U.S. Court Says China At Fault

U.S. Court Says China At Fault

U.S. Court Says China At Fault

 

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U.S. Court of International Trade in June upheld a U.S. International Trade Commission determination that the People’s Republic of China is injuring the U.S. hardwood plywood industry by exporting hardwood plywood supported by unfair subsidies and selling it at below market value (otherwise known as dumping) in the U.S.

The decision stems from a petition filed by the Coalition for Fair Trade of Hardwood Plywood with the U.S. Dept. of Commerce and ITC in November 2016. In its preliminary determination, Commerce found that hardwood plywood from the PRC was being sold at less than fair value and that the PRC industry was receiving countervailable subsidies.

Concurrent with Commerce’s proceedings, the ITC investigated whether the domestic industry was materially injured or threatened with material injury by the imports. ITC issued a preliminary determination find that there was reasonable indication of injury to the U.S. industry, and subsequently in a final determination concluded that the U.S. hardwood plywood industry is materially injured by the PRC imports because they’re subsidized and sold in the U.S. at less than fair value.

The Coalition for Fair Trade of Hardwood Plywood includes Columbia Forest Products, Commonwealth Plywood, Murphy Company, Roseburg Forest Products, States Industries and Timber Products Co., all domestic producers of hardwood plywood.

American Alliance for Hardwood Plywood and related companies subsequently challenged aspects of the ITC final determination of injury. These companies include Far East American, Inc., Northwest Hardwoods, American Pacific Plywood, Canusa Wood Products, Concannon Lumber and Plywood, Fabuwood Cabinetry Corp., Hardwoods Specialty Products, Holland Southwest International, Liberty Wood International, McCorry & Co., MJB Wood Group, Patrioit Tmber Products, Richmond International Forest Products, Taraca Pacific, USPly Trade Co. and Wood Brokerage International. A separate complaint against the ITC ruling was filed by Zhejiang Dehua TB Import & Export Co. and affiliated plaintiffs.

The complaints against the ITC injury determination challenged the ITC’s findings that imports from PRC are substitutable with domestic hardwood plywood; that the volume of imports from PRC are significant; that imports from PRC undersold domestic hardwood plywood and resulted in price suppression; that imports from PRC significantly impacted the domestic industry.

U.S. Court of International Trade denounced these challenges and upheld the ITC determination of injury. On the specific challenge as to the degree of volume of imports from PRC, the Court pointed to the ITC finding that between 2014 and 2016 the market share of imports from PRC increased from 37.9% to 40.1%, while the domestic industry decreased from 21% to 17.3%. And specifically in the cabenetry end use segment, hardwood plywood imports from China increased from 224MMSF to 301MMSF, increasing its market share by 6.9%, while the domestic market share decreased by 5.1%.

The Court emphasized that ITC overall noted that the domestic industry’s production, capacity utilization, end-of-period inventories, shipments and market share all declined during the investigation period, as did net sales revenues, cost of goods sold, ratio of operating incomes to net sales, gross profit, operating income and net income.

 

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New Company May Finally Give Relevance To Old Scrimber Technology Using Bamboo

New Company May Finally Give Relevance To Old Scrimber Technology Using Bamboo

 

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A bamboo engineered building product called GRASSBuilt is being manufactured at a small plant in Meridian, Miss. The patented technology, owned by TimTek, LLC and licensed to GRASSBuilt LLC, involves merging long strands, called scrim, coating with adhesives and steam–pressing to produce bamboo billets, which are further processed for various end-uses.

“Applying the TimTek process to bamboo has really proven to be the perfect marriage,” says Nicholas Wight, vice president of GRASSBuilt. “The process results in what can be described as ‘super bamboo,’ and is extraordinary as a base building material for superstructures, flooring, cabinetry, furniture and a host of other possibilities.”

The company reports that its aim is to shift the dynamic of nearly 90% of all bamboo products in the world being exported from Asia, with China alone accounting for 65% of world exports.

Creating a fully integrated and diverse bamboo economy in North America is the vision of GRASSBuilt founding partner, Sean Hemmings. “I’ve been involved in the bamboo trade for over eight years,” Hemmings says. “Worldwide, bamboo represents a $30 billion industry for China alone. There’s no reason the United States can’t become a vital part of the global bamboo equation and foster our own bamboo-based economy right here in America—especially since the U.S. and EU represent 78% of total end-user consumption of the bamboo-based products currently available.”

Hemmings’ plan centers on sourcing species of bamboo from Mexico and the United States. The Meridian plant currently procures its bamboo from Mexico, where prior to shipping to the U.S. the bamboo is pre-processed, which involves splitting the bamboo culm (stem) apart and planing the inside and outside surfaces to remove the natural waxy substance that won’t bind to adhesive. Another pre-processing step is heating the material in an autoclave with no oxygen in order to carbonize the fiber (a form of thermal modification).

Once the bamboo slats arrive in Meridian they’re run through a scrimming (crushing) mill, coated with adhesives and steam-pressed. The Meridian mill is building inventory of the billets to fulfill orders. It reportedly has had some installations, such as for flooring in Florida, and at Mississippi State University where cut-up billets have been installed as paneling.

“Many Eastern economies, including China, focus on employing as many people as possible,” Hemmings says. “At GRASSBuilt, we look forward to creating new jobs, but also to infusing our innovative, new technology into the equation of bamboo building materials.”

