Panels & Furniture Asia July/August 2020

MICA (P) No: 079/05/2019 • ISSN: 0219-5704 • KDN: PPS 1453/11/2012(022879) • www.panelsfurnitureasia.com • JULY/AUGUST 2020

PRODUCE SMARTER
Digital solutions that simplify
your daily routine
Digitalization and automation make your
life easier. With permanent conditionmonitoring,
self-controlled production
solutions and the MyDieffenbacher
platform, you can make faster and safer
decisions, work efficiently and increase
the productivity of your plant.
www.dieffenbacher.com
Wood-based panels
Digitalization

BIFA WOOD
VIETNAM 2021
www.bifawoodvietnam.com
NEW DATE: 11-13 March 2021
Venue:
Binh Duong Convention &
Exhibition Centre (open ground)
Duong Hung Vuong, Phu Hoa ward,
Thu Dau Mot city, Binh Duong province,
Vietnam
Google Map
QR code
Exhibition Site
WOOD &
WOODWORKING
MACHINERY
EXHIBITION
Enquiries For International Exhibitors
Pablo Publishing & Exhibition Pte Ltd
3 Ang Mo Kio Street 62 #01-23 Link@AMK
Singapore 569139
Tel: (65) 6266 5512
Email: williampang@pabloasia.com
info@pabloasia.com
WeChat
Jointly organised by
BINH DUONG FURNITURE ASSOCIATION (BIFA)
PANELS & FURNITURE Group
BINH DUONG FURNITURE ASSOCIATION

Contents
July / August 2020 • Issue 4 • Panels & Furniture Asia
6 | EDITOR’S NOTE
8 | NEWS
PRODUCT HIGHLIGHT
16 | Baumer presents simple-to-integrate drilling pattern control with
smart 3D technology
MARKET REPORT
18 | US Hardwoods . Market Observations and Post-Pandemic Outlook
22 | Diversifying Global Supply Chains – What’s next for South East Asia?
PANEL MANUFACTURING
26 | Smartech: Transforming manufacturing with smart technology
30 | Dieffenbacher Evojet M 2.0
FURNITURE MANUFACTURING
32 | Nanxing and Okelo join hands to welcome the new era of smart
furniture production
34 | Demystifying the path towards Batch Size 1 Production
38 | Transforming and modernising end-to-end operation for flat panel
furniture production
40 | An Insight into the Russian Furniture Market: Today and Beyond
32
MATERIALS
44 | Employee Safety First. Sawmill operations continue as forest products
industry deemed essential during pandemic
46 | Stylish furniture, with Sustainability to match
48 | Gabon Special Economic Zone: A world-class integrated woodworking
destination
STRUCTURAL ELEMENTS
52 | Unfolding an origami coup de maître
DESIGN
56 | The Hoa Mai Furniture Design Competition 2020
58 | Calgary Central Library – where Ice and Timber meet
SHOW PREVIEW
62 | A prelude to industry recovery: Triple-packed CIFM -
interzum guangzhou 2020 returns this July
COLUMNISTS
64 | Wood Clinic: Reasons for cracked glue lines on coffee table made from
Nyatoh wood
68 | MMMA Newsletter: Surviving the Resurgent Coronavirus Crisis
34
70 | CALENDAR OF EVENTS
71 | ADVERTISER’S LIST
52

FROM THE EDITOR
PANELS & FURNITURE ASIA
PABLO SINGAPORE
Publisher
Associate Publisher
William Pang
williampang@pabloasia.com
Pamela Buckley
pamela@pabloasia.com
HIU YAN | Editor
As we enter the new normal of the post-pandemic world, the path ahead may
be fraught with uncertainty but difficult times are often the best breeding
ground for new strategies, new ideas and new breakthroughs.
One such example is the disruption of supply chains brought upon by the
pandemic. Many companies are now compelled to rethink their sourcing
strategies. Companies have to reduce reliance on the world factory that is
China – either by finding suppliers from other countries or building secondary
facilities in regions like South East Asia (SEA). Several SEA countries are
serious contenders. What can they do to seize these new opportunities? What
is next for China? The answers can be found in the report on diversifying
global supply chains on page 22.
As the race to develop a new vaccine continues, the reality that the current
global pandemic will be a recurring one for some time is forcing companies
to manage unforeseen economic hardship, complexity and volatility, opines
Peter Fitch, founder of Segamat Panel Boards (Malaysia) and chairman of
the MMMA. Fitch offers some advice on the steps that companies can take to
survive the coronavirus crisis. (Pg. 68)
In Singapore, the government is urging employees that are furloughed or
retrenched to take the chance to upskill. Likewise, manufacturers in the wood
and wood products industries can also consider how to improve their method
of production during this down time. Now that furniture production is shifting
from mass production to customised manufacturing, batch size 1 production
will become the global trend, according to the industry experts interviewed
by PFA. Manufacturers in SEA, however, may not be ready to transform. The
experts listed common challenges faced by manufacturers in SEA and the
possible solutions. (Pg.34)
Lastly, a quote for our PFA readers, just to uplift:
Restarting and
relearning in
the new normal
“Prosperity is a great teacher; adversity is a greater. Possession pampers the
mind; privation trains and strengthens it.” – William Hazlitt
Senior Editor
Editor
Editor
Editor
Business Development Manager
Graphic Designer
Circulation Manager
PABLO BEIJING
General Manager
PABLO SHANGHAI
Senior Editor
Pang Yanrong
yanrong@pabloasia.com
Szeto Hiu Yan
hiuyan@pabloasia.com
Jo-Ann Teo
jo-ann@pabloasia.com
Josephine Tan
josephine@pabloasia.com
YanJun Pang
yanjun@pabloasia.com
Edwin De Souza
edwin@pabloasia.com
Shu Ai Ling
circulation@pabloasia.com
Ellen Gao
pablobeijing@163.com
Sharon Wu
pabloshanghai@163.net
HEAD OFFICE
PABLO PUBLISHING & EXHIBITION PTE LTD
3 Ang Mo Kio Street 62 #01-23
Link@AMK Singapore 569139
Tel : +65 6266 5512
Email: info@pabloasia.com
www.panelsfurnitureasia.com
Company Registration No: 200001473N
Singapore MICA (P) No: 079/05/2019
REGIONAL OFFICES (CHINA)
PABLO BEIJING
Tel : +86 10 6509 7728
Email: pablobeijing@163.com
PABLO SHANGHAI
Tel : +86 21 5238 9737 / 36
Email: pabloshanghai@163.net
All rights reserved. Views of writers do not necessarily reflect the views of the Publisher. No part of this publication
may be reproduced in any form or by any means, without prior permission in writing from the Publisher and copyright
owner. Whilst every care is taken to ensure accuracy of the information in this publication, the Publisher accepts no
liability for damages caused by misinterpretation of information, expressed or implied, within the pages of the magazine.
All advertisements are accepted on the understanding that the Advertiser is authorised to publish the contents of the
advertisements, and in this respect, the Advertiser shall indemnify the Publisher against all claims or suits for libel,
violation of right of privacy and copyright infringements. Panels & Furniture Asia is a controlled-circulation magazine with
two issues a year. It is mailed free-of-charge to readers who meet a set of criteria. Paid subscription is available to
those who do not fit our terms of control. Please refer to subscription form provided in the publication for more details.
let's connect!
@panelsfurnitureasia
Scan to subscribe to PFA’s enewsletter
Printed by Times Printers Pte Ltd
Panels & Furniture Asia
is the offi cial publication of
Malaysian MDF Manufacturers Association

8 | NEWS
July / August 2020, Issue 4 | Panels & Furniture Asia
BIFA WOOD VIETNAM POSTPONES TO 11 TO 13 MARCH 2021
ORIGINALLY scheduled to be held from
27 to 30 October 2020, BIFA WOOD
Vietnam has been postponed to 11 to
13 March 2021 due to the uncertainty
surrounding the COVID-19 pandemic.
The postponement seeks to protect the
safety and well-being of all exhibitors,
sponsors, delegates, trade attendees
and staff, as well as to allow key industry
players more time to participate.
BIFA WOOD Vietnam 2018 was a
resounding success, with 183 exhibitors
and 740 booths spreading across a
massive hall of 14,500 square metres.
The exhibition was attended by about
4,200 visitors seeking the latest
technologies and products in the furniture
manufacturing and woodworking sectors.
BIFA WOOD Vietnam is organised by two
of the most influential brands in South
East Asia’s timber and woodworking
sector – Binh Duong Furniture Association
(BIFA) and Panels & Furniture Asia Group
of wood magazines. P
FIRST VIETNAM SUSTAINABLE FOREST MANAGEMENT
CERTIFICATES GRANTED TO RUBBER FORESTS
THE first Vietnam Sustainable Forest
Management Certificates has been
granted to more than 11,400 hectares
of rubber forests under the management
of the Vietnam Rubber Group (VRG),
reported Nhan Dan Online.
The Vietnam Administration of Forestry
(VNFOREST) granted the certificates
to VRG companies, including the Binh
Long, Phu Rieng and Dau Tieng Rubber
Companies, at a ceremony held in Ho Chi
Minh City on 17 May.
The event also evaluated the coordination
results between VNFOREST and VRG in
implementing a project on sustainable
forest management and forest certification
back in 1 October 2018, to promote
the certification of sustainable forest
management in Vietnam.
Under the scheme, nearly 60,000ha of
rubber was set to be planted under the
sustainable forest management plan
which aimed to offer the Vietnam Forest
Certification Scheme (VFCS) certification
for six rubber processing factories.
EXPERT VALUE OF PROCESSED
RUBBER WOOD PRODUCTS:
US$2.5BN
Speaking at the event, Deputy Minister
of Agriculture and Rural Development Ha
Cong Tuan said that Vietnam has nearly
one million hectares of rubber forests,
generating between 3 to 3.5 million m 3
of raw materials from rubber wood every
year, while the export value of processed
products from rubber wood also reached
US$2.5bn. Therefore, rubber wood is also
an important and sustainable source of
raw materials for the wood processing
industry and exports of forest products.
Vietnam's Sustainable Forest Management
Certificate is important in promoting
the certification of sustainable forest
management and developing the market
for legal timber and "clean" raw materials
for Vietnam’s wood and forest product
processing industries and exports, Tuan said.
It is also an affirmation of the country’s
activeness in executing sustainable forest
management and forest certification,
especially since Vietnam's forest
certification system has been recognised
worldwide.
In 2020, VNFOREST and VRG will register
for sustainable forest management
certification for at least 50,000ha of
rubber. In addition, at least 15 training
courses will be organised on sustainable
forest management and product chain
management to enhance the capacity and
awareness of VRG companies.
A sustainable forest management plan
is set to be deployed by 10 rubber
companies under VRG. The group also
aims to register the VFCS certification for
15 wood processing enterprises under its
management. P
INDIA TO CONSIDER INVESTING US$10 TO $11 BILLION
TO BOOST DOMESTIC PRODUCTION OF FURNITURE
INDIA’S government is considering
proposals to invest US$16 to $17
billion to boost domestic production of
various consumer items, including
furniture, air conditioners and its
components, and leather footwear. This
is to reduce import dependence and
increase exports, other measures may
include duty hikes, reported Times of
India on 3 June.
Among the priority sectors that will be
receiving support from the government,
the furniture sector may receive one of the
largest amount of investment amounting
to US$10 to $11 billion to set up three to
four clusters or hubs near ports, that are
also close to the wood producing areas.
In recent years, India’s furniture market
size is worth US$10 to $12 billion, with
imports valued at US$1.5 to $2 billion.
Over 50% of imports come from China.
DUTY HIKES AND A NEW FORESTRY
POLICY
Duty hikes on wood products are also
being considered by the government, as
well as the long-term solution for a forestry
policy that supports the environment and
the economy, referring to Vietnam as a
successful example. P

July / August 2020, Issue 4 | Panels & Furniture Asia NEWS | 9
BIESSE LAUNCHES INTERACTIVE DIGITAL PLATFORM – A NEW
WAY TO LEARN ABOUT TECHNOLOGICAL INNOVATION
BIESSE is launching the Digital Arena, an
innovative digital platform that enables
live demonstrations and educational
webinars, to present advances in
technology, innovation and R&D, as well
as software and training activities.
"We are facing a cultural shift that will
impact our marketing strategies and the
way we use communications channels,
which is why we have revisited our
strategy to better serve customers all
over the world," stated Raphaël Prati,
corporate marketing communications
director.
“The platform will serve as our ‘digital
site’, a virtual Campus that is the digital
equivalent of our real world showrooms
and campuses, a place for customers
Biesse’s new Digital Arena, an
innovative digital platform that enables
live demonstrations and webinars
to go when they want to learn more
about the solutions we offer through our
technological or internal tours,” Prati
continued.
“The Digital Arena is an interactive portal
that will host digital events by Biesse,
Intermac and Diamut. Visitors will be
able to log in and attend webinars and
participate in live demos. It's a single
digital location dedicated to wood,
advanced materials, and the glass and
stone processing industries – a place for
inspirational content and for prompting
dialogue and trading ideas.” P

10 | NEWS
July / August 2020, Issue 4 | Panels & Furniture Asia
NORTH AMERICA KITCHEN CABINETS SALES
DOWN 22% FOR APRIL 2020
ACCORDING to the Kitchen Cabinet
Manufacturers Association (KCMA)’s
monthly Trend of Business Survey,
participating cabinet manufacturers
reported a significant decrease in overall
cabinet sales of 22% for April 2020,
compared to the same month in 2019.
Custom sales are down 30.4%, semicustom
decreased 25.4%, and stock
sales decreased 17.8%.
In March 2020, COVID-19 was declared
a national pandemic and the results of
the economic shutdown can be seen in
the monthly numbers. Overall cabinet
sales were down 30.9% in April 2020
compared to March. Custom sales
decreased 35.7%; semi-custom sales
decreased 31.5%; and stock sales
decreased 29.6% compared to the
previous month.
Overall year-to-date cabinet sales are
down slightly at 1% due to the April dip.
Custom sales decreased 4.1%, semicustom
sales are down 5.9%, and stock
sales remain strong at an increase of
3.2% YTD.
Survey participants include stock, semicustom,
and custom companies whose
combined sales represent approximately
75% of the US kitchen cabinet and bath
vanity market.
KCMA is the major trade association
for kitchen cabinet and bath vanity
manufacturers and key suppliers of goods
and services to the industry. All major
US cabinet manufacturing companies
belong to KCMA. 63% of KCMA cabinet
manufacturer members report sales
below $10 million annually, reflecting
the importance of small manufacturers
in the industry. P
ACIMALL: 1Q 2020 PERFORMANCE OF THE ITALIAN WOOD FURNITURE
TECHNOLOGY INDUSTRY HEAVILY IMPACTED BY COVID-19
ACCORDING to the analysis of data
collected by the Studies Office of Acimall,
the Confindustria-member association
representing the Italian wood-furniture
technology industry, findings that
confirmed an immediate impact of the
lockdown caused by the COVID-19
pandemic is unsurprising. The first
quarter of 2020 closed with a widespread
reduction in woodworking machinery and
tool orders, with a two-digit decrease
involving all global markets, though with
some delay.
The quarterly survey – which involves
a representative sample of the entire
industry – has revealed a strong reduction
of orders by 21.1%, compared to the
same period of 2019. The slight delays
mentioned above have probably mitigated
the impact for international customers,
down by 19.4%, which is not so bad as
the 25.3% decline recorded by domestic
demand.
“It is clear that the widespread shrinkage
and later lockdown of production activities
has impacted the results, causing a
demand crisis that will probably influence
the entire year. The actions of national,
European and global governments and
institutions to support the economy and
each industry will be critical in the near
future," said Dario Corbetta, general
director of Acimall.
The book of orders is at 2.6 months, while
prices have been increasing by 0.8%. In
a situation that is not just “difficult”, the
revenues in Q1 obviously showed a very
different trend from orders, which was
only down by 8.8%. Basically, industry
companies could finalise and deliver all
pending orders, but uncertainty for the
future have led too many customers to
postpone all investment decisions, waiting
for a safer outlook.
QUALITY SURVEY: A STATIONARY
TREND TO BE EXPECTED
The quality survey reveals all the fears of
industry entrepreneurs: 69% of surveyed
companies expect drop in production,
19% predict some stability and only 12%
believe in a positive trend. A “stationary”
trend is also expected for employment,
according to 75% of the sample, while
6% expect an increase and 19% fear
shrinkage. Available stocks are stationary
according to 44%, increasing according
to 37% and falling according to the
remaining 19%.
SURVEY: SOME STILL HOPE TO SEE
INCREASE IN FOREIGN ORDERS
As for the sentiment for the near future,
the forecast survey shows a situation
dominated by worry – both for the trend of
domestic demand and for the poor chances
to find compensation abroad: 13% of the
interviewees expect an increase in foreign
orders, but 31% believe there will be no
change and 56% fear that the worst is yet
to come. No business owner is optimistic
about incoming orders from the Italian
wood and furniture industry: 37% hope
for some stability while 63% believe the
downward trend will continue. P

