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24 FOCUS MAR/APR 2025 FDM ASIA | www.fdmasia.com

in China could exceed 70 million cubic metres per year by operation from 2025 to 2026.
the end of 2025. At that time the national OSB production capacity will
48 particleboard production lines have been built and put further grow breaking through 19 million cubic metres per year.
into operation in 2024 in China with a new production capacity China's particleboard industry has grown such that there is

of 15.41 million cubic metres per year, the largest annual total a risk of imbalance between supply and demand. Production
production in the history of China's particleboard industry. to come on line in 2025/26 will lift total production capacity
305 particleboard production enterprises in China had 329 of China’s particleboard to70 million cubic metres.
production lines at the end of 2024 and these are distributed
in 22 provinces and municipalities with a total production EU
capacity of 64.15 million cubic metres per year and a net European furniture production falls to a new low
increase of 11.46 million cubic metres per year, an increase 2024 was a challenging one for the European furniture sector.
of 22 percent on the basis of the end of 2023. According to Eurostat data the value of furniture production
China's particleboard industry showed a decline in the in the EU27 fell three to four percent.

number of enterprises but the number of production lines, This followed an eight percent decline the previous year.
production capacity and average single-line production capacity Production in the EU last year was lower than in 2020 at the
continues to rise. height of the pandemic.
There are 30 particleboard production lines under construction Over past two years Europe has faced increased uncertainty,
in China with a total production capacity of 10.15 million sluggish economic performance and a marked slowdown in
cubic metres per year. the construction industry. As a result, European consumer
Seven regions in the country (East China, South China, demand for furniture has come under considerable strain.

Central China, North China, Southwest, Northwest and Despite falling inflation European furniture consumption has
Northeast) have particleboard production lines under construction continued to suffer from the erosion of household purchasing
including 23 continuous flat pressing production lines with a power, the propensity for consumers to save and the erosion
total production capacity of 9.3 million cubic metres per year. of real financial wealth.
These account for 92 percent of the production capacity Consumers are also now more inclined to spend the
under construction. disposable income that they do have on travel and eating
Among the particleboard production lines under construction, out, activities precluded during the pandemic, rather than on
there are four OSB (including multi-functional production line) furniture products which they invested in heavily during 2021
production lines with a total production capacity of 1.5 million and 2022 in the wake of the Covid-19 lockdowns.

cubic metres per year which will be completed and put into The costs of producing furniture in Europe also remained
high in 2024. High energy prices, costs of capital and rising
labour costs could not be passed onto customers, greatly
Free Malaysia Today (FMT) reducing profitability.

Export market competitiveness was impaired and market
prospects, particularly in the US, China and the Middle East,
were cooling and not buoyant enough to support European

production.
While the overall European trend has been sharply