MEXICO - Growth of the MDF boards market in Mexico accelerated in 2017 and based on estimates by the MDF manufacturer with plant in Tabasco and part of the Proteak Group, domestic consumption is growing at rates without precedents.

At the end of 3Q-2017, Tecnotabla continues to occupy the No.2 position in the domestic MDF industry with an estimated market share of over 20%. During 3Q17, Tecnotabla achieved 40% growth in volume sold when compared to the same quarter of 2016 and of + 4% in volume sold compared to 2Q-2017.

Tecnotabla also reports that it has observed that the market is experiencing pressure on pricing, mainly due to the national production capacity entering into what was a market primarily served by imports. The combination of these factors is reflected in the sales for the quarter that totaled MXP 199 million, and although they show a significant growth of 44% over 3Q16, they are 1% below those of 2Q17.In view of these results, the Company has focused its efforts on a marketing strategy to keep the sale price stable, focusing on the sale of value-added products - such as melamine - to improve the mix.

In September, Tecnotabla produced more than 152,000 m3, 2.6 times more than in the same period of 2016 and 17 months after starting plant operations and the production ramp-up is in line with expectations. As production trends were favorable during 3Q17 the maximum capacity of nominal production was reached, observing an increase in daily production of 15% and 26%, compared to 2Q17 and 1Q17 respectively, and a reduction of 1 point percentage in production decline. In addition, the manufacturing of value-added products (melamine and veneers) continued to be strengthened.