July / August 2020, Issue 4 | Panels & Furniture Asia NEWS | 11
HOMAG GMBH TAKES OVER THE REMAINING SHARES IN WEINMANN
HOMAG GmbH acquires the remaining
24% of the shares of WEINMANN
Holzbausystemtechnik GmbH. HOMAG
GmbH now holds 100% of the shares
in the company and strengthens its
competence and commitment in the solid
wood sector.
WEINMANN has been part of the HOMAG
Group and has been the expert for timber
construction since 1998. As a leading
provider of high-performance machines
and systems for timber construction,
WEINMANN develops innovative and
customised solutions for carpenters and
prefabricated house manufacturers. Over
5,000 WEINMANN machines are in use by
manufacturers worldwide.
The HOMAG Group is strengthening its
commitment in the solid wood sector,
including the entire process chain in timber
construction. The topic of sustainability
plays an important role here; Wood as a
renewable raw material is still one of the
most important and ecologically most
valuable raw materials worldwide. Driving
this forward is a task for the future.
Josef Zerle, head of the business unit
Surface Technology within the HOMAG
Group and expert in solid wood, will
join WEINMANN's management on
1 July 2020. In addition to Mr. Zerle, the
management consists of Hansbert Ott
and Sven Schempp, who will also become
management spokesman on 1 July.
After 28 years, Mr Ott will step down as
managing director of WEINMANN on 30
November 2020. However, he will continue
Management of WEINMANN (from left to right): Josef Zerle,
Hansbert Ott, Sven Schempp (Image credit: WEINMANN)
to be available in an advisory capacity. The
success of WEINMANN is closely linked
to Mr Ott, whose aim has always been to
strengthen and promote global timber
construction and to offer customers the
right solutions. P

12 | NEWS
July / August 2020, Issue 4 | Panels & Furniture Asia
SVEZA DEVELOPS FLEXIBLE PLYWOOD
SVEZA has launched for production an
innovative product, Sveza Flex flexible
plywood, for building structures with
complex geometries. The product is a
unique solution which is now undergoing
the patenting process, and which belongs
to Sveza.
The new product is ideal for building
pillars, tunnels, water treatment
facilities, cultural and sports objects, and
everywhere where concrete structures
with nonstandard geometry are required.
At present, the flexibility issue can only
be handled at the construction sites:
they soak plywood in water, make cuts or
rounded shape by arranging thin stripes
and then joining them butt-to-butt and
sticking them together. This is a labourand
time-consuming process; special
fastening systems and special equipment
are also required. Apart from that, there
are substitutes (soft plywood, cardboard
formwork, metal formwork) used for the
creation of complex-geometry structures.
However, they have their application
limits – cardboard formwork tends to lose
shape and is only suitable for building
small-size objects with a radii of less
than 1.2m. Metal formwork is difficult
to transport and deliver to site and it
cannot change its radius even within the
minimum range.
LIGHTWEIGHT AND EASY TO
TRANSPORT
The new Sveza plywood family can be
easily transported since it is shipped
as sheets on pallets. Special attention
should also be paid to the weight of the
formwork kit: the weight of new Sveza
product is 328kg, while the weight of the
metal one is 1130kg. Sveza Flex makes
it possible to customise shapes and sizes
according to customers’ needs. It can be
easily stored after the use: it regains the
initial shape after being dismantled.
Sveza Flex has various versions which
enable its use in multiple construction
and finishing industries. Sveza Flex
Coated with smooth laminated coating
can be used for the construction of large
objects. Plywood with Paint coating
can have required shades and thus it
can be used for interior solutions with
Sveza Flex flexible
plywood is ideal for
building pillars, tunnels,
water treatment facilities,
cultural and sports objects
(Image credit: SVEZA)
elaborate geometry. Sveza Flex Uncoated
can be adjusted to any radii without
extra treatment and increased machine
pressure; it is suitable for creating
smaller structural elements such as
pillars, outdoor structures and landscape
elements.
“Company specialists have carried out
patent search and discovered that the
market has no savvy plywood solutions
similar to our product. Here, Sveza Flex
can replace any existing type of curved
formwork. At least two months have
already passed after our product was
released, and we have witnessed growing
interest from buyers. The company has
already reached agreements to supply
this product to some clients and official
distributors,” said Eugenia Khoseiny,
product manager of Sveza. P
INDONESIAN PLYWOOD AND FURNITURE EXPORTS
TO US ON THE INCREASE
AGUS SUYONO, head of the Samarinda
Agricultural Quarantine Center, has
reported that plywood export to the US
during the first quarter of 2020 earned
around Rp5.56 billion (approximately
US$392,100). This first quarter
performance represents an 8% increase
compared to a year earlier, reported
ITTO.
He also said that exports to China, India,
the Philippines, Singapore and Thailand in
the first 4 months of 2020 totalled 4,914
cubic metres.
According to Suyono, despite the
pandemic, plywood exports to the US
have continued to be largely unaffected
and he put this down to Indonesia’s rising
competitiveness in the international
plywood market.
MORE NEW ORDERS FOR
INDONESIAN FURNITURE FROM
US BUYERS
Furniture craftsmen in Solo, Central
Java, has started producing for recently
received orders from buyers in the
US. Irawan Mintorogo, head of Marketing
for the Soloraya Furniture and Craft
Industry Community (Kimkas) in Solo
said there had been a period when no
orders were arriving but that has now
passed. He pointed out that buyers in
the US were the first to place orders,
unlike buyers in the EU who were still
hesitant. P

July / August 2020, Issue 4 | Panels & Furniture Asia NEWS | 13
MALAYSIA PALM OIL BOARD PARTNERS TECHBOND
GREENTECH TO PRODUCE PALM-BASED POLYOL
MALAYSIAN PALM OIL BOARD (MPOB) and
Techbond Greentech Sdn Bhd will start to
produce palm-based polyol that will be
used as a component in polyurethane
adhesives, replacing formaldehyde-based
adhesives, reported The Star.
Using the polyol technology developed
by MPOB, Techbond Greentech will
produce sustainable palm oil-based
polyol to create new industrial grade
polyurethane adhesives, followed by the
commercialisation of the product.
MPOB and Techbond signed a technology
development deal for the production of
polyol on 9 June. MPOB director-general
Dr Ahmad Parveez Ghulam Kadir handed
over the document for the licensing
technology to Techbond Greentech’s
managing director Lee Seng Thye. MPOB
chairman Datuk Ahmad Jazlan Yaakub
witnessed the signing.
In February last year, MPOB and Techbond
Greentech signed a memorandum of
agreement for the commercialisation
of palm-based polyol technology. The
deal involves two stages – research and
development to produce polyurethane
adhesive formulations, followed by
commercialisation of technology.
Ahmad Jazlan said MPOB's expertise in
developing technology in the oil palm
industry provides opportunities for local
companies and small medium enterprises
to capitalise on the business opportunities
to commercialise new technology.
Lee said the joint venture enabled
Techbond Greentech to become a pioneer
in the palm oil-based industrial grade
adhesives.
“We are confident that we will be able
to produce an environmentally friendly
industrial adhesives without the release
of formaldehyde, based on the company's
initial assessment," added Lee.
Ahmad Parveez said research on the
production of palm-based polyol for use
in polyurethane and non-polyurethane
foam products has been conducted since
the early 90s.
The process of producing palm-based
polyol by MPOB was patented in Malaysia
(MY-145702-A) and the United States
(US7,932,409 B2), in 2007 and 2008,
respectively.
As of 2019, MPOB has patented 369
technologies, launched 667 technologies
and 174 services for commercialisation
purposes. P

14 | NEWS
July / August 2020, Issue 4 | Panels & Furniture Asia
MALAYSIAN GOVERNMENT PARTNERS MTIB TO BUILD BAMBOO PLANTATION,
IN FIRST STEPS TO TURN BAMBOO INTO LARGE-SCALE INDUSTRY
BAMBOO-based timber industry and
bamboo shoot processing (for food)
industry have the potential to offer good
returns and job opportunities in Malaysia,
in addition to being a more environmentfriendly
industry.
In a report by New Sarawak Tribune,
Primary Industries and Commodities
Minister Datuk Dr Mohd Khairuddin Aman
Razali said bamboo has the potential of
becoming the country’s new economic
resource, in line with the National Timber
Industry Policy and Bamboo Industry
Development Action Plan 2.0, he said
in an interview with Shukri Rahman, an
observer of the bamboo industry.
BAMBOO INDUSTRY DEVELOPMENT
ACTION PLAN EXPECTED TO BE
LAUNCHED IN OCTOBER
Mohd Khairuddin said the Bamboo
Industry Development Action Plan 2.0
(2021-2030), which is expected to be
launched in October, would introduce
a comprehensive programme for the
bamboo industry, in bid to transform it
into a large-scale industry for both the
upstream and downstream sectors.
He said a steering committee would be
set up at the ministry level to coordinate
all activities and monitor the plan’s
implementation.
MODEL BAMBOO PLANTATION TO BE
DEVELOPED AS A JOINT VENTURE
BETWEEN THE GOVERNMENT AND
MALAYSIAN TIMBER INDUSTRY
BOARD
He said a model bamboo plantation
would be developed on 15 hectares in
Terengganu with an allocation of RM5
million (from Malaysian Timber Industry
Board’s cess collection) as a joint venture
between the state government and
Malaysian Timber Industry Board (MTIB).
Five bamboo species will be cultivated,
namely buluh semantan, buluh betong,
buluh beting, buluh beti and buluh hitam.
MTIB director-general Mohd Kheiruddin
Mohd Rani said that several large
companies have expressed interest in
the bamboo sector. Previously, up till
2016, virtually all industry players in
the bamboo industry had been micro
enterprises.
“In the last two to three years, large
players, both upstream and downstream,
began to emerge in the bamboo industry,”
he said.
Among the companies currently engaged
in bamboo planting activities are New
Generation Bamboo (Nami in Sik,
Kedah) and Subur Tiasa Sdn Bhd (Sabal,
Sarawak).
Some of the benefical characteristics of
bamboo include high resistance to pests
and diseases and its ability to absorb
four times as much carbon dioxide while
releasing 35% more oxygen compared to
other plants. The plant has a life cycle of
about a hundred years. P
SLOWER GROWTH IN VIETNAM’S WOOD AND
WOOD PRODUCT EXPORTS IN APRIL 2020
ACCORDING to statistics from Vietnam
Customs, exports of wood and wood
products (W&WP) during April 2020 were
worth US$697 million, down by a third
compared to March but 19% higher than
in April 2019, reported ITTO.
April wood product(WP) exports, in
particular, fell sharply, dropping around
35% to US$434 million against previous
month and by 25% compared to April
2019. Despite the declines in April, W&WP
exports remain in the top six groups of
Vietnamese export commodities.
In the first four months of 2020,
WP exports alone amounted to
US$2.272 billion, up by 2% compared
to the same period in 2019 and
accounted for 69% of total W&WP
exports, down slightly year on year.
In previous years, exports to the US
– the top buyer of Vietnam’s W&WP
– accounted for around 50% of total
exports but in the four months to April,
this dropped by 39%.
EXPORT MARKETS: W&WP
EXPORTS TO EU AND CHINA STILL
RISING SO FAR
Due to the impact of the pandemic on
global trade, April 2020 W&WP exports
to the main markets dropped compared
to previous months. However, in the first
four months of 2020, W&WP exports
to the EU and China were still rising
by 13% and 23% respectively.
However, this growth is unlikely to be
sustainable.
CHINA IS STILL THE LARGEST
W&WP SUPPLIER TO VIETNAM
In the first four months of 2020, China
was the largest W&WP supplier to
Vietnam at US$208 million, up by 41%
year-on-year and accounted for 28%
of total W&WP imported into Vietnam.
The second largest supplier was the US
but the value of imports dropped almost
10%. In contrast, W&WP imports into
Vietnam from Thailand, Chile and Brazil
fell by 11%, 24% and 14% respectively
over the same period of 2019. P

July / August 2020, Issue 4 | Panels & Furniture Asia NEWS | 15

16 | PRODUCT HIGHLIGHT
July / August 2020, Issue 4 | Panels & Furniture Asia
Baumer presents simple-to-integrate drilling
pattern control with smart 3D technology
The inspection system ColourBrain ® DrillCheck 4.0 is the
technological leader in the inspection of drill hole patterns
for coated and lacquered furniture components. Deviations
in the pattern and grooves are reliably detected, visualised and
alarmed.
The inspection can be carried out on one or both sides of
the component and with an additional module, also on the
narrow side - without adjustments to the decor and structure
and completely independent of height. The compact design is
optimised for fast setup and allows easy integration into the
existing production line. The system is available for three different
product widths and thus adapts to any production conditions.
Fixed preset, calibrated multi-sensors and predefined inspection
parameters on delivery ensure easy commissioning according
to the “plug-and-work” principle. With the ready-to-install
solution with laser scanning, the ColourBrain ® DrillCheck 4.0
inspects the entire product range in just a few steps and without
any adjustment to component thickness, surface structure or
decor. A product change is carried out with just a few clicks, or
automatically without further settings, adjustments and set-up
times. The user interface summarises the essential information
and supports the system operator in an optimal way.
A production with reliable, mechanical inspection meets the
requirements of a holistic quality inspection. Production reports
can further support producers by showing customers that they
qualify as preferred suppliers. The system is used for process
monitoring, both in series and batch 1 production.
The system is ideally extended with the narrow-surface inspection
ColourBrain ® X-Side 4.0, which uses compact camera heads to
additionally check the drill holes on the narrow sides. P

July / August 2020, Issue 4 | Panels & Furniture Asia PRODUCT HIGHLIGHTS | 17
5 th Edition
ASIA’S SPECIALISED
WOOD MATERIALS
WOOD PRODUCTS
TRADE SHOW
by Panels & Furniture Group of wood magazineswww.sylvawoodexpo.com
28 th -30 th JUNE 2021
SHANGHAI
CHINA
VENUE:
99 XING YI ROAD
SHANGHAI CHINA
JOINTLY ORGANISED BY
WeChat
China Timber &
Wood Products
Distribution Association
Shanghai
Timber Trade
Association
Shanghai Pablo
Exhibition Co., Ltd.
Enquiries For International Exhibitors
Pablo Publishing & Exhibition Pte Ltd
Tel: +(65) 6266 5512
Email: williampang@pabloasia.com
ENDORSED BY
American
Hardwood
Export Council
French
Timber
Softwood
Export Council
Canada Wood
Thai Timber
Association
Malaysian
Timber
Council
National
Hardwood Lumber
Association

18 | MARKET REPORT
July / August 2020, Issue 4 | Panels & Furniture Asia
US HARDWOODS
MARKET OBSERVATIONS AND
POST-PANDEMIC OUTLOOK
By: Judd Johnson Managing Editor, Hardwood Market Report
Business for US hardwoods has
contracted. After experiencing a
downturn that lasted more than
18 months due to the US-China trade
war, demand for US hardwoods suffered
further from the COVID-19 pandemic that
derailed trade worldwide.
Each of these factors, independently,
forced contraction in US hardwood
production and inventories. But,
importantly, the rapid deceleration
in business caused by the trade war
followed immediately by the COVID-19
pandemic has profound and, most likely,
lasting negative effects on US hardwood
production capabilities.
It is well understood that supply follows
demand, therefore decreases in sawmill
and lumber yard output are no surprise.
Yet, the supply decreases are not
necessarily aligned with demand for
specific species or grades of lumber.
Oddly, the estimated volume of lumber
being produced by US hardwood sawmills
is less than the total consumption, but the
availability of certain industrial products
and grade lumber items is more than
ample at present.
The best example of this circumstance
(at the time of this writing) is material
sawn for the domestic US wooden pallet
industry. Sawmills have had difficulty
selling pallet material and many have
accumulated inventory. Yet, the annual
rate of Eastern US hardwood sawmill
Chart 1
production through May dropped to
15.5 million cubic metres and production
decreased precipitously in the second
quarter.
The three-month moving average of
production (annual rate) at the end of
May was 13.6 million cubic metres; the
combined average annual rate for April
and May (available data for the second
quarter) was 12.2 million cubic metres;
and the annual rate of sawmill output for
the month of May was 10.2 million cubic
metres, which is the lowest volume for
any month in Hardwood Market Report’s
(HMR) sawmill production data series.
Throughout these declines, earlier
setbacks in business caused by COVID-19
created an inventory backlog of sawn
pallet material. Only after commerce
began reopening in the US following
the peak of the pandemic did pallet
lumber inventory surpluses begin to work
down. It is a fluid situation. As business
ramps back up for the pallet industry,
the trajectory of raw material demand
from this market sector is well above

July / August 2020, Issue 4 | Panels & Furniture Asia MARKET REPORT | 19
Graph 1
Graph 2
sawmill production for May. In fact, every
other major market sector for sawn US
hardwoods is at risk of future shortages
based on current sawmill production
rates.
The following images illustrate trends
that are now underway and how supply
circumstances could play out in the
future. Chart 1 shows the percentage
distribution of US hardwood lumber
consumed by the major market sectors,
with the Export category subdivided into
two groups: China and the Rest of the
World.
Following that are four graphs recording
Eastern US hardwood sawmill production.
Graph 1 depicts annualised 2020
year-to-date data alongside annual
production from 1960 through 2019.
Graph 2 shows annualised production
on a three-month moving average and
monthly basis. Graph 3 represents
quarterly production. The volume of
lumber produced in the second quarter
of 2020 is essentially the same as at
the low point of production during the
Great Recession (2009). Graph 4 depicts
monthly production from 2017 through
May 2020, with May 2020 being the
lowest recorded month for production
in the HMR series.
Merely an exercise to determine how
much lumber might be available on
an annual basis, Table 1 disperses
consumption (listed below and in the
Chart 1 image) across production trends
shown in Graphs 1 to 4 to reveal several
potential supply scenarios for each
major market sector.

