Panels & Furniture Asia January/February 2023
Panels & Furniture Asia (PFA) is a leading regional trade magazine dedicated to the woodbased panel, furniture and flooring processing industry. Published bi-monthly since 2000, PFA delivers authentic journalism to cover the latest news, technology, machinery, projects, products and trade events throughout the sector. With a hardcopy and digital readership comprising manufacturers, designers and specifiers, among others, PFA is the platform of choice for connecting brands across the global woodworking landscape.
Panels & Furniture Asia (PFA) is a leading regional trade magazine dedicated to the woodbased panel, furniture and flooring processing industry. Published bi-monthly since 2000, PFA delivers authentic journalism to cover the latest news, technology, machinery, projects, products and trade events throughout the sector. With a hardcopy and digital readership comprising manufacturers, designers and specifiers, among others, PFA is the platform of choice for connecting brands across the global woodworking landscape.
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JANUARY/FEBRUARY 2023
Canadian wood.
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TRY CANADIAN WOOD
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A range of high-quality certified lumber from sustainably
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Các loại gỗ xẻ chất lượng cao được chứng nhận từ nguồn rừng trồng
được quản lý bền vững của tỉnh bang British Columbia, Canada.
Photo Credit: LEITZ Tooling
18-20
JUNE
2023
MALAYSIA INTERNATIONAL TRADE
AND EXHIBITION CENTRE (MITEC)
KUALA LUMPUR, MALAYSIA
International
Wood & Woodworking
Machinery Expo
Jointly organised by:
Supported by:
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BUSINESS
MATCHING
EXHIBITION
POCKET
TALKS
CONTENTS
CONTENTS
PANELS & FURNITURE ASIA (ISSUE 1)
January / February 2023
06
Editor’s Note
08
News
Market Report
16
Market performance is down, but consumer
demand? Not what you might think
Environmental Report
20
Sustainability matters for wood in furniture and
panelling
22
Climate financing: Connecting forest projects with
investors through Treevive
In Person
24
Global presence, localised solutions
27
Making customers the priority: An interview with
HOMAG
Panel Manufacturing
32
Automation amid a shortage of skilled workers
34
Compliance with North American composite wood
formaldehyde emission rules
36
How PotlatchDeltic creates value by automating its
panel repair line
Furniture Manufacturing
40
Material diversity in the furniture and
interior design industries
44
High-efficiency, quality and intelligent
SawTech solution
46
Continuous optimisation of value stream
Materials
49
Better returns of investment with mass timber
52
The new Kuantan lifestyle with TMT wood
Structural Elements
54
Växjö station and city hall
Columnists
56
Building business resilience and monetising
innovation
Show Preview
59
CIFF Guangzhou 2023
61
CIFM/interzum guangzhou 2023
63
Calendar of Events
64
List of Advertisers
Product Highlight
30
Making waves with new wooden wall cladding
solution
54
22
4 Panels & Furniture Asia | January / February 2023
Simple – we handle all the complexities that go into hardwoods to make
life easier for you. Natural – we manufacture and supply only sustainable, high-quality
products that breathe life into your work. Hardwoods – from harvest to delivery,
we set the standard for what the hardwoods experience should be.
nwh.com
FROM THE EDITOR
Time to gear up
A Happy New Year to all!
Last year might have ended a little quietly and
bleakly for those affected by inflation, rising
energy costs and lack of orders, among other
issues. If you are one of them, hang in there.
Don’t think of this period of slowdown as a
period of zero opportunities. Take this time
to gear up.
As Daniel Schmitt, the CEO of HOMAG advises,
“what can [you] do in terms of productivity”
with the market slowed down (p.27)? Schmitt
goes on to talk about the importance of
customer service, and HOMAG tapping into
the growing mass timber industry. Peter
Fitch, CEO and founder of IOI Palm Wood,
also touched on business resilience, which he
declares is key to surviving tough economic
times (p.56). Profit orientation, disruptive
innovation, and building customer loyalty are
a few ways to achieve business resilience.
Speaking of disruptive innovation, it seems
like many companies are beginning to
pivot into automation in their production.
Raute’s customer, PotlatchDeltic, is one
of them (p.36), and Paul Maschinenfabrik
also supplied an automatic rip scanner to
its customer (p.32). Besides technological
innovations to boost production efficiency
and output, you can also rethink your
business strategies. Udo Leiber, managing
director of Leuco Asia, touched on some great
points about being customer-oriented, about
catering to requirements of Leuco’s customers
(p.24). Peter Hartmann, market responsible
South East Asia of Schuler Consulting, makes
a case for Schuler’s own optimisation tool:
How can companies minimise blind spots
and traceability gaps in furniture production
chains (p.46)?
If you need a little inspiration on how to tide
through tough times, why not read these case
studies and interviews? Heading into the new
year, we are ever more committed to bringing
to you the latest industry news, stories, and
trends. We, like you, hope to see the market
flourish again. When that time comes, we will
be sure to report the news with gusto and
glee.
YAP SHI QUAN | EDITOR
PANELS &
FURNITURE ASIA
PABLO SINGAPORE
Publisher
William Pang • williampang@pabloasia.com
Editor
Yap Shi Quan • shiquan@pabloasia.com
Business Development Manager
Pang YanJun • yanjun@pabloasia.com
Graphic Designer
Goh Meng Yong • mengyong@pabloasia.com
Circulation Manager
Shu Ai Ling • circulation@pabloasia.com
PABLO BEIJING
General Manager
Ellen Gao • pablobeijing@163.com
PABLO SHANGHAI
Editor
Kresly Shen • pabloshanghai@163.net
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6 Panels & Furniture Asia | January / February 2023
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NEWS
MTC INKS MOU WITH THE PHILIPPINE
WOOD PRODUCERS ASSOCIATION
The Malaysian Timber Council (MTC) and
the Malaysian Wood Moulding and Joinery
Council (MWMJC) have signed a Memorandum
of Understanding (MoU) with the Philippine
Wood Producers Association (PWPA) in Manila,
Philippines, on 7 Nov 2022.
The MoU, which aims to promote timber trade
development and establish timber trade
standardisation between both countries, was
signed by Muhtar Suhaili, CEO of MTC, Ng Boon
Kuan, vice-chairman of MWMJC, and Ramon Y.
Uy, chairman of PWPA.
The collaboration was inked in conjunction with
MTC’s market research visit to PHILCONSTRUCT
Trade Show 2022 in Manila with 12 Malaysian
timber-based companies.
The MoU signing between MTC, MWMJC, and PWPA (Image: MTC)
$11.3m respectively. The Philippines exported
wooden furniture to Malaysia worth $100,000
in 2021.
opportunities for timber industry players,
particularly for the interior panels, fittings, and
furniture sectors.”
As one of Malaysia’s important export
destinations in ASEAN, the Philippines
offers export opportunities. Malaysia and
the Philippines are traditional timber trade
partners.
In 2021, Malaysia was the largest exporter
of fibreboard to the Philippines, amounting
to US$23.1m, and was one of the top five
exporters of wooden furniture, particleboard,
and plywood worth $22.4m, $16.2m and
HOMAG:
COMPLIMENTARY
APP-PLUS PACAKAGE
FOR FREE USE OF
DIGITAL APPS
Buyers of new HOMAG machinery can now
enjoy the complimentary App-Plus Package
throughout the warranty period of their new
HOMAG machine, allowing buyers to test
the full version of various HOMAG digital
applications.
Users can therefore use these applications
without any obligations, according to
HOMAG.
“MTC is reaching out to its trade partners
within ASEAN to revive businesses and trade
relationships that were halted due to the
COVID-19 pandemic,” said Muhtar, adding that
the Philippines’ strong economic standing
among the ASEAN bloc nations as well as its
growing young population were major business
attractions.
“Its booming construction market, especially
for residential projects, offers much
As part of the App-Plus Package, users will
receive five selected apps for each new
machine: ServiceBoard, MachineBoard,
serviceAssist and twinio are free-of-charge
until the end of the machine’s warranty.
But for MMR Mobile, the smartphone app
for easy analysis of HOMAG machinery will
reportedly “always be free-of-charge”. With
this offer, HOMAG hopes to make it as easy
as possible for customers to try out the
digital assistants.
To further ease the process, HOMAG will
reportedly take over the full activation
of the user account with tapio, which
includes registering, connecting machines,
and setting up of the apps. Currently, the
The World Bank has also raised its growth
forecast for the Philippines this year, citing a
strong recovery in consumption. The country’s
accelerated infrastructure development that
is planned through the “Build Better More”
agenda is anticipated to drive demand and
deliver infrastructure projects to sustain and
expand their infrastructure programme, to
support growth, as well as open new trade
opportunities for timber and timber-based
products. P
ServiceBoard, MachineBoard, serviceAssist, twinio,
and MMR Mobile are complimentary in the App-Plus
Package (Image: HOMAG)
offer is available in 43 countries across the
world, including Germany, Italy, the UK, the
US, Canada, Japan, Australia, India, Singapore,
Vietnam, Malaysia, Thailand, the Philippines,
among others. P
8 Panels & Furniture Asia | January / February 2023
NEWS
LEDINEK EQUIPS
STORA ENSO’S
CLT PLANT
Ledinek has delivered a third of the whole
equipment for Stora Enso’s new and fourth
cross-laminated timber (CLT) line in Ždirec,
Czech Republic.
According to Ledinek, the plant consists
of the infeed equipment, which is the first
part of mechanisation, and delivers wood
to their machines for cutting out the defects
using Ledinek’s X-CUT S400, and for finger
jointing using the Kontizink H 5000.
Ledinek and Stora Enso
teams (Image: Ledinek)
The second part of the mechanisation
belongs to the company’s planer Superplan
4V-S250, and delivers wood to the machine
and after the planer to the press for singlelayer
panel production.
Both the mechanical and electrical
installation were completed according
to schedule. Ledinek thus started test
production on time, which was a milestone
for both Stora Enso and Ledinek teams.
This will be followed by the optimisation of
production and the training of the operators
at the plant.
Ledinek has also delivered to Stora
Enso two feeding machines, Powerfeed
70-S350 and the Superplan 6VR-S350
planing machine, for their sorting line. The
equipment is in the commissioning and
testing phase.
Despite challenges such as the pandemic
and the extended delivery time for material,
Ledinek reported that the project is
progressing well.
“As in many previous projects, Ledinek has
once again demonstrated its competence
and reliability in the supply of plant-areas
for our CLT plant in Ždirec,” commented
Herbert Jöbstl, head of operations, wood
product, Ledinek.
The Ledinek team wishes Stora Enso all the
best with their new investment. P
Panels & Furniture Asia | January / February 2023 9
NEWS
NEW CUTTING-TO-SIZE PRODUCTION SOLUTION BY IMA
SCHELLING FOR LARGER SHIFT OUTPUTS
IMA Schelling has developed the hl 1 cutting
machine with a cutting performance of up to
6,000 parts per shift in batch-size-one.
The hl 1 concept enables efficient
cutting of parts at higher shift
outputs (Image: IMA Schelling)
According to the company, a rip-cut saw
for generating strips from the raw board is
combined with a cross-cut saw that generates
individual components from the strips. The
hogging unit is positioned before the rip-cut
saw, which saves one cutting cycle per strip
and relieves the strain on the cross-cut saw.
In contrast to conventional solutions, the hl 1
solution does not feature more processing
units, but rather more feeding components. In
up to four lanes, strips are fed to the cross-cut
saw independently of one another and cut
together.
In this way, four components can be produced
every 12 seconds with just one unit. This not
only reduces energy and tooling costs, but
also makes maintenance easier.
Furthermore, depending on the production
strategy and available setup space, the
modularity of the system reportedly
allows users to respond to any customer
requirement. The area after the rip-cut saw
can be provided with a buffer track or with a
strip buffer.
IMA Schelling reported that it does not matter
whether the transfer of the strips to the crosscut
saw is to be realised with a repositioning
gantry or with an industrial robot.
The cross-cut saw can be designed with three
or four lanes in different widths, depending on
the component spectrum. The saw lines can be
arranged relative to each other just as flexibly:
in line, at an angle, as a U, or even on two levels,
one above the other.
Workpieces that require re-cuts are returned
upright, thus saving space, and fed to the crosscut
saw again. For projects where an output of
up to 3,000 parts per shift is sufficient, strip and
part production can also be implemented on
one saw line.
David Schelling, product manager of
Cut-to-size division at IMA Schelling,
commented: “We have found that there
is a lack of suitable concepts in this
performance class. In the past, many
customers — when space was available
— made do with multiple plants of lower
performance classes. But that makes little
sense in our eyes.
“With the hl 1 high-performance unit for
cutting-to-size, our customers now have
the opportunity to make their automated
production processes even more efficient.”
Several customers have ordered the hl
cutting solution. The first systems will be
delivered in the next few months. P
SIEMPELKAMP FULFILS THIN BOARD MDF
PLANT FOR BORG MANUFACTURING
The fourth Siempelkamp medium-density
fibreboard (MDF) production line has been
supplied to Borg Manufacturing, an Australian
wood-based panel producer.
In 1987 and 1995, the first two MDF plants at
the Oberon, New South Wales, Australian site
location were ordered from Siempelkamp. In
2017, this was supplemented by a plant for
the production of particleboard.
In 2019, Borg Manufacturing placed an order
for a MDF thin board plant with a ContiRoll in
the 8ft × 18.8m format, with the order fulfilled
in October 2022.
The plant produces boards in a thickness
range from 1-25mm. In particular, the
production of the 1mm-thin board was a
unique challenge for the commissioning
team.
Stefan Wolff, the project manager,
explained: “For us this was a special
success, considering that, in addition to the
technological challenge, the COVID entry
restrictions also influenced the work of our
project team.
“We are pleased that the work with
our customer’s team in particular
The finished production line at Oberon location site
(Image: Siempelkamp)
could be conducted in such a result-oriented
and constructive manner regardless of [the
challenges].” P
10 Panels & Furniture Asia | January / February 2023
NEWS
ARGOS SOLUTIONS DEVELOPS LIGHTING SOURCES
FOR LAMINATE FLOOR GRADING SYSTEM
Argos Solutions has developed lighting
solutions for their laminate flooring grading
system to ensure that the detection of defects
on panel surfaces is accurate.
According to Argos, one of the strengths
of internally developing the lights for their
grading systems is they can offer light sources
that are tailor-made to fit their systems
and high requirements. They also benefit
customers by being more trustworthy and
cost-efficient.
One characteristic of laminate flooring is
the overlay manufacturers apply to protect
the panels against fading, wear and tear.
The grading systems must have advanced
light sources to detect defects in this
overlay. This specific light source is the only
one that can discover defects in this type
of foil.
Argos reported that the new light source,
which is adapted to the electronics and
hardware, has already been installed in
the new laminate floor grading solution
delivered to Kastamonu Entegre, and will be
implemented in future automatic grading
systems for laminate flooring and melamine
presses. P
Jan Sandok, technical director of Argos
Solutions is responsible for testing the new
light source: “For this system, we needed to
find the most powerful light diodes that can
be adjusted to our aluminium frame and that
are compatible with cameras, cooling, and
remaining technology.
“We have managed to develop a complete
lighting package that is essential in securing
the desired quality of the flooring panels.”
2~3
2D scanner system equipped,
cutting 5~6 boards per minute
“When we cannot find components in the market that
meet our standards, we develop our own.” – Jan Sandok,
Technical Director, Argos Solutions (Image: Argos)
Panels & Furniture Asia | January / February 2023 11
NEWS
EPLF: OAK AND NATURAL COLOURS
WILL TREND IN 2023
The Association of European
Producers of Laminate Flooring
(EPLF) has announced the laminate
flooring trends for 2023, revealing
that trends will lean towards more
durable and natural designs,
especially towards Scandinavian and
Nordic designs.
In particular, next year’s trends will
prioritise natural colours, textures
and materials that will translate how
important sustainability has become
for customers who seek authenticity
and lifetime performance.
According to EPLF, manufacturers
tend to stay away from cold grey
tones homes and playful eye-catching
decors that consumers are leaving out
of their homes.
Designs remain very close to
the original wood patterns with
authentic, light, friendly, and fresh
decors, with natural matte texture as
well as subtle knots, that translate a
harmonious look.
Blond, natural brown, whitened oak
colours will please the customer’s eye
and recreate a natural and warm cosy
cocoon at home. As for colours and
materials, raw oak is the consumer’s
favourite, EPLF predicts.
The aim is to create calmer and
more harmonious decors from
light, pure natural tones through to
nutmeg brown tones. However, some
members already see the first signals
and interest in wood types beyond
oak.
With these in mind, EPLF members are
committed to come up with new original
design and technologies that will fulfil
the clients’ expectations. They will also
strive to achieve noise reduction, water
resistance or sustainability in the quality
of their floors.
EPLF reported that their members have
produced an increasing number of waterresistant
products to meet customers’
desire to include more and more wood in
rooms that previously did not.
Sustainability is more than ever at the
heart of their members’ concerns as they
contribute to building a more circular
economy. They focus on supplying
authentic, environmentally friendly, as
well as lifetime performant products.
