Expanding the Use of Domestic Timber - May 20, 2007

Expanding the Use of Domestic Timber - May 20, 2007

Background and Situation:
In 1998, the percentage of domestically produced plywood was only 26%, but by 2005 it had expanded significantly to 70%. During this period, the production of domestically produced softwood plywood increased significantly, and its supply has continued to grow rapidly since 2001, reaching a record high in 2005. This rapid growth can be attributed to the following factors.

Declining supply of south-sea lumber and stricter regulations:
South-sea lumber, originally used as the main material for plywood, has been in declining supply due to stricter logging regulations for forest protection in supplier countries such as Malaysia and Indonesia. In addition, in 2006, the Forestry Agency issued "Guidelines for Certification of Legality and Sustainability of Timber and Timber Products," which restricted the use of illegally logged timber. These stricter regulations led to a shift in demand for plywood lumber from south-sea lumber to softwood lumber.

Impact on International and Domestic Markets:
Rising prices for softwood lumber in international markets and the trend toward a weaker yen were also factors that encouraged the use of domestic lumber. In particular, demand for thick plywood for residential use increased in Japan as earthquake-resistant construction became more prevalent. To meet this increased demand, domestic manufacturers are investing in equipment and shortening drying periods.

Improvement of technology for utilizing thinned wood:
From the perspective of securing plywood materials, technology to utilize small-diameter trees, such as thinned wood, has also advanced. This has led to an increase in the number of manufacturers using thinned lumber, thereby promoting forest improvement and revitalizing the forestry industry. These technological advances have contributed greatly to the expansion of the use of domestic timber.

SUMMARY:
The use of domestic timber not only contributes to the effective use of forest resources and environmental preservation, but also to the promotion of domestic industry. The growing demand for domestic timber is a very important trend for the forestry and construction industries as a whole.