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European oriented strand board (OSB) production and demand have been growing continuously for several years, giving manufacturers the confidence to invest in upgrades and new production lines.
According to the European Panel Federation (EPF) 2016/2017 annual report, European oriented strand board (OSB) production increased by 6.9% in 2016, reaching 5.4 million m3 (up from 5 million m3 in 2015). This growth has been steadily increasing since 2013, but 2016 saw the largest increase. European production capacity also increased by 490,000 m3 last year, reaching 6.5 million m3. This was driven by the commissioning of Swiss Krono's new mill in Vásárosnamény, Hungary, the completion of Norbord's new production line in Inverness, Scotland, and investments by SmartPly in Waterford, Ireland, and Norbord in Genk, Belgium. Norbord stated in its annual report that its European panel mills were fully operational in 2017, operating at 99% of capacity, the same as the previous year. European mill shipments increased by 5% compared to 2016.
The machinery and equipment order market is also optimistic. Of the 14 new wood-based panel mill orders signed with Dieffenbacher in 2017, four were for the oriented strand board (OSB) industry, all with Kronospan. One order is for a new laying machine, press, and final trim line at Kronospan's Sanem plant in Luxembourg, while the other three lines are extensions for OSB presses. Unconfirmed reports indicate that these Kronospan plants in Eastern Europe, located in Riga, Latvia; Jihlava, Czech Republic; and Strzelce-Opolskie, Poland, will all feature continuous presses. This year, Dieffenbacher anticipates one of its busiest ever for all panel types. Two OSB mill projects are expected in Eastern Europe and Russia, with another two in Asia.