This is captured in the EPLF’s Made With
Wood campaign, which showcases the
environmental properties of laminate
flooring. P
DIEFFENBACHER SUPPLIES FINE-OSB
PLANT TO CHINESE PANEL PRODUCER
Chinese wood-based panel
producer A Beautiful Family Plate
Making (BFP) has contracted with
Dieffenbacher for a complete Fineoriented
strand board (OSB) plant in
Guangxi, China.
According to Dieffenbacher, they
will supply everything from chip
flaking to raw board handling.
The contract includes the dryer,
screens, particle preparation and
material recovery, glue preparation
and dosing, gluing system, forming
station and forming line, CPS+
continuous press system and
electrics and plant automation.
“Fine-OSB is increasingly popular in
China,” said Matthias Rübsam, area
sales director at Dieffenbacher. “The
lower cost of the raw material makes
OSB an economical alternative
to plywood for almost every
application.
“Fine-OSB, however, overcomes
traditional OSB’s poor laminating
capability, caused by its uneven
board surface.”
In Fine-OSB, the OSB core layer is
covered at the top and bottom by
layers of particleboard to give a
better structure to the top surface.
This enables further processing,
including laminating or coating
on both sides with melamine or
phenolic paper in a short-cycle
press.
“Fine-OSB combines the excellent
mechanical properties of OSB,
including moisture resistance,
robustness, stable size and strong
screw-holding force, but with the
surface quality of particleboard,”
added Rübsam.
“That makes it the perfect product
for applications in home furnishings
and decor, flooring, custom furniture
making and many other areas.”
Installation of BFP’s new plant is
scheduled for Q2 2023. The first board
is to be produced in fall 2023. The plant
will reportedly be able to produce
500,000m³ of Fine-OSB per year. P
Contract signing
between BFP and
Dieffenbacher (Image:
Dieffenbacher)
12 Panels & Furniture Asia | January / February 2023
NEWS
AHEC AND HAWA REVEAL HOA MAI
FURNITURE DESIGN COMPETITION
2022 WINNERS
furniture making given its beauty, strength and
workability.
There were 268 entries this year and judging
panel narrowed this down to a shortlist of 22,
from which eight eventual winners were chosen.
The winners and their projects are:
1
The Handicraft and Wood Industry Association
of Ho Chi Minh City (HAWA) and the American
Hardwood Export Council (AHEC) have
announced the finalists and winners of the
19th iteration of the Hoa Mai Furniture Design
competition.
Through this competition, HAWA and AHEC
seek to inspire young Vietnamese designers
to unleash their creative design talent using
American hardwood species.
sustainable American hardwood to produce
beautiful and practical pieces.”
According to AHEC, all design entries were
created from American red oak, the most
abundant species in the American hardwood
forest and which is particularly suited to fine
First prize:
Vu Dinh Nghiem with his Eastern Sofa
Second prize:
Tran Thanh Huyen with her Mantis Chair
Third prize:
Vu Phan Hoai Nhi with her Sevania
Honourable prize winner (Environmental):
Truong Kha Tu with her 20.22 Lights
Honourable prize winner (Functionality):
Nguyen Thanh Nam with his Nang Bench
Honourable prize winner (Marketability):
Luu Xuan Quynh with her Ngai Chair
Honourable prize winner (Technique):
Nho Minh Luat with his Horse Curve
Honourable prize winner
(Aesthetic and uniqueness):
Phan Van Tin with his SEN Chair
John Chan, regional director, Greater China
and South East Asia of AHEC, said: “As with past
iterations of the Hoa Mai Competition, we saw
a plethora of excellent designs this year. We are
delighted that these talented young designers
had the chance to learn about and use
2 3
Legend
1 The Hoa Mai Furniture
Design competition
winners and finalists
2 Eastern Sofa by Vu
Dinh Nghiem
3 Mantis Chair by Tran
Thanh Huyen
INDONESIA BUILDS RESILIENCE
IN FORESTRY INDUSTRY
IN FACE OF POSSIBLE RECESSION
Indonesia’s Ministry of Environment and
Forestry (KLHK) is reportedly preparing a
strategic policy to strengthen the country’s
forestry sector to face the threat of a possible
global recession in 2023.
Siti Nurbaya, the Minister of Environment
and Forestry, said to maintain the
productivity and sustainability of forestry
businesses, the government has provided a
number of incentives.
Among them is the facilitation of
postponing and paying in an instalment of
non-tax state revenue (PNBP) for forestry
business actors through Ministerial
Regulation Number 21 of 2021.
Indroyono Soesilo, chairman of the
Association of Indonesian Forest
Concession Holders (APHI) identified
incentives that would be helpful in a global
recession.
Among them is the implementation of the Job
Creation Law for the forestry sector, particularly
in relation to the implementation of multibusiness
forestry, and the implementation of
satellite imagery-based work to identify area
boundaries and solutions for solving of nonforestry
development.
In addition, APHI hopes that the government
will extend the Ministry of Trade Regulation
Number 19 of 2021 concerning export policies
and arrangements regarding the policy of
expanding the cross-section for commercial
wood species that can be exported. P
Source: ITTO
Panels & Furniture Asia | January / February 2023 13
NEWS
MUJI SINGAPORE DEBUTS
RUBBERWOOD FURNITURE SERIES
FOR ASEAN MARKET
Japanese retail company MUJI
Singapore has officially launched its
newest furniture series made from
sustainable rubberwood on 11 Jan
2023 during an event hosted at its Plaza
Singapura flagship store in Singapore.
This series debuts in the ASEAN region.
From desks and storage beds to dining
table, Singapore has one of the largest
selections available. MUJI Singapore
will reportedly debut more rubberwood
furniture at the end of January 2023,
which include shelves and cabinets.
This newest series embodies a timeless
and minimalist aesthetic that offers
diversity and versatility to adapt
seamlessly to interior spaces and
lifestyles in the ASEAN market.
The rubberwood used for this series
is derived from rubber trees grown
in South East Asia. Specifically, MUJI
Singapore sources the rubberwood
from Dong Nai province of Vietnam,
where there are plantations with more
than 100 million trees in total.
MUJI also has a set of oak and walnut
collection, with the material sourced
from China, Indonesia or Vietnam, as
MUJI Singapore told Panels & Furniture
Asia.
The design specifications and standards
of the rubberwood series are based on
the oak and walnut furniture collection.
However, by using an agricultural
by-product of the rubber industry,
not only does MUJI Singapore reduce
deforestation solely for furniture, but
also its abundance enables them to
keep agricultural costs lower while
retaining its quality standards.
“THINK LOCAL, ACT LOCAL”
The launch of this product series marks
the “first time” MUJI’s headquarters
has authorised ASEAN markets to
independently develop products,
allowing subsidiary companies to
customise the design and manufacture
products tailored to the culture and
preferences of each market.
By allowing flexibility, MUJI aims to
recognise the differences in cultures
and lifestyles in the different countries,
and provide products that will suit the
locals better.
For instance, their dining tables and
storage beds are space-saving solutions
that cater to the ASEAN home living
conditions of limited space.
Yoshihisa Matsunaga, merchandising
manager of MUJI Singapore said:
“At MUJI, we prioritise sustainability
by sourcing local materials, like
the rubberwood in our South East
Asian-grown rubber trees, for our
production. We stay true to our
commitment to deliver an exceptional
customer experience with every
product.
“This collection is part of a ‘think
local, act local’ move where ASEAN
committees make ASEAN-centric
products, and how we bring the best fit
to respective local lifestyles and cater to
local needs.
“At the same time, by sourcing from the
rubber industry in the region, we focus
on supporting the local businesses
and farmers that make our collection
possible.”
Furthermore, by developing
rubberwood furniture independently,
MUJI Singapore can control the
production and delivery of the
furniture without being “influenced by
circumstances of Japanese production”,
since they have received customer
complaints of “long lead times for
furniture orders from Japan”.
1
2
RUBBERWOOD
Known for its timeless strength and
durability, rubberwood is a tropical
hardwood timber which is also
sustainable and cost-effective. Its
lumber is coarse-grained and has
medium density, similar to ash and
maple wood.
Like oak, rubberwood is resistant to
mould, bacteria, and fungi, which thrive
in humid and tropical conditions. As
such, it is suitable for ASEAN climates.
Katsushi Onishi, managing director of
MUJI Singapore, commented: “MUJI is
strongly committed to providing our
customers with a vast and versatile
range of environmentally-friendly
lifestyle products. They are functional
daily necessities that support everyday
life.
“Our purpose is to deliver comfort and
practicality, where our products are
known for being ‘just right’.” P
Images: MUJI Singapore
Legend
1 MUJI Singapore’s
new rubberwood
furniture series
2 The wooden bed
frames have
storage spaces
beneath, and are
thus more spacesaving
14 Panels & Furniture Asia | January / February 2023
MARKET REPORT
Market performance
is down, but consumer
demand? Not what you
might think
By Judd Johnson, editor,
Hardwood Market Report Publications
There is no question that business is
off for hardwoods and just about every
other material used to manufacture
consumer goods. And it is off in
essentially every country in the world.
The problem, in general, is the economy.
Depending on the expert offering
opinions at the time, conditions could
get worse before they get better. Digging
a little deeper, it is not difficult to find
that the root cause of today’s economic
problem is inflation.
Disruptions from COVID-19 are broadly
responsible for runaway prices
experienced these past 18 months.
Compounding circumstances are the
Russia-Ukraine war and governments’
energy policies that further strain
petroleum supplies. Costs for goods and
services have been pushed ever higher.
Consumers are spending far more
money on the same basket of goods
purchased a year ago and incredibly
more than before the start of the
pandemic. Those who are unable to
spend more are buying fewer goods.
This is the reality of out-of-control
inflation. There come points in time
when some consumers are unwilling or
struggling to pay more, and when other
consumers are simply unable to pay
more. We have arrived at those points.
HARD EVIDENCE
United Furniture Industries and its
affiliates (UFI) closed all facilities on 21
Nov 2022 with no advanced notice given
to the 2,700 employees, corporate-wide.
This US company is headquartered in
the state of Mississippi, with additional
facilities in North Carolina and
California.
There is much more yet to be learned
about the manner in which UFI shut
down. However, it is known that the
company experienced financial strain
due, at least in part, to slower sales
of manufactured goods. Notably, UFI
manufactured consumer furniture
for the mid- to lower-end of the
marketplace, which is the portion of the
consumer sector hit hardest by inflation.
WalMart, the largest retail chain in the
world, downgraded its financial outlook
for 2022 early in the year, because
the corporation recognised its core
customers — which also included the
mid- to low-end of the economic scale
— would be spending more money on
food and other essentials and, therefore,
buying fewer total items.
Chances are better than not that anyone
reading this article at the time it is
published has experienced ill-effects
on business from inflation. Sales and
purchasing of hardwood lumber and
manufactured goods are down. Lumber
prices are lower — dramatically lower
is a better description, just as they were
dramatically higher last year. Profits
are elusive, if at all attainable. The
business image at this exact moment
in time is dismal for hardwood lumber
production, distribution, and finished
goods manufacturing. But things
change.
16 Panels & Furniture Asia | January / February 2023
MARKET REPORT
houses in the US has been below
what economists have identified as
static demand, which is 1.2 million
units per year. That estimate for static
demand was based on US population
demographics from the 2000 census.
Since then, the US adult population has
increased to a record-high number, with
most of the population at prime age for
homebuying. A recalculation of static
demand for new single-family housing
can easily be higher based on the size
and make-up of the current population.
CHANGE IN PROCESS
The first thing that is changing is
supply. US production of hardwood
lumber has decreased (Figs. 1 and 2).
Furthermore, sawmill production
has shifted more to industrial
products, including lumber and heart
dimension timbers for the pallet
industry, railway ties, and board road
or crane mats. Together, the industrial
market sectors account for 55% of
total consumption of US hardwood
lumber.
Ultimately, less grade-hardwood
lumber is entering the supply
stream. We are already seeing prices
for selective green lumber items
flattening out. There is an adage
that says falling prices must stop
decreasing before they increase.
It is premature to state that green
lumber supplies have reached that
point, but the lack of downward price
movement for any hardwood item is
notable.
MARKET PERFORMANCE VERSUS
MARKET DEMAND
A common assumption is these
two forces are one and the same,
that market performance is directly
correlated with market demand.
In this current situation of extreme
inflation, we see that is not the case.
Demand implies a desire or need.
Market performance is the fulfilment of
demand, or better stated, a measure of
demand being fulfilled.
In the US, there is strong demand for
single-family housing, particularly
detached units. Additionally,
construction of new single-family
There are two key points on new singlefamily
housing in the US that have
influence on the business for hardwood
lumber, fittings, furnishings, and
fixtures: First, the marketplace has been
underbuilt since the Great Recession
and is undersupplied. Second, static
demand for new single-family housing
in the US should be higher since the
adult age population is larger than it
was 20 years ago.
As an added note, COVID-19 and the
idea of health risk exposure from living
in high-density, multi-unit buildings
helped fuel demand for single-family
housing even more. People desire to
have their own space.
Contrary to increased demand, sales
of new single-family houses in the US
Seasonal disruptions to logging and
log inventories will be a hindrance
to sawmill production this winter
— no more than any other year, but
they are to be expected. But mostly,
sawmills will maintain control on
grade lumber production to the
extent possible until there are sound
reasons to do otherwise.
Panels & Furniture Asia | January / February 2023 17
MARKET REPORT
have decreased. The reason for the
decline is affordability. Escalated costs
of construction drove housing prices
substantially higher, and higher prices
were exacerbated by growing demand
pressures. Then came higher financing
charges. Eventually, the build-up in
costs for new single-family housing
prevented many potential buyers from
purchasing homes (Figs. 3 and 4).
SILVER LINING
Knowing there is strong underlying
demand for housing should be
encouraging for wood products
manufacturers. Prices for materials
and goods are coming down and
will eventually lower housing costs.
Mortgage interest rates will moderate.
Consumers will also adjust to housing
sales prices as they gain affluence or,
perhaps, make homeownership an
even greater priority. Importantly,
increased new single-family housing
construction leads directly to
increased market performance for
cabinets, flooring, moulding and
millwork, furniture, and household
fixtures.
As vital as the US construction of
new single-family houses might be
to business, refurbishing existing
single-family houses likely has a
greater impact. The amount of money
invested in remodelling projects for
owner-occupied houses has continually
increased, setting new record-highs
almost monthly since June 2020 (Fig. 5).
Importantly, these projects are
primarily for lifestyle enhancements,
not repairs and maintenances.
Furthermore, the rooms remodelled
most are kitchens and bathrooms,
both of which include a good deal of
cabinetry and associated mouldings
and millwork.
Hardwood flooring is also a popular
choice for remodelling projects. Some
manufacturers of hardwood flooring
and other interior wood products have
estimated as much as 75% of their
business relies on remodelling.
Despite higher costs for construction
materials and labour, remodelling
has been a more economical choice
for many homeowners compared to
buying a new house. Remodelling is
also viewed as a good investment for
homeowners.
But most of all, remodelling work
happens because consumers want
to update their homes with specific
designs and are willing and able to
pay the costs. Just like new residential
construction, almost all remodelling
projects stimulate increased sales
of interior furnishings and fixtures.
At this point, there is no evidence
the remodelling trend is slowing for
owner-occupied US single-family
housing.
Yes, the skies for hardwood business
are still cloudy after the fierce storms of
COVID-19 and 40-year high inflation. But
there are silver linings in those clouds,
and above the clouds is a bright shining
sun. P
Hardwood Market Report (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 HMR and all other HMR
publications are available online at
www.hmr.com.
18 Panels & Furniture Asia | January / February 2023
ENVIRONMENTAL REPORT
Sustainability matters
for wood in furniture
and panelling
By Chris Egan, executive director,
Massachusetts Forest Alliance
All of this is great news, and should
be a reason for architects, builders,
companies, and homeowners to invest
more in wood panelling and furniture.
But there is still one big caveat, without
which the environmental benefits may
disappear: the sustainability of the
timber used in these wood products.
These days, climate change is on
top of everyone’s minds with record
heat and severe droughts impacting
countries in recent months. Natural
climate solutions can be part of the
answer, particularly forests, which
can help sequester carbon emissions
produced from burning fossil fuels. But
to maximise the benefits, we must go
beyond simply ensuring forests are not
developed. Building more out of wood
— from lumber to panels and furniture
— can also be a climate solution.
Wood has the virtue of being low in
embodied carbon — the total amount
of carbon emitted to create the building
product, especially compared to
alternatives of steel or concrete. Plastic
alternatives are made from fossil fuels,
which is far from an ideal substitute.
Moreover, the carbon stored in the wood
by the original tree remains inside,
locked out of the atmosphere during the
wood product’s life. As much as half the
dry weight of raw lumber can be stored
carbon.