20 | MARKET REPORT
July / August 2020, Issue 4 | Panels & Furniture Asia
It is imperative for readers to understand
that the data in these images are taken
from a specific period of time. It is certain
these numbers will change as 2020
progresses and reaches its conclusion.
As stated previously, conditions are fluid.
However, the data reveal notable
trends. Even though these trends might
change, data have clearly shown that
US hardwood lumber supplies and
production capabilities have contracted.
The volume of lumber once produced is
not being produced now. Furthermore,
sawmill and dry kiln production capacity
curtailments mean the volume of US
hardwood lumber previously entering
global markets will no longer be available
until there are positive shifts in business
direction. Excess supplies are diminished.
The abundance of future supplies is
uncertain. P
Graph 3
HMR is the leading source of pricing
and market information for North
American hardwoods. It has provided
reliable, expert analysis of pricing
and market trends to hardwood
companies throughout the world
since 1922. Sample copies and
subscription services for Hardwood
Market Report ® and all other HMR
publications are available online at
www.hmr.com.
Graph 4
Table 1

July / August 2020, Issue 4 | Panels & Furniture Asia MARKET REPORT | 21

22 | MARKET REPORT
July / August 2020, Issue 4 | Panels & Furniture Asia
Diversifying global supply chains
– What’s next for South East Asia?
By Szeto Hiu Yan
In the wake of the COVID-19 pandemic, the focus of discussion on whether foreign enterprises
will move out of China has shifted. Nowadays, the question seems to be “Will foreign enterprises
expand from China?” because by now, one thing is certain – foreign and even domestic enterprises
in China are removing some of their eggs from the China basket.
Countries in South East Asia (SEA) sit high on the list of preferred countries to relocate or build
a secondary facility in. In the context of the wood and wood products industry, which countries
will stand to gain the most? What can these countries do to seize these opportunities?
PFA seeks the opinions of several industry players and experts.
Peter Fitch,
Founder of Segamat Panel Boards
(Malaysia) and
Chairman of MMMA
Wolfgang Neeser,
Managing Director of
HOMAG Asia
Udo Mauerer,
Vice President, APAC &
China, HOMAG Asia
Fion Ng,
General Manager
of Grandwork Interior
Jirawat Tangkijngamwong, Deputy
Managing Director of Deesawat
Industries and Chairman of Thai
Timber Association
The call to diversify supply chains
away from China has been an
ongoing one in the past decade,
following wage hikes in Chinese factories
and the US-China trade dispute. But
COVID-19 was the wake-up call for many
companies, which saw massive disruption
to their supply chains and left them
scrambling to find alternative suppliers.
In late February this year, QIMA, a global
provider of supply chain compliance
solutions, polled more than 200
businesses with global supply chains;
87% of respondents said the coronavirus
pandemic would trigger significant
changes in how they manage their supply
chain. More than 50% of respondents
affected by the pandemic said they
had begun switching to suppliers in
unaffected regions.
US IMPORT OF CHINESE GOODS
HAS BEEN ON A DECLINE EVEN
BEFORE THE TRADE DISPUTE
In the case of the United States (US),
American companies have already
started to diversify their imports years
before US-China trade dispute erupted.
According to the 2019 Reshoring Index
released in March this year by American
consultancy firm Kearney, US imports
from China has been on a decline for
some time.
The Kearney China Diversification Index
(CDI), which tracks the shift in US
manufacturing imports away from China
to other Asian Low Cost Countries (LCC),
reported that while China maintains
its position as a primary producer of
manufactured goods, it has now lost
share within the CDI since 2013, the year
that Kearney first introduced the CDI.
In 2013, China held 67% of share. As
of Q4 2019, its share was down to 56%.
Of the $31 billion in US imports that
shifted from China to other Asian LCC
countries in 2019, almost half (46%)
was absorbed by Vietnam, which
exported an additional $14 billion worth
of manufacturer goods to the US in
2019 versus 2018. This is followed by
Taiwan (27%) and India (10%).
In the wood and wood products industry,
a similar trend has been observed by
industry players.
“The furniture and timber related
businesses have already started the
exit from China and this will continue.
This trend started well before COVID-19

July / August 2020, Issue 4 | Panels & Furniture Asia MARKET REPORT | 23
and the current escalation of the US-China trade dispute.”
This does not mean the end of furniture manufacturing out of
China, just that smaller, inefficient or outdated companies will
close. The domestic market in China is too large and lucrative
to exit, opined Peter Fitch, founder of Segamat Panel Boards
(Malaysia) and chairman of Malaysian MDF Manufacturers
Association (MMMA).
world,” added Udo Mauerer, vice president, Asia Pacific & China,
HOMAG Asia.
“There have been more enquiries for our products in recent
months since the outbreak of COVID-19 and the lockdown in
China. Such a trend was not noticeable before the outbreak,”
said Ng.
Governments from the US, Europe and Japan are also persuading
companies to move out of China for a host of economic and
political reasons.
WHICH COUNTRIES STAND TO GAIN THE MOST?
Based on industry players’ responses, Vietnam and Malaysia
are currently in the lead.
The Japanese government is already offering US$2.2 billion
in subsidies for companies to shift operations back to Japan
and US$219 million for those seeking to move production
to other countries. The US is exploring tax incentives and
reshoring subsidies to tempt American companies to shift out
of China. Europe also has its own plans to reduce its trade
dependencies after the pandemic. However, it remains debatable
whether government incentives are sufficient to entice foreign
enterprises to leave China.
HARD TO FORGO CHINESE MARKET
For the wood and wood products industry, China remains to be
an important producer and market.
“Moving out is unlikely,” said Fion Ng, general manager of
Grandwork Interior, a Singapore-based producer of premium
and ecologically-friendly furniture and interior fittings. “The
domestic market is too attractive to forgo. There are still benefits
in having production facilities in China such as affordable skilled
labour (compared to developed countries) and tools. Lastly, the
technology advancement in China’s manufacturing industry is
something that will not be easily available outside of China.”
“Malaysia and Vietnam definitely gain from these facilities
branching out. With their trade-friendly policies and good
understanding of Chinese culture, Malaysia and Vietnam are
first choice destinations for the Chinese companies. The Chinese
parent companies are able to build up their operations and
facilities fast with their experienced transferred personnel and
local talents,” said Neeser.
Ng pointed out that strategically located countries like Singapore
could also be in an advantageous position. “While Singapore
does not manufacture as much as other neighbouring countries,
the country houses the headquarters or regional offices of many
companies. Clients can begin sourcing for alternatives from
Singapore-based companies, and let them do the background
work with counterparts from within SEA,” she explained.
“I would say, Vietnam, Indonesia, Malaysia and Thailand will
benefit the most. Thailand’s advantage is that it is a free-trading
market with a dynamic economy. We also have trade-friendly
policies in place to entice foreign investors,” said Jirawat
Tangkijngamwong, deputy managing director of Deesawat
Industries and chairman of Thai Timber Association.
Many wood and wood products manufacturers are staying put in
China while building secondary facilities in SEA and/or sourcing
for supplies from other parts of the world.
“Many of our Chinese customers are using their local
manufacturing facilities to produce for domestic consumption
and setting up facilities in the SEA region to produce for
exports. These manufacturing facilities are booming in Malaysia,
Indonesia and Vietnam. They are usually secondary facilities
from their main facilities in China,” said Wolfgang Neeser,
managing director of HOMAG Asia.
“Some of our customers in the Asian region that have been
sourcing material, parts, semi-finished products from China
are now looking for alternative suppliers in other parts of the
“The current front runner has to be Vietnam. It has managed
to leverage its relationships effectively with both China and the
US and become the new low-cost manufacturing base for many
companies. Within ASEAN, Singapore will continue to be the
financial and commercial hub rivalling Hong Kong as troubles
continue there. Malaysia should emerge as a competent mid- to
high-technology manufacturing base which can complement its
neighbour, Singapore. Malaysia has a relatively well educated
and skilled workforce with both English and Mandarin widely
spoken,” Fitch evaluated.
“Malaysia’s full potential however will only be realised once
political stability has been restored. Thailand, Indonesia and
the Philippines will also do well but they will be much more
dependent on their larger domestic markets. Other member

24 | MARKET REPORT
July / August 2020, Issue 4 | Panels & Furniture Asia
countries such as Myanmar, Cambodia and Laos will be
more heavily dependent on China directly, they will thrive as
the new platforms for low cost manufacturing operations,”
added Fitch.
HOW CAN SEA COUNTRIES LEVERAGE?
“The diversified facilities in SEA should adopt high-technological
solutions with automated production facilities to optimise its
educated local talents. Adopting digitalisation and utilising new
innovations and technologies will also allow these operations to
be one step ahead of competition,” said Neeser.
I think that ASEAN Countries need to become very good
diplomatically so as to geopolitically engage with both China
and the West positively. Once this can be achieved, they become
a very attractive destination for foreign investment both from
Western (including Japanese and South Korean) companies
and Chinese companies. The potential advantages of investing
in ASEAN is that you will have access to trade with both China
and the West whilst avoiding any potential tariffs associated
with direct trade. The added bonus is that these investors
and companies will also gain access to the very large and
increasingly affluent ASEAN markets.”
“Develop better infrastructure to cater for increased demand.
Significant technological improvement should be made. This is
one major factor for China’s success as a manufacturing hub,”
Ng remarked.
“Governments should be proactive in providing tax benefits
and subsidies to attract more investors during this transitional
period. In Thailand, for example, there is the Eastern Economic
Corridor in four provinces that are offering many benefits to
foreign investors,” said Jirawat.
ASEAN CAN BE AN ECONOMIC AND TRADING BRIDGE
BETWEEN THE WEST AND CHINA
Fitch, on the other hand, offered a macro-outlook, believing that
ASEAN countries should work in unity on the diplomatic front to
achieve balanced relationships with both China and the West.
“As the trade disputes between China and the West (including
Japan and South Korea) intensify, SEA has to balance its
geopolitical alliances. An interesting fact is that for ASEAN,
China is now its largest single trading partner, surpassing the
US and the European Union (EU). SEA countries should try and
achieve a meaningful and workable balance between the West
and China. Western companies can use ASEAN manufacturing
bases to access the Chinese market and Chinese companies
can achieve vice versa,” Fitch said.
“Let me explain by stating that SEA or ASEAN can be an
economic and trading bridge between the large economies of the
West and China. Furthermore, ASEAN itself has a huge potential
market with a combined population of 660 million. The economic
future of ASEAN member countries should be very positive, so
long as they balance their geopolitical and trade alliances with
the West and China.
WHAT’S NEXT FOR CHINA?
China has a clear vision for its manufacturing sector – it does
not plan to remain a world factory for low-cost goods forever.
“There will always remain a core competency of manufacturing
where China remains a commercially viable operation on the
global stage. Increasingly, this will be for the higher value
materials and/or high efficiency, highly automated and mass
production facilities,” said Fitch.
Fitch listed the example of how Chinese machinery and know
how in the furniture and wood-based industry is now rivalling
traditional market leaders from Germany, Italy and the US.
He also reminded that scaling up the value chain has always
been part of China’s long-term plan for its manufacturing sector.
“China has been purposefully moving up the ‘value chain’ since
the economic reforms initiated by Deng Xiaoping back in 1978.
As China opened up its economy in the early days, it really
did become the world’s ‘low-cost’ manufacturing powerhouse
supplying global demand. China has since transformed into a
high-technology, highly-automated, innovative and servicebased
economy, with the increasing ability to export machinery
and technical expertise to other countries.”
“This trend will continue and grow to a point where I believe
China will become the market leader not just in the timber
related sectors but also in other critical industries such as
transportation, information technology, power generation and
consumer goods,” added Fitch. P

July / August 2020, Issue 4 | Panels & Furniture Asia MARKET REPORT | 25

26 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
SmartWax suspension system
Smartech: Transforming
manufacturing with
smart technology
As other major industries reap the benefits of technological advancements, how can the
manufacturing sector keep up? Smartech is focused on bringing game-changing technologies
to the industrial manufacturing world.
Imagine driving an autonomous Tesla car along an industrial
manufacturing line. You’re using a navigation system to
get to the end point in the most efficient way, sensors are
reporting on your fuel efficiency and you’re wearing a smart
watch that monitors your health parameters. 20 years ago, it
was unimaginable to drive an autonomous car, but advanced
technologies have now become ubiquitous and brought about
vast improvements in efficiency, wellness and more. But what
about the industrial manufacturing line? Why does “autonomous
manufacturing” still seem like a distant dream?
THE TECHNOLOGY ANOMALY
Many sectors of the economy have reaped enormous benefits
from fast-paced technological advances. However, other sectors,
such as manufacturing, have not advanced at the same pace and
are lagging behind. “Some sectors have amazing technologies,
but they are not accessible to most of the world economy. That’s
an anomaly crying out to be rectified,” said Hanoch Magid,
chief executive officer of Smartech, a company that develops
and delivers transformational technology solutions for the
manufacturing sector.

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITURE MANUFACTURING | 27
Three manufacturing vectors for a desired optimal production equation
Vastly outranking the high-technology sector, the
manufacturing sector accounts for the lion’s share of global
gross domestic product, manpower and resources. Yet in terms
of investment in research and development (R&D), and the
resulting effective innovation, the proportions are reversed.
For several decades, the overwhelming majority of R&D
resources have been directed towards high technology.
Consequently, through their adoption of advanced technologies,
the high technology sector has been reaping huge operational
and cost benefits, leaving the manufacturing sector lagging
far behind.
In many industries, manufacturing companies typically
operate with low profit margins and high manufacturing
costs, mostly due to the cost of raw materials. This leaves
them very vulnerable to fluctuations in product prices or
market changes. The lack of R&D investment makes
technological transformations in the manufacturing
sector challenging or, according to many people, simply
impossible. And now, the impact of the COVID-19 pandemic
on the economy has further exacerbated this longstanding
problem.
Manufacturing industries have much to gain by adopting smart
technology. It’s no exaggeration to say that technology has the
potential to transform performance, value and profit margins.
Moreover, industries that use advanced technology are better
able to attract young talent – the people who will continue to
drive change in the future.
Amnon Shoshani, founder, founding investor and today the
president and chairman of Smartech, gave this example: "Thirty
years ago, if you wanted to install software on your computer,
you needed a technician for a full day. Today, you plug a flash
drive into any computer or click a link and it’s done in seconds.
When it comes to adopting new technology, the industrial world
is more like the computer world of three decades ago. That’s
what we’re going to change.”
AN INNOVATION BOOST FOR MANUFACTURING
Smartech uses a unique combination of expertise and solutions
to address industry challenges. “Our mission is to provide
game-changing transformational technologies and infuse
manufacturing with innovative vision and spirit. The Smartech
team is a mix of veterans from varied industries and outstanding
high-tech innovators. We understand both worlds at a profound
level and have decades of experience in developing and
supporting groundbreaking technologies,” said Magid, one of
the leading pioneers in global industrial 3D printing. “We provide
our customers with unlimited support and we see them as our
long-term partners.”
The idea behind the Smartech approach is simple. To help
manufacturing industries quickly gain value through technology
transformation, Smartech targets and impacts three major
manufacturing vectors:
• Cost (with an emphasis on raw materials and technological
processes)
• Capacity (targeting throughput or line speed)

28 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
Autonomous manufacturing and three major manufacturing values vectors.
• Quality and product features
To this end, Smartech has developed
a unique three-layer approach to
technology transformation.
• Smart manufacturing solution
(Smartech Autonomous
Manufacturing): Maximises
production ability within the given
production operation envelope.
• Game-changing technologies pillar
and modules solutions: Expand
and enhance the production envelope
and capabilities according to the
three vectors noted above.
• X-Force R&D (a multi- and crossdisciplinary
research arm): Enables
the systematic provision of smart
technology solutions addressing
the significant challenges facing a
given industry.
ACHIEVING “THE IMPOSSIBLE”
FOR ENGINEERED WOOD
MANUFACTURING
Smartech’s technologies transform the
way an industry works to significantly
improve profit margins and product
quality. The company’s initial focus
was the engineered wood vertical – the
manufacturing of oriented strand board
(OSB), medium density fibreboard (MDF),
particle board, plywood and other woodbased
products. Like other manufacturing
industries and verticals, engineered wood
manufacturing works with low profit
margins, and raw materials – primarily
wood, resin and wax – account for a major
portion of their manufacturing costs.
Targeting major raw material costs,
Smartech developed its SmartWax solution,
a patented wax suspension that replaces
traditional molten wax or wax emulsions.
It also developed the SmartResin solution
to reduce the quantity and cost of resin
usage. SmartWax suspension systems
have enabled a >40% reduction in wax
costs to manufacturers. “Savings of that
magnitude were considered impossible
until we proved otherwise,” recalled
Magid. “Yet, we achieved it, and we did so
while maintaining or even improving the
product quality.”
SmartResin system

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITURE MANUFACTURING | 29
Today, just a few years after the introduction of SmartWax, a
third of the leading global OSB manufacturers are Smartech
customers. More than 25% of large OSB plants in North
America have acquired the technology, as have several MDF
and particleboard plants in Asia and Europe.
“The SmartWax project we completed at our mill was the most
successful project I have ever been involved in,” said a senior
project manager at an OSB factory in the US. “I say that from
an engineering, technological and execution point of view.”
DRIVING THE NEXT REVOLUTION
In the past few years, Smartech has more than tripled its
investment in developing additional new technologies and is
now working on transforming the use of other raw materials
and processes in engineered wood, while also exploring
opportunities in other manufacturing industries. “Many of the
companies who have experienced our SmartWax suspension
technology have told us that since we’ve proven that we can
achieve what was once considered impossible, they’re willing to
work with us to address other challenges that seem impossible
to solve today,” said Magid. “The door is open to many new
opportunities and we are now offering manufacturers an almost
risk-free route to additional game-changing technologies.”
He concluded: “Smart technology is going to revolutionise
manufacturing. We intend to be a leading force in that change.”
Smartech offers the following solutions:
• Smart Manufacturing Solutions (Autonomous
Manufacturing) to optimise manufacturing effectiveness
using proprietary AI technology and algorithms.
• SmartCost Wax, SmartCost Resin and SmartCost Wood
to reduce raw material costs.
• Smart Quality and SmartPredictive Quality to provide quality
control and final product features.
• SmartProductivity Solutions to overcome production
bottlenecks.
In addition to the above solutions, Smartech is now offering
manufacturers a unique opportunity. Companies can work
with Smartech to define their major technology challenges and
commit to adopting the new transformational technologies, with
Smartech assuming all risk for financing and development. As
Shoshani pointed out: “This unique, cooperative offer presents
a tremendous opportunity for win-win collaboration.”
All images are credited to Smartech.

