In December 2018, Te Uru Rākau, the Forest Owners Association and the Forest Industry Contractors Association, with support from Competenz, surveyed the New Zealand silviculture and harvesting sectors’ labour requirements for 2019. The results were published last month. As the move into planting season begins, the responses and results from the survey you may find interesting.

The survey was designed to better understand:-

• Expected labour requirements, both seasonal and permanent roles, for the 2019 calendar year; – for which roles, and in which regions, silviculture contractors and harvesting contractors are experiencing challenges; – the recruitment strategies people intend to use in 2019; and – the industry’s views of the key reasons for the labour shortages. Some of the findings include;
• Silviculture contractors involved in planting estimate that they will need approximately 1,780 workers for 2019, an increase of 750 workers or around 73 percent on 2018.
• The main regions for forestry employment are Waikato, Gisborne, Bay of Plenty and Northland.
• The survey respondents estimate that the forestry workforce for silviculture and harvesting will increase by 36 percent in 2019.
• Silviculture contractors are looking to increase their number of seasonal workers in 2019. However, 54 percent of the new planting jobs (approximately 400 of the 750 new jobs) are still expected to be permanent roles. As a result, the silviculture workforce in 2019 is expected to be 64 percent permanent and 36 percent seasonal. If these permanent staff are retained, silviculture contractors will be better placed for the 2020 planting season.
• There are regional differences –In Northland all new jobs are expected to be permanent where as in Southland and Bay of Plenty most new jobs are expected to be seasonal.
• While overall the forestry sector permanent workforce increased in 2018 (that is, more people were hired in 2018 than left), 25% of permanent workers left the firms they were working for during the year.
• Contracting organisations (silviculture and harvesting contractors) had a much higher percentage of their permanent staff leaving during the year than other forestry entities. This suggests that even though silviculture and harvest contractors offer permanent employment, they face difficulties retaining staff.
• Almost 70% of silviculture contractors expect to plant more than last year, with nearly half of respondents expecting to plant more than 20% more, and around 15% of respondents expecting to 50% or more than they did last year.

To look over the results from the full survey, click here.

Source: Primary Industry Capability Alliance

The first eucalypt seedlings will be planted out in the Latrobe Valley this winter to meet the Victorian Government’s 2017 promise to spend AU$110 million growing hardwood plantations to support the state’s timber industry.

Agriculture Minister Jaclyn Symes launched the plantation programme at Yallourn North, where crown land will be used to establish plantations. But rather than using the experience of the private sector, the government intends to use its state-owned native forest manager VicForests to oversee the plantations to meet its legislated obligation to supply at least 350,000 cubic metres of hardwood pulp to the Latrobe Valley’s Australian Paper Mill until at least 2030.

The move is also seen as an attempt to reduce the reliance on native forests pulp logs as the Government comes under pressure from environmentalists and green groups to phase out native timber harvesting. Bringing VicForests into plantation forestry to meet Australian Paper’s future demands would bring the Government back into a sector it privatised more than 20 years ago.

Former Premier Jeff Kennett’s Coalition Government sold off the state’s 170,000ha of soft and hardwood plantations in 1998 to US investment company Hancock Timber Resource Group for AU$550 million.

One industry player said it did not make sense for VicForests to run plantations, given there were seven efficient private-sector firms already operating in Australia. Three of these firms operate in Victoria: Hancock Victorian Plantations, New Forests and Global Forest Partners.

The move back into plantation forestry is seen by industry players as an attempt to find a role for some of VicForests’ 128 staff. But one analyst argued only 15-30 staff would be needed to operate AU$110 million of hardwood plantations.

Source: Weekly Times
Photo: Agriculture Minister Jaclyn Symes

Toyo Engineering Corporation has been awarded a contract for a project to construct a 51,500kW biomass power plant. This plant will be built in Ishikari- shi, Hokkaido, Japan for Ishikari Shinko New Energy Hatsuden Godo Kaisha.

This project is to construct a dedicated biomass-fired power plant using imported fuels such as wood pellets and PKS (Palm Kernel Shells). This power generation facility is a highly efficient biomass-fired plant based on the reheat system.

TOYO will carry out the EPC turnkey contract on a full turn-key basis that includes engineering, procurement, construction and commissioning services for a power generation unit.