If that was not enough, increasing new
studies point to yet another benefit
of wood: improving human health
through biophilic design. Studies have
shown that spending time in a forest
benefits mental health and reduces
cortisol, which is a marker for stress,
in the blood. But new research shows
the same benefits for those that spend
time in indoor spaces with exposed
wood, such as wood panelling and
furniture. There is even evidence that
workers are more productive, students
more focused, and retail stores more
successful with larger sales if their
facilities have a lot of exposed wood.
There are, of course, sustainable
certification programmes, such as the
Forest Stewardship Council (FSC), the
Sustainable Forestry Initiative (SFI), and
the American Tree Farm System (ATFS)
— the latter two approved as part of
the Programme for the Endorsement
of Forest Certification (PEFC). In fact,
the Massachusetts Forest Alliance
partners with the Massachusetts
Tree Farm Committee to run the Tree
Farm programme in Massachusetts.
These programmes are great, and we
encourage suppliers to consider buying
certified wood. But we have seen some
sawmills and landowners shift away
from these programmes — particularly
FSC, which changed ownership in
recent years — for an assortment of
reasons, and certification programmes
can be a challenge for smaller sawmills.
Beyond certification programmes, is
there a way to find timber that has
been responsibly and sustainably
harvested? We believe there is: By
buying Massachusetts-grown wood,
whether logs or lumber. That is
because Massachusetts has some of
the tightest regulations for timber
harvesting, more oversight of forest by
licensed foresters who create longterm
forest management plans, and
a natural landscape that sequesters
carbon.
20 Panels & Furniture Asia | January / February 2023
ENVIRONMENTAL REPORT
Unlike some other regions of the US,
Massachusetts forests are generally
natural second-growth forests,
not monoculture tree plantations
that can be less climate-friendly.
Our slower-growing trees produce
high-quality wood products. Forest
landowners here take pride in their
careful stewardship of the land, with
family ownership that in many cases
goes back generations.
Forest landowners here are
encouraged to place their land in
a current-use taxation programme
called Chapter 61 after the section
of Massachusetts law where it can
be found. This programme requires
them to hire a consulting licensed
forester to develop a long-term forest
management plan that they must
follow in exchange for a roughly
90% discount on annual property
taxes. The goal of the Chapter 61
programme is to protect forests
from development by lessening
economic pressures on forest
landowners, benefiting society as a
whole with ecosystem services such
as protecting water quality, reducing
impacts of flooding, and carbon
sequestration. But it also benefits the
forest products economy by bringing
more forestland under professional
management by foresters, helping to
grow quality timber while ensuring
sustainability.
If a timber harvest is contemplated
as part of meeting the goals of the
ongoing forest management plan, a
forest cutting plan must be submitted.
This plan details which trees will be
harvested, how skid roads and landings
will be laid out, plans for crossing any
streams on the property, and noting any
historic items such as stone walls that
need protection. The cutting plan is then
reviewed by the DCR service forester
and can be approved or returned for
recommended changes.
That is just the start — if the proposed
harvest overlaps with any estimated
habitat for any endangered or
threatened species, the plan is reviewed
by the Natural Heritage and Endangered
Species Programme of MassWildlife,
the state’s wildlife conservation body.
They may recommend changes to
the cutting plan or, for some species,
require harvesting be done only during
periods when the threatened species is
not active.
If the company has satisfied DCR and
MassWildlife, is that the end of the
oversight of a timber harvest? Not at
all. During the actual harvest, the DCR
service forester will visit the site, often
multiple times, to make sure that the
cutting plan is being followed and the
harvester is applying best management
practices. If needed, they can call
for on-the-spot changes to the plan
based on their observations and site
conditions.
Massachusetts-grown timber products
are sustainable and climate-friendly
due to regulation, responsible
landowners, consulting foresters, and
careful professional timber harvesters.
Wood buyers in the Asia-Pacific region
can purchase Massachusetts-grown
wood with confidence. P
1
A forest management plan
describes the current condition
and structure of the forest and
sets out long-term goals that the
landowner wants to achieve, such
as improved resilience to climate
events, enhanced wildlife habitat,
higher-grade timber production,
and more. This forest management
plan must be approved by the
Massachusetts Department of
Conservation and Recreation (DCR),
under the oversight of their service
foresters, who are licensed foresters
themselves that enforce compliance
with the state’s forestry regulations
and best management practices.
Legend
1 A forest cutting
plan must be
submitted if forest
landowners in
Massachusetts
wish to harvest
timber
2 Building more out
of wood can be a
climate solution
2
Panels & Furniture Asia | January / February 2023 21
ENVIRONMENTAL REPORT
Climate financing: Connecting
forest projects with investors
through Treevive
Forest managers need capital to fund their forestation projects,
while businesses face the challenge of balancing profits with meeting
net-zero targets. Climate financing can close this gap. By Yap Shi Quan
Climate change has become an urgent
and unavoidable issue that companies
must tackle. From internal processes to
their up and downstream value chain,
every company is urged by international
bodies, such as the Conference of the
Parties (COP), to cut carbon emissions
and become more environmentally
sustainable.
In particular, the Paris Agreement
signed during COP21 aimed to keep
global warming to 1.5°C. Forests can
deliver an estimated one-third of annual
mitigation needed to achieve this goal.
However, as forests worldwide face
deforestation and degradation practices,
forest managers need more money
than ever to fund forestation projects.
Conversely, for some companies, carbon
emissions are unavoidable.
1
To help both stakeholders, Treevive
was launched in September 2022 to
close the gap between tropical forest
landscape projects in need of financial
solutions and investors or companies
seeking such projects to off-set their
carbon emissions and meet carbon
commitments. In essence, Treevive acts
as a middleman.
As Liesbeth Gort, co-founder and CEO of
Treevive, explained to Panels & Furniture
Asia: “We support forest project owners
with co-funded technical assistance
to accelerate the development of the
carbon asset of their project. Then we
market the results of these projects —
including its biodiversity and the local
community’s benefits — by offering
companies that want to off-set their
unavoidable CO2 emissions with
high-quality forest carbon credits and
investors with new investment ready
projects.”
According to Gort, Treevive aims to
conserve, restore, and sustainably
manage two million hectares of tropical
forest landscapes by 2030 by developing
over 30 forest carbon landscape projects
that sequester 30 megatonnes of CO2.
The company sees sustainable forest
management (SFM), improved forest
management (IFM), and REDD+ projects
as part of the solution to deforestation,
and an immediate and low-cost climate
change mitigation option for long-term
climate change stabilisation efforts.
REDD+ is a framework developed
by the COP to guide forestry-related
industries in reducing emissions from
deforestation and forest degradation.
WIN-WIN SITUATION
All participants, be it local NGO
or businesses, government and
Legend
1 One of Treevive’s
reforestation and
restoration project in
Ghana (Image: Melle
Meivogel)
2 Forest managers often
need capital to fund
landscape projects
like reforestation
3 Lowering the CO2
footprint of their
own operations by
purchasing carbon
credits can help
businesses become
profitable in a long
run (Image: Jace &
Afsoon/Unsplash)
22 Panels & Furniture Asia | January / February 2023
ENVIRONMENTAL REPORT
communities, involved in Treevive’s projects
can benefit from the projects through
benefit sharing agreements, as Gort
declared.
When seeking carbon funding, forest or
forest project managers often face several
challenges. Aside from their own timber or
non-timber forest products revenue streams,
they often have limited access to finance,
while lacking quality forest projects that
generate carbon credits and high-end buyers
of their carbon credits. This lack can stem
from a knowledge gap in carbon market and
certification, and project development.
As such, SFM, IFM or REDD+ carbon projects
can be a viable way for them to receive
ecosystem payments for the maintenance
and enhancement of carbon in forests.
After all, like all kinds of businesses, forest
management relies on profit to sustain their
operations. Carbon projects are thus needed
to create a more robust business case for the
sustainable management and conservation
of forest landscapes, and to protect them
from conversion to other land uses.
Businesses or investors face a different set
of problems. Gort identified that they often
do not know the criteria and characteristics
of high-quality forest projects, and how
to certify carbon credits. Similar to forest
project managers, businesses and investors
have a limited network of forest projects.
Treevive therefore exists to plug these gaps
between investors and forest projects and
managers. Gort added: “Successful profitdriven
companies understand that looking
beyond the next quarter is key for long-term
success. This also means securing a license to
operate from investors, customers and other
stakeholders. Alignment with international
climate agreements is one of the elements in
that. This means lowering the CO2 footprint
of their own operations and value chain, and
compensating for their currently unavoidable
emissions via the purchase of carbon credits.
This will lead to more profitable business in
the long run.”
COMPLIANCE AND TRANSPARENCY
Although the purchase of quality forest
carbon credits can potentially contribute
to forest conservation and restoration, Gort
emphasised that this should not divert a
company’s attention and resources from
reducing its own emissions: “Quality forest
carbon credit purchases need to be part
of broader emissions reduction strategy of
the buyer where emissions are accounted,
reduced, avoided and off-set on the pathway
to a science-based net-zero target that is
aligned with the Paris Agreement. We view offsets
as a short-term option for relevant impact
and an effective tool to compensate remaining
emissions.”
To that end, Gort asserted that Treevive
is strict in choosing the stakeholders and
projects they want to work with: “Our buyers
should not be involved in deforestation or
forest degradation activities. We assess whether
the purchasing company is in compliance
with our criteria. We are also committed to
engaging with investors that are actively and
transparently working towards realising the
Paris Agreement and that do not willingly
contribute to deforestation and the further
development of fossil fuels.”
On the flipside, forest projects and their
management must comply with Treevive’s
quality and performance indicators which
include sustainable management practices. For
projects with sustainable forestry elements,
the projects should be certified by or working
towards a third-party certification, such Forest
Stewardship Council (FSC) or its equivalent.
Thus far, Treevive has onboarded five projects
for development and sales, of which three are
restoration projects, including afforestation,
reforestation and revegetation (ARR) in Latin
America, and two conservation projects in
Africa, in collaboration with REDD+.
Gort concluded: “We hope to significantly
accelerate climate finance, increasing by
€150m, for the conservation, restoration
and sustainable management of tropical
forests with a group of committed long-term
buyers and investment partners. As forestry
is by nature long-term, so do we see our
relationships.” P
2
3
Panels & Furniture Asia | January / February 2023 23
IN PERSON
Global presence,
localised solutions
Twenty-over years in Asia, twenty-over years of dialogue with
customers: Udo Leiber, managing director of Leuco Asia, tells
Panels & Furniture Asia what it means to be committed to
their customer’s success, and tailoring solutions for the unique
circumstances of every customer. By Yap Shi Quan
With a combined population of about
668 million and a growing economy and
purchasing power, South East Asia has
seen — and will continue to see — the
increase in demand and spending for
products like floorings, wardrobes,
kitchens, and living room and other
types of furniture. However, the region is
home to various countries with diverse
needs; what the Vietnamese market
seeks may be different from what the
Thai, Malaysian or Indonesian markets
wants.
“South East Asia is not a homogenous
area,” Udo Leiber, managing
director of Leuco Asia, affirmed.
“Every country is different, and
we must understand and accept
that.” Realising this is one thing, but
incorporating it into a company’s
business model is another —
something which Leuco works
towards by engaging in dialogues
with their customers, developing
solutions or improving existing
systems for their benefit.
“As the saying goes, we can only be
successful if we make our customers
successful,” commented Leiber.
THE LEUCO DNA IN SOUTH EAST ASIA
Leuco is a developer and supplier
of industrial cutting tools for the
woodworking industry, including
circular saw blades, hoggers, bore- and
shank-type cutters, drill bits, turnover
knives, clamping systems, and more.
In 1994, the company first emerged in
Asia in Singapore, followed by Japan in
Leuco’s global
headquarters in
Germany
24 Panels & Furniture Asia | January / February 2023
IN PERSON
1995, China in 1997, Malaysia in 1998,
Thailand in 2001, and more recently,
Vietnam in 2020. The company’s main
service centre in South East Asia is in
Melaka, Malaysia, although in Malaysia,
it also customises diamond and
tungsten carbide tools for South East
Asian customers, shipping to countries
that do not have its establishment.
In Thailand, the company provides
resharpening services for diamond and
carbide tools.
According to Leiber, South East Asian
furniture manufacturers have been
exporting their production to various
countries across the world, while
diversifying their sources from other
countries due to competitive costs
and rising raw material prices. This,
in addition to the increase in demand
and spending on furniture, make South
East Asia an attractive region in which
manufacturers worldwide can invest
and relocate their factories.
1
Establishing a presence in multiple
South East Asian countries has allowed
Leuco to be close to their customers and
their business culture, thus displaying
their commitment to developing
their customers’ businesses. But just
being close is not enough, as Leiber
elaborated: “The main challenge is to
find the best local people, well-trained
with skills, to establish the company,
provide the best customer service, and
handle on-site problems to Leuco’s
quality standards. Unfortunately, there
is not a quick and instant solution to this
problem except continuous training and
exposure in the industry for the staff.
Therefore, we use existing key people
to transmit the Leuco DNA into new
establishments.”
One such example is their recent
venture in Vietnam, which has been a
growing market for them for several
years. Leuco provides its full-service
portfolio for its product range, and
according to Leiber, they are reportedly
the “first German tool manufacturer”
to establish a diamond sharpening
service centre in Vietnam in December
2
2019 — right before the pandemic hit.
Although the pandemic lockdowns
and travel restrictions hindered their
progress, the company pulled through.
Things are reportedly running well
now, with Leuco providing support and
services to customers from north to
south of Vietnam.
As South East Asian customers
continue to develop higher awareness
for the importance of good-quality
tools, Leuco understands that it has to
provide optimal tools for its customers,
on top of offering new developments.
However, the variety of machines from
different machine manufacturers in
the region makes it more complex
for customers to select the best
tooling solution for their own specific
machines. “We trained our sales and
field specialists in the region to analyse
our customers’ needs for our tools, and
work out solutions with the best priceperformance
ratio according to their
requirements,” explained Leiber.
Legend
1 Leuco’s automated
diamond joint
cutter production
facility
2 Leuco’s P-System
tool
Panels & Furniture Asia | January / February 2023 25
IN PERSON
jointing of different materials, and
with an enhanced tool life.
“The large share angle is the main
difference between the P-System
and conventional tools. This
product has been on the market for
several years. Nowadays, most of
our worldwide competitors design
tools with higher share angles
and go as close to the limits set
by our patent. It tells us that our
innovations work and benefit the
whole woodworking industry.”
Leuco Malaysia
GLOBAL FOOTPRINTS
Whether it is local or international,
Leuco strives to provide ideal
solutions for its customers. Leiber
revealed that beyond South East
Asia, China and Japan are markets
on which Leuco is focusing. Besides
countries with its set-ups, the
company is also active in countries
with authorised agents, such as
Singapore, the Philippines, South
Korea, Taiwan, Myanmar, and India.
Its industrial tools can reportedly fit
any type and brand of woodworking
equipment, such as edgebanders,
moulders, tenoners, and more, be
they from Japan, China, the US,
Germany, or other countries in which
Leuco is based in.
With this worldwide network of
suppliers, end-users and system
partners, Leuco can have early market
insights into industry trends, which
it uses to develop new products and
production methods, improve current
production processes and machines,
or even customise solutions for
projects with unique requirements.
For instance, Leiber revealed that
its industrial tools have been used
in projects like click furniture and
flooring technology.
To date, the company has patented
230 innovations. Leiber provided
one example: “One of our popular
innovations is our P-System, a woodcutting
tool. P-System tools are for
the chip-free jointing of veneered
boards, for long edge lives in the case
of high-gloss material with protection
foil, or for the easy milling and the
smooth cutting surface of lightweight
panels with fibrous frames made of
poplar or ceiba. The ‘P’ stands for
peeling. The system allows our
customers to produce a ‘finishcut
quality’ without postprocessing,
with chip-free
Leiber concluded: “If we see markets
growing, we consider setting up a
service centre or enabling our sales
partner to conduct services in our
stead. In the following years, we will
closely monitor each market in Asia,
invest in the subsidiaries there, and
we will invest in more capacities
and state-of-the-art technology
to ensure the best services and
precision of our products. Besides
equipment, we also invest in
facilities. For instance, we recently
opened an additional service centre
in Zhejiang province in China.” P
“We can only be successful if we
make our customers successful.”
Udo Leiber
Managing Director, Leuco Asia
26 Panels & Furniture Asia | January / February 2023
IN PERSON
Making
customers
the priority:
An interview
with HOMAG
Amid celebrations of their 40th
anniversary in Asia, HOMAG has no
intentions of resting on their laurels.
From the importance of customer service
to tapping into the growing mass timber
market, Daniel Schmitt, CEO of HOMAG,
shares what the company is currently
focusing on in times of economic slowdown.
How much has HOMAG Asia grown
over the last 40 years?
Daniel Schmitt: HOMAG was founded
60 years ago, and 20 years later we
already expanded to South East Asia.
That was a really clever move because
we wanted to be the global market
leader — we are the global market
leader — and South East Asia was an
important market for us.
Asia is a growing market. Our order
intake and installed base are nicely
growing, and I think today we have
around 5,000 machines in the market.