30 | PANELS MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
DIEFFENBACHER EVOJET M 2.0
The MDF/HDF glue-saving system EVOjet M 2.0 literally turns gluing upside down for more efficiency.
The simplified gluing system delivers high throughput and
resin savings of up to 25% compared to conventional
blow line gluing while reducing emissions out of the
dryer and pre-curing of the resin. It can process all kinds of
resin, requires minimum cleaning and ensures optimum gluing
through superior fibre/resin contact.
HOW THE DRY RESIN APPLICATION SYSTEM WORKS
EVOjet M 2.0 is the next generation of dry resin application
systems. After drying, a trap separates coarse foreign particles
from the fibres to protect the spike rolls. These fast-rotating
rolls dissolve the fibre stream before it enters the resinator.
This ensures a high surface quality for the produced boards.
Special externally arranged nozzles atomise the glue into the
finest droplets to guarantee optimum gluing of the fibres.
Controlled protection air is added to prevent sticking of the
freshly glued fibres. Downstream, a unique air slide elbow
works in combination with recirculated fibres to prevent contact
between resinated fibres and the surrounding ductwork.
A FULLY AUTOMATIC SELF-CLEANING SYSTEM FOR
NOZZLES
The EVOjet M 2.0 includes a fully automatic self-cleaning
system for the nozzles without interrupting production. A
single machine has a capacity of up to 48 t/h b. d. The EVOjet
M 2.0 is ATEX-approved and has inspection windows, doors and
hatches for visual monitoring of the process and easy access
for maintenance and cleaning. It is available for new production
lines and as a retrofit in existing plants.
Visit the DIEFFENBACHER website for more information and a
video explaining the EVOjet M 2.0 gluing process.
The Dieffenbacher EVOjet M 2.0

July / August 2020, Issue 4 | Panels & Furniture Asia PANELS MANUFACTURING | 31

32 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
NANXING AND OKELO JOIN
HANDS TO WELCOME A
NEW ERA OF SMART FURNITURE
PRODUCTION
A collaboration between Nanxing Machinery
and Okelo helps the latter to break out of
traditional furniture manufacturing method.
Okelo’s new plant
Groundbreaking ceremony
at the site of Okelo’s new plant
The sudden outbreak of the COVID-19 pandemic has brought
huge challenges to the customised furniture manufacturing
industry. Despite the uncertain outlook in the global
market, Okelo went ahead and collaborated with Nanxing
Machinery to build an intelligent manufacturing production base.
Since the plant officially started operating in March, over
2000 sets of cabinets, wardrobes and other customised
furniture have been produced. With an output value of more
than 26 million yuan (US$3.7m), the new plant is well on its
way to meet the designated output and profit targets.
“The efficiency of our new production line has increased by 35%
compared to traditional production lines. We have reduced our staff by
half, yet our entire production has managed to yield additioinal output
value of about 20%,” said Li Guohua, Director of Okelo.
ALL SET TO PRODUCE FIRST BATCH OF FURNITURE
AND PROJECTS
The new plant at Guangxi Autonomous Region is all set to
produce Okelo’s targeted output of 50,000 sets of cabinets
and whole-house custom projects in 2020. Costing 174 million
yuan (US$24.6m) to build, the 35,000 sqm plant is expected
to yield a designated annual output value of 400 million yuan
(US$56.6m), while profits and taxes are expected to exceed 40
million yuan (US$5.6m).
Half a year later, the Okelo team will be anticipating another
breakthrough – Guangxi will welcome its first smart and highly
automated furniture production line. Originally a barren land
in Chongzuo, a prefecture-level city in the south of Guangxi
Autonomous Region, it is now transformed into a hightechnology
manufacturing base.

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITURE MANUFACTURING | 33
A WINNING COLLABORATION
In a traditional mass furniture production model,
the variety of goods produced is very limited
and production is inefficient in many ways.
Manufacturers face common challenges such as
strong dependency on workers, frequent errors
made at different stages of production and are
unable to meet current market demands.
As the leader in China’s domestic furniture
manufacturing machinery industry, Nanxing
Machinery places great focus in wood-based
panel manufacturing technology and research and
development. By developing advanced technology
in automation, intelligence and data production,
Nanxing Machinery is ready to provide enterprises
with integrated solutions to create seamless
production systems in their plants.
1
Nanxing Machinery and Finchinasoft have also
joined forces to build the ultimate “Smart Factory”
by combining Nanxing Machinery’s rich experience
in automation technology and Finchinasoft’s deep
knowhow in digitalisation.
Through the use of robots and networking software,
Okelo’s 4.0 smart factory seamlessly connects
four workstations: cutting, edgebanding, drilling
and sorting. This automated assembly line with
end-to-end integration significantly reduces
labour and error rates, improves efficiency, and
promotes the digitalisation of customised furniture
manufacturing.
As the second and third phrases of scaling-up the
automated production line come to completion, the
plant will be able to reach the designated output
value of 200 million yuan (US$28.3m) per annum,
Nanxing Machinery looks forward to take the leap
with Okelo into a new era of intelligent production.
2
All images are credited to Nanxing Machinery.
Photos 1-3:
1: Nanxing Machinery’s intelligent
high-efficiency cutting station
2: Nanxing Machinery’s intelligent
high-speed edge banding station
3: Nanxing Machinery’s
intelligent drilling workstation
3

34 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
Demystifying the path towards
Batch Size 1 Production
By Szeto Hiu Yan
In our world today, customisation matters. From shoes to cars, consumers desire to own products
that are theirs and theirs only. Be it embossing a name on a pair of new sports shoes or choosing
the colour and finishing of a new car, mass customisation has made owning unique products
possible for consumers. The same goes for furniture.
The era of customised manufacturing or batch size 1 production in the furniture industry has
arrived, but are furniture manufacturers in South East Asia ready?
Industry 4.0 is taking industries by
storm. New systems, software and
processes are introduced and “islands
of automation” are replaced with seamless,
automated manufacturing lines that
can reduce waste and increase material
yield, improve quality and throughput,
and ultimately achieve optimal
efficiency.
Marc Pfetzing,
Senior Consultant at
Schuler Consulting
Wolfgang Neeser,
Managing Director of
HOMAG Asia
Ridwan Aziz,
Country Manager of
HOMAG Indonesia
Kelvin Kwek,
Director of OPSH
Industry 4.0 has also opened the door
to batch size 1 production, a new way
of production that drives flexibility in
manufacturing.
How has batch size 1 production changed
the global furniture manufacturing
landscape and how prevalent is batch
size 1 production in Asia and South East
Asia (SEA)? Are furniture manufacturers
ready for batch size 1 production? What
are the main considerations and potential
pain points to take note of when furniture
manufacturers are transforming their
businesses?
PFA seeks the answers from several experts
in the industry.
BATCH SIZE 1 PRODUCTION WILL
BECOME A GLOBAL TREND
“The batch size 1 trend started in Europe
more than 10 years ago and has slowly over
the past few years become a predominant
way of production in the United States
(US) as well. It has been a long process
but it is finally happening now,” said Marc
Pfetzing, senior consultant at Schuler
Consulting.
Three reasons why batch size 1 is
becoming a global trend:
• Technology has finally caught up. New
and better equipment, automation and
software make batch size 1 production
a truly competitive manufacturing
option;
• Consumers’ tastes have changed. Driven
by individualism and the desire to be
unique, consumers are hungry for more
custom choices to fit their personal
taste and living situation. This creates the
demand for more customised products in
smaller batches;
• The growing affluency in developing
countries also means that markets are
opening up to higher-priced products
manufactured using the batch size 1
method.
“In the last 10 years, Europe’s furniture
manufacturing industry was the only
market where batch size 1 production is
financially viable. Batch size 1 production
was only possible because there were
niche manufacturers who could bear the
incredibly high investment costs while
being able to sell the products at a higher
price. The batch size 1 production goes
hand-in-hand with the selling price and the
investment of the manufacturer,” explained
Pfetzing.
DEFINING BATCH SIZE 1 IN ASIA
For now, batch size 1 production in Asia
does not refer to an absolute batch size
1, according to Pfetzing.
“In this region, it is really nearly impossible
to have a 100% batch size 1 production,
unless the factory is only manufacturing
two different products. So far, we
have managed to get our customers
to reduce their batch sizes but not to an
absolute batch size 1. So even if a factory
is now producing a batch size 10 or
batch size 20, I will call it a batch size 1
factory.”

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITURE MANUFACTURING | 35
“Regardless of what we call it, I think batch size 1 changes the
game through increased flexibility in production. This can only be
achieved by changing how production is planned, and adopting a
different method of production.”
SLOWLY BUT SURELY - BATCH SIZE 1 PRODUCTION IN
ASIA
Experts generally observed that manufacturers from more
developed countries with more manpower constraints are faster
to adopt batch size 1 production.
“In Asia, there are already some furniture manufacturers
producing in batch size 1, though they are producing a mix of
mass produced and smaller batches of products, while some
are still focused on traditional mass production,” said Pfetzing.
Wolfgang Neeser, managing director of HOMAG Asia, pointed out
that the batch size 1 trend is growing steadily, especially in more
“advanced” countries in Asia, such as Taiwan, Singapore and
Thailand. The same goes for China and South Korea, said Pfetzing.
Developing SEA countries like Malaysia, Indonesia and Vietnam are
still catching up. “They are willing to implement online Point-of-
Sale systems and software solutions to cater to the local consumer,
as well as for customers with smaller budgets,” said Neeser.
High labour costs may be a key reason why manufacturers from
these countries are more willing to turn to batch size 1 production.
“Labour costs have risen quite steeply so these companies have
to invest in a lot of automation. They realised too that once they
adopted automation, it was much easier to shift into batch size 1
production,” shared Pfetzing.
“It also helped that manufacturers in the more developed wood
industries like those in China are starting to have more surplus
money to afford these new technologies.”
The buying cycle of many customers is changing too.
“Frequent comments from OEM manufacturers are that they
receive more and more inquiries on orders of 5, 10 and 20 pieces,
compared to minimum orders of 100 to 500 in the past decade
and they don’t know how to deal with these enquiries and how to
process them efficiently,” said Neeser.
“Even for the wholesale buyers or those accustomed to buying in
bulk, they all want more customised products nowadays and you
can only do it in batch size 1,“ said Pfetzing.
“Also, large buyers from the US, for example, are buying a lot
of materials from SEA. These buyers are not willing to stock up
so much products in the US anymore as large warehouses are a
huge cost to them. They are forcing manufacturers to produce
smaller batches more regularly and do more regular shipment…
Previously, the manufacturer may be producing in batch of 200 or
500. Now, they are producing in batch of 30 or 40, while lowering
the number of containers to the customers at the same time,”
added Pfetzing.
ARE THE SEA FURNITURE MANUFACTURERS READY?
According to the several experts interviewed, the answer was a
unanimous “no”. The interest in Industry 4.0 and batch size 1
production among manufacturers, however, is high.
“They are struggling, maybe because they are unaware or unsure or
unwilling to change their current way of production,” said Pfetzing.
“But the interest in batch size 1 has grown exponentially since 2019.”
“I believe smaller factories which manage many different parts with a
low volume would be keen to explore batch size 1 production, but the
cost of integrating this system could be a major factor to consider,”
opined Kelvin Kwek, director of OPSH, a Singaporean brand selling
pole system for wardrobes and optical glass kitchen cabinets.
PRECONDITIONS FOR SUCCESSFUL TRANSITION TO
BATCH SIZE 1 PRODUCTION
It is a huge leap to switch from mass production to batch size 1
production, but by understanding the changes involved and taking
small steps to prepare for the transition, the transformation can be
less daunting and more palatable.
So what are the preconditions for a successful batch size 1 production?
• Data, data, data
The greatest difference between batch size 1 production and
traditional mass production is that the former is very datacentric.
From the very first second, producers have to start
generating production data to be able to run a batch size 1
factory. With the conventional methods of running a factory, it
is not possible.
• The right system, equipment and software
Batch size 1 production is a completely different model from
traditional mass production. The smaller the batches go,
the more flexible and intelligent the machines need to be,
manufacturers will therefore need to change the equipment,
the method of producing and the planning of production.
• Sufficient capital
A big investment is needed to purchase the new equipment,
machines and software to set up the new system and generate
the data required. The transition, however, is usually done in
several stages. For example, addition of software can take place
in the first year, followed by transformation of the cutting section
in the second and the edgebanding section in the third.
• Readiness to embrace change
The new way of production will kickstart many new changes–
jobs will be re-designed, workers will take up new roles. The
changes will extend beyond the factory and manufacturers
may need to consider how designers, salespeople and even the
marketing department can be better coordinated to optimise
the factory’s new capability and capacity.
• Willingness to train staff
In SEA, many companies may not see the importance of
dedicating resources to train workers as the conventional way
is for workers to learn and train on the job.

36 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
Neeser provided examples of some areas that
company owners and managers usually need
to look into:
- For manufacturers who want to change, one
of the biggest challenge is changing the way
orders are processed in the work preparation
department and factory thereafter.
- Factories need to be more connected to
dealers or their own sales outlets to capture the
customer’s choices efficiently and to forward
these orders to the factory for processing
thereafter, also known as vertical process
integration.
Software will play an important part in batch size 1 production (Image credit: HOMAG Asia)
CURRENT PRODUCTION CHALLENGES IN SEA
• Lack of skilled manpower
The lack of skilled manpower has been a perennial issue. Many
factories tend to overemploy just to continue production. Also,
employing and retaining skilled labour is another big challenge.
These issues will perpetuate or lead to new problems when
manufacturers want to shift into batch size 1 production.
“Smart production always requires dedicated training hours and
costs for factory staff to adopt new skills. Some employers may
not be willing to do so,” said Kwek.
“It could be that manufacturers are used to not needing to spend
on educating workers. I think this mindset has to change. In the
future, technology will be more complicated and the qualification
of workers has to be way higher. If they want to do batch
size 1, they definitely need to think about educating their workers,”
remarked Pfetzing.
Neeser also highlighted that when companies hire unskilled staff
with a lack of roadmap on how to train and onboard them, they
have little incentive to stay loyal to their employer, switch jobs
frequently and new people need to be hired and trained all over
again. He continued to point out that due to the lack of skilled
workers, software implementation may be met with resistance
because of perceived difficulty.
• Lack of data
“All producers are talking about Industry 4.0, automation,
upgrading the factories, and they will need to have the data, but
many are not sure or unable to create the type of data needed
for them to run this type of factory, and to use the data in the
right way,” said Pfetzing.
• No clear roadmap for companies who want to transform
When shifting to a new way of manufacturing, many
changes have to be made and good planning is necessary
for transformation to be take place systematically.
- With bigger batches, the work preparation
department does CAD drawings only once and
they can be used repeatedly and never have
to change. Now, essentially every drawing has
to change with each single order, creating
a huge bottleneck in order engineering
• No clear mapping or assessment of intra-company
processes
Having a clear map of processes within the company will help
manufacturers visualise what changes are needed and where
changes need to happen first, in order to deal with changing
consumer environment, said Neeser.
• Optimising raw materials to reduce wastage
Optimising the raw materials in use means reduction of waste,
which will eventually contribute to profits. Such optimisation
should even be propagated up to sub-contractors level in case
the manufacturers leverage sub-contractors to release some
of their production load, said Ridwan Aziz, country manager of
HOMAG Indonesia.
“In addition, poor production planning may result in over or
under estimation of raw material being ordered for production,
which may affect producers’ cash-flow due to excessive stock
or shortage of raw materials at extreme points.”
• Difficulty in catching errors
Data re-entry and mistakes are easy to make but hard to
catch. Also, when manufacturers try to use “generic, low costs”
workarounds like Excel spreadsheets paired with basic 2D CAD
standard, such solution may still be workable for small
companies with high skill set but it will not be sufficient for
industrial setups with hundreds or thousands of orders, said
Neeser.
POSSIBLE SOLUTIONS AND IMPROVEMENTS
• Introduce software in each department
Some examples of software that can be use include:
- POS software to capture customers’ wants and needs that
can be automatically transferred to an order processing tool
without any manual re-entry of data
- CAD/CAM software for automatic production data creation