Hemmings adds that GRASSBuilt’s proprietary method of processing bamboo coupled with the plant’s inherent sustainable attributes make bamboo a premier building material for any project that desires to maximize its USGB, and LEED opportunities.

“GRASSBuilt products meet or exceed the most stringent of federal and state regulations for sustainable building initiatives,” Hemmings says. “The same cannot be said for much of the imported bamboo materials. At GRASSBuilt we’re 100% committed to being as sustainable and reliable as possible, and 100% transparent with our materials’ eco-quotient and consumer protection regulations.”

Hemming says bamboo has harvesting rotations of four to six years with certain types growing 2-3 ft. per day. He believes the finished engineered building material will compete in some structural applications, as well as many if not all decorative applications, and find applications in the furniture market.

Increasing sustainability regulations in the construction market, a desire to lessen dependence on imported goods and materials (particularly from China), and the manufacturing trend of bringing manufacturing jobs back to the United States after decades of outsourcing all combine to produce a new supply chain economy, according to Hemmings, which he refers to as the “Bam-Boom.”

“I’m not aware of any other U.S. manufacturing firm which is beating China at its own game,” Hemmings adds.

The TimTek manufacturing process stems from a product called Scrimber that was started in Australia in the mid 1970s. The manufacturing process was that pine or other species logs in small diameters would run through a scrimming machine where the log was crushed to form a mat of interconnected long strands, followed by drying, adhesives application, layup and compression, steam pressing, cutting-to-size and finishing.

In 2000 a forest products industry veteran and former long-time Georgia-Pacific corporate director of forest resources, Walter Jarck, spearheaded the formation of TimTek and gained exclusive rights to Scrimber research and technology.

But the technology or product has never found commercial success with wood species. The small Meridian manufacturing plant exists because a previous venture there had a license agreement with TimTek and planned to use wood, but the last recession killed that project.

Reportedly, a plan to build a manufacturing facility in Canada, possibly Quebec, and also using wood, had significant private and government investment behind it but fell through only a couple of years ago.

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China’s SGS Certifies Composite Wood Products For U.S. Market

SGS has announced that it has become the first third-party certifier (TPC) to be accredited by the Hong Kong Accreditation Service (HKAS). This an award secures its long-term capability for the testing and certification of composite wood products for the U.S. market.

The Hong Kong Accreditation Service is an accreditation body recognized by the U.S. Environmental Protection Agency to provide services under the Formaldehyde Emission Standards for Composite Wood Products Rule.

Achieving additional TPC accreditation requirements secures SGS’s position in the certification of composite wood products for the U.S. market beyond March 22, 2019 and further positions SGS as a global leader in certifying these products and related services.

In the United States, formaldehyde emissions from composite wood products are governed by the Formaldehyde Standards for Composite Wood Products Act, which is administered by the EPA.

Signed into law in July 2010, this legislation was and became the amendment and Title VI of the ‘Toxic Substances Control Act’ (TSCA). It contains requirements for composite wood panel manufacturers, fabricators of finished goods, and importers, distributors and retailers of composite wood panels and finished goods.

Read more on this from Woodworking Network at https://www.woodworkingnetwork.com/news/woodworking-industry-news/sgs-hong-kong-certifies-composite-wood-products-us-market?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news.

NHLA: How Important Is The U.S. Wood Products Industry?

In a recent message from the National Hardwood Lumber Association encouraging member companies to contact representatives in Washington regarding the tariff situation, NHLA passed on this information from the Hardwood Federation on the importance of the wood products industry to the United States.

The wood products industry in the United States is an important contributor to the U.S. economy, accounting for approximately 4 percent of the total U.S. manufacturing GDP. Wood products companies are among the top ten manufacturing sector employers in 47 states, producing $210 billion in products annually.

The industry employs nearly 900,000 people; more than the automotive, chemicals and plastics industries. Many of them are in rural areas where employment opportunities are limited.

Hardwood is an important sub-sector of the wood products industry and has a heavy reliance on export markets for its survival.

In 2017, U.S. hardwood producers shipped $4.04 billion worth of U.S. products to global markets; $2.09 billion to Greater China, including Hong Kong and Macau. Combined, China, the NAFTA countries and the E.U. make up 82 percent of hardwood exports. Dependable, long-term export markets are vital to the sustainability of the hardwood industry. In 2017, the U.S. had a trade surplus of $1.475 billion in hardwood lumber, up from $1.1 billion in 2015.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/how-important-us-wood-products-industry?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

China Firm Orders Straw-Based Particleboard Plant From Dieffenbacher

China Firm Orders Straw-Based Particleboard Plant From Dieffenbacher

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For the fourth time in four years, Chinese straw-based particleboard specialist Wanhua Ecoboard has ordered a straw-based particleboard plant from Dieffenbacher. The greenfield project at the Tonglin site in the Anhui province is scheduled to start production in December.

Highlighting the order is a 28m long CPS+ continuous press, the first of Dieffenbacher’s new generation of continuous press to be delivered in China. Equipment for flaking, including three MRZ 1500 knife ring flakers with the FlowOptmizer material feeder, were also ordered along with a dryer, forming station and forming line.

“To meet our commitment to produce environmentally friendly, formaldehyde-free panels made of wood and straw, we continue to rely on Dieffenbacher as one of our most important partners,” says Wanhua CEO Zhao Zhimei.

Dieffenbacher and Wanhua have also agreed on the delivery of two additional plants, numbers five and six. Again, a CPS+ will be used for both projects. Commissioning of these plants is planned for 2019.

 

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