With that, we increase our sales
personnel, but also very much in service
to make sure that our customers are
up and running and can count on us on
short notice. As such, we have about 100
people in HOMAG Asia now, with a lot of
them joining in the last few years so that
we can clearly increase our presence in
Asia.
We have developed a really good
footprint in the industry, and we
are working with a whole customer
portfolio, from smaller carpentry shops
up to industrial customers. Regionally,
we are adding one country after another
— Indonesia, Taiwan, Malaysia, Thailand
— with Vietnam 11 years ago, and now
we have the Philippines. The team here
in HOMAG Asia is getting more and
more self-sufficient, which is important
to me so they will not rely so much on
German resources, but are able to help
the customers here themselves. For
instance, we have established a hotline
here recently to be in the right time zone
with our Asia-Pacific customers, and to
understand the installed base well.
HOMAG Asia celebrating their 40th anniversary with their customers in Singapore
Does the group have any plans
to expand into other countries or
strengthen its current assets?
Schmitt: Overall, we have a good
footprint across the world. We are
present in the most important countries,
so we are not necessarily looking into
new ones. But we will certainly increase
our service staff in countries where we
are present. On a global scale, last year
we added 180 field service engineers to
Panels & Furniture Asia | January / February 2023 27
IN PERSON
our business, be it in the US, Europe, or
here in Asia. All over the place we are
adding capacity as we grow.
South East Asia is a very important
market. Luckily, my predecessors
made the decision to come here early.
We have been expanding since then,
we are here to stay, and we are here to
further expand our business — it is not
a short-term thing.
What differences in woodworking
trends do you see between Europe
and Asia?
Schmitt: Probably the biggest
difference that I see is the level of
automation. If you go to a high-level
German industrial customer, like
a kitchen furniture producer, they
can be really automated. They try to
reduce labour to the lowest possible
amount for two reasons: One is cost,
the other is the availability of labour.
In Asia, we still have a lot of exposure
to manual work — which is, by the
way, probably the reason why Asia has
been successful in exporting furniture
to the rest of the world. But that might
change going forward. I do believe
that there are really large customers
that will need to make the first steps in
automation and digitalisation to stay
competitive on a global scale.
At the same time, there are different
levels of automation in every country.
If I look at Germany, for example, the
top customers are usually automated.
But there are also customers that
have maybe 100 personnel working
for them, so their level of automation
is not yet high. What is important
to HOMAG is that we can serve our
customers and offer them solutions
at every level, at where they are.
Particularly for Asia we need to bring
our manufacturing footprint a little bit
closer to the region. As such, we have
been expanding our manufacturing
footprint in China as well as in India,
making sure to follow their market
requirements. We also make machines
that are particular to the South East
Asian market in terms of price point.
1
From our portfolio, we want to have
the right price point for our customers
at their level, and then help them
grow with us to whatever level they
want to grow. We can provide them
sophisticated machines and first-rate
levels of automation, up to a fully
automated factory that we can lay out
for or together with them.
Amid global events like the Russia-
Ukraine war, rising interest rate, and
zero-COVID policy in China, can you
comment on the current and future
market outlook of the furniture
industry?
Schmitt: First of all, the field recession,
high inflation rates and so on affect
consumer confidence — do you buy
new furniture now, or wait a little bit?
If the end-user market is not strong
anymore, our customers start suffering,
and if they are not confident about
their own future, they will not invest
in our machinery. And we see that.
We had 24 months of extreme order
intake until around summer 2022, and
those were the most successful years
of HOMAG in history by far. Now we
see our order intake coming down to
a more normal level. Even so, I still
believe that the major trends are intact.
We have a growing population and a
growing wealthy population, and they
will spend more money on high-quality
furniture. Also, if you look at the history
of the woodworking industry over the
last 20 years, it has always worked in
investment cycles. We had a strong
cycle, then we came down a little bit,
but I am convinced it will go up again.
And now since we are a large enough
company, we can weather the current
cycle, and we will focus more on the
service side, helping customers be more
productive.
My advice to our customers would
be to use this time to think about
productivity. If there is high demand
from the market, you are busy managing
the growth. Now, with the volume
coming down, you can think, what can
I do in terms of productivity? Do I have
the right materials? And we can help you
with that.
Software solutions have become
indispensable in the woodworking
industry. How do HOMAG’s software
solutions stay competitive?
Schmitt: We are competitive at different
levels. If you have an automated factory
that produces maybe €200-400m
Legend
1 The Construction
Elements Solutions
business segment
focuses on
prefabricated
and sustainable
construction
(Image: WEINMANN
Holzbausystemtechnik)
2 HOMAG’s India
headquarters
28 Panels & Furniture Asia | January / February 2023
IN PERSON
worth of furniture, we have our controller
manufacturing execution system (MES)
software for such high-end projects. We have
long-term customers where their whole factory
runs on our software, and we make sure they
are up and running all the time. But that is for
the high-end portion. On the other end would
be digital apps: scalable digital helpers that
many can download from the application store,
customise a little bit, connect to their machine
through tapio, and the apps will be functional
for their use. For instance, productionManager
allows everyone access to all information on
every job in real time — from work preparation
to production to assembly. It makes the current
status of individual components transparent;
this means you always have an overview of
the status of your jobs. materialManager helps
users organise their panels and edges, and
informs them what they still have, where they
can find them, and how much they have in
stock.
We are still improving our apps. We are not
at the end of the journey here. Service is very
important to me. We need to understand
the production logic of our customers, their
product portfolio, whatever machines they
have installed, to come up with a proper
solution. We have also made a conscious
decision, on the software side, not to care what
equipment brand the customer is running.
They can use any brands, as long as it is
industrial level. For our sophisticated software,
you can even integrate a competitor’s
machine. At the same time, our goal is to
make ourselves even more attractive by
providing equipment that combines our
software and hardware, and has additional
benefits the customer would not have with
their current equipment. But this is something
we need to develop.
Mass timber has been a growing movement
across the world. What is HOMAG’s current
position in the mass timber market?
Schmitt: Can I expand it a little bit further
than just mass timber? We are looking
“What is important to
HOMAG is that we can
serve our customers and
offer them solutions at
every level, at where
they are.”
2
Daniel Schmitt
CEO, HOMAG
at it from a different angle: the angle of
prefabricated sustainable house building.
We have a business unit called Construction
Elements Solutions. It has timber processing,
which is the first step when you do mass
timber, then you have mass timber itself,
and finally the element prefabrication —
which we do with WEINMANN, such as
prefabricated walls. But the market is not
mature yet. Our biggest growth area right
now is WEINMANN, but we have acquired
System TM and Kallesoe over the last two
years because we believe in the mass timber
market. System TM does all the sorting,
grading, cutting and cross-cutting, and
finger jointing, and Kallesoe does the laying
of the lamellas and the manufacturing of
high-frequency presses. Then we have our
cross-laminated timber (CLT) panels or
glue-laminated timber (glulam) beams. So,
with our in-house technology, we are able to
build complete CLT plants, which we already
do now.
For now, we see CLT plants coming up in the
US, and we are building a large one ourselves
for StructurLam, a manufacturer of mass
timber solutions based in North America. For
Asia-Pacific, we have projects in Australia,
Japan, and New Zealand, though not that
much in South East Asia. We believe that the
prefabrication of buildings is the next big
thing. It is what governments want, because
it is much more ecological [than traditional
concrete or steel] and you can prefabricate
it. Today, furniture is 85% of HOMAG’s
business. But in the future, I think we will see
a different share, although we will not shrink
the furniture business aspect. P
Panels & Furniture Asia | January / February 2023 29
PRODUCT HIGHLIGHT
Making waves with
new wooden wall
cladding solution
Wood is now at the heart of current decoration
trends for its aesthetics and durability. Riding
on this trend is Bard 107 Texture, the latest
interior wall cladding solution by wood
processing company Ducerf.
cladding range, offering various
design possibilities with its textured
surface that is inspired by the
undulation of waves. Wooden interior
wall claddings can create an interplay
of light and shadow, and depending
on the orientation of the sun, the
atmosphere of a room changes
throughout the day. To achieve this,
the relief texture on Bard 107 catches
light and enhances the room it is
installed in, creating a tactile and
aesthetic effect. This allows users to
be creative in the way they install Bard
107, whether by delimiting a space
without partitioning it or by adding
a natural decorative touch to walls,
headboards, frames or ceilings.
MEETING CONSTRUCTION
REQUIREMENTS
Ducerf uses solid oak or hightemperature
treated (THT) ash and
poplar to produce Bard 107. According
to Thibault Chastagnier, manager
of Ducerf’s second transformation
division, the wood used “has to resist
bad weather, insects, fungi”, and other
factors capable of decaying wood:
“We have developed the hardwood
cladding with naturally durable
species and species such as ash or
poplar that we have enhanced with
THT. As these woods are less stressed
inside a building, they are perfectly
suited for these new uses.”
Wood cladding is now increasingly
being used in interiors even though it is
typically reserved for exterior facades.
This trend, observed by wood supplier
and processing company Ducerf, is
driven by an increasing number of
architects who are looking to integrate
wooden wall cladding on an interior
wall, ceiling or staircase.
products has increased significantly,
multiplying by four. We realised that,
little by little, customers who were used
to using our cladding outdoors thought
that they could use it indoors. Through
this, we intuited that specifiers wanted
to create something unique,” said
Carole Debize, marketing manager for
the Ducerf Group.
With THT, treated hardwoods can
not only offer an expanded range
of colours, but the treatment also
improves the dimensional stability
of the wood in wet environments.
Debize explained that a heattreated
poplar will take on a much
darker and warmer colour, like “a
chocolate shade”. Used indoors,
the poplar wood will not grey as it
might outdoors, and used in wet
environments like bathrooms, the
high-temperature treatment will
boost the reliability of the hardwood
cladding in a long term.
“Since the beginning of the year, the
number of requests for interior design
To answer this demand, Ducerf has
developed the Bard 107 Texture oak
As for meeting fire-resistance
requirements of housing regulations,
30 Panels & Furniture Asia | January / February 2023
PRODUCT HIGHLIGHT
intumescent finishes have been
added to the boards to prevent fire
outbreaks. Interior wood cladding,
combined with other insulation
solutions, can also meet acoustic
needs. Chastagnier noted this for
ceiling applications: “What brings this
acoustic aspect is the combination
of insulation with cladding. The air
gaps let the sound escape into the
sound insulation. The rooms sound
different, with less resonance and the
impression of a relaxing space.”
Ducerf also reported that the Bard
107 Texture is easy to install on
wooden battens. It is possible to
hand over finished spaces to a
client more quickly than with, for
example, traditional plasterboard,
where there are more stages in the
implementation. The prefabricated
aspect and faster speed of execution
of Bard 107 would therefore be
appealing to architects and project
managers. For indoors, wood cladding
requires minimal maintenance.
MEETING SUSTAINABILITY
REQUIREMENTS
The rising demand for wood in interior
design or as a construction material
in France can also be attributed
to the introduction of the new
environmental regulation, RE 2020.
Generally speaking, RE 2020 aims to
reduce the carbon footprint of new
buildings over their lifecycle, since
the construction industry is one of
the most carbon-intensive industry.
As such, it encourages constructing
with more environmentally friendly
materials.
Debize elaborated: “All of our
hardwood products benefit from the
dynamics of RE 2020. There is a real
trend towards natural, ecological
and bio-based materials. With
wood, projects gain in coherence
by associating aesthetics and
environmental approach. Today, it is a
strong trend in the development and
architecture markets.”
Additionally, Ducerf uses wood that
is certified by the Programme for the
Endorsement of Forest Certification
(PEFC), and is sourced from local
forests to produce Bard 107. This
not only promotes the local timber
industry, but also lowers the carbon
footprint of the manufacturing
stage — the transportation of wood
is often carbon-intensive, and can be
mitigated by using locally harvested
timber and avoiding importation of
raw materials.
MEETING CUSTOMISATION
REQUIREMENTS
Ducerf can tailor their production
of Bard 107 to various project
requirements with different board
widths and lengths. For instance,
a solid oak ceiling cladding
had to be made without visible
fixings for a high school, and the
cladding needed to be removable.
Chastagnier recalled that “the
design office proposed a layout
with invisible fixings”.
This customisation is possible
since Ducerf used a new moulding
machine to develop Bard 107.
According to the company, the
moulder allows for rapid changes of
series and pointing, thus profiling
the undulations onto the board
surfaces. Notched knives have
been developed to produce the
pattern and a unique surface finish.
There are also knives to plane and
calibrate the material, and knives
to also oscillate to structure the
surface. The moulder can also
be used to profile decking and
cladding boards, and a cutting
option has been added. The
cladding can be processed in
continuous boards or finger-jointed
boards, of lengths up to 6m. P
Legend
1 The relief texture
of Bard 107
plays with light
and shadow,
enhancing the
atmosphere of an
interior
2 Ducerf uses solid
oak or THT ash
and poplar to
produce Bard 107
1 2
Panels & Furniture Asia | January / February 2023 31
PANEL MANUFACTURING
1
Automation amid
a shortage of
skilled workers
As the demand for skilled labour
increases, automation is arguably
becoming more and more important
in modern woodworking.
Not only are machines and systems
increasingly taking over the handling
of often-heavy workpieces, but the
fully automatic quality evaluation
and optimisation of wood materials
is also gaining ground. Paul
Maschinenfabrik, a manufacturer of
woodworking equipment based in
Dürmentingen, Baden-Württemberg,
Germany, addresses these trends
with its scanner solutions for crosscutting
and ripping.
Paul has supplied a rip scanner to
Krauss, a birch processing company
based in Latvia. Krauss has been
involved in the production of
furniture parts, mouldings and
glued parts since 2001, and takes
care of the entire processing
from sawn timber to the finished
product, as well as the utilisation
of wood waste for the production
of wood briquettes. The company
32 Panels & Furniture Asia | January / February 2023
PANEL MANUFACTURING
1 The AB920_SPOT
automatic infeed
system detects
the position of the
workpieces and
positions them
in front of the
ripsaw according
to the scanner’s
specifications
2 The Rip Scanning
System detects
workpieces from
above and below
as they pass
through
3 The scanner can
optimise with two
different cutting
directions on one
workpiece
2
was looking for an economical
solution to increase yield, quality
and performance. For Krauss’s
application, Paul’s designers
combined the newly developed Rip
Scanning System with a CGL Ripsaw,
which was equipped with four
movable saw bushes in telescopic
design.
The unedged and dried boards are
destacked, singulated and detected
from above and below by cameras as
they pass through the Rip Scanning
System in longitudinal direction.
The scanner software detects the
previously defined defects as well as
the board geometry and optimises
based on the stored cutting list.
Taking into account the turning and
positioning options of the board as
well as the adjustment of the saw
blades, the software calculates the
optimum cutting pattern. If required,
two different cutting directions
are possible on the same board
by means of a re-rip piece, which
increases optimisation. Furthermore,
the scanner can use the available
data to incorporate the optimisation
result for a subsequent cross-cutting
process.
3
Once a workpiece has been
detected and the cutting pattern
calculated, it is fed to the ripsaw.
The automatic, camera-supported
AB920_SPOT infeed system
detects the position and aligns the
workpiece according to the scanner’s
specifications. The saw blades of
the CGL move into position before
the board passes through the saw.
The climb-cutting CGL technique
aims to achieve precise workpiece
guidance, ideal cutting quality and
minimal saw kerfs. It demonstrates
its strengths in the width-cutting
of dried hardwoods, but also for
other applications. With up to four
positioning units in telescopic design,
the CGL can offer maximum flexibility
and minimum saw blade spacing.
The scanner relieves the operator of
the formerly manual evaluation. In
addition, the Rip Scanning System
divides the workpieces faster and
more accurately than an operator can
do visually. Paul reported that Krauss
was satisfied after the installation
of the system, as the production
efficiency increased in a short period
of time. P
Panels & Furniture Asia | January / February 2023 33
PANEL MANUFACTURING
Compliance with
North American
composite wood
formaldehyde
emission rules
By Tsang HingWo, global information and innovation manager, SGS
WHAT IS COMPOSITE WOOD?
This term covers a range of fabricated
wood products. Fibres, sawdust and
wood veneers are bound together
using adhesives or plastics to create
a new material. Types of composite
wood include plywood, fibreboards
like medium-density fibreboard (MDF),
oriented strand board (OSB), and
laminated timber.
CONCERNS OVER FORMALDEHYDE
Formaldehyde is often used as the
binding agent in composite wood
products because it is effective and
inexpensive. However, formaldehyde
emissions higher than 0.1 parts per
million (ppm) in the air can cause
watery eyes, a burning sensation in
the eyes, nose and throat, coughing,
wheezing, skin irritation and nausea.* It
has also been shown that exposure to
formaldehyde can cause cancer.* This
has led to several countries introducing
legislation to restrict emissions from
composite wood products.
In an increasingly regulated market, how
can manufacturers and suppliers ensure
their products meet North American
regulatory standards for formaldehyde
emissions?
