5 New MDF Plants to Begin Production By April 2020

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India is going to add MDF production capacity of 1500 cubic meters per day in the beginning of the new financial year 2020-21. Four new plants of medium size are in process of installation in North India only. These plants are expected to start commercial production within a couple of months from now. One big size European continuous line plant of 600 cubic meters per day capacity from the house of Rushil Décor group is expected to start its production by March end in Andhra Pradesh. After addition to these capacities, a couple of more plants could see the run in coming time.

In North India, Yamunanagar based Trenox Group is diversifying into MDF manufacturing after successful beginning of its Particle Boards unit with production capacity of 250 cubic meter. Ambala based Alderwood will commence its commercial production by March, having production capacity of 230 cubic meters. As per report, the trial production is on in Tohana based Nuwood MDF and Panipat based Bihan Boards MDF. All North India based new MDF units are located in Haryana and are of medium sized production capacity ranging from 200 to 350 cubic mts per day.

It is also noted that India’s MDF production capacity utilization has been improving since last four months. Although the prices of MDF boards remain under check thanks to excess capacity present in the country. A couple of more new MDF plants who were planning MDF lines in Uttar Pradesh have paused their work due to licensing matter that is under NGT jurisdiction. In current scenario, big sized MDF plants of Action Tesa, Green Panel and Century Prowud are leading the markets with around 50 to 70% capacity utilization. The overall MDF capacity utilization in India has improved marginally in last few month of this calendar year. Report says that import of MDF has been going down which is helping domestic market growth along the increasing prices of cheaper grade plywood in Northern India is also assisting the demand growth.

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