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITURE MANUFACTURING | 37
(BOM parts list, automatic creation of cutting
patterns for panel saw, CNC programmes, etc)
- MES software for factory floor control and
transparency
• Keep informed of the latest technology
“Our advice would be to start understanding
the different available systems and solutions
early and stay in touch with novelties available
in the market. Visit trade shows, use sales
people to your advantage as information
gatherers etc. Stay with technology to achieve
first mover advantage,” said Neeser.
For example, if a factory has been
built with the latest state-of-theart
technology and has the best of
everything but they are not getting
the materials in the right way and
the suppliers are still working in a
very primitive way where nothing is
automated … this will become a pain
point between the manufacturer and
their suppliers.
The whole industry in SEA needs to
upgrade as well, otherwise we will
lose our competitiveness to other
manufacturers and suppliers from
other regions. It is everybody’s
responsibility too,” concluded
Pfetzing. P
• Hire a consultant
For existing mass manufacturing companies,
they can consider embarking on a hybrid
initiative to re-design their factory layout and
invest in assorted machines to enable a flexible
production line that can accommodate smaller
batch size. Their production management
process will also be improved where production
planning can now be connected to their
production muscles (machines and operators)
on the factory floor, said Aziz.
For start-up and Small and Medium Enterprises
(SME), they will require a scalable system that
can match with their growth path, Aziz added.
Along the way, manufacturers may also hit
obstacles such as resistant staff. “Getting
resistant staff to accept new changes is one
of the most difficult things in our work,” said
Pfetzing. “We do many workshops with the
owners and their staff in order to convince
them that this is the right way forward. If the
team is against the change, then probably the
manufacturer will not succeed in implementing
the new system in any case…Usually with the
support of the leaders, we are able to convince
the teams.”
Ultimately, consultants can educate and
provide guidance to producers so they can avoid
pitfalls in their journey towards transformation.
FUTURE: ENTIRE SUPPLY CHAIN,
NOT JUST MANUFACTURERS NEED TO
UPGRADE
“Industry 4.0” simply cannot do without the
“Industry”, stressed Pfetzing. “Not only do
factories need to be Industry 4.0 compliant,
all the other suppliers – the wood suppliers,
the board suppliers, the paint suppliers
– and basically the whole industry has to
change to support this type of manufacturing.

38 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
Transforming and modernising
end-to-end operation for flat panel
furniture production
By Graham Rutter, International Business Development , Cabinet Vision
In the current digital age, reinventing and transforming a business into a modern operation can seem like a
move that is more challenging than what most businesses are ready to face. However, it does not need to be.
For a business to stay ahead of competition, it should focus
on improving the overall process from the point of the initial
sale to receiving the final payment for a completed project,
with minimal mistakes and defects.
One common mistake made by businesses is investing in different
technology separately, be it hardware or software, and adding
them to their existing operations. What is often not considered is
that these systems, processes and manufacturing methods are
created with different manufacturing processes in mind. They may
require a higher level of manual labour when added to an existing
operation or are not as compatible with the existing machines
and systems in their plants. The outcome? Available manpower
is taken up by the many manual processes that range from
costing, raw material list (BOM), cabinet list, part list, cut plan,
CAM programmes and 3D illustration which are often completed
in different spreadsheets and systems. These processes also
rely on a great amount of manual data entry, further upping the
chances of human error.
A BETTER APPROACH
An important first step to take is to conduct a comprehensive
review of the entire process in your business. Changes must be
considered holistically but approached systematically.
Starting with the end goal in mind, you should be thinking about
where you want to see your business in three years’ time and
then work backwards.
For example, from reviewing your business, you may conclude
that you want to make an investment in updating your machinery
in a year’s time. Leading up to this investment, you will need
to take steps to prepare your organisation and staff for the
changes ahead. It should be emphasised that the investment
needs to bring transformation and improvement to your
business, as no smart investor wants to invest money just to
have updated machinery in their factory. A greater return on
your investments should be anticipated and should be the aim
to work towards.
Utilising a system that allows your staff to start the digitalisation
process will allow for a smoother transition into the digital age

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITURE MANUFACTURING | 39
Furthermore, when a piece needs to be reworked and ‘jumps’ the
queue as it is of higher priority, staff may be interrupted in their
production flow as they have to look for the information about
the part, size, location of holes to be reprogrammed by the cam
operator. Time is thus lost in production, further adding to the
production costs and delaying future projects. In contrast, a
concise system can easily be referenced and the required parts
for rework can be produced and added to the current production
run seamlessly.
COMMON CHALLENGES FACED BY BUSINESSES
When planning for business improvement, one common problem
to highlight is miscommunication. Miscommunication can waste
a huge amount of valuable time and it can happen anytime in the
sales, design or production process. Miscommunication can arise
due to a lack of concise information provided from the design
team to the production team. This is because many businesses
have not established a proper system to channel the information
flow to different departments, coupled with too much reliance on
the paperwork – a hindrance to smooth information flow.
WHY WAIT?
But my question is: Why wait until you update your machinery
to review your software? Utilising a system that allows your
staff to start the digitalisation process will allow for a smoother
transition into the digital age. One of the advantages is bringing
consistency to how the documentation, details, BOM and other
information are produced and presented. You can also consider
this as taking the first step towards entering into a system that
compile your common methods of construction. This will ready
your business for the next stage of automation. More importantly,
this will prepare your company for the changes and transitions
that need to happen to bring about the desired improvements.
How so? All it takes is a simple typing error and the error will
snowball and cause an issue further down the chain. The longer
it goes unnoticed, the greater the value the error will have on
the project.
Another common problem is that an increase in staff to keep up
with the workload does not necessarily generate a greater profit
margin. While a normal reaction to workload surges is to hire, in
hope that this will lead to an increase in the company’s financial
turnover. However, the real story told is often one of increased
wages, working overtime, defects and rework but no improvement
seen in the profit margin.
Another issue is ensuring effective communication between the
designer and the production team. Often, designers may be using
a variety of software to clinch a project, but the production team
would have to work through the information to produce the work.
This proves to be a challenge and unless there is a good system
in place to collate all the information in a central location that
can be accessed by everyone involved, miscommunication may
continue to occur.
Also, when errors, reworks and delays happen, many businesses
do not have a system in place to allow these areas to work and
fix issues together. In such cases, software will allow staff to
systemise the process from design to production. Only with a
proper system, will the chances of error from misinterpreted plans
and details be substantially reduced. Additionally, by linking the
same system for the generation of machine files and production
details for all staff, the company will be able to drastically increase
throughput and save time, as data does not need to be re-entered
into the machine software multiple times.
Many businesses, over the years, invest in machinery and software
at the same time. Admittedly, one disadvantage is that some staff
may feel stressful and anxious due to the increased pressure
of adapting to a wave of new changes while coping with their
current workload.
One suggestion will be to invest in a software system, which is
compatible with the machinery you are planning to purchase
(most good software will work with majority of machines, if
not all, available in the market). This can be one way you can
start utilising the information: for example, you can consolidate
information from sales and production; the Panel Saw operator
can access panel optimisation data to find the optimised plans to
cut; staff from the logistics department can produce checklists
of items and products to be shipped… etc. All the information
will then be gathered and entered into a central software system
which everyone can access quickly and easily thereafter. This may
just be the change needed to get the transformation process
started for any business.
Of course, my point of view is biased, having been involved with
CAD/CAM software for more than 20 years. I have seen firsthand
the benefits reaped by businesses that are determined to take
the time to review their manufacturing process and adapt their
furniture construction methods to suit the current technology,
instead of sticking to outdated methods that were developed
many years ago.
Last but not least, I cannot stress enough the importance of a
wholistic approach to improving your business systematically. P
Shutterstock image provided by Cabinet Vision

40 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
An Insight into the Russian
Furniture Market: Today
and Beyond By Marina Khaibulina, Lesnaya Industriya Journal
Russian furniture manufacturer First Furniture Factory has been specialising in the production of
custom-made furniture for more than five decades before focusing on kitchen furniture production in early
2000s.
In the past two years, the company saw its sales double within two years. According to Alexander Shestakov,
chief executive officer of the company and president of the Association of Furniture and Woodworking
Enterprises of Russia, it is necessary to invest up to 10% of annual revenue in development of new furniture
collections to maintain growth.
Shestakov shared some of the recent developments in his company and his insights on some of the current
trends and challenges seen in the Russian furniture manufacturing industry.
INCREASING CORPORATE SALES
Alexander Shestakov (AS): In 2019, First Furniture Factory
saw a 12% increase in revenue to 2.2 billion rubles (US$31.6
million). This growth was largely attributed to the development
of corporate sales, which included an increase in the number
of contracts for the supply of furniture to state and municipal
customers, as well as expansion supplies to private companies.
For example, at the Russia-Africa Summit held in October 2019,
First Furniture Factory signed a series of large-scale contracts
totalling 218 million rubles (US$3.1 million), one of which was
with the Roscongress Foundation for the supply of chairs for
the summit worth 109.5 million rubles (US$1.6 million). First
Furniture Factory also made the furniture for the VIPs, as well as
two 70-seater round tables, each about 12 metres in diameter,
for the heads of state.
Also contributing to the company’s growth was cooperation
with construction companies on the supply of furniture
to new apartments. In 2019, the company’s furniture sales
to construction companies exceeded 500 million rubles
(US$7.2 million).
INVESTING IN NEW PRODUCT DEVELOPMENT
AS: To produce products that correspond with the latest trends
in furniture fashion, have an optimal price-quality ratio, and
at the same time are functional, ergonomic and demanded by
consumers, it is necessary to launch seven to 10 new collections
annually and invest up to 10% of revenue on these projects.
The experience of First Furniture Factory confirms the validity of
this theory. We also came up with another theory: if 80% of new
products are created by the company's in-house design bureau
and 20% are made by invited designers, including recognised
international entities, investments made in the development of
new products are returned in the shortest possible time.
TOP QUALITY EQUIPMENT
AS: In 2017, First Furniture Factory completed its final large-scale
modernisation project for its production equipment. At a cost of
about 50 million euros (US$56.7 million), the capacities of the
Swiss Piatti plant were transferred to St Petersburg. Currently,
these capacities are sufficient and we are not massively updating
the equipment park. Of course, there are expenses incurred for
the maintenance and repair of the lines, but they fall within just
1% of the revenue.
The project to transfer the capacity of the Piatti plant from
Switzerland to Russia sought to increase sales of kitchen
furniture in Russia by about two to three times. I believe
that this project has been very successful. Due to the launch
of the latest ultra-modern technological equipment, the
First Furniture Factory almost doubled its revenue from
1.3 billion rubles (US$18.6 million) in 2016 to 2.2 billion rubles
(US$31.5 million) in 2019 – most of which are sales of
kitchen sets. Since then, we have fully appreciated the
capabilities of the new lines through the diversification
of our product range. First Furniture Factory began
producing new types of products, such as cabinet, office and
hotel furniture.
The kitchen sets in the “medium” and “medium plus” segments
range from 70 thousand to 120 thousand rubles (US$1003 to
US$1720). The company's also has “economy” and “premium”
segments – the latter of which includes designer furniture
sets created by world-class craftsmen exclusively for First
Furniture Factory.
FURNITURE DEMAND WITHIN RUSSIA
AS: In Russia, the demand for furniture is growing slightly. The
greatest demand is for kitchen sets, and furniture for dining rooms
and living rooms, and the office.

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITUR | 41

42 | FURNITURE MANUFACTURING
July / August 2020, Issue 4 | Panels & Furniture Asia
In 2019, the main growing trend was in furnishing new buildings.
This is beneficial to our industry, which receives a distribution
channel, as well as customers who purchase furniture at
wholesale prices and move into turnkey housing.
Unfortunately, however, there is little prospect of a sharp increase
in demand for furniture in Russia. Household incomes are not
increasing, borrowing is on the rise, and since furniture is not
considered a consumer good, many potential buyers put off
updating furniture to better times. Hence, there is demand but
this is not reflected in sales. The driver of growth in the demand
and sale of furniture could be the adjustment of standards for
housing under construction. This could mean the inclusion of preinstalled
wooden furniture in new apartments and a simultaneous
change in mortgage mechanisms, so that mortgage agreements
would not just include the cost of the house, but furniture as well.
All these initiatives have been discussed at the government level
for more than half a year, and the Association of Furniture and
Woodworking Enterprises of Russia is actively involved in this.
We hope that in the near future, the market will see the results
of their work.
In the past two years, due to state support, Russian furniture
makers have become a strong competitor to foreign manufacturers.
This was reflected in in 2018, where the share of sales of domestic
furniture rose to a record of 50.1%. Last year, the trend was
confirmed. Modern buyers are guided primarily by the pricequality
ratio. The leaders of the Russian furniture industry
are not inferior to, and even somewhat surpass, their foreign
counterparts.
We forecast that in 2020, the market growth will remain at 5% to
7%; we do not expect a sharp jump in demand in one direction
or another. Buyers will be more carefully prepared when making
purchases and will be even more patient in waiting for discounts
and promotions.
PROHIBITION OF PURCHASE OF FOREIGN
FURNITURE
AS: The entry of the well-known government decree number
1072, under State Law 44, on the prohibition of public
procurement of foreign-made furniture played a crucial role in
the development of the modern Russian furniture industry. It has
been two years since the decree was passed and many enterprises
have significantly increased production and sales. The volume
of furniture purchased by the state in 2018 and the first half of
2019 increased by 15% and exceeded 35 billion rubles ($501.9
million). Companies were able to invest in updating collections,
fixed assets, training and hiring personnel, expanding dealer
networks and developing new markets.
POTENTIAL UPCOMING CHALLENGES
AS: Furniture makers face similar problems to companies in
other sectors: expensive loans and the lack of “long” money; an
increase in tariffs of natural monopolists and domestic fuel prices;
unpredictability of legislative changes; a drop in real incomes of
households; and a small number of highly qualified personnel.
In addition, it is difficult to find reliable suppliers of high-quality
components inside the country, especially for furniture fittings.
In terms of online commerce or e-commerce, furniture –
especially large items such as beds and cabinets – is still not the
kind of product that is bought through the Internet. It is true that
consumers save time and effort by using Internet resources at
the stage of preparation for acquisition – they study the products
online, look for the most favourable offers and read reviews.
However, at the final stage, they would still visit the showroom of
their selected manufacturer. Especially for products with a long
lifespan, consumers would first want to evaluate their capacity
and convenience, compare selected models with others, and
select their preferred colours, shapes and details.
EXPORT PROSPECTS FOR RUSSIAN FURNITURE
AS: Currently, First Furniture Factory sells about 50% of products
to corporate customers, including export contracts. The volume
of the latter is constantly increasing but not as fast as we would
like. The process of penetrating foreign markets turned out to
be longer than we initially thought, but we are systematically
developing in this direction.
However, the export of Russian furniture has indeed been growing
since 2015. First, Russian manufacturers penetrated the markets
of countries in the Commonwealth of Independent States. By
2018, Western Europe accounted for up to 20% of Russian
furniture exports, and our products are especially popular in
Germany and Sweden. There is also a demand for our products
in the Middle East, India and South East Asia. In terms of quality
and design, our furniture is in no way inferior to the best world
standards, but at more democratic prices. Our entry into foreign
markets is mainly constrained by bureaucratic procedures. Many
permits and confirmations of our furniture's compliance with the
each country’s standards are required and it takes a lot of time.
LOOKING AHEAD
AS: The plan is simple: grow, develop and improve. First Furniture
Factory is a rather ambitious company; it’s not enough for us
to be a leader in the Russian market and we strive to become a
world leader in furniture manufacturing. P
This article was first published in Lesnaya Industriya Journal.