The market for composite wood
products is growing. Most homes
now contain several products
made from composite woods,
from furniture to laminate flooring.
According to Allied Market Research,
the North American composite wood
market is projected to rise from
US$736m in 2016 to around $1,876m
in 2023.* This popularity stems
from the fact that composite wood
materials are more sustainable, hardwearing,
and can be easily moulded
and shaped at lower temperatures,
making it cheaper to work with
and better for the environment. For
consumers, this means that one
material type can create a variety
of products with multiple looks and
designs.
NORTH AMERICAN REGULATIONS
In 2010, then-US President
Barack Obama signed into law
the Formaldehyde Standards for
Composite Wood Products Act. The
US Environmental Protection Agency
(EPA) then published its final rule in
December 2016 to reduce exposure to
formaldehyde emissions from certain
wood products. The EPA regulation
aligns with California Air Resources
Board (CARB) requirements.*
Under the terms of this legislation, all
composite wood products imported,
manufactured or sold in the US need
to conform to these requirements
since June 2018. The one exception is
laminated products that are not exempt
from the meaning of hardwood plywood
(HWPW), which must comply from 24
Mar 2024.*
34 Panels & Furniture Asia | January / February 2023
PANEL MANUFACTURING
In 2021, the Canadian Government
published ‘Formaldehyde Emissions
from Composite Wood Products
Regulations’ (SOR/2021-148), aligning
the country’s standards with the US
Toxic Substances Control Act Title
VI ‘Formaldehyde Standards for
Composite Wood Products’ (TSCA Title
VI). Canada’s regulations have come
into force on 7 Jan 2023, but with
requirements for laminated products
not applying until 7 Jan 2028.*
1
Both US and Canadian laws set
requirements for testing, recordkeeping,
reporting and labelling. In
the US, since 22 Mar 2019, importers
of all composite wood products,
whether as panels or incorporated into
component parts or finished goods,
have also been required to provide an
import certification.
2
The advantages of composite wood
materials mean that the market for
products made from them is growing.
To succeed in the competitive North
American market, manufacturers
and suppliers must ensure their
products conform to US, Canadian,
and if they operate in California, CARB
requirements.
To meet certification and CARB
requirements, manufacturers
can look towards certification
and inspection bodies like SGS, a
testing, inspection and certification
company that provides services to
help manufacturers and suppliers of
composite wood products successfully
access US and Canadian markets. They
can cover a range of product types,
including children’s toys, composite
wood panels, flooring, countertops
and picture frames. Solutions
should conform to strict regulatory
requirements, using large chamber
(ASTM E1333) or small chamber (ASTM
D6007) methodologies with services
including US Formaldehyde Emissions
Certification and CARB Certification
Services. P
3
1 Composite wood
products like
plywood require
formaldehyde as
a binding agent
2 Wood
fibres bound
together using
formaldehyde to
create OSB
3 Too much
formaldehyde
can cause
damage to the
eyes, nose and
throat, and even
cause cancer
*References are available on request.
Panels & Furniture Asia | January / February 2023 35
PANEL MANUFACTURING
Raute’s Panel
Repairing Line R7
at PotlatchDeltic’s
St Maries facility
How PotlatchDeltic
creates value
by automating
its panel repair line
In response to the increasing cost of repair
chemicals and the shortage of skilled labour,
companies are researching ways to optimise
their plywood panel repair lines.
36 Panels & Furniture Asia | January / February 2023
PANEL MANUFACTURING
PotlatchDeltic is a lumber
manufacturer in St Maries, Idaho,
US, and is an owner and operator
of nearly 2.2 million acres of
timberland in seven states, six
sawmills, and a plywood mill of
approximately 150 million board
feet in capacity. With the installation
of an automated, data-driven panel
repairing solution from Raute, the
119-year-old company is looking
forward to benefitting from the cost
savings, enhanced panel quality, and
improved ergonomics the solution
delivers.
THE HUMAN ELEMENT
PotlatchDeltic also understood that
some of its recruitment and retention
challenges along the patch line could
be traced back to its manual qualitycontrol
processes. “St Maries is located
in a remote part of Idaho, so hiring
can be more challenging than in other
areas,” said Gimbel.
Moreover, the physically demanding
nature of panel repair work contributed
to frequent turnovers. “Routing
1
Legend
1 The PotlatchDeltic management team.
From left: Don Gimbel, project manager;
Allen Shoemaker, plant superintendent;
Ashlee Cribb, vice-president, wood
products; Larry Branson, plant manager
2 With the installation of Raute’s Panel
Repairing Line R7, PotlatchDeltic has
assigned several line operators to new
positions more suited to their talents
TECHNICAL CHALLENGES
Prior to 2022, PotlatchDeltic relied on
two repair lines staffed by a team of
up to 12 operators. These operators
identified panel flaws, routed
out defects and filled them using
applicator guns. But as Don Gimbel,
maintenance superintendent at the
St Maries facility, explained: “It was
tough to apply the exact right amount
of fill using these manual methods.”
The search for a better solution
began in 2016. That was when plant
superintendent Allen Shoemaker
began analysing PotlatchDeltic’s
processes. “We knew we needed
more data, and a lot of it,” said
Shoemaker. “So we took panels off
the repair line and scraped out the
polyurethane. Then we measured
the defects and compared the total
volume of chemicals that we used to
what we should have used.”
2
These efforts produced new insights
into inefficiencies. For example,
the data Shoemaker and his team
collected allowed them to quantify
the cost savings to be realised if they
could minimise repair material waste.
Furthermore, according to Larry
Branson, the plant manager, they
were “looking to provide improved
consistency for [their] customers”.
The data also revealed how much
PotlatchDeltic’s panel business could
benefit from adhering to a more
standardised panel repair process.
Panels & Furniture Asia | January / February 2023 37
PANEL MANUFACTURING
3
4
Legend
3 A wide shot of the Panel Repairing
Line R7
4 Features like multiple repair heads and
continuous panel flow were appealing
to the PotlatchDeltic team
5 The Panel Repairing Line R7 has an
accurate defect detection powered by
3D scanners and high-resolution colour
cameras
6 PotlatchDeltic’s panels
and working a fill applicator require
repetitive motions that can put stress on
our team members’ hands and wrists,”
acknowledged Gimbel.
“When your repair line operators only
have one or two years of experience, not
decades, you have to work especially
hard to ensure that repairs will be
performed safely and effectively,” added
Shoemaker.
Ashlee Cribb, vice-president of the wood
products division at PotlatchDeltic, saw
that an automated panel repair solution
could not only help PotlatchDeltic
minimise the hazards associated
with operating patch line equipment,
but also place those operators in
positions more suited to their talents.
“Automation is a way for our team
members to focus on activities that
generate higher value,” she said.
SEARCHING FOR AN AUTOMATED
PANEL REPAIR SOLUTION
Equipped with an understanding of
their plywood facility’s capabilities,
PotlatchDeltic’s leaders began the
search for an automated panel
repair solution that would help them
achieve multiple objectives: improve
ergonomics for team members,
phase out inefficient manual panel
repair and patching processes, realise
repair material cost savings, achieve
a uniform high quality of repairs,
regardless of wood species or end
product, and finally, put their team
members in the best position to
succeed — and more fully participate in
the enterprise’s success.
This search eventually led them to
Chile. There, they visited an Arauco
mill to see how that manufacturer
leveraged several different Raute
solutions. “That sold us,” said
Shoemaker. “Being able to see first-,
second-, and third-generation panel
repair lines in action, compare their
features, and track the evolution of
that technology — that experience was
invaluable.”
Branson and Shoemaker were
particularly impressed by
Raute’s defect analysers. “Raute
demonstrated to us that their
equipment could be fine-tuned to
handle the wood species, such as
Douglas fir, larch, and pine, that we
process,” the latter explained.
RAUTE’S PANEL REPAIRING LINE R7
After completing its fieldwork,
PotlatchDeltic decided to invest in
Raute’s Panel Repairing Line R7. This
solution appealed to Shoemaker
and team due to its high capacity,
continuous panel flow, multiple repair
heads, an accurate defect detection
powered by 3D scanners and highresolution
colour cameras, precise
application of repair materials,
and ease of operation. With the
potential to be supervised by a
single operator, the Panel Repairing
Line R7 can deliver up to 65% in
repair material savings, according
to Raute. Operators can also use
Raute’s MillSIGHTS data-capturing
38 Panels & Furniture Asia | January / February 2023
PANEL MANUFACTURING
5 6
tool to automatically optimise
production and perform preventative
maintenance.
THE COLLABORATION
After visiting Raute’s headquarters in
Finland to conduct factory acceptance
testing, PotlatchDeltic finalised their
purchase. Raute’s technicians then
disassembled the entire R7-Series
panel repairing line and shipped it to
Idaho. Those technicians followed the
equipment to its final destination, and
worked with the PotlatchDeltic team
to set it up at their factory floor.
“It has been very rewarding to see
all our efforts come together,” said
Gimbel. “Even though we had the
equipment come here from halfway
around the world, it arrived without
a hitch. And the team that joined us
from Raute worked very well with our
people.”
Branson concurred: “The most
satisfying part of this whole
project was working with Raute. The
communication, the installation, the
testing, the training: Everything was
first-class.”
Gimbel also revealed that the
installation of the Panel Repairing
Line R7 has created excitement at
PotlatchDeltic’s St Maries plant: “We
have assigned four operators to work
the new line, but people across the mill
and the company are very interested in
getting involved in this project.”
Cribb was one of those people: “I
joined PotlatchDeltic midway through
this project, but I have seen Raute’s
equipment at work at other mills. When
I learnt that we would be installing
the Panel Repairing Line R7, I was very
excited. I knew it was going to make a
positive difference for our enterprise.”
According to Shoemaker, PotlatchDeltic
is already reaping benefits. “We are
saving on repair materials, and we
have been able to reassign most of our
repair line operators to other roles. So
we have seen safety mitigation as well.
It is still early, but these wins prove that
automation is a key to our success now
and in the future.”
For Cribb, that future is one in which
automation plays an increasing role
in helping PotlatchDeltic achieve
its mission: “We want to grow and
produce the forest resources that build
a foundation for our lives and improve
the communities in which we live and
work. To make those things happen, it is
critical that we find ways that continue
to automate and use accurate, consistent
data to drive better decision-making.”
She concluded: “Raute has shown
themselves to be a vital partner in
these efforts, and we look forward to
strengthening that partnership as we
integrate the Panel Repairing Line R7
more fully into our operation.” P
This article was first published by Raute and is
reproduced here with permission.
Panels & Furniture Asia | January / February 2023 39
FURNITURE MANUFACTURING
Material diversity in the
furniture and interior
design industries
By Christian Wimmer, manager,
furniture and interior design,
Leitz, and Zeljko Pekec, head
of application technology, Leitz
Riedau, Austria
or interior design. In the recent past,
modern, puristic designs with highgloss
and matte lacquer finishes were
trendy, but the end user realised that
fingerprints and grease residues were
visible after touching them, making
designer furniture unattractive. In
contrast, AFP finishes, which make
fingerprints invisible with a coating,
are becoming increasingly popular. In
addition to these finishes, solid wood
furniture or furniture with real wood
finishes are also in vogue.
In sizing, seemingly
simple things like
sawblade protrusion
or the position of the
visible side can be
decisive for quality
One’s own home is the centre of one’s
life. Not least due to the life-changing
events in the past years, people now
spend more time inside four walls than
ever before. This has increased the
desire for a relaxing and comfortable
home as well as high-quality interior
design. Natural materials, colours
inspired by nature, and a clear, reduced
design are popular.
The modern home is an oasis of wellbeing,
a workplace and a place of
retreat simultaneously, which means
that the functions of furniture pieces
sometimes blur into one another. To
ensure that a piece of furniture can meet
all requirements in terms of design,
materials, size and functionality, the
trend is moving away from a onesize-fits-all
look to individual, mostly
handcrafted solutions with a variety of
user properties. Furniture today must
be beautiful, multifunctional, and meet
several requirements at the same time,
without neglecting their cosiness.
For craftsmen, this opens up
design possibilities but also new
challenges. The number of materials
to be processed has increased, and
combinations of natural wood with
high-tech finishes have become the
norm. One example of such finishes
is anti-fingerprint (AFP) coatings.
Preferably used for kitchen furniture,
AFP finishes are now used more and
more in classic furniture construction
For craft businesses, therefore, the
question arises as to how such a range
of materials can be machined in the best
possible way while ensuring optimal
quality on the workpiece, and the
highest possible efficiency, productivity
and flexibility during the machining
process. Above all, however, users must
ask themselves which tool solutions
are suitable in order to produce
successfully.
SIZING WITH SCORING AND MAIN
CIRCULAR SAWBLADE
The most traditional processing method
is cutting with a sizing saw. Craftsmen
attach importance to the quality of
the cut, which should be as optimal as
possible with tear-free edges on both
sides and clean-cut areas in all panel
materials and decors to avoid timeconsuming
reworking. To achieve this,
it is recommended to use a new or just
reconditioned circular sawblade before
sawing panel material with sensitive
finishes, such as AFP materials. To
achieve an optimal top edge, the radial
40 Panels & Furniture Asia | January / February 2023
FURNITURE MANUFACTURING
projection of the circular sawblade
to the panel should be set at up to
10mm. For an optimal bottom edge,
the use of scoring circular sawblades
is highly recommended. In addition, it
is advisable to place the panel on the
saw table with the visible side facing
up. In this way, ideal work results can
be achieved and the lifetime of the used
circular sawblades can be maximised.
COMBINING DIFFERENT CUTTING
MATERIALS FOR PANEL SIZING
Panel sizing saws are becoming more
common in craft workshops. For an
ideal cutting edge without further
sizing steps, coated wood materials,
such as chipboard or medium-density
fibreboard (MDF) as a single board,
should first be pre-scored on the bottom
side with a scoring circular sawblade
and then sawn with a main circular
sawblade. To ensure that the main and
scoring circular sawblades function
optimally, it is recommended to match
the cutting widths of the two circular
sawblades and also to service them in
pairs after the end of the tool life.
Carpenters implement this utilisation
concept in their machining processes
on a daily basis. However, it is possible
to save costs, of which users are hardly
aware. If, instead of a carbide scoring
sawblade, a diamond-tipped variant
is used together with several main
circular sawblades, tool costs can be
reduced over longer periods of time.
Specifically, it is recommended to
use up to 10 carbide main circular
sawblades together with one diamond
scoring circular sawblade. Due to the
higher wear resistance of diamond
cutting materials, these scoring circular
sawblades achieve a longer tool life
than the main circular sawblades with
carbide tipping used at the same time.
Thus, the scoring circular sawblade
remains in the machine after the main
circular sawblade has reached the end
of its tool life. This means that only the
main circular sawblade needs to be
replaced and reconditioned, saving time
and additional tool costs. Furthermore,
the main circular sawblades with
carbide cutting edges can be
resharpened several times until the end
of the tool life of the diamond scoring
circular sawblade. The resulting loss
of cutting width can be compensated
without great additional expense
by changing the scoring depth. This
procedure allows the maximum tool life
on all tools and costs to be saved.
An example of how this works is the
combination of RazorCut PLUS circular
sawblades and DP scoring circular
sawblades from Leitz. With its cutting
geometry designed for finish cutting,
RazorCut PLUS ensures ideal, breakoutfree
edges as well as smooth and scorefree
finishes, even in delicate decors. In
combination with the diamond scoring
circular sawblades, users can save costs
and achieve the highest possible quality
when sawing.
STATIONARY TECHNOLOGY (CNC)
Computer numerical control
(CNC) technology has become a
manufacturing concept in many craft
businesses, and the trend continues
without interruption. Complex
workpieces and a variety of shapes and
designs can be produced quickly and
easily with the help of CNC machines.
It is now possible to machine almost all
coated and uncoated wood materials,
solid wood elements, compact panels or
plywood with shank or jointing cutters
and circular sawblades. However, the
quality of the machining result always
depends on the machining strategy
used and the tool systems used for this
strategy.
CNC sizing with shank or jointing
cutters: Sizing with jointing cutters
aims to achieve tear-free edges on
both sides of the panel. This is ideally
achieved with diamond-tipped tools
that have alternating shear angles, such
as inclined cutting edges. However, this
shear angle may only have a certain
minimum size to reduce the cutting
pressure. Tools with too large shear
angles produce rough and porous,
pitted finishes on chipboard with a
loose medium layer. Especially with
laser edging, this can lead to problems
with edge adhesion or water resistance
tests. Another argument against using
such tools is the higher purchase and
maintenance costs. This is because
tool systems with a high shear angle
are usually equipped with extra-long
cutting elements. The use of diamond
cutting edges therefore causes high
costs in terms of both purchase and
resharpening.
Studies over the years have shown that
optimal machining results in terms of
perfect edges and tear-free medium
Sharing diamondtipped
scoring
circular sawblades
and carbide-tipped
main circular
sawblades helps to
save money in the
long run
Panels & Furniture Asia | January / February 2023 41
FURNITURE MANUFACTURING
position are best achieved with tools
that have a shear angle of 50°. This is
the only way to produce an ideal cutting
result during jointing, preventing
process costs from rising — for example,
with the EdgeExpert cutting tools from
Leitz.
