The global outlook series on Forest Products provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the global Forest Products industry. Annotated with 13 information-rich tables presenting market data findings, and analytical research projections, the entire discussion provides a macro-level perception of the industry. The report discusses the impact and implications of globalization on the industry, and provides a note on emerging trends such as e-Forestry, and environmental marketing, among others. Also included is a compilation of all recent mergers, acquisitions, and strategic corporate developments. A regional level of discussion offers preludes to prevalent market scenarios in countries such as the US, Canada, Japan, Europe, France, Finland, Italy, Sweden, UK, Asia, China, India, Indonesia, and Malaysia. The report also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 537 companies worldwide.

TABLE OF CONTENTS

FOREST PRODUCTS									GOS-086
A GLOBAL OUTLOOK, SEPTEMBER 2008


                                              CONTENTS


  1. Overview                                                              1
      Globalization                                                        1
       Major Outcomes of Globalization                                     1
       Impact of Globalization on Forest Product Supply and Demand         1
        Trade Liberalization                                               1
        Foreign Investment in the Forestry Sector                          2
        Environmental Concerns                                             2
       The Other Side of the Coin                                          3
      Environmental Marketing - A Major  Industry Issue                    3
       Sustainable Forestry Practices - Still a  Vague Concept             3
      Certification Systems - Promoting Responsible Forestry Practices     3
       Certification Systems - A Classification                            3
        First-, Second-, and Third-party Assessment  Schemes               3
        Systems-based and Performance-based Certification Schemes          4
       Current Scenario                                                    4
        Commercial Success Continues to be  Limited                        4
       Mutual Recognition between Forest Product Certification Schemes     5
       Factors Limiting Forest/Forest Product  Certification               5
        Limited Market Demand                                              5
        Lack of Supply                                                     5
        Absence of Globally Accepted Certification  Standards              5
        Credibility of Certification Agencies                              5
       Forest Product Certification - A Financial  Perspective             5
      e-Forestry - An Emerging Phenomenon                                  6
       e-Commerce in Forest Product Industry                               6
        Facilitation of Supply Chain  Management                           6
        Open-Trade Environment                                             6
        e-Business Modeling                                                6
       What Ails the Rapid Adoption of e-Model?                            7
      Deforestation and Illegal Trading                                    8
       Reasons Galore                                                      8
       Plantations - Trying to 'Fill-in' the Gap                           8

  2. Classification                                                        9
      Wood Products                                                        9
       Classification by Tree-Type                                         9
        Softwood                                                           9
        Hardwood                                                           9
       Classification by Product Type                                      9
        Roundwood                                                          9
        Wood-based Panels (Panel Board Products)                           9
        Paper & Paperboard                                                 9
        Residuals                                                          9
       Non-Wood Products                                                   9

  3. Demand Determinants                                                   10
      Population Growth                                                    10
      Regional Economic Growth                                             10
      Industrial Development                                               11
      Demand-Side Trends                                                   11
       A Changing Demographic Structure                                    11
       Urbanization in Developing Countries                                11
       Rising Environmental and Social  Consciousness                      12
      Supply-Side Trends                                                   12
       A Shift Towards Alternative  Sources                                12
       New Technologies Step up Operational  Efficiency                    12
       Regulatory Environment                                              12
       Natural Calamities                                                  12
      Factors Affecting Supply of Wood and  Other Fiber                    12
       Shift in Natural Forest Management  Practices                       12
       Deforestation and Forest Degradation                                13
       Forest Plantations                                                  13
        From an Environmental Perspective                                  14
        Solution                                                           14
       Sustainable Forest Management (SFM)                                 14
        Implications of SFM on Future Wood  Supply                         14
       Impact of Technology Changes                                        15
        Raw Material Availability                                          15
        Changes in End-use Patterns                                        15
        Increase in Output                                                 15

  4. A Segmental Peek                                                      16
      Sawlogs                                                              16
       Growing Demand in North America and  Central Europe Push
        Sawlog Prices High                                                 16
       Sawn Softwood Witnesses Strong Growth                               16
       Sawn Hardwood Demand On a Fading Note                               16
      Wood-Based Panels                                                    16
      Softwood and Sawn Timber                                             17
      Paper, Pulp and Paperboard                                           17
      Value Added Wood Products                                            17
       Glulam timber                                                       18
       Laminated Veneer Lumber (LVL)                                       18
       Dental Veneers and Lumineers: Value  Additions in Dental Sector     18
      Snapshots                                                            18
      Trends                                                               18
       M&A Deal Value Registers 20% YOY Rise                               18
       Worldwide Plywood Market to Post Good  Growth                       19
       Forest Products Consumption Decline in  North America               19

