REGION (Notifix.) - The global trend is the adoption of MDF as a substitute for other composite panels and solid wood in the manufacture of furniture of any kind, floors and moldings. 

With this in mind and considering the low penetration of MDF in major South American markets, we can conclude there is enormous potential for MDF consumption in the region. This puts into perspective the recent announcements by Proteak and Masisa regarding investments in MDF production plants in Mexico for more than USD 270 million with an eventual annual capacity estimated at 350,000 cubic meters.

Taking into account that Brazil, a country with a per capita income significantly lower than that of Mexico, and very similar to that of Colombia and Peru, had an MDF domestic consumption of 18.3 cubic meters per thousand inhabitants last year. A simple exercise is to assume that within the next 10 years MDF domestic consumption in these countries will reach the levels of the Brazilian market. If so, we can expect the Mexican consumption to reach 2.1 million cubic meters, six times more than the recently announced new capacity. This trend of MDF adoption will also reflect in the Colombian market over the next 10 years, consumption would reach 841,000 meters cubic, more than seven times the installed capacity of Tablemac, only local manufacturer of MDF.