In addition to selecting the optimum
tool, the processing strategy also
influences the processing quality during
sizing. It is therefore recommended to
optimise the edge and straight cutting
strategies. Users dealing with this topic
for the first time are advised to have at
their side an experienced contact person
with knowledge of materials, tools and
machining processes.
Mitre cutting with CNC machines:
Mitre sawing is one of the most
demanding machining operations
in the furniture and interior design
industry. On five-axis machining centres
or with specific CNC sawing units,
inclined saw cuts at desired angles can
be produced efficiently. In practice,
circular sawblades designed for mitre
cuts are necessary for this application
field. The main difference of sawblades
designed for mitre cuts, compared
to conventional circular sawblades,
is their small cutting width and the
simultaneous high axial run-out quality.
These technical features help to avoid
break-outs on the pointed side of the
mitre. Especially with tapered mitres
such as 60°, the slightest inaccuracy
in the overall system worsens the
machining result.
Another important point is the use of
the right machining strategy. In this
case, it is recommended to score the
panel 2mm deep on the inside edge
with feed in a first cutting movement.
Subsequently, the cut-off is performed
in the counter-rotation. In this way, CNC
users achieve cuts free of tear-out on
both edges and in the cut area without
defects.
the WhisperCut diamond-tipped circular
sawblade from Leitz. Both Katana and
WhisperCut enable optimal cutting
results in all common materials with
their small cutting width and smoothrunning
characteristics.
The nesting process: Nested shapes
are cut from panel-shaped materials
with the help of shank tools. Especially
with delicate parts and high feed rates,
CNC users are regularly faced with the
challenge of milled parts displaced and
damaged by the high-speed cutter.
However, the machining table’s vacuum
is insufficient to balance the resulting
forces and prevent the manufactured
parts from slipping. The use of small tool
diameters can help here. This reduces
the cutting forces, but more important
are the smaller cutting grooves created.
If, for example, the cutter diameter
is reduced from 16 to 12mm, this
corresponds to a 44% reduction in
the cutting volume. The less material
is removed during nesting and the
smaller the resulting cutting grooves
are, the less the vacuum performance
is weakened, with the workpieces held
firmly in place.
depending on the version, suitable for
feed rates of up to 35m/min, they are
optimal for delicate and, above all, fast
nesting — particularly for machining
plywood, compact laminate, chipboard
or MDF.
CONCLUSION
The variety of materials and the demands
on materials and end products are
constantly growing, but the machining
processes will hardly change in the
coming years. For this reason, universally
applicable tools with maximum
performance are becoming increasingly
important in the industry. After all, the
maxims “time is money” and “quality
pays off” will continue to apply in the
future, be it for manufacturing or tool
maintenance; higher efficiency, flexibility
and productivity help to save money or
increase output quantities. Craftsmanoriented
furniture manufacturers and
interior designers will take these into
account in their future business plans.
Ultimately, it is recommended to have a
tooling partner who can provide suitable
tooling solutions, demand-oriented
services and knowledge about processes,
machines and materials. P
When mitre sawing
on CNC systems, it
is important which
machining strategy
is used, and to
ensure the circular
sawblades used are
suitable for such
applications
Examples of such circular sawblades,
especially for mitre cuts, are the Katana
carbide-tipped circular sawblade and
With its nesting cutters, Leitz offers
a range of tools for such challenges.
With diameters starting at 10mm and,
This article was first published by Leitz and is
reproduced here with permission.
Images: Leitz
42 Panels & Furniture Asia | January / February 2023
FURNITURE MANUFACTURING
High-efficiency,
quality and intelligent
SawTech solution
Front feeding panel dividing saws
Rear feeding panel
dividing saws
Panel dividing saws for
long and narrow panels
The panel dividing saw enjoys multiple
features, including high precision, high
efficiency, easy operation and a range of uses.
The operator simply needs to input cutting data
into the machine, and the equipment will cut
out the required size accurately, thus saving
labour costs. The panel dividing saw has been
a featured product of Nanxing Machinery for
years. After more than 20 years of technical
experience, Nanxing has developed a variety
of SawTech solutions for the different needs of
furniture manufacturers. The new 120,000m 2
SawTech production centre in Shaoguan city,
Guangdong province, China, has been put into
production since 2021, aiming to provide the
foundation of high-quality and stable supply of
saw series production.
FRONT FEEDING SAW SOLUTION
The most common, universal panel dividing
saw uses the front feeding method, which is
applicable to both thin and common panels.
The operator feeds the panels from the front air
flotation table, and the gripper controlled by
the high-precision servo system automatically
pulls the panels according to the set sawing
size. The saw carriage runs on the linear
precision guide rail for accurate sawing before
discharging the panels from the front, which
not only ensures quality sawing on the end
face, but also improves the working efficiency.
Nanxing NPC330’s pressure beam height will
automatically adjust according to the thickness
of the panel. The main saw and scribe saw’s
lifting are independently controlled: The main
saw automatically adjusts the height per the
panel’s thickness to achieve the ideal sawing
effect, while the top, bottom, front and back
movements of the scribe saw are electrically
adjusted to save time and improve efficiency.
According to Nanxing, the sawing height is
90mm. The saw carriage is driven by a 2kW
servo motor moving along an accurate rack
and pinion system. The main and scribe saws
use a quick-change design for the fast changing
of saw blade. Nanxing’s software integrates
various functions including task management,
programme import, sawing editing, operation
guidance, fault display and troubleshooting,
processing simulation, and barcode
management, the machine performs optimally,
safely and reliably with a simple interface.
The equipment can also be docked with
most software designs to allow the intelligent
production of customised furniture.
REAR FEED SAW SOLUTION
The frame and saw carriage of the panel
dividing saw’s rear feed are more heavy-duty.
This means the sawing efficiency will be
higher, making it ideal for production with
greater demand for bulk sizing. The maximum
sawing thickness is 120mm, equivalent to six
pieces of 18mm panels. Motors of the main
and scribe saws are independently driven on
the heavy-duty saw carriage structure using
a twin-programme fence design to preload
panels in stand-by positions. This saves labour
and waiting time. Customers can choose the
feeding direction from the central rear, left rear
or right rear, as per site conditions. Nanxing’s
NPL380HG with a single pusher is ideal for
high-volume production mode. NPL440D with
double pushers is ideal for cutting large panels
of up to 4,300mm with a set of independently
driven powered grippers, with a total of two
auxiliary clamps and 11 main clamps. Two
groups of pushers can work together to cut two
different sizes of the panel simultaneously. The
NPL440D allows both single sawing and stack
cutting with an increased sawing efficiency of
40% compared to conventional back-feeding
panel dividing saws, suitable for batch-sizeone
and mass production. Tags can also be
manually labelled after cutting the material or
automatically labelled before feeding with an
automatic labelling device at the back.
In addition to the hardware, the panel dividing
saw increases the utilisation rate of the
panel, which is also a key factor for furniture
companies to save costs and improve their
competitiveness. The rear-feed panel dividing
saw adopts an Online Optimisation software
on the cloud server — a stronger version of the
online optimisation system based on the cloud
44 Panels & Furniture Asia | January / February 2023
FURNITURE MANUFACTURING
server. Compared to a local computing
optimisation software, the cloud
online optimisation software can select
optimal results by leveraging the cloud
server iterative algorithm. Featured
with a stronger computing power
and higher efficiency, this software
can optimise panel utilisation rate
and reportedly save more materials.
The core algorithm of the software
can also be updated online in time to
continuously improve the optimisation
results, including material utilisation
and equipment processing efficiency.
Field testing of the software has shown
that an average of 1-2% of the panel
can be saved, and more so in a longer
term. The information production line
can be upgraded to connect with the
enterprise resource planning (ERP)
data of the factory. The front end can
also be equipped with a bar code
printer to print bar codes, achieving
data-driven production.
ANGULAR SAW WITH TWIN PUSHERS
Angular saws are different from
general electronic saws in that they
comprise two saws: length-cut and
cross-cut saws. The cutting process
starts with the length-cut saw before
the cross-cut saw in the cross-cut zone,
thus achieving cutting and forming
in one feeding. NZH3825D, Nanxing’s
new angular saw, can process panels
of up to 3,800mm x 2,500mm. By
using a double-pusher design and
an additional set of independently
driven powered grippers in cross-cut,
the NZH3825D can cut two sizes of
the panel at one time, enabling higher
sawing efficiency and more flexible
production.
CUTTING OF LONG, NARROW PANELS
AND LONG-STRIP CLADDING PANELS
Narrow panels such as top, bottom,
and shelf boards are one of the
most common materials in furniture
production that are arguably most
impacted by efficiency. Nanxing’s
front feeding machine NPC150 uses
seven groups of closely distributed
clamps with a compact roller table. The
minimum and maximum sawing widths
are 35mm and 1,400mm respectively,
ideal for the bulk sizing of long and
narrow panels. Through-type panel
dividing saw NPL150HG, developed for
the cross-cutting of long-strip cladding
panels, can be connected with the
front and back of the conveyor table
for cladding line preparation. Seven
groups of double-finger clamping pliers
with the front and side positioning
and an encrypted roller will keep the
longitudinally cut panel still in the crosscutting
process. The off-cut handling
device at the end will discharge offcuts
directly, solving the problem of
residual material disposal, and ensuring
continuous efficiency and accuracy
during the processing.
SAWING WORKSTATION
A conventional panel dividing saw
requires one to two people to load,
unload and rotate the panel. Under
the batch-size-one production
mode, Nanxing provides the sawing
workstation which adds a double-pad
automatic fast labelling device at the
back end of the double-pusher panel
dividing saw NPL380D to label the
panel before feeding. The front end
is equipped with a robot with suction
cups, and the work path optimised
by the supervisor’s algorithm works
with the panel dividing saw to rotate,
and stack panels without manual
intervention, avoiding errors caused by
manual operation. This is optimal for
batch-size-one production due to its
high flexibility. The manual operation
mode can also be switched freely
for panels with specific sizes. In the
mass production mode, Nanxing also
provides a gantry-stacking solution
to achieve the automatic loading and
unloading of the panel stack. The
clamp of the gantry-stacking machine
will catch and fix the stacked panels
cut with panel dividing saws, before
sorting into corresponding stacking
tables. Two to three cycles can be
achieved in a minute, according to
Nanxing, making it a labour-saving
solution for panel dividing saws to
achieve bulk sizing.
Most furniture manufacturers prefer
suitable, easy-to-use, stable and costeffective
equipment. With 20 years
of experience in the woodworking
machinery industry and advanced
production capacity, Nanxing is
dedicated to providing furniture
manufacturers with localised, costeffective
solutions for the overall
production process. P
Panels & Furniture Asia | January / February 2023 45
FURNITURE MANUFACTURING
Continuous optimisation
of value stream
By Peter Hartmann, market responsible South East Asia, Schuler Consulting
used Schuler Consulting’s Digital
Value Stream Optimisation in
production. The aim was, as a first
step, to collect data in production
areas that previously provided no or
insufficient data. For this purpose,
the sensor kit of Digital Value Stream
Optimisation was used, enabling
the indoor localisation of part stacks
and the recording of machine states.
The technical set-up could be used
flexibly in any production area
and on machines of any age and
manufacturer type.
Data in complex
process chains, such
as in the area of
solid wood furniture
production, can
be optimised with
Schuler’s tool
Schuler Consulting has developed
a consulting service that brings
transparency to production
processes and enables continuous
optimisation in complex production
environments. Digital Value Stream
Optimisation is a solution based
on value stream management. Its
difference from the classic, analogue
method is the use of modern
tracking technology which enables
permanent data collection and thus
continuous evaluation of this data
for the sustainable optimisation of
intralogistics and the entire value
stream.
BURGER KÜCHEN
German kitchen manufacturer Burger
Küchen has developed a maxim to
set itself apart from competition: Be
faster. A concept that follows this
maxim is the 12-day kitchen, which
Burger Küchen promises to deliver
a kitchen in as little as 12 working
days instead of the usual delivery
time of several weeks. Part of the
Baumann Group, the manufacturer
offers from entry-level models to
the premium segment kitchens,
and in Germany, produces around
650 kitchens a day with 1,200
employees at two locations.
Burger Küchen also pursues the
goal of being faster when it comes
to optimising production. Martin
Schockwitz, the technical manager,
sees the greatest potential for
optimisation in the production
intralogistics. To reduce throughput
times and lower process costs, it
The reason for the project was to
gain more transparency about
the manufacturing processes in a
simple way. Schockwitz reported:
“In recent years, it has become
increasingly clear that we already
have a lot of information for the
successful mapping of a value
stream, but it was not enough.
Without systemic support, we will
not be able to optimally design the
next optimisations. That is why we
have been looking for a tool that
makes value stream mapping easier
for years. With Schuler Consulting’s
toolbox for collecting information on
value stream analysis, the analysis
becomes many times easier and
faster.”
At Burger Küchen, the cabinet
line was permanently connected
to the value stream mapping
system. Production data from the
value stream recording, including
data from existing systems such
as enterprise resource planning
(ERP), manufacturing execution
system (MES), model-driven
engineering (MDE), flowed into
46 Panels & Furniture Asia | January / February 2023
FURNITURE MANUFACTURING
a value stream dashboard. In
regular optimisation workshops,
the Schuler team, together with
Burger Küchen, looked at historical
data from production to derive
optimisation measures and change
the future. The overriding goal of
value stream optimisation was to
increase the overall production
output and reduce and synchronise
throughput times. Whether an
implemented optimisation measure
was successful could be checked by
the sensor kit of the Digital Value
Stream Optimisation and readjusted
if necessary, thus continuously
optimising the value stream.
CONTINUOUS OPTIMISATION IN
COMPLEX ENVIRONMENTS
The basic starting situation at
Burger can be applied to almost
every company: Every company has
blind spots within its value stream
where the production processes
are opaque. These blind spots can
be larger or smaller depending on
the company. This is where Schuler
comes in with its Digital Value Stream
Optimisation tool and aims to create
transparency about production
processes so that manufacturers no
longer have to steer their production
as if flying blind, but know exactly
how to implement optimisation
measures. The Burger case shows
that even in a clear value stream like
kitchen furniture production with
melamine-coated materials, there
are traceability gaps.
as in solid wood furniture production
including lacquering, can be recorded
and optimised.
Let’s take an interlinked production
line in batch-size-one production as
an example. A raw panel enters the
production line and a finished, edged
and drilled component comes out. The
processes and material transports in
the system are controlled and recorded
there. In solid wood production, where
various individual machines from
different manufacturers and years
of construction as well as ‘chaotic’
material transports are the orders of
the day, this recording is usually not
given due to the lack of interfaces on
the machines. In addition, there is
often a system gap in the company’s
software landscape in MES systems
that could record this data — that is,
if the machines provide interfaces.
Even if an MES system were in use
and all machines recorded data,
intralogistics would still be a black
hole. In this environment, no or
only insufficient data collection
might happen. Digital value stream
mapping and optimisation can thus
create transparency across the value
stream in this complex environment,
optimising it holistically.
JUST-IN-TIME PRODUCTION
Burger Küchen’s 12-day kitchen
describes the problem of various
export-oriented companies in South
East Asia as well. There is time
pressure to complete orders for a
specific delivery date. The tension
here, on the one hand, is to ensure
deliveries by keeping large quantities
of material in buffer stocks and, on the
other hand, to cope with the resulting
high storage costs. The ideal solution
to resolve this tension is reliable
just-in-time production with minimal
buffers before loading.
For this purpose, Digital Value Stream
Optimisation provides the data basis
for optimised production planning.
The lead times of the individual
components and products are tracked
and can be used for future orders to
determine the optimal production
start. This start time can be defined
globally for the entire product or
individually for different component
groups within a product. In addition,
delays of individual components in
an order along the value stream can
be displayed and minimised. Once
the lead times along the value stream
are known, the main goal is to level
and optimise them to achieve the
The overriding goal
of value stream
optimisation was to
increase the overall
output of production
and reduce and
synchronise
throughput times
In complex and usually multi-stage
process chains, as is the case of solid
wood or veneer furniture production,
the gaps in data collection increase
due to the extensive processes.
The greater the optimisation
potential in these unrecorded
areas, the more can be addressed in
optimisation workshops. Schuler’s
digital value stream mapping and
optimisation tool is scalable and
thus transferable to any production
process landscape. This means that
even complex process chains, such
Panels & Furniture Asia | January / February 2023 47
FURNITURE MANUFACTURING
shortest and most synchronous lead
time possible and thus reduce tied-up
capital.
In addition to the issue of lead
time, a major focus is on increasing
the production output. Here,
various approaches can lead to the
goal: Reasons for downtimes are
recorded with Digital Value Stream
Optimisation in the context of
machine data collection. After an
evaluation, targeted measures can
be taken on individual machines
to increase availability and output.
