CCA Phase Out To Drive Value of Wood Preservatives

Market analysis of demand for wood preservatives in Canada and the USA in 2002 with volume and value demand projections for 2003, 2004 and 2008. New technologies, preservative systems, preservative suppliers and wood treaters are described.

For immediate release

Contact: Chuck Brennan
973-571-9000

CCA Phase Out To Drive Value of Wood Preservatives

January 14, 2003, Verona, NJ The value of waterborne wood preservatives used in North America will soar within the next year-more than tripling in value from 2002-when wood products for consumer applications can no longer be treated with chromated copper arsenate (CCA). In a voluntary move by the industry, CCA will not be used for such products as decking, picnic tables, playground equipment and similar consumer items after the end of this year. Demand for creosote and such oil-borne preservatives as pentachlorophenol (PCP) will also increase, but at lower rates.

Most wood treaters in Canada and the United States have converted their facilities to use alternative preservatives, which are free of chrome and arsenic, but are more corrosive to processing equipment. However, few treaters are using the alternatives today because of their higher price and weak consumer demand, according to a new industry analysis, Wood Preservatives: The Next Generation, published by Brennan Research Group.

A commodity market that for decades has been dominated by one product, will become much more fragmented and lucrative once CCA is phased out, says Chuck Brennan, the firms President. As a result, the industry will undergo significant restructuring because the anticipated shift to new preservatives has attracted the attention of many new potential participants.

The new players are often characterized as companies that hold EPA product registrations for pesticides used in agricultural applications, which also may have efficacy as wood preservatives. Strategic alliances are being formed to leverage individual company strengths and maximize the market impact of new product introductions.
   
A host of companies are expected to benefit from the market dynamics. They include such companies as Akzo Nobel, Arch Wood Protection, BASF, Bayer, Buckman Laboratories, CSI, FMC, Janssen Pharmaceutica, Lonza, National Boraxx, Osmose, U.S. Borax and others that supply either active ingredients or formulated preservatives.

The 186-page report is based on interviews with 116 individuals in 78 organizations, including wood treaters, architect specifiers and builders, product manufacturers, suppliers of preservatives and active ingredients, universities, and professional and trade organizations. Key aspects of the study include an analysis of major end uses for treated wood, market analysis of volume and value demand in 2002 with projections for 2003, 2004 and 2008, descriptions of current and developing preservative systems, and a discussion of technologies likely to impact the industry. The report also includes profiles of suppliers of active ingredients, formulated preservatives, and selected wood treaters in Canada and the United States.

Additional information on Wood Preservatives: The Next Generation is available from Brennan Research Group, P.O. Box 43, Verona, NJ 07044, by e-mail: brennanresgrp@juno.com phone: 973-571-9000 or fax: 973-239-3177.

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