Johannesburg — THE biggest matchmaking event yet planned between the wood products and wood processing industries of the Southern African Development Community (SADC) and the European Union (EU) is expected to significantly boost multilateral trade in these sectors.

No fewer than 100 companies from at least 12 countries will have the opportunity to meet and forge business links at Woodworking 2007, to be held in Sandton on September 13 and 14.

Companies from Germany, France, Britain. Sweden, Italy, Spain, Belgium and Greece will meet potential business partners from SA, Zambia, Swaziland and the Democratic Republic of Congo. Companies from the other 10 SADC member states have also been invited.

Organisers envisage that participants in Woodworking 2007 will hold between 1000 and 1200 meetings as they seek to build new trade bridges between the EU and the SADC region. They also predict that at least 15% of participating companies -- expected to be mainly small and medium enterprises (SMEs) -- will establish permanent business ties at Woodworking 2007.

Apart from joint ventures and sales and purchase contracts, the event is expected to forge many consultancy and service agreements, and to launch a variety of research and development initiatives.

Woodworking 2007 is a joint initiative of the Euro Info Centre and the Chamber of Commerce and Industry: Johannesburg (NafcocJCCI). It will be funded by the EU-SADC Investment Promotion Programme (ESIPP). About €18m has been committed to ESIPP as part of the EU's African development strategy.

The objectives of ESIPP are to strengthen foreign and domestic investment and the private sector in the SADC region, thereby enhancing economic growth and integration in the region and facilitating the SADC community's integration into the global economy.

In SA, says the chamber, the wood sector generates roughly R17bn in revenue annually, representing about 8,7% of agricultural gross domestic product (GDP). Products from this sector contribute about 7,3% of manufacturing GDP.

Major customers of wood products are the pulp and paper, mining and construction industries.

At Woodworking 2007 the focus will be on a broad range of products and services, including:

â--Timber trade and wood merchants;

â--Carpentry and joinery;

â--Construction materials;

â--Veneer sheets, plywood, panels and board;

â--Doors, windows, flooring and staircases;

â--Exterior flooring and decking;

â--Interior building materials and moulding;

â--Soft and hardwood furniture;

â--Wooden houses (including log cabins, sheds and playhouses);

â--Wood treatment;

â--Wooden packaging;

â--Machinery, equipment and tools;

â--Consultancy and services; and

â--Research and development.

More than 200000 South Africans are employed in the wood sector. About 65% of the country's plantation timber is privately owned. Exports of wood products have grown steadily in recent years. In 2005 wooden doors and frames valued at more than $75m were exported. Biggest markets in the EU were Britain and Ireland.

On the other hand, more than 2,2-million people are employed in this sector in Europe, where forestry raw materials are transformed into pulp and paper and a broad range of solid wood products, wood-based panels and other products. Annual production exceeds €280bn and the industry has grown at 3% a year over the past five years.

Imports of wood-based products into the EU amounted to roughly €11bn in 2004.

Christina Söderström, Swedish project manager for Woodworking 2007, says there is a mutual knowledge gap, but that there are "big opportunities" on both sides. Similar events organised elsewhere had created many mergers, partnerships and business agreements, she says. Smaller companies in particular had benefited through forming alliances with larger companies and also with other SMEs.

Companies wanting to attend Woodworking 2007 would have to complete a business profile specifying their areas of interest and the desired cooperation.

Details would be computerised to prepare a catalogue and to match appropriate companies.

Meetings of 25 minutes each will be arranged between interested parties, which will give them enough time to decide whether they should arrange further sessions.

Products and services needed in the EU differ by country, as do standards required for imports. The growing importance of environmental issues has placed a new emphasis on forestry research and development issues.

Söderström says that companies in SA and other SADC countries have assured her that there is in fact a great need for a transfer of knowledge from EU companies. Companies in southern Africa are keen to secure licences either to act as agents for European wood products manufacturers and suppliers, or to manufacture furniture and other products for the local market on behalf of EU producers.

Importation of machinery and equipment is another area of interest. This includes second-hand equipment in view of high capital costs often associated with the latest original equipment.

She says European countries have their own governmental programmes to encourage joint ventures, and interested SADC companies should find out how they can take advantage of these.