  5. Mergers and Acquisitions                                              19

  6. Strategic Corporate Developments                                      25
     A REGIONAL PERSPECTIVE

  1. North America                                                         27

  1a. United States                                                        27
      Major Factors Affecting Industry Fortunes                            27
       Residential Construction - A Major Demand Determinant               27
       Price Dynamics                                                      27
       Strength of US Dollar                                               27
       Regulatory Policies                                                 27
      Paper and Paperboard Consumption                                     27
       Table 1: US Market for Paper and Paper board Analyzed with
       Annual Consumption in Million Tons for Years 2003 through
       2008                                                                27
      Wood Flooring Shipments - An Overview                                28
      Vinyl Floor Covering Market                                          28
      Structural Wood Market                                               28
      Non-Structural Wood Market                                           29
      Wood Panel Industry - Outlook                                        29
       Table 2: Leading Brands in the US Vinyl Floor Covering
       Products Market (2005): Percentage Breakdown of Sales for
       Mannington,  Armstrong, Congoleum, Domco, Tarkett,  Nafco,
       and Others                                                          29
      Wood Products                                                        29
       Table 3: Wood Products Market in the US  (2005): Percentage
       Breakdown of Sales for Hardwood Veneer and Plywood, Trusses,
       Software Veneer and Plywood, Reconstituted Wood Products, and
       Engineered Wood                                                     29

       Table 4: Veneer, Plywood and Engineered  Wood Products Market
       in the US (2005):  Imports and Exports in US$ Billion               30
      Trends                                                               30
       Plywood Production Fall Affects Wood- based Panels Production       30
       Furniture Mills Shutdown Squeezes  Particleboard and MDF Demand     30
       MDF Prices Strengthen in North America                              30
       US Housing Slump Weakens OSB Demand                                 30
       Structural Wood Panel Finds Good Bargain  as New Housing
        Declines                                                           30
       Infrastructure Damage - Biggest Hindrance  for Supply of
        Wood-based Panels to  Gulf Coast                                   31

  1b. Canada                                                               31
      Forest Products Industry - A Leading Manufacturing Sector            31
      Forest Certification                                                 31
       Certification Systems                                               31
      Mill Blackouts                                                       32
      Canadian Forest Product Industry Embarks  on Restructuring           32
       Momentous Appreciation of  Canadian Dollar                          32
       Increasing Commodity Prices in Mining and Energy Industries         32
       Increasing Energy Cost                                              32
       Increasing Cost of Wood Fiber                                       32

  2. Japan                                                                 33
      Factors Affecting Wood Products' Demand                              33
       Demographics                                                        33
       An Ever Changing Regulatory  Environment                            33
       Residential Housing                                                 33
      End-Use Segment Analysis                                             33
       Construction Segment                                                33
       Furniture and Interiors Segment                                     33
       Materials Handling Segment                                          34
      Imports                                                              34
       Table 5: Tropical Plywood Market in Japan (2005): Imports in
       Value (in ¥ Million) and Volume (in '000 Square Meters) by
       Country - Indonesia, Malaysia, China, Canada,  New Zealand,
       and Others                                                          34

       Table 6: Broad-Leaved Plywood Market in  Japan (2005):
       Imports in Value (in ¥ Million)  and Volume (in '000 Square
       Meters) by  Country - Indonesia, Malaysia, Taiwan,  China,
       Finland, and Others                                                 34

       Table 7: Coniferous Plywood Market in Japan (2005): Imports
       in Value (in ¥ Million) and Volume (in '000 Square Meters) by
       Country - Canada, New Zealand, Philippines,  Chile,
       Indonesia, and Others                                               35

       Table 8: Veneer Sheets and Sheets for Making Plywood Market
       in Japan (2005): Imports in Value (in ¥ Million) and Volume
       (in '000  Square Meters) by Country - China,  Malaysia, New
       Zealand, Chile,  Indonesia, and Others                              35

  3. Europe                                                                36
      Wood-based Panels Industry                                           36
      Booming Construction Sector Drives Growth  in European Wood-
       Panels Consumption                                                  36
      Restrictions on Usage of Arsenic                                     36
      Roundwood Trade in EU/EFTA Region                                    36

