MEXICO – With MDF “Made in México” due to the recent start of two new MDF plants in the country, Proteak’s plant in Tabasco and Masisa’s in Durango, along with the expected start of a third new MDF plant by the end of the year – Duraplay – the process of import substitution of MDF panels in the Mexican market has begun.

Total nominal production capacity of the new MDF plants will be 700.000 m3/year. The main incentive for these three companies, that together have invested more than USD 400 million in state of the art manufacturing facilities, is the very promising outlook in the Mexican market. Until now no continuous process plants existed in Mexico and per capita consumption remains very low compared to most countries.

According to analysts, 90.5% of MDF consumed in Mexico is imported, mainly from Chile and Brazil and as a result, logistics costs represent a significant percentage of the price paid by distributors. Which in part explains why the Mexican MDF market is perceived as very underdeveloped in comparison to countries like Brazil and Argentina.

In Brazil, apparent MDF consumption in 2013 reached 19.2 m3 per thousand population compared to Mexican apparent MDF consumption of 4.3 m3 per thousand population in the same year. Also, the Mexican furniture industry is characterized by a comparatively high use of solid wood and plywood in relation to particleboard and MDF. Therefore the perceived opportunities towards the future increase of MDF and particleboard in the Mexican furniture manufacturing industry.

Mexico, Apparent Consumption Wood Based Panels

* Estimated

Source: WBPI/Bernard Fuller