New Regulations Shake Up Gomposite Panels

The first phase ofCalifornia's new regulations regarding formaldehyde in composite wood products took effect Jan. 1. Importers have until March 31 to sell uncertified wood, distributors have until May 31, and retailers have until Dec. 3l, 2009.

"The North American industry is basically in compliance," said Allyson O'Sullivan, director of marketing for the Composite Panel Association (CPA). "Companies that source domestically should not have a difficult time finding complaint products to purchase. We are not aware of any sell-through issues for North American suppliers."

Companies that import composite wood products, however, are more concerned. "There are tough times ahead on the CARB issue for this industry, and people are just hearing about it," said Jeff Lassle, a long-time import executive based in Southern California. He said the rules will affect "90Vo of current furniture in California, picture frames, tens of thousands of products."

Lassle estimated that there are "$300 million of composite panels alone sitting in California that will not be able to be sold." He said that selling the non-compliant material outside of California is "not going to happen in these economic times, nor does anyone now want to buy uncertified stock."

Larry Gagnon, who handles panel sales at Reliable Wholesale, Huntington Beach, Ca., said, "We might have several thousand panels on hand (60 day or less inventory) that are not CARB-certified," but he believes all will be sold well ahead of the deadline so he sees no cause for concern,

He would also "remind everyone to look outside California for other markets if they feel like they have an inventory problem coming later this year. Mexico might be a poor return, but better than having dead inventory. They can also look to states nearby for what might be a better return market."

Since other states are considering similar regulations, most manufacturers are expected to offer Californiacompliant products throughout the U.S.

"It is essentially, de facto, a national standard," said CPA's Curt Alt. According to the association, it would be difficult for companies to maintain separate product inventories and track where products go.

As of January 8, more than 60 mills have earned certification in the U.S., l2 mills have been certified in Canada, and2'7 mills have been certified in China.

Third-party certification by accredited groups is mandatory for manufacturers, and can be obtained in North America from associations such as CPA and the Hardwood Plywood & Veneer Association, as well as private certifiers such as Scientific Certification Systems' For China, third-party certification is available from testing labs in Hong Kong, such as SGS Consumer Testing Services. "Only a handful of the 900 composite wood products factories in China are certified," said technical director Chuck Coletta. "This will have a ripple effect throughout the chain by assisting all parties with becoming CARB-compliant."

When the new rules are fully implemented in 2012, California will have the world's toughest standard for formaldehyde emissions from hardwood plywood, particleboard, and MDF. Also covered are all products made from composite wood, such as mouldings, millwork, cabinets, furniture, countertops, doors and flooring.