Asia Pacific region should read and use to stress test their growth plans. China will continue to be a major industry paradigm shift, driven not only by its booming demand but also by re-examining the sustainability of traditional trade flows of raw, semi-finished and finished products to and within the APAC region." "The anticipated increase in China's panel production is going to put enormous pressure on regional resources and energy to satisfy this demand", said Rudolf van Rensburg, Head of Land and Forests Asia Pacific at Pöyry Management Consulting. "Commonly South East Asia is seen as the platform to grow incremental volumes but the reality is that land availability will seriously constrain possibilities. What we are seeing in the market at present is that CEOs are contending with diverse strategies to address sustainability and profitability concerns. The future of fibre supply security rests with those companies bold enough to take strategic supply chain and resource positions." For more information and report brochure, please contact Dr George Goroyias at www.poyry.com.au.
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