06 • 03 • 2006

PINE BUILDING MATERIALS CAN BE EXPORTED TO THE USA

Evaluation research of the suitability of Latvian pine trees (Pinus sylvestris) for the USAconstruction market has been completed. This research was financed by JSC "Latvijas Valsts Meži"and follows its corporate strategic plan one of the main goals being the increase in the competitiveness of the industry.

Samples of pine lumber were tested at the USAaccredited laboratory, and the certified USAinstitution of the West Coast Lumber Inspection Bureau who prepared a report which was submitted for consideration by the American Lumber Standard Committee. Basing on its resolution, Latvian pine timber is to be introduced to the list of accepted varieties of foreign trees and has been awarded the marking designation Scot.P.(I)LAT, thus opening the USAmarket of wooden construction materials to manufacturers from Latvia.

The USAevaluation  considerably increases competitivenessof Latvian pine timber manufacturers, as well as allowing Latvian  manufacturers to diversify within the market and therefore to protect production despite the growth in the cost of   raw materials in Latviaduring the last two years. The tests in the USAwere initiated by Latvian wood manufacturers in 2001.and since the inclusion in the list the  global competitiveness of Latvian fir-tree timber manufacturers has increased. In case of pine-tree timber, the effect could be even larger, because up to now pine-tree timber has been the least competitive wood in  traditional construction.

The USAtimber construction market is globally one of the largest. Two out of  three private residential houses, where wooden construction is used, are built in the USA.

Market analysis confirms that there is a stable and durable place for European conifer timber in  building construction, because the potential competitors from Southeast Asiaare not engaged in manufacturing  such products.