Spain: Woodworking machinery sector

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Spain: Woodworking machinery sector ICEX sector notes one two three four five six Sector definition Spanish sector overview Foreign trade Leading companies Trade fairs Useful addresses

The woodworking machinery sector one This sector includes Spanish manufacturers of machinery and equipment for companies that use wood as the primary material in their finished products. This industry has two main subsectors: Primary processing: this includes, among others, processes that cover everything from forestry procedures and tree felling through to the production of boards, panels or profiles, as well as wood treatment and drying and energy and waste management. Secondary processing: carpentry and furniture making processes, including the manufacture of doors, windows, wardrobes, floorboards, etc. Spanish sector overview two In 2009, the Spanish woodworking machinery and equipment manufacturing sector was made up of 472 companies. YEARS Companies Jobs Sales* *million 2006 622 9,410 610 2007 628 9,498 618 2008 592 8,800 520 2009 472 6,498 378 Source: Afemma Geographic distribution Regions Valencia Region Catalonia Basque Country Other Source: Afemma % Companies 33% 27% 20% 20% The sector lost 2,302 direct jobs in 2009. Total sales exceeded 370 million, which was a sharp fall with respect to the year before, as a result of the world economic crisis. The crisis has led to a notable reduction in purchases of capital goods by companies working with wood, which has impacted heavily on Spanish companies. 2

More than 90% of Spanish woodworking machinery companies are small and medium-sized companies (SMEs). Their leading products include wood machining equipment, such as routers and machining centers with numerical control (CNC), pallet manufacturing lines, ultraviolet furniture finishing lines and lathing lines with CNC. Another of the new developments in the sector is digital printing on wood for surface finishes, a technology in which Spain is a pioneer. The size and technology of the sector, comparable to that of the leading international competitors (Italy and Germany), give it operational flexibility and enable it to diversify its range of high-quality products. Although companies in the sector are distributed throughout Spain, the greatest presence was in the Valencia region (33%), Catalonia (27%) and the Basque Country (20%), according to 2009 data. The innovation and development In addition to the use of the CNC, which benefits the leading products, assembly, drilling and sanding equipment, lasers are being increasingly used to provide greater product differentiation and positioning for tools. Another important factor is the constant adaptation to global regulations in the wood sector, such as those concerning plant health. Technologically, some of the most important companies in the sector include Barberán, Mecánica Cape, Biele, Indaux, Valresa, Bermaq, Virutex, Sugimat and Intorex. Sector strengths This sector is characterized by: Production adapted to medium-sized companies. Flexibility in design, processing and marketing that make it possible to offer products based on the specific demands and needs of the client, creating short, customized series. Extremely competitive delivery times. 3

Integration with other sectors The woodworking machinery, tools, equipment and products sector is closely linked to the wood sector and more specifically, to the furniture sector, since a large part of the products from companies in this sector, especially those dedicated to manufacturing machinery, tools and equipment, are linked to the depreciation periods of the fixed assets of the manufacturers of furniture and wood related products. The remaining manufacturers of products for wood are more closely linked to the fluctuations in production by furniture manufacturers The sector also has ties to the construction sector, since a large proportion of the products employed by the companies in this cluster is used to manufacture panels, boards and planks, used for covering surfaces and flooring, and in making doors and windows. Demand segments The sector s clients are highly diverse since they include all the different companies that operate in the wood industry. Sawmills, dryers, manufacturers of wood boards, planks and sheets all purchase machinery in the primary processing subsector, while furniture manufacturers, carpenters and cabinet makers are the most significant demand segment for the secondary processing subsector. Sector associations AFEMMA Spanish Association of Woodworking Machinery, Tools, Equipment and Products Manufacturers www.afemma.com This is the only association that represents the sector, covering more than 90% of the sector s exporting companies. 4

Foreign trade three Spanish trade balance of the woodworking machinery sector 400,000 300,000 200,000 100,000 0-100,000 2007 2008 2009 2010-200,000 2007 2008 2009 2010 Exports 136,063 113,066 102,546 99,010 Imports 281,353 176,550 75,424 74,962 Balance -145,290-63,484 27,122 24,048 Data in 000s Source: created internally based on Customs data Country ranking of Spanish exports by the woodworking machinery sector Ranking 1 2 3 4 5 6 7 8 9 10 Country France Morocco Germany Portugal Mexico India Brazil Poland Italy Netherlands Total top 10 Other countries Total exports 2007 22,484 3,208 6,759 8,652 3,980 1,114 2,962 3,291 7,237 2,436 62,123 73,941 136,063 2008 16,608 3,663 6,376 13,712 1,707 1,198 4,457 5,357 4,673 3,037 60,788 52,278 113,066 2009 13,671 6,516 3,709 29,211 1,789 1,025 1,571 3,328 2,441 2,606 65,867 36,679 102,546 2010 11,444 8,117 7,361 6,250 6,105 5,450 4,400 4,028 4,006 3,899 61,059 37,951 99,010 Data in 000s Source: created internally based on Customs data 5