Subsequently, bottlenecks in
production can be identified and
the total production output can be
increased with targeted optimisations
or investments.
WHERE TO START?
Each application has to be considered
individually. In principle, however, it is
advisable to start with machine data
collection, to get to know the system
and to optimise individual workplaces
with the collected machine data.
Subsequently, the system can be
expanded with indoor localisation
to visualise, analyse and finally
optimise the value stream holistically.
Schuler accompanies the company
during the system implementation.
After the implementation and the
subsequent data collection, the
company supports the identification
of optimisation potentials. These
optimisation potentials can then be
realised in workshops, either on one’s
own or with Schuler’s support.
CONCLUSION
In all productions, various
optimisation potentials slumber in
the vast process landscape. The more
extensive the processes, the more
complex the inter-relationships — and
therefore, the greater the leverage
for optimisation. Digital Value Stream
Optimisation was developed to
uncover this optimisation potential by
creating comprehensive transparency
in the production environment. A
driving factor in the development
was to make these possibilities
possible with a plug-and-play
system away from a costly IT
infrastructure. This goal was realised
with the use of commercially
available smartphones, Bluetooth
transmitters and analysis tools in a
cloud environment in the sense of
anything-as-a-service (XaaS).
In addition to the potentials of
the system and the optimisations,
further extensive possibilities open
up the use of collected data. The
possibilities extend beyond the
shop floor. The data can be used,
for example, in quality assurance,
pricing, personnel planning or bonus
payment, serving as control variables
that contribute to the optimisation
of efficiency, output, quality and
delivery time. These parameters can
improve the company’s results and
competitiveness:
Quality assurance: By recording
quality defects and production
errors, analyses can be carried out on
their causes and thus the sources of
rejects and rework can be minimised
or eliminated. This reduces costs
and eases the production planning
through less rework or additional
rework orders.
Pricing: By assigning machine
data as well as process times
to component level, the real
manufacturing costs of a product
can be determined via a space
cost calculation. This applies
to inventory products and
calculations for quick fixes of
requests from buyers or customers
via characteristic values and key
figures.
Personnel planning: Based on the
dispatching of orders to production,
it is possible to determine the
use of the various workplaces
and, based on this, to carry out
personnel planning per workplace.
Bonus payment: By assigning the
output performance combined
with the recording of the quality
rate, it is possible to assign the
performance at a workplace
over a certain period of time to
an individual worker, different
groups of people, or departments.
Through this evaluation, valid
and fair target times can be
determined and performance
targets can be set. The evaluation
of objective achievements can thus
be used for performance-oriented
remuneration. P
The Digital Value
Stream Optimisation
can also help to
optimise personnel
planning
48 Panels & Furniture Asia | January / February 2023
MATERIALS
Better returns of
investment with
mass timber
Quicker to build, lower
global warming potential,
better resistance to
earthquakes: Mass timber
buildings deliver better
structural, environmental,
and financial results
compared to steel or
concrete buildings.
However, more can be done
to standardise the use of
mass timber elements and
their connections,
said Kai Kruse, CEO of
Nelson Pine Industries.
By Yap Shi Quan
“A CLEARLY INCREASING DEMAND”
Brick and concrete buildings have been around for centuries
and steel buildings, at least, for the past century. In
comparison, the mass timber industry is very young, excluding
cabins, temples and buildings traditionally made with wood.
Mass timber can imbue a warm and welcoming atmosphere to the building’s interior
But the industry is growing at an explosive rate. Across the
world, in Europe, Americas, and Asia-Pacific, multi-storey
mass timber buildings have been popping up left and
right. The drivers for its growing demand are clear: With
its environmental credentials, ability to be prefabricated,
resistance to seismic activity, and aesthetic properties,
mass timber will continue to gain momentum over steel and
concrete in costs and structural performance, although it has
ample room for improvement.
Panels & Furniture Asia | January / February 2023 49
MATERIALS
1
“We can see a clearly increasing demand for
multi-storey mass timber buildings,” declared
Kai Kruse, CEO of Nelson Pine Industries.
“As more and more buildings are built using
engineered mass timber, we also observe the
design and construction aspects becoming
more efficient. Engineers and architects are
getting used to building with mass timber,
developing solutions that are becoming more
cost-efficient and faster to be constructed than
using steel and concrete.”
NELSON PINE INDUSTRIES
Established in 1984, New Zealand-based Nelson
Pine Industries specialised in producing their
own brand of medium-density fibreboard
(MDF) called GoldenEdge MDF, before adding
laminated veneer lumber (LVL) to their portfolio
in 2002, the product being NelsonPine LVL.
GoldenEdge MDF is used to manufacture
interior products, such as furniture, doors,
mouldings and floorings, while NelsonPine LVL
is a structural material used for roofs, frames,
walls, or floors in residential and commercial
buildings. These engineered wood solutions are
made using equipment mainly from European
woodworking machinery manufacturers
like Dieffenbacher, Steinemann and Raute,
and using sustainably managed radiata pine
certified by Forest Stewardship Council (FSC)
sourced from New Zealand plantation forests.
Using LVL, as opposed to other forms of mass
engineered timber like glue-laminated timber
(glulam) or cross-laminated timber (CLT), was
the preferred option for Nelson Pine back then
when it decided to manufacture LVL, as it could
be produced in big, wide and long dimensions
with the appropriate machines.
“Glulam is a more traditional product, and has
been in existence for over 80 years now. It was
an option, but we had experiences in veneer
making and understand plywood from our
history,” said Kruse. “As for CLT, at that time
it was not really on the radar, so to speak. It
existed in a much smaller scale, and was not
well-developed. CLT became more prominent
only in the last 8-10 years. As such, it was an
easier step for us to transition to LVL.”
COST-COMPETITIVENESS
According to Kruse, the demand for mass
timber originated from Europe, who has
practised designing using mass timber for a
much longer time. In recent years this demand
has reached Asia-Pacific, in particular New
Zealand, Australia and Japan, and is also
strong in the US and North America. For
instance, Nelson Pine’s LVL has been used
in various commercial projects, such as the
Nelson Airport Terminal, a regional airport in
New Zealand.
The drivers of this demand are, in part, due
to the environmental credentials of mass
timber. Mass timber buildings sequester
carbon dioxide and their global warming
potential (GWP) is only a 10th of what
concrete and steel buildings have. As
governments impose regulations like carbon
taxes to support more environmentally
friendly building processes and procedures,
the cost advantages of building with timber
become more apparent.
But perhaps more importantly, mass timber
buildings perform better in earthquakes
than steel or concrete buildings. The science
behind this, as Kruse explained, is because
timber is much more flexible than steel
or concrete. As multi-storey buildings go
higher, they are more susceptible to bending
due to higher wind velocity. Concrete and
steel are rigid, and are therefore more
vulnerable to cracks as they bend, whereas
for timber building, there is flexibility in the
joints and the timber itself.
Kruse has observed for a number of years
that building with mass timber can be
more cost-competitive than using steel or
concrete. In fact, building a multi-storey
building using timber is cheaper in parts:
“Timber buildings are lightweight, and the
50 Panels & Furniture Asia | January / February 2023
MATERIALS
sell a unit because timber has more appeal
to people in the society. Higher rent is also
possible. We have heard of companies
fetching a premium for the rent of 5-10% —
and people are obviously willing to pay for it.”
Adding onto this cost-competitiveness
are the aesthetic qualities of mass
timber. Compared to the cold and sterile
environment of a steel or concrete building,
timber imbues a warmer and more
welcoming environment to a building.
2
Legend
1 Ashburton Civic
Centre in New
Zealand, made using
NelsonPine LVL
2 GoldenEdge MDF
used for kitchen
furniture
3 The interior of the
Nelson Airport
Terminal, the timber
structure made using
NelsonPine LVL
STANDARDISATION
With a global footprint, Nelson Pine often
provides advice to architects about specific
design requirements. This is because
buildings need to be designed in compliance
with country-specific building codes and
other regulations — Singapore will have
different building codes than New Zealand,
Australia, North America or China. To help
architects or designers, Nelson Pine provides
them with a range of information relevant
to the specific design requirements for a
particular building project.
“For instance, to ensure that a building can
last for 50-100 years, the structural engineer
will have to take into consideration aspects
like the dimensions of the LVL, so as to
connect to the different parts of the post,
beam, column, or rafter, or aspects like
the types of connections to fit the LVL, so
that it can meet load-bearing and -bracing
requirements in a building structure,” said
Kruse.
building’s foundation can be constructed
at a reduced cost as compared to building
with concrete and steel, which are naturally
heavier — meaning to say, they need a
bigger and costlier foundation. LVL and
other engineered mass timber are also
typically erected much faster, requiring
less of the expensive time for a crane.
They have performed much better when it
comes to earthquakes which is important
for countries with high risks of earthquake,
such as Japan and New Zealand in
3
particular, but also for other countries like
the Philippines and Indonesia, countries
within the Ring of Fire. Well-designed
timber buildings also often perform better
in high winds.”
He added: “Also, if you look at the overall
building, for the investors and real estate
companies, it is a positive selling point
to construct a building using timber as
it often results in higher occupancy. It
becomes easier for them to rent out or
There is no question as to how each country,
with its own specific climatic, geographical
and demographical challenges, needs to
have its own building codes and regulations.
However, Kruse argued that there needs
to be standardisation about the uses of
connections — such as joints, dowels,
and nails — and also building codes and
regulations to reflect updates about using
LVL, CLT, or glulam, as well as to reflect
new design developments, such as in fire
resistance or acoustics. In doing so, the
regulations can give architects and engineers
a clearer idea of how to use and manage
mass timber resources efficiently, and in
turn, encourage them to use more mass
timber. P
Panels & Furniture Asia | January / February 2023 51
MATERIALS
1
The new
Kuantan lifestyle
with TMT wood
The KotaSAS development in the state
of Pahang in Malaysia features a central
American thermally modified ash floating
deck to bring the community together.
Planned as a township to promote
healthy living, the KotaSAS
development brings together mixed
housing, retail, business and leisure.
This centre offers what a family might
wish for a lifestyle. The key to building
a community is a space to gather, eat
and chat. Central to the residential
area is a vast lake with leafy surrounds.
A floating deck extending into the
water with open plaza seating is the
ideal spot for friends and neighbours
to meet.
Landscape architects Pentago and
Eddy Teh from Efish discussed how
best to achieve their vision of a
floating timber platform which was
structurally, environmentally and
aesthetically sound.
“We usually choose between
indigenous hardwoods, and
52 Panels & Furniture Asia | January / February 2023
MATERIALS
2
3 4
increasingly we are seeing artificial
timbers and plastic composites being
specified,” Teh said. Artificial timber
and plastic composites survive the
humid weather in Malaysia. However,
aware of a growing drive towards more
sustainable design and materials,
Teh was offered another option for
consideration during a trip to Turkey.
It was there he met with the team at
TanTimber who introduced him to
thermally modified American ash.
According to the American Hardwood
Export Council (AHEC), thermal
modification is a process of heating
the timber to the point of combustion,
reducing the moisture content to
around 4-6%. This change is permanent
and means the timber does not react
as quickly to humidity as untreated
timber, and improves the timber’s
stability. The timber is further improved
by removing hemicelluloses and
carbohydrates from the wood, which
are the two main food sources for
wood-destroying creatures. This means
the timber has durability equivalent
to tropical timbers such as Ipe which,
unlike American timbers, have been
overharvested for years. It is thus an
ideal choice for an outdoor community
space such as the one surrounding the
KotaSAS lake.
The floating deck of stamped concrete
and thermally modified timber (TMT)
American ash also adds a touch of
luxury to a functional space with its
rich, dark tones. As with all American
timber species, the pronounced
grain also signals quality. Teh added:
“Imported timber remains popular in
high-end developments, resorts and
hotels. It looks more expensive and lux
than regular tropical timbers.” P
Legend
1 The humidity in tropical Malaysia presents
a challenge for timber structures
2 TMT American ash adds a touch of luxury
to the aesthetics
3 Thermally modified timber can withstand
high humidity levels
4 Thermally modified wood also improves
the durability and stability of the timber
Panels & Furniture Asia | January / February 2023 53
STRUCTURAL ELEMENTS
Växjö station
and city hall
Location:
Växjö, Sweden
Client and developer:
Skanska Sverige
Architects:
Sweco Architects
Size:
16,400m 2
Mass timber supplier:
binderholz
Photo:
Felix Gerlach
The facade of Växjö
station and city hall
Wood was the material of choice when
Sweco planned the city of Växjö’s
16,400m 2 station, which also housed the
city hall. Växjö, which profiles itself as a
“modern wooden city”, has invested in
constructing buildings and properties
made of wood. As such, it was clear that
the station would follow this pattern.
The construction has a timber frame
consisting of cross-laminated timber
(CLT) elements and timber beam
pillars. There are also various wooden
elements on display inside, such
as the suspended ceilings, the wall
coverings, floors and stairs. In the
middle of the building is a large and
open “living room”, with the wood
creating a warm and welcoming
feeling. This is one of the largest
wooden buildings ever built in
Sweden, as claimed by Sweco.
Sustainability aspects permeated the
planning work. The new station and
city hall building has been certified
with the Swedish Green Building
Council’s gold environmental
certification, also known as the
Miljöbyggnad Guld, which aims to
place high demands on materials and
energy consumption. From a lifecycle
perspective, timber is not only less
expensive, but it also has less climate
54 Panels & Furniture Asia | January / February 2023
STRUCTURAL ELEMENTS
Legend
1 The construction
has a timber
frame consisting
of CLT elements
and timber beam
pillars
2 The city of Växjö
profiles itself as a
“modern wooden
city”
3 Wood creates
a warm and
welcoming feeling
1
3
2
impact than a house built with a
traditional concrete frame. Using
timber also created a cleaner and less
noisy working environment while the
station was under construction.
Sweco was initially assigned to
prepare construction documents
for the project implementation,
but it gradually developed into full
project planning, including building
permit and various other planning
documents. In collaboration
with the client Skanska, Sweco
worked with the overall design
and detailed design, accessibility
issues and signage, while other
architectural firms have worked
with the city hall’s interior and the
shops in the station. The building
was inaugurated in the autumn of
2021. P
Panels & Furniture Asia | January / February 2023 55
SUSTAINABILITY
Building business resilience
and monetising innovation
Beyond using palm
wood for furniture,
IOI Palm Wood
has ventured into
refineries and
oleochemical
industries to expand
their revenue
Inspiring the next “material
revolution” by creating sustainable
and high-performance materials
from oil palm waste, Peter Fitch,
together with IOI, have set up IOI
Palm Wood to commercialise this
untapped potential.
Business resilience is a company’s
ability to adapt to disruptions: keeping
operations running, while safeguarding
resources and brand equity. How can
we develop business resilience on
profit orientation, customer loyalty
orientation, and innovation?
Since COVID-19, there have been
examples of companies filing for
bankruptcy, spanning across countries
and industry verticals. Businesses might
initially blame demand that suddenly
and severely broke away in these
industries. However, there is one factor
all these companies have in common:
inadequate profit orientation. No
company has ever gone bankrupt from
making profits.
This crisis that then led to inflation is
an ongoing stress-test for companies’
economic model. Yet, despite tough
times and dwindling demand, there
will be successful companies that
emerge as winners. The secret to
success? Business resilience. Profit
orientation is a core dimension
of economic business resilience.
Resilient companies not only have
a loyal customer base, but their
revenue model also extracts value and
56 Panels & Furniture Asia | January / February 2023
SUSTAINABILITY
profitability from customers. Disruptive
innovation is also another dimension.
Today, the economy is increasingly
defined by a customer-led market.
Therefore, it is crucial for companies
to think through the customer lifecycle
and provide value at every step.
Over-invested companies tend to be
customer loyalty-oriented, but not
profit-oriented. For example, large
particleboard or medium-density
fibreboard (MDF) companies can
become over-invested from all angles.
They invest in acquiring and retaining
customers. But if you ask them about
profit, you usually get the answer:
“That’s the next step for us.”
Conversely, under-invested companies
are profit-oriented, but not customer
loyalty-oriented. These businesses
tend to generate good profits with the
heritage and quality of their products.
But they still have a way to go in terms
of locking their customers in.
There is a risk in being neither customer
loyalty- nor profit-oriented, which is
how some businesses assessed their
company. Here, market share usually
trumps profit. It can also be difficult to
connect the loyalty dots if the business
is built around one-time transactions
and selling indirectly to the customer.
Resilient companies are the most
successful and build a loyal customer
base. They grow their margins with
product innovation and new revenue
models. The challenge is to stay there at
the top.
LEARNING FROM PROFIT-ORIENTED
COMPANIES
For all industries there are single
companies positioned in a different way.
Here are four key lessons from businessresilient
companies:
They instill a profit mindset: That
means focusing on profit over market
share, emphasising cash flow, and
managing costs. In my experience,
companies lacking profit orientation
typically focus on market share or
volume growth. Meanwhile, resilient
companies target specific profit
KPIs, such as the net retention rate
and recurring revenue rate. Effective
business resilience can take place if top
managers know the revenue targets
and actuals. Sales people carefully
consider profit impact when making a
deal. Everyone at all levels always has a
clear and current view on the company’s
profit situation.