July / August 2020, Issue 4 | Panels & Furniture Asia FURNITUR | 43

44 | MATERIALS
July / August 2020, Issue 4 | Panels & Furniture Asia
Employee Safety First
Sawmill operations continue as forest
products industry deemed essential
during pandemic
As the COVID-19 pandemic spread, North American hardwood lumber sawmills needed to
act – fast. Baillie Lumber was no exception.
In March, the United States (US) Department of
Homeland Security and the US Department of Labor both
said that the forest products industry is an essential and
critical infrastructure workforce in the nation’s response to
the pandemic. This meant that sawmills were allowed
to operate while other businesses closed or paused
operations.
The forest products industry was deemed essential because much
of what is produced in a sawmill is a critical part of the national
supply chain that keeps people safe and healthy. For example,
the hardwood sawmill industry helps provide:
• Lumber for pallets to move food, medical supplies and more
• Fuel pellets for energy production
• Ties for railroad transportation
• Sawdust that farmers need to maintain their livestock
• Packaging for the increasing amount of home deliveries
• Materials to keep essential construction projects going
• Wood chips that produce key paper products
Baillie Lumber took the approach to continue operations with
employee safety at the forefront of thinking. They adopted several
social distancing and sanitation practices to create the safest
workplace possible. Some of the measures they took included
creating six-foot interaction zones, redesigning employee
gathering places, revising trucker communication practices and
adopting other important social distancing techniques to keep
their employees safe.
It was measures like these that enabled Baillie Lumber to maintain
production at all of their facilities and supply their customers with
the lumber they need to keep their operations functioning. “The
safety of our employees is our number-one priority as we continue
operations during this pandemic,” said Phil Fenwick, Director of
Asian Sales. “However, the fact that we are also able to keep our
operations open and supply our customers with the materials
they need to conduct their business is extremely important.”
Baillie Lumber’s hardwood manufacturing facilities are spread
north to south throughout the heart of the eastern US – the so
called Appalachian region – including facilities
in New York, Pennsylvania, Ohio, Virginia and
Kentucky. This provides them with access to
some of the finest hardwoods in the world.
As required, Baillie Lumber utilises an extensive
network of reputable partner mills who meet the
highest quality standards expected by Baillie.
These partner mills help Baillie Lumber provide
increased quantities of high-quality lumber and
expand their breadth of specie selection. This
select network of partner mills allows them to
position themselves as a customer’s “one-stop
shop” for all their hardwood lumber needs. P
All images are credited to Baillie Lumber.
Baillie Lumber adopted several social distancing and sanitation practices to create the
safest workplace possible

July / August 2020, Issue 4 | Panels & Furniture Asia DESIGN | 45

46 | MATERIALS
July / August 2020, Issue 4 | Panels & Furniture Asia
STYLISH FURNITURE, WITH
SUSTAINABILITY TO MATCH
By Ken Hickson
Getting a sustainability stamp of approval – verifying the source and supply chain of timber used
to make furniture – can open many more doors for exporters, particularly to Europe and America.
That’s why one Indonesian furniture maker has decided to be the first to come on-board
the Programme for the Endorsement of Forest Certification (PEFC) Chain of Custody (CoC)
certification scheme.
Furnilac Primaguna, PT is the first furniture manufacturer
in Indonesia that is certified against the PEFC, the leading
global alliance of national forest certification systems.
In Indonesia, the PEFC certification system is built and developed
by its National Governing Body, namely the Indonesian Forestry
Certification Cooperation (IFCC).
Besides being committed to the principles of design thinking and
styling, sustainability is uppermost in the minds of Furnilac, as
they make sure all the wood material used comes from legal and
sustainable sources, approved by Indonesia’s timber legality
system, Sistem Verifikasi Legalitas Kayu (SVLK).
Since Furnilac Primaguna was established by designer
Dian S. Theosabrata in 1988, originality has been the driving
force behind his every creation. He has also made sure that his
exclusive furniture pieces are very competitively priced.
INNOVATIVE DESIGNS WITH A SUSTAINABLE EDGE
Located in Tangerang-Banten on the island of Java, the fine
furniture supplier says its achievements are made possible
by having a team of 21 skilled designers and craftsmen in its
research and development team, ensuring meticulous attention
to detail in the production of its innovative designs.
According to the Global Business Guide (GBG), Indonesia
has long been known as one of the world's leading furniture
manufacturers, as its teak and rattan products are sought
after in both the local and international markets. But despite
its natural advantages in terms of raw materials, Indonesia
continued to be ranked fourth in ASEAN in terms of export value,
despite its extensive timber resources.
While some Indonesian furniture manufacturers might see
challenges in having to provide proof that their wood supply is
harvested and sourced legally, Furnilac sees only advantages
in its commitment to the SVLK scheme.
Nesting tables using Furnilac is crafted from a combination of solid
wood and veneer (Image credit: Furnilac)
That’s why Furnilac is the first to get on-board with the CoC
certification scheme offered by PEFC/IFCC. Getting an additional
sustainability stamp of approval - verifying the source and
supply chain of timber used to make furniture - opens many
more doors for exporters, particularly in Europe and America.
ADDING COMPETITIVE ADVANTAGE WITH TIMBER
CERTIFICATION SCHEME, CERTISOURCE
Another timber certification scheme, CertiSource, has also been
able to help Indonesian exporters of wood products, providing a
competitive advantage to access environmentally conscious and
regulated markets. Becoming certified is affordable and helps
improve a company’s business processes as well as enhances
its marketing.
Singapore-based Double Helix Tracking Technologies has been
offering CertiSource certification in Indonesia since 2008. The
company is now even better placed to support the furniture

July / August 2020, Issue 4 | Panels & Furniture Asia MATERIALS | 47
industry in ASEAN as it is the first company to be accredited
to the PEFC scheme by the Singapore Accreditation Council,
which is part of Enterprise Singapore. DoubleHelix plans
to migrate CertiSource customers to PEFC over the next
6 months.
By offering PEFC CoC certification to companies here, and also
across the Asia-Pacific region, certification bodies can verify that
forest products like paper, wood flooring and furniture originate
from well-managed forests, and exclude material associated
with conflict or land-clearance. These factors are critical to
meet the increasing number of regulatory, public and private
sector procurement policies across the United States, Europe,
Australia, New Zealand, and now even China.
The furniture industry, for example, can avail itself of this
valuable tool to communicate the environmental credentials of
organisations that are bringing such products to the market. Far
from being a challenge, it is much more of an opportunity, as
more than 20,000 companies globally benefit from the market
access that PEFC CoC certification brings.
INDONESIA FOREST CERTIFICATION SYSTEM
RECEIVES TOP SCORE
Additional support for Indonesia’s forest management – and its
certified furniture businesses at the same time – is coming from
even further afield. The Dutch Timber Procurement Assessment
Committee (TPAC), whose main job is to make sure Netherland
maintains its commitment to 100% sustainable timber, has
given Indonesia’s forest certification system the top score,
thanks to the work of SVLK, IFCC and PEFC.
Referring to the aforementioned GBG report, while it pointed
out that there is “much work left for Indonesia to eradicate its
illegal logging issues”, it also refers to the “positive government
policy changes, promising consumer reactions to more stringent
verification processes, an existing pool of competitively priced
labour and an abundance of natural resources”.
There is little doubt that this is an ideal time to invest in
Indonesia’s timber industry, as it maintains sustainability
standards, and at the same time helps its furniture trade adopt
certification standards to grow into a regional leader. P

ADVERTORIAL
48 | MATERIALS
July / August 2020, Issue 4 | Panels & Furniture Asia
GABON SPECIAL
ECONOMIC ZONE
A WORLD-CLASS INTEGRATED
WOODWORKING DESTINATION
In 2010, the government of Gabon
banned exports of raw timber and
promoted the processing of natural
resources within its territory to generate
employment and boost the economy.
Since then, the Gabonese government
has taken many initiatives to provide an
amenable ecosystem and infrastructure
to facilitate the secondary and tertiary
processing of timber and other natural
resources. The Gabon Special Economic
Zone (GSEZ) is the outcome of a shared
vision of the government of Gabon and
Singapore-based Olam International
Limited to effectively master the transition
towards the industrialisation of Gabon.
Spread over 1,126ha in Nkok (20km from
the capital city of Libreville), the GSEZ
is one of the largest industrial parks in
Sub-Saharan Africa aimed at promoting
sustainable production and processing
of timber and various other resources in
the country.
INDUSTRIAL ECOSYSTEM WITH
RELIABLE INFRASTRUCTURE AND
UTILITIES
GSEZ SA is the administrating and
managing agency for Nkok SEZ. The
executive team of GSEZ SA is headed
by a full-time chief executive officer
who is assisted by functional heads in
several departments, namely finance and
accounts; operation and maintenance;
and marketing and business development,
among others. The government of Gabon
is further represented on site by the Nkok
SEZ Administrative Authority, which
provides assistance on statutory public
administration approvals through their
single-window clearance office. The
single-window clearance was created by
article 20 of the SEZ Law 010/2011, and
its office based in Nkok SEZ is exclusively
responsible for completing all formalities

July / August 2020, Issue 4 | Panels & Furniture Asia MATERIALS | 49
and giving approvals to investors in
the SEZ.
GSEZ SA has developed all modern
infrastructure and utilities within Nkok
SEZ and the same is available to all
industrial units settling in the SEZ at
a reasonable tariff. Infrastructure and
utility provision at Nkok SEZ has been
done for the entire 1,126ha, however,
the operational area is currently only
650ha. Further land preparation for new
industrial units will be undertaken when
the requirements arise. The infrastructure
and utilities developed at Nkok SEZ
include:
• Dedicated water supply scheme
Seven bore wells are the source of
water within the SEZ. Water storage
tanks with a daily capacity of six
million litres have been constructed
and commissioned, and a five-hectare
artificial lake has also been developed.
Water is priced at US$0.86 per 1,000
litres.
• Sewerage and common effluent
treatment plant
A sewerage network has been
developed for the entire 650ha of
developed land, and a common
effluent treatment plant is also
available for treatment of effluent
disposed of by industrial units.
• Dedicated 70MW dual-engine power
plant
The source of power is a 70MW
dual-engine power plant which
can run both on gas and diesel. This
source is already operational and can
be augmented to 105MW. A connection
to a hydro-electric power plant
as second source of power is
being implemented. The laying and
commissioning of a 90KV electrical
transmission system and a 20KV
distribution system has been
completed. One main receiving
substation and five zonal substations
have already been constructed and
are operational. Electricity is priced
at US$0.09 per kWh. With good
reserves of petroleum, raw material
for the power station is also not an
issue in Gabon. Furthermore, another
high-tension line connecting SEZ
to a hydroelectric power plant is
also under construction. Both the
quality and quantity of power are
suitable for industries.
• Information technology
infrastructure
24/7 operational high-speed fibre
optic broadband Internet connectivity
is provided by GSEZ SA within
the SEZ.
• Roads and connectivity
Nkok SEZ has 45 kilometres of
metalled internal roads with ample
green areas and street lights, including
over 350 solar street lights. Nkok SEZ
enjoys all forms of connectivity:
Road: Nkok is located on RN 1
(national highway network).
Railway: GSEZ recently acquired
Somivab, a large sawmill adjoining
Nkok SEZ. Its railway siding on the
Trans-Gabonais railway line is now
part of common logistics facilities
available to industries at Nkok SEZ.
Waterway: A quay with a 200-metrelong
berth has been constructed at
the SEZ. It connects the SEZ to
Owendo Port and other parts of
Gabon.
The port is around 37km from Nkok
SEZ by road, 24km by rail and 18km
by waterway.

50 | MATERIALS
July / August 2020, Issue 4 | Panels & Furniture Asia
Nkok SEZ has ISO 14001,
ISO 9001 and ISO 18001
certified operation and
maintenance for
infrastructure and
utilities.
• Raw material supply chain
As part of its business facilitation role,
GSEZ operates a log supply chain for
units in Nkok SEZ and offers a longterm
contract to all wood processing
units for an assured and unhindered
supply of raw material (eg, logs).
FURNITURE MANUFACTURING
CLUSTER – AN INITIATIVE TO
PROMOTE “MADE IN GABON”
Nkok SEZ also has 60,000sqm of readyto-use
sheds in a Furniture Manufacturing
Cluster to promote manufacturing of
finished products in Gabon. As of now,
there are ten units working in this cluster.
FISCAL INCENTIVES TO
INVESTORS
Investors in GSEZ enjoy the following fiscal
incentives on their industrial investments:
• No income tax for first 10 years and
a preferential rate of 10% over the
next five years
• No customs duty on the import
of equipment and machinery for the
industry
• No VAT
• No property tax
• 100% foreign ownership permitted
• 100% exemption from capital
gains tax
• Other relaxations and waivers
o Relaxed labour laws and flexibility
in employing expatriates
o Reduced export duty for products
manufactured in the SEZ
o 100% repatriation of profits
o Up to 25% of domestic tariff area
sales permitted
FOREIGN INVESTMENT IN GABON
Gabon is a good investment destination
for all kinds of businesses as it has an
investor-friendly environment. Since
gaining its independence in 1960,
Gabon is one of Africa’s most politically
and socially stable countries and has
a per capita gross domestic product
of US$19,200. Gabon has the best
assessment for country risk of the Central
African sub-region with a B rating and
is ranked second in Central Africa for
good governance in the Ibrahim Index
of African Governance. The country is
ranked second in Sub-Saharan Africa
as per the United Nations Development
Programme’s 2018 Human Development
Reports. In the World Bank’s 2017 “Ease
of Doing Business” ranking, Gabon ranks
above most of the African countries.
Some benefits of doing business in Gabon
include:
• Safest and most stable country in
Central and West Central Africa
• No currency devaluation risk –
currency is permanently pegged to
the euro [655.957 CFA franc = 1 euro]
• Easy application process for electronic
visas and work permits
• No natural calamity – earthquake-,
cyclone- and tsunami-free zone
• Foreign investors do not need a local
partner and can own 100% of shares
in a company, as well as own assets
in the country
• Among the least polluted countries of
the world – also can be called the
“oxygen cylinder” of the world
GSEZ SA facilitates its investors in availing
credit facilities for financing the initial
investment and working capital from
leading banking institutions like BGFIBank
Group, Union Gabonaise de Banque(UGB),
United Bank for Africa(UBA), Caisse
des Depots et Consignations(CDC),
African Export-Import Bank (Afriexim
Bank), among others.
SINGLE-WINDOW CLEARANCE – A
DIFFERENTIATOR
Through the single-window clearance
office, GSEZ assists to obtain all
necessary regulatory and statutory
GSEZ SA, through its
subsidiaries, has
developed mineral and
general cargo ports in
Owendo, where Nkok
SEZ industries have
preferential tariff and
services for inbound
and outbound
traffic.
clearances required for setting up
an industry in the SEZ from various
government departments, simplifying the
process in granting speedy approvals to
all units. To ensure that the investors do
not have to run from one office to another,
all 23 concerned 23 departments and
agencies from which approvals are
required are housed in a special building
within the SEZ. This has proved as a
clear differentiator for entrepreneurs in
choosing this location for establishing
their units.
SUSTAINABLE RAW MATERIAL
AVAILABILITY
Gabon follows a sustainable forest
management (SFM) system – the best
known system that will ensure the
natural regeneration of trees and that
the country’s wood stock does not
deplete. Adhering to SFM rules, Gabon
will never face situations similar to those
of countries in South East Asia. Given the
reckless degradation of forests, many
countries in South East Asia have imposed
several full, partial or temporary logging
bans. Gabon’s neighbouring countries
in the Congo Basin are also expected to
impose bans on the export of round logs
very soon (according to the International
Tropical Timber Organization). With all
these developments, combined with
China’s decision to stop the harvesting of

July / August 2020, Issue 4 | Panels & Furniture Asia MATERIALS | 51
Since 2017, India’s Greenply has already been
operating its unit in Nkok SEZ. Century Plyboard
from India also started their construction of its
veneer unit in 2019 and their plant is likely to be
operational later this year. This plant will cater to
both European and Asian markets.
natural forests, it makes immense sense
to invest in a manufacturing unit in a
country that is rich in timber resources.
Gabon is the best option available today.
Another aspect is use of wood certified
by the Forest Stewardship Council (FSC),
and with proper traceability and legal
certificates for furniture manufacturing.
Most of the big buying houses in the
United States and Europe have made a
resolution to ensure that by 2020, at least
30% of furniture sourced are made with
FSC-certified wood. FSC-certified wood
in this quantity has limited availability
but it is abundantly available in Gabon.
To further ensure legality and traceability
of logs entering Nkok SEZ, GSEZ SA
created TRACER-Nkok, an agency
independently run by two reputed entities,
namely FRM and Brainforest. TRACER-
Nkok ensures complete traceability of
logs from their entry into the SEZ to
delivery to the processing unit. TRACER-
Nkok issues a due diligence certificate
to log suppliers that authorises them
to supply logs to Nkok SEZ. TRACER-
Nkok aims to promote the progressive
certification of the wood sector in
Gabon.
NKOK SEZ TODAY
Nkok SEZ currently has 166 investors
from 17 nations, and the expected foreign
direct investment exceeds US$1.7
billion. Out of the 166 investors, 70 are
from China, India and South East Asia.
The industries making the SEZ their
base are mainly in wood transformation
(eg, sawmill, veneer and plywood);
ferro-alloys; construction materials;
pharmaceutical; food processing;
telecom equipment; waste and metal
recycling; and warehousing, among
others. Currently, 77 companies are
already under production and another
30 companies are in different stages
of construction. It is expected that
more than 100 companies will be under
commercial production by mid 2021.
In April 2016, Africa Finance Corporation
(AFC) made an investment of US$140
million in GSEZ SA. Established in
2007, AFC is a pan-African multilateral
financial institution aimed at being a
catalyst for private sector infrastructure
investment in Africa and in funding power,
industry, transportation and telecoms
infrastructure. This investment by AFC
is the independent validation of GSEZ’s
business model, its future prospects and
the ability of its team to execute and
deliver. P