Product ranking of Spanish exports by the woodworking machinery sector Ranking 2007 2008 2009 2010 1 84659900 -- OTHER MACHINE-TOOLS FOR WORKING WOOD, CORK OR SIMILAR HARD MATERIALS - - - 22,202 2 84793090 -- OTHER PRESSES FOR THE MANUFACTURE OF PARTICLE BOARD OR FIBRE BUILDING BOARD 23,724 19,171 14,785 15,811 3 84669280 -- PARTS, ACCESSORIES, OF MACHINE-TOOLS FOR WORKING WOOD OR HARD MATERIALS 9,789 11,168 6,907 10,396 4 84659190 -- OTHER SAWING MACHI- NES FOR WORKING WOOD, CORK, BONE OR SIMILAR HARD MATERIALS 3,641 2,905 2,232 10,376 5 84659120 -- SAWING MACHINES FOR WORKING WOOD, CORK, BONE OR SIMILAR HARD MATERIALS 8,567 9,072 7,085 8,902 6 84193200 -- DRYERS FOR WOOD, PA- PER PULP, PAPER OR PAPERBOARD 15,287 15,644 25,531 6,708 7 84651010 -- MACHINES WHICH CAN CARRY OUT DIFFERENT TYPES, FOR WORKING HARD MATERIAL 1,871 3,259 5,501 6,023 8 84651090 -- OTHER MACHINES WHICH CAN CARRY OUT DIFFERENT TYPES, FOR WORKING HARD MATERIAL 1,929 1,417 1,734 5,773 9 84793010 -- PRESSES FOR THE MA- NUFACTURE OF PARTICLE BOARD OR FIBRE BUILDING BOARD 1,932 1,401 1,664 3,345 10 84659200 -- PLANING, MILLING OR MOULDING (BY CUTTING) MACHINES 5,465 6,121 2,004 1,860 Total top 10 products 72,204 70,158 67,442 91,396 Other products 63,860 42,908 35,104 7,614 Total sector exports 136,063 113,066 102,546 99,010 Data in 000s Source: created internally based on Customs data 6

Leading companies four The leading companies in the sector by volume of sales are the following: BARBERÁN INTOREX VIRUTEX CEHISA RIERGE Source: Afemma www.barberan.com www.intorex.com www.virutex.es www.cehisa.es www.rierge.com Trade fairs five FIMMA-MADERALIA International Fair for Furniture Industries and Wood Suppliers Valencia, Spain www.feriavalencia.com/fimma WOODMAC CHINA International Forestry & Woodworking Machinery and Supplies Exhibition Shanghai, China www.woodmacchina.net/en/index.asp 7

EUROBOIS Lyon, France www.eurobois.net/typo3/index.php?id=eurobois FURNITECH Bangkok, Thailand www.furnitechwoodtech.com/ MOVELSUL Bento Gonçalves, Brazil www.movelsul.com.br/ LIGNA+ Hannover, Germany www.ligna.de/homepage_e DREMA Poznan, Poland www.drema.pl/en/ FITECMA Buenos Aires, Argentina www..fitecma.com.ar/ 8

AWFS VEGAS Las Vegas, USA www.awfsfair.org ASEANWOOD Jakarta, Indonesia www.aseanwoodfurnitecno.com/ EXPOCORMA Concepcion, Chile www.expocorma.cl PROMUEBLE Mexico City, Mexico www.magnaexposicion.com.mx/ WOODSHOW Dubai, United Arab Emirates www.dubaiwoodshow.com TEKHNODREV Saint Petersburg, Russia www.restec.ru/exhibitions/featured/tekhnodrev-nw/index.en.html 9

LESDREVMASH Kiev, Ukraine http://www.lesdrevmash-expo.ru/en/ MOKKITEN Nagoya, Japan www.mokkiten.com DELHI-WOOD New Delhi, India www.delhi-wood.com Useful addresses six EUMABOIS European Federation of Woodworking Machinery Manufacturers www.eumabois.com CIM Wood Trade and Industry www.rbi.es/publicaciones/comercio-industria-madera.htm 10

Spanish Institute for Foreign Trade (ICEX). Pº de la Castellana 14-16 28046 MADRID 902 349 000 Note prepared in 2010 by the Information Dept. of the Industrial Products and Technology Division. www.spaintechnology.com www.icex.es www.spainbusiness.com