U.S. increased 35.7% y-o-y pellet exports to UK in first quarter of 2019 to 1.1 million tones with exports value was up 35.3% to $143 million, according to USDA data. The share of UK in U.S. pellet exports expanded 7 pp to 71.3%. Total exports from U.S. soared 22.3% to 5.12 million m3 in the first quarter.

Exports from U.S. to Denmark decreased 15.7% to 198.7 thousand tones with exports value was down 13.1% to $31.2 million and that to Belgium fell 25.2% to 93.3 thousand tones with export value declined 16% to $9 million. The share of Denmark decreased 6 pp to 13.3% and that of Belgium slid 4 pp to 6.2%.

U.S. pellet exports to Netherlands jumped 107% to 60.3 thousand tones and that to Italy soared 317.5% to 46.4 thousand tones.

Jartek delivered to Donelley Sawmillers Ltd first wood thermal modification chamber and thermal oil boiler plant in 2017. During year 2018 this plant with one 35 cubic metres chamber was not able to satisfy demand of thermally modified Radiata Pine and company decided to invest to second similar chamber.

Jartek is leading supplier in Finnish sawmilling technology. Also family owned company is specialized in log handling- and lumber handling lines, drying kilns, thermowood kilns and high speed planer lines.

Pinnacle Renewable Energy’s (“Pinnacle”) 1Q 2019 revenue totaled $89.6 million, an increase of 26.2% compared to $71 million for the 1Q 2018.

Pinnacle reported a net loss of $6.3 million in 1Q 2019, compared to $12.8 million in Q1 2018. Net profit in 1Q 2019 was $0.2 million. Comprehensive loss for 1Q 2019 was $6.8 million. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) totaled $8.3 million in 1Q 2019, compared to $12 million in Q1 2018.

“Our strong 1Q revenue growth reflects early contributions from our new production facilities and the continued market demand,” said Rob McCurdy, CEO of Pinnacle.

Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.

Photo: Rob McCurdy, CEO of Pinnacle.

Greenbacker Renewable Energy Company LLC (“Greenbacker”) announced the acquisition of the 12-megawatt Eagle Valley Clean Energy (“EVCE”) biomass project. Terms were not disclosed.

The Eagle Valley Clean Energy biomass facility is a Gypsum, Colorado-based power plant which generates electricity from the combustion of waste wood. The plant sells 100% of its generated energy under a long- term contract with Holy Cross Energy, a not-for-profit Rural Electric Cooperative providing electricity to over 55,000 members.

Additionally, the transaction definitively concludes several legal disputes that had arisen between the plant and third parties and returns the plant into good standing with all contract counterparties, a critical feature of the transaction.

Greenbacker Renewable Energy Company LLC is a publicly registered, non-traded limited liability company that owns a diversified portfolio of income-producing renewable energy power plants, energy efficiency projects and other sustainable investments.

Saratoga Forest Management in Saratoga, Wyoming, suspends production starting May 20 and resuming on June 10, reports  Random Lengths.

“This suspension is to complete necessary maintenance projects in the sawmill and planer,” said Gary Ervin, SFM Managing Partner.

Normal shipping hours will continue during this downtime as long as there is inventory to ship.

Saratoga Forest Management applies modern forest management techniques for the maintenance of healthy forests and for the removal of dead and dying trees to speed tree stand regeneration and return forests to a healthy state.

Ontario government is investing $5.5 million over five years in Ben Hokum & Son Ltd sawmill, helping the lumber producer protect over 100 jobs, create at least five new jobs and purchase new technologies to optimize its business. These investments are expected to result in a significant jump in domestic sales as well as exports.

“Ben Hokum & Son Ltd is an Ontario success story and I am pleased to see how this business supports local employment and the economy,” said John Yakabuski, Minister of Natural Resources and Forestry. “When an independent sawmill is succeeding, so do the harvesters it buys from and the manufacturers it sells by-products to. This was not just an investment in Ben Hokum & Son Ltd, but an investment in this community and the forestry sector as a whole.”

“This is truly an investment in our people, to provide more opportunities for our youth, and all those in rural eastern Ontario who are involved in the forestry industry in one way or another,” said Dean Felhaber, President of Ben Hokum & Son Ltd.

Ben Hokum & Son Ltd was established in 1956 and is now one of eastern Ontario’s largest lumber producers, and the largest pine producer in the province.

Main Photo: Dean Felhaber, President of Ben Hokum & Son Ltd

Bergs Timber AB has signed a letter of intent with AB Fogelfors Bruk regarding a potential acquisition of all shares in Fågelfors Hyvleri AB.

The transaction is subject to the signing of a share purchase agreement (“SPA”), conducting a due diligence to the satisfaction of Bergs Timber, financing and board decision. The company will make an announcement once the SPA is signed and closing of the transaction is planned to 30 June 2019. The letter of intent grants Bergs Timber exclusivity for the period up until 30 June 2019.

The indicative purchase price for the shares in Fågelfrors Hyvleri is SEK 48 million ($5 million). SEK 30 million ($3.1 million) is intended to be paid in cash and SEK 18 million ($1.9 million) in newly issued class B shares in Bergs Timber AB.

Fågelfors Hyvleri is a wood pellet producer with an annual capacity of approx. 90,000 tons of pellets and approx. 20,000 tons of heating logs. In addition, Fågelfors Hyvleri operates a planing mill with an annual capacity of approx. 30,000 cubic meters.

