Interview with Rosane Dill Donati

Rosane Dill Donati holds a B.A. degree in Business Administration and post-graduate studies in the area of International Relations. She is an Expert Advisor to class associations such as ANTRADER - Associação Nacional dos Operadores de Comércio Exterior (National Association of Foreign Trade Operators) and ABIMAQ - Associação Brasileira da Indústria de Máquinas e Equipamentos (Brazilian Machinery Builders' Association). Since 1995, she has been operating as an Executive Superintendent for ABIPA – Associação Brasileira da Indústria de Painéis de Madeira (Brazilian Association of the Wood Panels Industry).

1 – How did the development of reconstituted panels in Brazil come about?

In Germany, in the early forties, the use wood-particle panels emerged as a means of using wood waste in face of difficulty obtaining quality wood for veneer production of plywood, as a result of the country’s isolation during the second World War. Shortly after, production ceased due to a lack of resin, given the military’s priority use of oil. After the sixties, a large expansion in particle board manufacture took place, with new industrial facilities and technology advancements.
In 1966, after a delay of 16 years, the particle board started to be produced in Brazil. In 1967, ABIMA – Associação Brasileira da Indústria de Madeira Aglomerada (Brazilian Association of Particle Board Wood) was created, becoming ABIPA – Associação Brasileira da Indústria de Painéis de Madeira (Brazilian Association of Wood Panel Industry) in 1994, thus incorporating the hard panel industries.
From this point in time, the wood panel industry began to implement a serried of investments around US$ 1.3 billion in the streamlining and technological updating of existing plants with continuous lines, new printing processes, impregnation, coating and painting. In continuation of its investment program of around US$ 1.2 billion, with the implementation of new industrial units of MDF, HDF and MDP, streamlining and expansion of capacity and reforestation areas, the wood panel industry is projecting an increase of its annual nominal installed capacity, from 9.6 million m³ in 2010 to approximately 10.5 million m³/year in 2012.

2 – What is ABIPA’s summarization of the year 2009 for the reconstituted panel industry in Brazil? What were the positive and negative factors that influenced the sector in 2009?

The wood panel industry felt the strong effects of the international economic crisis. In the first quarter of 2009, sales dropped by 20% in the domestic market, while exports dropped 30%. Yet, all announced and ongoing investments were maintained.
In contrast, installed capacity expansion had a strong demand retraction in 2009. As a result, the wood panel industry made low use of its installed capacity. This together with the abovementioned, governmental incentives granted to other segments leveraged production of durable goods (cars and electric appliances) to a significant growth path while our production chain presented significant drops. Thus, we held several meetings with the Brazilian government to discuss the difficult situation of our production chain. We requested total IPI (excise tax) exemption and presented the Furnished Home Project, consisting of a proposal within the “Minha Casa Minha Vida” (‘My Home, My Life’) Program, with the purpose of supplying potential consumers who do not have access to credit to furnish their homes.

3 – What are the impacts resulting from the merger between Duratex and Satipel, and the acquisition of Tafisa by Arauco?

We are experiencing a new dynamic for the market of wood panels in Brazil, with merger and acquisition processes that benefit the sector because they provide companies with the necessary strength for them to compete at the global level.

4 – What are the expectations for 2010?

Since winning excise tax exemption for the production chain of wood panels and furniture, we expect this benefit to continue and hope for an equalization of excise taxes on this production chain. We also expect the government to respond positively to our proposal for incorporating new furniture trade strategies into My Home, My Life’s Program, within the economic development model of the federal government and its social inclusion policy.
Our goal is to continue working in partnership with the production chain and the federal government towards the adoption of measures required to foster growth and strengthen the sector as a whole.

5 – What’s next for the reconstituted panel industry? What is the development plan for the sector?

Among the new investments mentioned above, we will see not just capacity enhancement, but also the implementation of new industrial units by associates Eucatex in 2010 and Berneck in 2011.