  3a. France                                                               37
      End-Use Analysis                                                     37
       Construction Sector                                                 37
       Furniture Sector                                                    37
       Wood Panel Sector                                                   37
        Table 9: Timber Products Market in France (2005): Percentage
        Breakdown of Production by Type - Carpentry & Builders
        Products, Panels & Parquets, Wooden Packing,  and Others           37

        Table 10: Wood-based Products market in France (2005):
        Imports in € Million by Type - Sawn Timber, Builders
        Joinery, Fiberboard/ MDF, Plywood, Logs, and Others                38

        Table 11: Wood-based Products Market in France (2005):
        Imports in € Million by Country - Germany, Belgium, Finland,
        Brazil, Italy, Gabon, Sweden, Spain, China, Poland, Romania,
        Malaysia, and Others                                               38

  3b. Finland                                                              39
      Overview                                                             39
      Finnish Wood Sector                                                  39
       Mechanical Forest Products                                          39
       Chemical Wood Processing                                            39
      The Challenges                                                       39
      Research & Development                                               40

  3c. Italy                                                                40
      End-Uses                                                             40
       Construction Market                                                 40
       Furniture Market                                                    40
       Material Handling Market                                            40
       Italian Wood Panel Industry Moves  Towards Consolidation            40

  3d. Sweden                                                               41
      Competition                                                          41
      Regulatory Environment                                               41
      Certification                                                        41

  3e. United Kingdom                                                       41
      Application Areas                                                    42
       Construction                                                        42
       Furniture                                                           42
       Materials Handling                                                  42
      Wooden Floors                                                        42
       Applications                                                        42
      Important Sectors                                                    42
       UK Plywood Market: An Overview                                      42
       New Designs Leading to Rising Demand                                42

  3f. Russia                                                               42
      Overview                                                             42
      Furniture and Construction Sectors Fuel  MDF Production in Russia    43
      Construction Raises Demand for Forest Products                       43

  4. Asia-Pacific                                                          43
      Wood Products                                                        44
      Non-Wood Forest Products (NWFP)                                      44

  4a. China                                                                44
      Chinese Forest Area Levels                                           44
      Overseas Timber Supply Sources -  Gaining Prominence Over the
       Years                                                               45
      Paper and Pulp Industry                                              45
      Construction Activity to Bolster Wood  Products Demand               45
      Factors Impending Rapid Industry Growth                              45
       Lack of High-Grade Products                                         45
       Distribution Dynamics                                               46
      Major Issues Affecting Forest Products  Industry                     46
       Structural Imbalance                                                46
       Lumber Smuggling                                                    46
      Government Initiatives                                               46
       Sustainable Forestry Programs                                       46
       Mandatory Timber Supply Bases                                       46
       Opportunities for Forest Product Companies in China                 46
      Regulatory Restrictions                                              47
      Policy Changes                                                       47
      Competition                                                          47
      Future Prospects                                                     47
      End-Use Segment Analysis                                             47
       Construction Sector                                                 47
       Furniture and Interiors Sector                                      48
       Material Handling Industry                                          48
      Forestry                                                             48
       Factors Governing Lumber Demand                                     48
       Decline in Lumber Production                                        48
      Paper and Paperboard                                                 48
       Factors Governing Paper Demand                                      48
       Paperboard                                                          48
       Paper Imports                                                       49
        Pulp                                                               49
       Types of Pulp                                                       49
       Wood Pulp                                                           49
       Waste Paper Pulp                                                    49
       Non-Wood Pulp                                                       49

  4b. India                                                                49
      Deforestation                                                        50
      Afforestation                                                        50
      Increase in Plantation Activities                                    50
       Table 12: Wooden Panels Market in India  (2005): Imports in
       US$ Million by  Country - Malaysia, Myanmar, Conte  d'Ivory,
       Papua New Guinea,  Gabon, Benin, New Zealand,  and Others           50

  4c. Indonesia                                                            51
      Indonesia Faces Threat from Chinese  Plywood Imports                 51
      Tree Timber                                                          51
      Pulp and Paper                                                       51
      Long Fiber Pulp                                                      51
       Table 13: Leading Players in the Indonesian  Long Fiber Pulp
       Market (2005): Production Capacity in '000 Tons for PT Inti
       Indorayon Utama, and PT Kertas Kraft Aceh                           51

  4d. Malaysia                                                             52
      Market Segmentation                                                  52
      Future Prospects                                                     52
      End-Use Sector Analysis                                              53
       Construction Sector                                                 53
       Furniture/Interior Decoration Sector                                53


 GLOBAL DIRECTORY