52 | DESIGN
July / August 2020, Issue 4 | Panels & Furniture Asia
Unfolding an origami
coup de maître
The roof frame is a breathtaking feature that takes after an origami,
transforming the interior into an expressive and expansive space with a
cascade of “folds” styled with cross-laminated timber (CLT) panels. This
is a building where the architects want people to look up and be awed.
As a structural screw manufacturer for wooden buildings,
SYNEGIC Co., Ltd envisioned an advanced architectural
design that can expand on the possibilities of modern
wooden structures when the company was planning for its new
office building, located in the Miyagi Prefecture of Japan.
Fumie Horikoshi and Yoshinori Hasegawa, the architects from
UENOAU, proposed a plan for several mixed spaces that are
open so that employees can see each other. The roof frame
is a breathtaking feature that takes after an origami, transforming
the interior into an expressive and expansive space with a cascade
of “folds” styled with cross-laminated timber (CLT) panels. This
is a building where the architects want people to look up and
be awed.
THE ROOF
With the roof frame touching the ground at four points, no pillar
is required, bestowing a largely unobstructed space to the ground
floor. Led by the topographical features of the dynamic roof frame,
the overall design relates closely to the roof – there are places in
the building where the roof is within reach and people can touch;
there are spots where the roof frame can be viewed in its fully
constructed glory and visitors can appreciate the beauty and
finesse of the design.
The three-dimensional roof shape is formed by connecting flat
trusses made of laminated timber with a width of 105 cm (the
most common dimension in Japanese houses) with triangular
CLT panels. By using CLT panels for fastening flat trusses,

July / August 2020, Issue 4 | Panels & Furniture Asia DESIGN | 53
A cascade of “folds” styled with crosslaminated
timber (CLT) panels
complicated processing of joints and joining by hardware
are avoided. It also allows for prefabrication where wood
materials can be pre-cut and screws joined on-site. The
CLT panels used for the building’s walls and roof are
made from Japanese cedar while Japanese pine laminated
timber is used for the trusses and columns. The ceiling is
constructed using European red pine.
INNOVATIVE USE OF CLT
The architects have also applied the use of CLT innovatively.
CLT, commonly used in walls and floors, is used on the roof
in this case to demonstrate that CLT can look light too. The
heaviness of the commonly used mass timber material is
now contrasted with a possibility of lightness.
The new office building of SYNEGIC Co., Ltd resembles an origami box from the outside

54 | DESIGN
July / August 2020, Issue 4 | Panels & Furniture Asia
1
2
3
CLT is also used to build a partition wall that bears
a vertical load on the first floor. As the CLT surface
was textured to resemble marble, the architects had
to find ways to join the screws while considering the
design and workability rather than using typical CLT
hardware. Though these ambitious processes add to
the higher costs of working with CLT, the result was a
new innovation where a large CLT wall in the atrium
has been created with no modules and emphasis can
be focused on the unique wooden texture.
Photos 1-3: The overall design with several open mixed-spaces
relate closely with the roof

July / August 2020, Issue 4 | Panels & Furniture Asia DESIGN | 55
With the roof frame touching the ground at four points, no pillar is required in the building’s interior space
By pushing the boundaries as exemplified
by the large CLT partition wall and the
elaborate roof frame, the architects hoped
that they have contributed to the progress
of CLT uses in buildings and design – one
small step at a time.
The building has a total floor area of
834 cubic metres and was completed in
December 2018. P
All images are credited to UENOAU and
Hiroyuki Hirai.

56 | DESIGN
July / August 2020, Issue 4 | Panels & Furniture Asia
The Hoa Mai Furniture
Design Competition 2020
The Handicraft and Wood Industry
Association of HCMC (HAWA) and
the American Hardwood Export
Council recently announced the
finalists and winners of the Hoa Mai
Furniture Design Competition.
The 17 th iteration of the competition continues to provide
young Vietnamese designers with the opportunity to
explore the creative possibilities provided by American
hardwood species and for business and industry to discover
and connect with emerging design talent.
Mr John Chan, executive director of The American Hardwood
Export Council, said of the competition “We are delighted
with the high quality of entries to the competition this year.
The creative talent that continues to grow in Vietnam and the
interest in the design and commercial possibilities that American
hardwood species present is hugely encouraging”.
All entries this year were created from American red oak, the
most abundant species in the American hardwood forest.
There were over 331 entries, 269 of which were from University
students. The judging panel narrowed this down to a shortlist
of 23 from which nine eventual category winners were chosen.
The highlights and the quality of submissions can be seen below:
WINNER –
THE HONOURABLE PRIZE
SmartDesk
Nguyen Thi Kim Thoa
Hanoi Architectural University
Solid and thin, bar and block, black and white, push and pull.
The Smart desk is all about contrast. The intriguing design
cleverly integrates wireless charger and USB ports with
a concealed Hafele drawer. Designer Kim Thoa found the
combination of the compressive strength of American red oak
and ease with which it can be steam bent, a huge advantage in
the manufacturing process.
FB: https://www.facebook.com/people/Kim-Thoa/100006685065531

DESIGN | 57
WINNER
(OUTSTANDING CONCEPT)
Floating Market Bench
Lê Long Vĩnh and Huynh Thanh Quyen
Vang Lang University
This bench was inspired by the floating market of the Mekong
Delta. Designer Vinh was particularly struck by the beauty of
the grain and texture of the American red oak. The reliable and
consistent quality meant that the slender poles were easier to
achieve without splitting.
FB: @le.l.vi.7
WINNER
(INTERMEDIATE GROUP)
BÈO
Vũ Thành Nam
University of Industrial Fine Art
Contact with materials including rattan, rush and duckweed
whilst in the traditional trade villages of Thanh Hoa and Ninh
Binh combine here with a Scandinavian aesthetic to create a sofa
that harmonises modern and traditional simplicity.
FB: @M.i.r.vus
RUNNER UP
(INTERMEDIATE GROUP)
Minnaar Chair
Quach Minh Quan
Ton Duc Thang University
“Derived from the poetics of a wave” is how interior design
student Quach Minh Quan describes his softly curved creation
with a continuous line flowing form the front leg of the Minnaar
chair through the arm and from the armrest to the back. The
chair is fluid and rounded in character with soft points of
transition. “American red oak has some of the best qualities to
work with. It’s easy to cut and machines well. It’s a fine wood
in my opinion and I kind of like the colour too!” he said.
All images are credited to AHEC
FB: @bluevoids.1

58 | DESIGN
July / August 2020, Issue 4 | Panels & Furniture Asia
Framing the entrance of the
building, the form references the
Chinook cloud arches common to
the region

July / August 2020, Issue 4 | Panels & Furniture Asia DESIGN | 59
Calgary Central
Library – where Ice
and Timber meet
The Calgary Central Library is sited within a complex urban
condition, where a fully operational Light Rail Transit Line
crosses the site from above to below ground on a curved halfmoon
path, dividing Downtown and East Village.
In response, the design, led by Norwegian architectural firm Snøhetta, lifts the
main entry over the encapsulated train line. Gently terraced slopes rise up to the
heart of the building, welcoming people arriving from every direction to the library.
The dynamic, triple-glazed façade is composed of a modular, hexagonal pattern that
expresses the library’s aims to provide a space that invites in all visitors. Aggregated
variations on the hexagon form scatter across the building’s curved surface in
alternating panels of fritted glass and occasional iridescent aluminum.

60 | DESIGN
July / August 2020, Issue 4 | Panels & Furniture Asia
The dynamic, triple-glazed façade of the Calgary Central Library is
composed of a modular, hexagonal pattern
The rhythm of beams and columns are reminiscent of a stoa – the public,
open-air colonnades of ancient Greek architecture
From these shapes emerge familiar forms: Parts of the pattern
might resemble an open book, snowflake-like linework, or
interlocking houses, anchoring the ideas of the collective and
community. Above all, the entire building volume is enclosed in
the same pattern, allowing all sides to function as the “front” of
the building. This visual vocabulary continues inside, expressed
in the design of the library’s new visual identity and wayfinding
signage in the building, unifying the library’s goals of inclusivity.
ONE OF THE LARGEST FREEFORM TIMBER SHELLS
IN THE WORLD
The crystalline geometry of the façade peels away to reveal
an expansive wood archway that embraces visitors as they
approach. Framing the entrance of the building, the form
references the Chinook cloud arches common to the region.
Created entirely of planks of western red cedar from nearby
British Columbia, the double-curved shell is among one of the
largest freeform timber shells in the world. Its organic form and
texture bring the large building down to a tactile, intimate scale.
As the archway leads into the lobby and atrium, the wood spirals
upwards over 85 feet and towards a view of the sky through
the oculus. Wood slats line the perimeter of the open atrium,
shaped like a pointed ellipse, serving as an orientation device
for people to quickly grasp the circulation and organisational
logic of the library.
BEAMS AND COLUMNS REMINISCENT OF THE
ANCIENT GREEK STOA
Inside, the concrete structure is left exposed and unfinished,
hinting at the open-ended possibilities within. The rhythm of
beams and columns are reminiscent of a stoa – the public,
open-air colonnades of ancient Greek architecture that doubled
as spaces of gathering and intellectual exchange. The rawness
of the material palette is intended to give people the sense
that the library is a place of engagement, rather than a sacred
repository for books.
As the archway leads into the lobby and atrium, the wood spirals upwards
over 85 feet and towards a view of the sky through the oculus
Organised on a spectrum of ‘Fun’ to ‘Serious,’ the library
programme locates the livelier public activities on the lower
floors, gradually transitioning to quieter study areas on the
upper levels as one spirals upwards. At the street level, a series
of multi-purpose rooms line the perimeter of the building,

July / August 2020, Issue 4 | Panels & Furniture Asia DESIGN | 61
enhancing the connectivity between the inside
and outside. On the ground floor, a Children’s
Library offers playhouses that provide space
for crafts and drawing-based activities, early
literacy programmes, and a full-body indoor
play experience.
A JEWEL BOX TUCKED WITHIN THE
LIBRARY
Throughout the six floors, a variety of spaces
provide for digital, analogue, group, and
individual interactions. At the
uppermost level is the Great Reading
Room, conceived as a jewel box
tucked within the library, which
provides a space for focused study and
inspiration. Readers enter through a
transitional space with softened
light and acoustics. Within, vertical
wood slats line the space to provide
both privacy and visibility, defining
an interior space without using solid
walls. Natural light illuminates the
space through the wood slats creating
glancing sightlines between the
atrium and western façade.
The Great Reading Room is conceived as a jewel box tucked within the library
At the northernmost point of the
library, the Living Room overlooks the
train line and the meeting point of the
two neighbourhoods. Filled with light
and activity, this prow of the building
will not only serve as a beacon to
those outside, inviting them to enter,
but also as a prospect for looking
back out – a fitting vantage point
to observe the impact of a building
that hopes to re-energise the spirit
of culture, learning, and community
in Calgary. P
All images are credited to Snøhetta.

62 | SHOW PREVIEW
July / August 2020, Issue 4 | Panels & Furniture Asia
A prelude to
industry recovery:
Triple-packed
CIFM-interzum
guangzhou 2020
returns this July
The event will showcase industry
verticals comprising finished furniture,
production equipment and raw and
auxiliary materials.
The China International Woodworking Machinery and
Furniture Raw Materials Fair (CIFM)-Interzum guangzhou
2020 is set to take place from 27-30 Jul 2020 at Pazhou
Complex, Guangzhou, China. As the trade exhibition for the
woodworking and upholstery machinery, furniture materials and
interior décor industry in Asia, this year’s Interzum guangzhou
will coincide with the home installation of China Guangzhou
International Furniture Fair (CIFF), which features household
furniture.
“IN” LIVE STREAMING
Making its debut at Interzum guangzhou 2020 is the “in” Live
Streaming online business matching platform, which is aimed at
allowing buyers who are unable to visit the exhibition to connect
with exhibitors. The scheduled one-on-one sessions will be held at
the first three days of the show according to the four main product
categories – hardware, machinery, decorative materials and
upholstery accessories. All Interzum guangzhou 2020 exhibitors
are expected to have the opportunity to participate in the event.
Koelnmesse, organiser of Interzum guangzhou, is confident that
this live streaming component serves to provide industry players
with a more diversified procurement experience to meet the
various business needs and situations of buyers.
INDUSTRY RALLIES BEHIND INTERZUM gUANGZHOU
With China’s Belt and Road Initiative and the rapid development
of the Guangdong-Hong Kong-Macau
Greater Bay Area, Interzum guangzhou
has continued to garner support
from exhibitors, while also ushering
in several new names. Area C of the
event venue will also be optimised and
integrated to present a more refined
and centralised layout to facilitate
procurement.
Some exhibitors slated to appear in
Interzum guangzhou 2020 include
Paolino Bacci, Linak, Latexco,
Ferramenta, Henkel, and Schattdecor.
Based on estimation from the
International Monetary Fund, China
is expected to contribute 28% of
global economic growth from 2019-
2024. In addition, the country has the
advantages of a huge market and the
presence of entire industry value chain,
which provide an internal driving force
for the overall economic recovery in the
post-pandemic era.
Woodworking machinery and furniture production will be showcased at Interzum guangzhou 2020, which
will be taking place from 27-30 Jul 2020 at Pazhou Complex in Guangzhou, China

July / August 2020, Issue 4 | Panels & Furniture Asia SHOW PREVIEW | 63
UNEXPECTED POSITIVE CHANGES
With more time spent staying home, the COVID-19 pandemic has
inadvertently brought about a newfound awareness by consumers
on their living space – new materials, personalised designs,
customisation and aesthetics are aspects that have become more
prominent than ever.
Riding on this wave, a spokesperson from Italian Ferramenta, said:
“Furniture manufacturers are constantly looking for better hardware
accessories, because well-made hardware accessories can enhance
the overall value of furniture, and, in turn, provide better products
for consumers. The current custom furniture in China has driven
production companies to continuously improve the flexibility of their
products and services.”
1
Another exhibitor, Linak Transmission Systems, observed a more
market-oriented industry, as its spokesperson elaborated: “We are
seeing an increasing number of design studios and small-scale custom
production factories that provide customised services and furniture
products. Furniture customisation trends reflect the structural
upgrading of furniture consumption, especially in China. These trends
will cause new changes in the furniture industry, and the formation of
new supply chains to adapt to these market changes.” P
2
Photo 1-2: Visitors to Interzum guangzhou 2020 will be able to
grasp the trade dynamics of the industry

64 | WOOD CLINIC
July / August 2020, Issue 4 | Panels & Furniture Asia
Hello Mr Shen,
I am a reader of Panels & Furniture Asia. Recently, I am responsible for the manufacturing of
solid wood furniture in an Indonesian carpenter’s shop, and was tasked to handle a batch of oval
coffee tables made of Nyatoh wood which have been stored in the warehouse for a long time. After
continuous sampling and reinspection of the coffee tables, it was found that these solid wood
panel tables’ glue lines have cracked, and can be easily broken by hand (see Figure 1).
I hope you can help analyse the potential causes, and provide suggestions for improvements and
remediation.
Mr Shim (Shen Yuxin)
Yours sincerely,
Mr Lin
Reasons for cracked glue lines
on coffee table made from
Nyatoh wood
(I) Analyse the cracks of the splicing glue line of the Nyatoh
wood oval coffee table and propose improvement plans:
1. Wood moisture disequilibrium: The moisture content of
Nyatoh wood is in the range of 12-25%, whereas the equilibrium
moisture content in the warehouse is around 10-14%. This
means that wood with high moisture content in the warehouse
continues to lose moisture and shrink, leading to the defect of
splice glue line cracks in Nyatoh wood furniture.
Below is the analysis of the causes and improvement plans for
wood moisture disequilibrium:
a) Irregular operation of the drying kiln: Inconsistent thickness
of different wood species are dried in the same drying kiln.
Due to the differences in wood species and timber thickness,
the timbers are susceptible to uneven moisture content.
b) Solution: When drying wood in a drying kiln, the timbers
should be stacked properly and separately with 1-inch
spacers. The thickness of the timber must be the same,
and, if possible, of the same wood species. Prior to the drying
operation in the kiln, ensure the boiler’s steam supply is
stable, and the hot air circulation is uniform and free of
short circuit.
2. Quality inconstancy of panels: The use of four-sided planing
to prepare Nyatoh wood often results in unstable quality of solid
wood panels, and impacts the adhesive force.
Recommendations:
a) Rough cutter mark: When preparing material with
conventional four-sided planer at fast-feeding linear speed,
the number of cutter marks has only 5-6 tool marks per foot
inch, and the depth of the mark depth (arc depth) is
greater than 0.07mm. As a result, there are many gaps in
the splice plate’s glue lines, leading to poor adhesive force.
It is recommended that the width of the cutter marks is kept
at or below 2.0mm. The feeding linear speed of the foursided
planer is set between 10-12m/min so that the number
of cutter marks are at 10-12 tool marks per foot inch,
thereby improving the rough cutter mark issue of the panel.
b) Snipping: There will be gaps in the glue line at snipping
sites of the panel material, resulting in poor adhesive force.
If the chip ring of the four-sided planer’s planing tool is
higher than the outfeed table, snipping may appear at the
ends of the timber. It is recommended to check with a ruler
to confirm that the chip ring of the planing tool is at the
same horizontal plane with the outfeed table.
c) Hairy: When wood moisture content is too high, the foursided
planer is not sharp enough, and the sharpening angle
is greater than 30o. The planed surface of the timber may
be hairy because of cell damages, leading to defects such
as glue line cracks or false gluing as shown in Figure 2
and 3. It is recommended that the operator regularly inspect