They protect the core business: What
steps are you taking to ensure your core
offering is and remains attractive in
the customer’s eyes of the customer?
Business resilience requires regular
company investment and sensors on the
market. This ensures building products
around the price, and not the other way
around. Managers should also be aware
of low and unprofitable products and
services. They should conduct constant
reviews and discipline measures to
cease any offerings that fail to meet
profitability targets.
They protect their prices: Achieving
price generates profits, defending
price protects them, and cutting
prices without costs damages them.
That is why resilient businesses are
equipped with data before any price
move. Resilient businesses simulate
the impact on customers, the market,
and competitors. They understand
cannibalisation effects, make
differentiated price moves, and ensure
price increases are properly enforced.
Even when they have to give discounts
or run promotions, they still defend
profitability by first making “smart
concessions”.
They eliminate cross-subsidisation:
Business resilience requires companies
to be rigorous when it comes to crosssubsidisation
between products and
business units. To axe the unprofitable,
the discipline must be strict. There may
be strategic cases where they decide
to go in at a loss with some customers
or products. But they ensure the whole
package is net positive and comes with
a bottom line. Not every product or
customer can be strategic; only maintain
those on a clear pathway to profitability.
DEFINING MONETISING INNOVATION
Innovation can be one of the most
powerful tools to ensure business
resilience: Nothing ventured, nothing
gained. Despite this, however, the failure
rate for innovations is shockingly high.
Seventy-two percent of innovations fail to
meet their financial targets or fail entirely
— which means companies are not quite
sure how to monetise their innovations
consistently. How can you make sure your
innovations succeed?
Monetising innovation successfully is
to meet or exceed the financial goals
a company sets for its new product. In
times of escalating downward pricing
pressures, many companies decide that
an innovative new product or service is
the answer to that pressure. However,
monetising it proves more difficult than
ever. R&D is expensive, start-ups disrupt
whole markets with their ideas since
they are able to take more financial risks,
and the overall rate of innovations is
accelerating.
What causes innovations to miss their
targets?
Feature shock: An over-engineered
innovation with too many, often
unwanted, features that do not stand
out, crammed in a product that will not
fully resonate with customers and is often
overpriced.
Minivation: An innovation that, despite
being the right product for the right
market, is priced too low to achieve its full
revenue potential. This is often because it
is not enough of an innovation to warrant
a higher price, which is caused by either a
real or perceived lack of differentiation.
Hidden gem: A potential blockbuster
product that is never properly brought
to market, generally because it falls too
far outside of the core competency of a
company.
Panels & Furniture Asia | January / February 2023 57
SUSTAINABILITY
Undead: An innovation that customers
do not want, but has nevertheless been
brought to market either as the wrong
answer to the right question or as the
answer to a question no one was asking.
KNOWLEDGE IS POWER
There are a couple of prevailing myths
around monetising innovations that
have been difficult to shake — that
customers are automatically willing
to pay the value or at least the cost of
a great new product, that an isolated
working innovation team should be
exclusively in control of a new product,
that it is completely normal to have
failures quite often when innovating,
among others.
Although these statements seem to be
common sense, they are actually myths
to successfully monetising innovations.
In fact, the majority of companies
accepting these myths are what leads
to the 72% failure rate for innovations.
A more promising approach is to find
out if customers are willing to pay for a
new product — and how much — before
committing resources to building and
launching it.
of clear goals, deciding how
aggressive pricing should
be, introducing price-setting
principles, and defining
promotional and competitive
reaction principles.
6. Build an outside-in business case:
Gather external input on value,
price, cost, and volume to make
the product design process useful.
7. Communicate the product’s value:
Have a compelling story to drive
customers to buy and use it.
8. Use psychological pricing: People
make purchasing decisions based
on both rational and emotional
factors.
9. Maintain price integrity.
IOI PALM WOOD
A company that has achieved resilience
is IOI Corporation. It has been a
profitable plantation business for
more than 50 years. Only in the last
25 years has the company moved
towards property development. Even
more recently it entered new business
areas, which also meant new revenue
models. These included refineries and
oleochemical industries.
IOI’s combination of selling profitable,
transactional plantation commodities
plus even more profitable recurrent
value-added and specialty products has
shaped its success story. Today, these new
areas, often based on a recurrent revenue
model, account for a big chunk of their
sales. We believe that IOI Palm Wood will
add to this business resilience and prove
to be a valuable recurrent revenue stream
for the company.
As IOI nears bringing our innovative
‘OnCore’ palm wood to market, we
are mindful of the above and believe
that the feedback “willingness-to-pay”
conversations we have had with potential
customers remains positive. We believe
that our products are high performance
materials able to complement the existing
timber products in the market. What
we will add to this value proposition is
sustainability, consistency and enhanced
properties such as fire resistance and light
weight strength.
I am very excited to be bringing this
innovative product to market, and looking
forward to working with new customers to
aid their business resilience. P
Palm wood can
complement the
existing timber
products in the
market
Here are some rules for monetising
innovations:
1. Have the “willingness-to-pay”
talk early: To find out the price
customers are willing to pay for a
product, companies have to talk to
them. We call it the “willingness-topay”
talk.
2. Do not develop a one-size-fits-all
solution: A general segmentation
strategy should also help guide
product development.
3. Decide on product configuration
and bundling: Decide what features
and functionality the new product
should deliver.
4. Find the ideal monetisation model:
How a company charges for a
product often has a bigger impact
on customer adoption and price
perception than how much it is
charging.
5. Pick the winning price strategy:
This should consist of setting
58 Panels & Furniture Asia | January / February 2023
CIFF Guangzhou 2023:
Innovation solutions to
meet new global challenges
SHOW PREVIEW
For its next edition in March 2023, the Chinese International
Furniture Fair (CIFF) Guangzhou is developing new formats to
welcome all the players in the furniture industry, Chinese and
international, offering new solutions and business opportunities.
The 51st CIFF Guangzhou in 2023
will respond to the major changes
and new challenges at play in the
global furniture market by creating a
new business model to conceive and
manage an international furniture
exhibition.
This model aims to promote the value
of design, the synergy between the
domestic market and the continuing
growth of exports, and the integration
of offline and online promotion
to optimise and complement the
exhibition offering. These therefore
offer a fuller representation of the entire
furniture industry while supporting the
exhibitors’ and visitors’ needs.
CIFF Guangzhou 2023 takes place in
two phases, reorganised by product
sector in the new exhibition concept
and layout:
The first phase, between 18-21 Mar,
is dedicated to the living space. The
Home Furniture sector showcases the
latest home furnishing products from
Chinese and international companies.
There will be an area dedicated to
companies offering original equipment
manufacturer (OEM) / original design
manufacturer (ODM) services and
one-stop solutions required by
international buyers. The Homedecor
and Hometextile sector focuses on new
trends in interior decoration: furniture
accessories, lighting, paintings,
decorative elements, and artificial
flowers. The Outdoor Furniture,
Sunshade and Leisure sector focuses on
the presentation of outdoor furniture
such as tables, chairs, and awnings
for the garden, as well as leisure
equipment and decor.
The second phase, from 28-31 Mar,
features office and commercial space,
exhibiting workplace systems and
seating, trends and solutions in the
smart office as well as public, school,
and commercial environments,
and furniture for healthcare and for
meeting the needs of older people.
At the same time, CIFM/interzum
guangzhou 2023 is hosting Chinese
and international brands, presenting
technologies, machineries, materials,
surfaces, and components essential
Panels & Furniture Asia | January / February 2023 59
SHOW PREVIEW
for the development of the furniture
industry.
Under the heading ‘Design trend, global
trade, entire supply chain’, CIFF aims
to promote companies and products of
interest to both the domestic market
and increasing export demands,
organising a number of design
exhibitions, seminars, and conferences
that will enrich the fair with cultural
content, as well as B2B meetings and
matchmaking activities both at the
fair at Canton Fair Complex in Pazhou
island, and online.
Legend
1 Home furniture
2 CIFF Guangzhou
will be held in
conjunction with
CIFM/interzum
guangzhou
3 Physical business
matchmaking
opportunities in
CIFF 2023
The integration and synergy between
the traditionally physical trade fair event
and online activities can be observed
in ‘8+365’, a project launched by CIFF
in 2022 that has reportedly enabled
hundreds of international buyers to
meet virtually with various Chinese
manufacturers, creating business
relationships that would otherwise
have been impossible during a period
characterised by the inability to travel
overseas and meet physically.
1
In 2023, ‘8+365’ will be further
developed and enriched by meetings
and negotiations, finally held in person
over the eight days of the 51st CIFF
Guangzhou, and by a service that will
be available online 365 days a year for
buyers, importers and distributors,
e-commerce companies, and decision
makers such as designers and buying
groups from the international furniture
markets. Furthermore, according to the
organisers of CIFF, an online matching
platform is being launched on the
CIFF website that will receive specific
requests from international buyers.
These requests will be processed by
CIFF’s export-oriented exhibitors,
thus creating business relationships
facilitated and supported by the
furniture trade fair.
2
There are thus expectations for the 51st
CIFF Guangzhou 2023 to find solutions
to new market trends, understanding
furniture trends, and seize business
opportunities globally. P
3
60 Panels & Furniture Asia | January / February 2023
SHOW PREVIEW
CIFM/interzum
guangzhou 2023
The China-based furniture tradeshow will continue its
focus on innovation, spotlighting upholstery accessories
with an upgraded exhibition space.
China International Woodworking
Machinery and Furniture Raw Materials
Fair (CIFM)/interzum guangzhou will
take place once again in Guangzhou,
China from 28-31 Mar 2023 at the
Canton Fair Complex in Pazhou island.
Originating from interzum Cologne,
interzum guangzhou entered the
Chinese market in 2004 and since
then has joined forces with the China
International Furniture Fair (CIFF).
As one of the few international
platforms integrating technologies and
applications in the furniture industry
in China, CIFM/interzum guangzhou
aims to bring together furniture
manufacturers with global influence
and the Chinese and Asian furniture
markets, providing exhibitors with more
exposure, attention, and cross-regional
opportunities. It also strives to be the
weathervane of the furniture industry,
attracting more than 1,000 participating
companies every year.
As the industry celebrates positive
signals for development following the
recent release of an action plan by
the Chinese government to promote
high-quality development of the home
furnishing market, the upcoming
edition will continue its focus on
presenting furniture production
technologies and applications to
provide new momentum for industry
growth.
EXHIBITING COMPANIES
According to Koelnmesse, the
organisers of CIFM/interzum guangzhou
2023 and various tradeshows across
the world, the exhibition will cover
330,000m 2 of space and feature over
1,100 exhibitors, including about 200
international companies. More than
140,000 trade visitors are expected to
walk the exhibition halls.
Product exhibits cover hardware
accessories and components, interior
decoration materials and accessories,
upholstered furniture production
machinery and accessories, wood
products and panels, adhesives, coatings
and other chemical raw materials as well
as woodworking furniture production
machinery, equipment and accessories.
Companies to exhibit at
CIFM/interzum guangzhou 2023
reportedly include, but are not
limited to: From the woodworking
Winners of
interzum
Guangzhou
Award - 20 PLUS
20 Outstanding
Furniture
Accessories
Annual List 2022
Panels & Furniture Asia | January / February 2023 61
SHOW PREVIEW
machinery and equipment sector:
Freud, Hiteco, HSD, Paolino Bacci,
SCM, and Wemhoener; from wood,
wood products and panels segment:
American Hardwood Export Council
(AHEC), American Softwoods,
Decospan, Kronospan, and Quebec
Wood Export Bureau (QWEB); and
from the decorative papers and décor
surfaces segment: Ahlstrom-Munksjö,
impress, Interprint, LamiGraf, LX
Hausys, Rehau, Schattdecor, and
Senosan.
Legend
1 Visitors can
expect decorative
paper and decor
surface products
2 CIFM/interzum
Guangzhou 2023
is expected to
extract over
140,000 trade
visitors
Other sectors include: From the
adhesives and chemical products
industry: HB Fuller, Henkel, IWG,
Kleiberit, and Simalfa; from the
hardware and components segment:
FGV, King Slide, Reggar, Repon, and
Sugatsune; from the upholstery and
bedding material sector: Coolist, and
Love Home Fabrics; and from the
upholstery and bedding machinery
and equipment segment: Adler,
DewertOkin, limoss, LINAK, and
Timotion.
1
ANTICIPATING MARKET DEMAND
Participants can expect an expanded
and upgraded range of upholstery
accessories zone in Hall 14.2, Zone C
of Canton Fair Complex for the new
edition of CIFM/interzum guangzhou to
accommodate more new technologies
and products.
According to statistics from iResearch,
the post-80s and 90s consumer
segments have become the backbone
of the furniture market. Their
demands for variety, customisation,
and environmental sustainability in
furniture have been emerging, thus
presenting new business opportunities,
pushing traditional furniture makers to
think outside the box, and integrating
technologies and applications from
abroad to enhance competitiveness —
which, in turn, drives the recovery of
the industry.
The Vitality of Sustainable Innovation
to Life (VSIL) Forum to be held during
the exhibition will also launch a session
2
on furniture upholstery accessories,
featuring regional and international
specialists and scholars to discuss
and share their industry insights,
alongside opinion thinkers for hot
topics such as material innovation,
product R&D, and cross-border
technical integration.
CELEBRATING OUTSTANDING
FURNITURE ACCESSORIES
Based on the interzum Award,
which aims to acknowledge the best
products of the international supplier
industry for furniture and interior
design, the interzum guangzhou
Award - 20 PLUS 20 Outstanding
Furniture Accessories Annual List is
the Asian equivalent, attracting the
participation of furniture accessories
enterprises at the exhibition every
year. The winning list aims to serve
as a source for guidance to shape the
industry’s development.
The award, now open for nomination,
boasts a jury comprising Dick Spierenburg,
a designer and the creative director of
imm Cologne, as well as Dr Sascha Peters,
a material specialist and member of
the Red Dot product design jury panel.
Selections will be made based on the
innovativeness, sustainability, safety and
functionality of the nominated products. A
demarcated exhibition area will showcase
the winning products throughout the
entire exhibition period, and winning
companies will also be honoured during
the 2023 awards ceremony.
Online visitor pre-registration for the
exhibition is also now available. P
62 Panels & Furniture Asia | January / February 2023
EVENTS CALENDAR
Events Calendar 2023
2023
FEBRUARY, 22 – 25
Hawa Expo
Ho Chi Minh City, Vietnam
MARCH, 28 – 31
China International Furniture Fair (Phase 2)
Guangzhou, China
imm Cologne 2023
Cologne, Germany
JUNE, 04 – 07
MARCH, 01 – 04
Malaysia International Furniture Fair 2023
Kuala Lumpur, Malaysia
MARCH, 28 – 31
Interzum Guangzhou
Guangzhou, China
JUNE, 18 – 20
DelhiWood
New Delhi, India
MARCH, 02 – 05
MARCH, 07 – 09
Dubai WoodShow
Dubai, United Arab Emirates
Salone del Mobile
Milan, Italy
APRIL, 18 – 23
Malaysian Wood Expo
Kuala Lumpur, Malaysia
AUGUST, 24 – 27
Wood Taiwan
Taiwan
APRIL, 20 – 23
Korean International Furniture & Interior Fair
Seoul, South Korea
MARCH, 07 – 10
Export Furniture Exhibition
Kuala Lumpur, Malaysia
MARCH, 08 – 11
VIFA Expo
Ho Chi Minh City, Vietnam
MARCH, 18 – 21
Photo: Jonathan Bernard / Unsplash
China International Furniture Fair (Phase 1)
Guangzhou, China
interzum Cologne
Cologne, Germany
LIGNA
Hannover, Germany
MAY, 09 – 12
MAY, 15 – 19
Photo: Thomas Tucker / Unsplash
IFMAC & WOODMAC
Jakarta, Indonesia
SEPTEMBER, 20 – 23
SEPTEMBER, 20 – 23
VietnamWood
Ho Chi Minh City, Vietnam
OCTOBER, 04 – 06
126th NHLA Annual
Convention & Exhibit Showcase
Ohio, US
Panels & Furniture Asia | January / February 2023 63
INDEX OF ADVERTISERS
PANELS & FURNITURE ASIA • January / February 2023
COMPANY PAGE COMPANY PAGE
American Hardwood Export Council
OBC
Lensaya Industriya Journal 19
Baillie Lumber 9
Malaysian Wood Expo 1
CIFF
Forestry Innovation Investment Ltd.
FC
IFC
Nanxing Machinery Co., Ltd 2, 3
Northwest Hardwoods 5
IMEAS spa 64
Technik Associates, Inc
IBC
Interzum Guangzhou 43
Kuang Yung Machinery Co.,Ltd 11
Wood In Architecture 7
Yalian Machinery Co., Ltd. 15
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