Engineered wood under pressure from war
August 9, 2022
Engineered wood flooring is under pressure from the war in Ukraine with 80% of plywood used in its construction coming from Russia.
Birch dominates the market and there are few non-Russian suppliers. "Since the crisis in Ukraine, this supply has been severely impacted, including the loss of its FSC certification. Due to the limited availability of non-Russian birch plywood, suppliers of engineered wood flooring products have reacted by limiting supply and increasing prices," said one leading supplier, Havwoods, in a note in their accounts filed last week.
"Most suppliers also investing in developing alternative constructions of plywood, such as poplar, beach and eucalyptus," it said.
The situation only impacts part of Havwoods activities and the company said it was in a "very strong position in the market" as it has strong and long-lasting relationships with leading suppliers and is able to diversify its supply chain during the crisis.
Some suppliers are reportedly only willing to hold quotes for tender prices for 24 hours, with the uncertainty affecting contractors’ willingness to enter into certain contracts. Furniture makers and the construction industry have also been heavily affected by the birch plywood situation and a shortage of veneers.
As reported previously, ceramic flooring manufacturer in Europe has also been heavily affected by the conflict with the interruption of exports of high-quality pure clay and kaolin from Ukraine which are essential in ceramic manufacturing.
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