May 29, 2006. /Lesprom Network/. Production of tropical plywood in ITTO producing countries totalled 14.4 million cubic meters in 2004, down 5.2% from 2003, and increased by 1.3% in 2005, according to ITTO. Following steady reductions in production from 2001 to 2003 (when it was 6.1 million cubic meters), Indonesia plywood production fell sharply to 4.5 million cubic meters in 2004, allowing Malaysia to take over as the top ITTO producer. Indonesian plywood production was stable in 2005. Plywood production has declined significantly (by 38%) in the last five years in Indonesia due to reductions in logging quotas and crackdowns on illegal log flows. 2004-2005 production was at the lowest level since the early 1980s when Indonesia’s plywood capacity began being rapidly increased. In contrast to Indonesia, Malaysia’s plywood production jumped by 4.3% to almost 5 million cubic meters in 2004 and a further 3.1% to 5.1 million cubic meters in 2005. The Asian region produced 12.1 million cubic meters of plywood in 2004 (about 84% of total producer member production), Latin America produced just under 2 million cubic meters (14%) and Africa produced 335 000 cubic meters (2%). Like veneer, ITTO members account for virtually all global production and trade of tropical plywood. Production in China (the third largest tropical plywood manufacturer), remained stable at 4.4 million cubic meters in 2004 and 2005, closing in on Indonesian production levels. China has doubled its tropical plywood production in the last five years to keep pace with the demand of its growing construction sector and to feed a growing export sector. China is set to overtake Indonesia as the world’s second largest producer of tropical plywood in the near future. India’s tropical plywood production, like China’s based largely on imported tropical logs, is also rising rapidly. India’s production soared 10% in 2003 to almost 1.8 million cubic meters overtaking Brazil and Japan. It surged a further 10% to over 1.9 million cubic meters in 2004 and remained at this level in 2005. Brazil also sharply increased its production of tropical plywood in 2004 (up by 15%), remaining stable in 2005. The top five tropical plywood producing countries comprised 83% of ITTO plywood production in 2004-2005. Japan, Taiwan P.O.C., the Philippines and France were also significant producers of tropical plywood in 2004-05, accounting for most of the remaining 17%.