July / August 2020, Issue 4 | Panels & Furniture Asia WOOD CLINIC | 65
Figure 1: Nyatoh wood oval coffee table, the solid wood panel of which
shows the cracked glue lines that can be easily broken
Figure 2: Magnified view of the hairy appearance defect cause by
inadequate sharpness of the four-sided planer
and replace the planing tool, and ensure the sharpening
angle and sharpener mounted on the tool holder is accurate
and the planing tool is sharp. Before the processing of dried
timber, check and confirm that the wood moisture content
is maintained at 10±2%.
d) Torn grain: Nyatoh wood has locally interlocked gain.
However, the defect of torn grain may occur if the planing
tool is not sharp enough, the set feeding linear speed is
too fast, or the chip breaker is worn out or not set in place.
If the torn grain is in the part of the spliced sheet material, it
will lead to poor adhesive strength of the glue line of the
spliced board. It is recommended to check that the chip
breaker is not worn, set the distance between the chip
breaker and the chip ring at 5.0mm, appropriately reduce
the liner speed setting, and ensure the planing tool is kept
sharp, which can improve torn grain defect. Panels with
severe tearing wood grain should be used for other purposes.
e) Skipping: In four-sided planers, when the planing tool’s chip
ring is higher than planer table, the upper compression roll
and the chip breaker are damaged, or the wood panel
vibrates during the planing due to insufficient pressure,
the panel surface will present took marks of variant size and
depth, thus contributing to poor adhesive force of glue
lines in parts of the panel. It is recommended for operators
to check the pressure to ensure normal operation when
resetting the upper roller and chip breaker, and adjust the
chip ring of the planing tool appropriately to make it on the
same horizontal plane with the planer table.
f) Not square: The non-right angle of the panel material will
result in the gap of the glue lines of the panel. When the
planing tool spindle bearing is worn out or the pressure of
the upper compression roll is uneven, panels may not result
in a square. It is recommended that operators conduct
regular checks to ensure that the planing tool spindle
bearing is not worn out, and the upper compression roll
delivers sufficient pressure.
g) Hit and miss: Poor local adhesive force may arise from the
hit-and-miss defect of the glue lines of the solid wood
panel. It is recommended that the raw logs’ specifications
are rigorously controlled so that their width and thickness
are stable. Operators of the four-sided planer and gumming
machine have to take note of periodical inspections, and
panels with hit-and-miss defects should be picked out and
used for other purposes.
3. Improper glue mixing ratio: The ratio of primary adhesive
to hardening agent should be 1:15 for emulsion polymer
isocyanate (EPI) dual-component water-based adhesive panels.
Excessive glue mixing ratio variance may result in unstable
adhesive force. If the ratio of the hardening agent is too low,
the expected adhesive force will not be achieved; if the ratio is
too high, the adhesive film will become fragile, resulting in poor
adhesive strength. Generally, the ratio of the hardening agent
is controlled at 14-15%. The ratio of glue mixing specified by
the supplier shall be taken as reference.
4. Improper amount of glue spread: If the amount of glue
spread is too low and uneven, the wood surface will not be
adequately wet, resulting in adhesive failure. If the amount of
glue spread is too high, the excess adhesive will be wasted and
the wood will absorb excessive moisture, thus leading to longer
curing time for panel assembly. It is ideal if the panel’s glue line
is squeezed out, forming sesame-like glue beads.
5. The use of expired adhesive: Generally, the mixed EPI
adhesives have to be used within the specified period. The use
of expired adhesive will lead to loss of adhesive force. Therefore,
the amount of adhesive to be mixed and the ratio of glue mixing

66 | WOOD CLINIC
July / August 2020, Issue 4 | Panels & Furniture Asia
Figure 3: The cracked glue line of the panel under a magnifier, showing
the intact white adhesive film and the cracks on the planed surface of
wood at sites where the cells are damaged
Figure 4: Cracking of glue lines as a result of the inadequate pressure
caused by oil leakage arising from the wear of piston rubber ring inside
the hydraulic cylinder
should be controlled by a fixed operation staff in order to achieve
expected adhesive force.
6. Improper assembly time: If the gumming and assembly
time is too long and the pressing operation is carried out with
dried or skinning adhesive film, the adhesive force will be
adversely affected, and the expected adhesive force will not be
achieved. It is recommended that the gumming and assembly
time is properly controlled, and the pressing operation is carried
out when the adhesive film is not dried up or skinning.
7. Improper operation of the panel press:
a) Improper pressure settings: If the pressure settings of
the four-column hydraulic press are set too high and the
panel experiences compression deformation, adhesive
failure may occur as a result of the rebound of the panel
when the pressure is lifted. If the pressure is set too low,
the panels may not be in full contact, leading to false
adhesion or glue line cracks. It is recommended the pressure
of the hydraulic press setting is calculated with the following
pressure calculation formula:
i. Unit pressure (kg/cm²) = wood specific weight x 20
ii. Pressure gauge readings: P (kgf/cm²) = (AxDxC) ÷ R
iii. P: Pressure gauge readings
iv. A: Adhesive spread area
v. D: Wood specific weight
vi. C: 20 (constant)
vii. R: Total area of hydraulic cylinder
8. Pressure holding time: If the pressure holding time is set too
short, the pressure will be lifted before the adhesive film is dried,
hence resulting in poor adhesive force. It is recommended to
detect the glue line bead solidification time, and set as reference
for the pressure holding time.
9. Curing: When the pressure is lifted, the panel’s glue line
will absorb the moisture in the water-based adhesive, and, as a
result, the glue line’s moisture content will increase. If planing
is carried out immediately, the glue line could have collapse or
crack when the moisture in the glue line has evaporated. It is
recommended that the panels are piled up into stacks using
20mmx20mm spacers, and sent to curing room for curing.
The planing operation is ideally carried out when the moisture
content of the glue line is tested to be in the range of 10±2%.
(II) Remedial actions for repairing oval tables that have
cracked glue lines. The following improvement processes are
recommended:
1. Unpack, inspect and pick out all cracked tables, saw open
the glue lines that have adhesive failures using linear
trimming machine, then choose table panels that only have
slight adhesive failure for reassembling the tables.
2. The repairing of table panels that have severe adhesive
failures can be time consuming. There is no other option
better than using them for other purposes, and replenish
materials for manufacturing new tables.
b) Hydraulic cylinder oil leakage: When the pressure is
insufficient due to oil leakage as a result of the wear of
piston rubber inside the hydraulic cylinder, cracking of glue
lines as shown in Figure 4 may occur. It is recommended
that the hydraulic cylinder pressure of the hydraulic press
be regularly checked to ensure there is no oil leakage, and
the pressure is sufficient.
The above-mentioned brief descriptions and opinions are
proposed for reference based on the information provided. It is
hoped to identify the cause of the adhesive failure of the coffee
tables and solve the issue successfully. P

July / August 2020, Issue 4 | Panels & Furniture Asia WOOD CLINIC | 67
HANOIWOOD 2021
Pablo Shanghai
Contact: Rain Ma
Mobile: (86) 182 1755 3837
Email: 2229204646@qq.com
Venue:
International Centre of Exhibition
(I.C.E ), Hanoi
91 Tran Hung Dao Street, Hoan Kiem
District, Hanoi , Vietnam
QR Code to exhibition
location on Google Map
JOINTLY ORGANISED BY
BINH DUONG FURNITURE ASSOCIATION
NEW DATE:
9-11 JUNE 2021
PANELS & FURNITURE GROUP
VIETNAM TIMBER AND
FOREST PRODUCT ASSOCIATION
PLEASE CONTACT:
Pablo Publishing & Exhibition Pte Ltd
3 Ang Mo Kio Street 62 #01-23 Link@AMK
Singapore 569139
Tel: (65) 6266 5512 Mobile: (65) 9621 4283
Email: williampang@pabloasia.com

NEWSLETTER
JULY/AUGUST 2020
THE MALAYSIAN MDF MANUFACTURERS ASSOCIATION (MMMA)
Surviving the
Resurgent
Coronavirus Crisis
By Peter Fitch
MMMA Newsletter for PF Asia July/August 2020
Diagram 1
would like to start the article by quoting
I
directly from reports published by the
World Bank and the OECD in June 2020.
“Covid-19 has triggered a global
crisis like no other – a global health
crisis that, in addition to an enormous
human toll, is leading to the deepest
global recession since the second world
war. While the ultimate growth outcome is
still uncertain…. the pandemic will result
in output contractions across emerging
markets and developing economies.
Moreover, the pandemic will exert
lasting damage to fundamental longterm
growth prospects, further eroding
living standards for years to come.” – World
Bank
“The global economy is now experiencing
the deepest recession since the
Great Depression in the 1930s, with
GDP declines of more than 20% and a
unprecedented surge in unemployment.
The economic outlook is exceptionally
uncertain.” – OECD
Thinking about an ‘after coronavirus world’
Selected images are credited to IKEA and Deutsche Messe
now is not an easy thing to do. Many economic hardship, complexity and volatility.
companies in Malaysia are understandably
eager for a quick return to normalcy The first step is to cut costs to a minimum,
when governments relax their Movement immediately. This is to buy time to adapt
Control Orders (MCO). But this could be and to adopt new business models.
a reoccurring global pandemic forcing The second step is to assess your business
companies to manage unprecedented
68

NEWSLETTER
THE MALAYSIAN MDF MANUFACTURERS ASSOCIATION (MMMA)
JULY/AUGUST 2020
The second step is to assess your business model. To help
you do this, you need to know where your current business is
in relation to the new world order. Refer to Diagram 1, which
will help you visualise it. Here I have made two axis – on the
x-axis is how the COVID-19 situation has impacted the business
model and on the y-axis is the impact on demand. This gives us
four quadrants:
1.Threatened
This is the most dangerous space on the map. The crisis is
exposing you to major weaknesses in your business model.
Examples are airlines, sporting events and large public
gatherings. In the timber business, this will adversely affect
trade shows and exhibitions. Companies here have little hope of
reaching another space on the map unless they totally reinvent
themselves.
2. Overweight
This space corresponds most closely to what companies witness
during conventional downturns, recessions or a crisis. This is
a classic case of an imbalance between supply and demand.
Demand has suddenly and dramatically reduced, reversing an
on-going trend of every greater demand and investment in supply.
Examples are what we see in most wood related businesses at
the moment, from furniture, panels, lumber to sawn timber.
Companies here can fall back on proven crisis responses,
but need to be aware that this recession could be prolonged.
Sensible and responsible action should be a controlled reduction
in capacity, as well as to avoid price wars and discounting.
Unfortunately, bankruptcies of inefficient or poorly managed
operations will occur.
3. Overwhelmed
Demand shifts have worked in your favour, but are straining
your operations which may not be sustainable in the current
environment. For example, grocery retailers are seeing huge
spikes in demand especially for PPE and health related products.
The downside of this favourable demand is that the capacity of
your business may not be able to absorb the increase whilst
maintaining, quality and costs. Customers are experiencing
long queues, stock outs, poor service and lack of choice, all of
which are negative experiences. In the timber industry, good
examples would be companies that supply hospitals or healthcare
services. If there was ever a time to make crucial investments
then this is the area to do so now. The mission here is to beat
your competitors to the “Thriving” space and avoid sliding down
into “Threatened”.
4. Thriving
There are no safe spaces but this is the most desirable quadrant.
Demand shifts are working in your favour. The effects of social
distancing and other measures do not inhibit your company
from absorbing greater demand. Good examples here are
online retail platforms, companies such as IKEA are claiming
online sales increased by 95% during April/May whilst instore
purchases are down more than 75%. More companies will invest
to grow and strengthen their online presence very much at the
expense of physical sales models. This is well established in
the Business to Consumer (B2C) market, but relatively untried
and untested in the Business to Business (B2B) sales model. The
real challenge for traditional timber manufacturing companies
is how to expand their range of products and most importantly
increase sales channels, whilst rebalancing supply and
demand.
About the Author
Peter Fitch is the founder of Segamat
Panel Boards (Malaysia) and is
currently chairman of the Malaysian
MDF Manufacturers Association
(MMMA) and executive committee
member of the Malaysian Panel
Manufacturers Association (MPMA).
Prior to working in Malaysia he worked
for Plantation Timber Products (China)
and Takeuchi MDF (Malaysia). Peter
has been based in Asia for more than
25 years and in the wood panel
business for more than 20 years.
69

70 | ENVIRONMENT
Events Calendar 2020 / 2021
July / August 2020, Issue 4 | Panels & Furniture Asia
January / February 2020, Issue 1 | Panels & Furniture Asia
JULY 2020
MARCH 2021
18 JUL TO
21 JUL
CIFF Guangzhou - PART 1
Guangzhou, China
04 MAR TO
07 MAR
Delhiwood 2021
New Delhi, India
27 JUL TO
30 JUL
CIFF Guangzhou - PART 2
Guangzhou, China
11 MAR TO
13 MAR
BIFA Wood Vietnam 2021
Binh Duong, Vietnam
27 JUL TO
30 JUL
interzum guangzhou 2020
Guangzhou, China
AUGUST / SEPTEMBER 2020
31 AUG TO
02 SEP
Domotex Asia China Floor 2020
Shanghai, China
04 MAY TO
07 MAY
MAY / JUNE 2021
interzum cologne 2021
Cologne, Germany
07 SEP TO
10 SEP
CIFF Shanghai 2020
Shanghai, China
10 MAY TO
14 MAY
LIGNA 2021
Hannover, Germany
07 SEP TO
09 SEP
Dubai Wood Show 2020
Dubai, UAE
31 MAY TO
02 JUN
Index 2021
Dubai, United Arab Emirates
08 SEP TO
10 SEP
6 th Bangladesh Wood International
Expo 2020
Khaka, Bangladesh
28 JUN TO
30 JUN
Sylva Wood 2021
Shanghai, China
OCTOBER 2020
14 OCT TO
17 OCT
IFMAC & WOODMAC 2020
Jakarta, Indonesia
NOVEMBER 2020
10 NOV TO
13 NOV
Xylexpo 2020
Milan, Italy
DECEMBER 2020
03 DEC TO
06 DEC
Cairo Wood Show 2020
Cairo, Egypt
Scan to download eBook
PFA JULY / AUGUST 2020

ADVERTISERS’
INDEX
July / August 2020 • Issue 4 • PANELS & FURNITURE ASIA
COMPANY
PAGE
American Hardwood Export Council (AHEC)
OBC
Andritz (China) Ltd 5
Baillie Lumber 13
Baumer Inspecon GmbH 37
BIFA Wood Vietnam 2020 1
Dieffenbacher GmbH
IFC
Electronic Wood Systems GmbH 11
Forestry Innovaon Investment Ltd 15
Gabon Special Economic Zone GSEZ 41
Gabon Special Economic Zone GSEZ (Advertorial) 48
Gau Jing Machinery Co., Ltd 63
Hanoi Wood 2021 67
Homag Asia Pte Ltd
FC
Ifmac & Woodmac 2020 45
IMEAS spa 9
Innovator Machinery Co., Ltd 29
Jiangsu Baolong Electromechanical Mfg Co., Ltd 31
Kuang Yung Machinery Co., Ltd 61
Lesnaya Industriya Journal 43
Nanxing Machinery Co., Ltd 2 & 3
Northwest Hardwoods 7
Panels & Furniture Asia House Ad 21 & 47
PEFC Internaonal 55
Sichuan Hero Woodwork New Technology Co., Ltd 72
Sylvawood 2021 17
Technik Associates, Inc
IBC
Tong Fong Cuers Co., Ltd 71
Yalian Machinery Co., Ltd 25
Heavy Duty Helical Planer Cutter
Heads with Changeable Knives
Knife:
14 x 14 x 2 x 30º
14 x 14 x 2 x 37º
Heavy Duty Helical Planer Cutter
Heads with Changeable Knives
Knife:
30 x 12 x 1.5 x 35º
Helical Planer Cutter Heads
with Changeable Knives
Knife:
15 x 15 x 2.5 x 30º
15 x 15 x 2.5 x 37º
Adjustable Planer Cutter Heads
with HSS or TCT Knives
Safety Corrugate Cutter Heads
with HSS Knives
Spindle Shaper Planer Cutter
Heads with Changeable Knives
Knife:
30 x 12 x 1.5 x 35º
50 x 12 x 1.5 x 35º
60 x 12 x 1.5 x 35º
Changeable Knives
-TCT
Single/Double Surface Planers Helical Planer
Cutter Heads with Changeable Knives
Knife: 14 x 14 x 2.0 x 30º
15 x 15 x 2.5 x 30º
15 x 15 x 2.5 x 37º
30 x 12 x 1.5 x 35º
30 x 12 x 2.5 x 35º
14.6 x 14.6 x 2.5 x 30º
Scan to download eBook
PFA July/August 2020

THE MANY FACES OF AMERICAN RED OAK
Not only is American red oak the most abundant
species in the US hardwood forest, it is also the
most versatile. Beautiful, strong and stable with
excellent steam bending capabilities and easy
to finish and stain, it’s a timber that lends
itself to a host of applications.
PICTURED: AMERICAN RED OAK DETAIL
FROM THE HOI MAI FURNITURE COMPETITION, VIETNAM 2020.
AMERICAN HARDWOOD EXPORT COUNCIL SOUTHEAST ASIA & GREATER CHINA
EMAIL
WEBSITE
INFO@AHEC-CHINA.ORG
WWW.AMERICANHARDWOOD.ORG
WWW.AHEC-CHINA.ORG
AMERICANHARDWOODSEA
AHEC_SEA