“Fågelfors Hyvleri suits very well in our strategy to increase further processing. It is also well located in the area around our Swedish saw mills,” says Peter Nilsson, CEO of Bergs Timber.

Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.

Photo: Peter Nilsson, CEO of Bergs Timber

Hawke’s Bay’s flourishing forestry industry will be celebrated this year with the announcement of a new awards event being held in November.

It’s been eight months in the making and sees the region join the likes of Gisborne, Nelson, southern North Island, Whangarei and Southland in honouring an industry vital to our export economy.

Matt Croft, chair of the Hawke’s Bay Forestry Group who are driving the awards, says it is a great move for an industry that is one of the biggest contributors to the Bay. Export levels have doubled in the past 24 months, going from 1.6 million cubic metres in 2018 to over 2.2 million cubic metres now with growth expected to reach 3 million by 2021.

With 133,000 hectares of plantation radiata pine in the region and 48,000 hectares at a harvestable age, the industry with its associated services account for around $200 million of the region’s GDP.

“This is a chance to put our industry in public view and acknowledge the great work being done by those who work in forestry,” says Mr Croft. “In the past five years the industry has developed hugely, with a lot of investment in training, machinery and upskilling. This is a far more professional workforce than it was a decade or so ago and we want to recognise that and the contractors and crews who are putting in the time and money to make it what it is today.”

Mr Croft said it was exciting for all to be launching the new awards. “I really like the idea of the workers getting the recognition and for others to see them as the professionals they are,” he said.

There are 14 different categories with the overall Skilled Professional of the Year found from six of those covering forestry, roading, harvesting, distribution, wood processing and tree faller excellence. Women, trainees and the environment are also celebrated in the awards, with categories for each.

Mr Croft was hopeful the awards would highlight just how much was on offer for people keen to work in the industry. It should help people better appreciate the huge array of career opportunities within forestry. “The possibilities are endless,” he says, “with attractive options from tree planting to truck driving, harvesting, mapping, satellite photography, computer modelling, management, export, sales, genetics and more. “There is something for most- everyone in the forestry industry, and, as the awards will show, people on the inside of our industry are loving it.”

Nominations open on 1 August with judging in October and the Awards function in late November.

Photo: Mathew Croft

Dr Hunter Harrill, is leaving University of Canterbury School of Forestry after 8 years to take up a new position at Humboldt State University, USA as Assistant Professor.

Rien Visser, Director of Forest Engineering at UC acknowledged Hunter’s influence saying, “He will be missed, as our students have greatly benefited from Hunters’ knowledge and enthusiasm for all things harvesting and he was well known to many loggers, especially those running cable logging systems.”

“He has carried out many applied research projects around the country as part of the FGR research programme. For example, his knowledge resulted in his running of several cable logging and planning workshops. More recently Hunter provided productivity coaching for Rayonier and Ernslaw One crews,” said Rien.

While his departure will be a great loss for the UC School of Forestry, its an excellent opportunity for Hunter and his wife Katie. They’re heading back to where they both studied, have extended family where he started his career, in the magnificent redwood forests of northern California.

Hunter will be able to make a valuable contribution not only to teaching the next generation of foresters there, but helping their loggers as they start to expand into winch-assist operations. This is already providing some collaboration opportunities between the two regions renowned for cable logging and working on steep slopes.

“We thank Hunter for his major contribution to the both the School of Forestry and our NZ industry and wish him and Katie all the best for the future.”

Lumber prices in North America continued their decline from the 3Q/18 with another quarter of substantial reductions. Average lumber prices for southern yellow pine were down 12% quarter-over-quarter in the 3Q/18, which was then followed by a reduction of 17% in the 4Q/18.

With practically no change in log or chip prices, gross margins, and the EBIDTAs, have plunged in the Southern states, after having reach a 13-year high in the 2Q/18, as reported in the latest issue of the WRQ. However, the region’s sawmill margins were still well above their ten-year average margin. With lumber prices continuing to decline faster than log prices in early 2019, profit margins have continued to slide in the 1Q/19.

Sawmills in British Columbia have also seen the prices for lumber in the US market come down substantially during the second half of 2018. Despite the weaker lumber market, sawlog prices still increased from the 3Q/18 to the 4Q/18 because of tighter supply and a rise in hauling costs. Sawmills saw their gross margins plunge to unprofitable levels and many companies decided to take market-related downtime in late 2018 and early 2019.

In Europe and Russia, market prices for lumber were much less volatile than in North America, with only small price adjustments from the 4Q/17 to the 4Q/18. Log costs were unchanged in Finland during most of the year, while the costs for spruce sawlogs in Sweden jumped in late 2018. Gross margins for sawmills in both countries are still at healthy levels and, in the 4Q/18, were close to the highest they have been in four years.

Sawmills in Siberia continue to expand exports to China with fairly stable lumber export prices the past three years. However, in the 4Q/18, lumber prices fell to their lowest level in almost two years. This occurred at the same time as sawlog costs remained unchanged from the previous quarter, resulting in reduced gross margins for many lumber producers at the end of 2018. Sawmill margins for 2018 were slightly below their five-year averages, but still higher than the average for the past 14 years.

Source: Wood Resources International LLC, www.WoodPrices.com