TOYO has positioned the infrastructure field centred on power generation plants as one of its core businesses, actively working on renewable energy power generation plants such as photovoltaic power plants and biomass power plants.

This project marks TOYO’s 4th orders for 50,000-kW-class biomass power plants. TOYO will continue to contribute to helping create a low-carbon society by expanding its approach to biomass power generation.

Softwood lumber prices have generally fallen faster than the costs for sawlogs throughout the world in late 2018, resulting in lower margins for the sawmilling sector, according to the WRQ. In western US and western Canada, margins fell to unprofitable levels and many sawmills in the region curtailed production in late 2018 and early 2019.

Seattle, USA. 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.

Global lumber, sawlog and pulpwood market reporting is included in the 56-page quarterly publication Wood Resource Quarterly (WRQ). The report, which was established in 1988 and has subscribers in over 30 countries, tracks sawlog, pulpwood, lumber and pellet prices, trade and market developments in most key regions around the world. To subscribe to the WRQ, please go to www.WoodPrices.com
Contact Information
Wood Resources International LLC
Hakan Ekstrom
Seattle, USA
info@woodprices.com
www.WoodPrices.com

This year KOPA is all set to participate at LIGNA with an entire range of heavy machinery for the forestry industry and will display the innovative forestry solution at the open-air site of the trade fair, the recently revamped F20D forwarder from ROTTNE.

KOPA Forstmachinen – Handels- and Reparatur GmbH had its inception in 1964, since then the company continuously evolved, and produced innovative products in the market. With time, the company has enlarged its distribution network, and today the products are found in Germany, Austria, Netherlands, Belgium and Switzerland. This year at Hannover, in LIGNA 2019, KOPA is all set to host a full range of heavy machinery.

The ROTTNE F20D will be the main attraction of the show. This robust forwarder is equipped with a loading capacity of 20metric tons and a loading area of 8.4 square meters. This system makes it an ideal machine for transportation across long distances. This is an automatic gearbox that is equipped with an automatic gearbox and a variable hydrostatic transmission to offer a tractive force of 27 metric tons. The layout of the forwarder is specially designed to handle different types of terrain and also function in high speed and move with heavy loads. The upgraded forestry –solution doubled with energy-efficiency RK 160 crane solution is perfect to ensure a highly successful future for ROTTNE F20D.

Koneosapalvelu is going through a strong development stage. The construction of the company’s new facilities began in Vilppula, Central Finland in February 2019. This investment in premises and equipment enables the company to achieve additional capacity, in addition to having modern production and workshop facilities.

New premises for production and customer service

Koneosapalvelu’s business operations will be concentrated to the new premises and the existing building will be renovated. The extension will be completed at the end of 2019, giving Koneosapalvelu about 2700 m² new business premises. The new premises will include the hydraulics service, shop and hydraulic hose assemblies, a central warehouse, offices as well as social and recreational facilities for the staff. The transmission repair shop and cylinder installation will also be getting a renovated production facility in the current location.

The renovation of the premises also means updating machinery and equipment. The most significant equipment investment will be the new testing equipment for hydraulics maintenance, which will provide a unique capacity for the Finnish market for testing and adjusting hydraulic pumps used in mobile machinery and industrial applications. The testing equipment can be used for testing all hydraulic pumps up to a volume of 380 cm³, with a maximum pressure of 550 bar and a maximum flow of 300 l/min.

Koneosapalvelu is the first Finnish company to become Bosch Rexroth Service Partner

Koneosapalvelu’s hydraulics service will become a certified Bosch Rexroth Service Partner when the new premises are completed. The collaboration agreement with Bosch Rexroth was signed in August 2018.

The new building with its machinery and equipment investments will add more capacity and modern facilities not only for hydraulics maintenance but also for the production of reconditioned parts, logistics operations and customer service in the shop.

More information

Koneosapalvelu Oy
Ville Nevalainen
Managing Director
Ph. +358 440 555150
ville.nevalainen@koneosapalvelu.fi

Main Photo: Ville Nevalainen Managing Director Koneosapalvelu Oy

This year Ligna will become the epicentre for sawmill leaders. Turkish log sawmill specialist Üstünkarli Makine A.S. will attend LIGNA in May at Hannover to display those machines designed to process high-quality French and German hardwood for the leading market.

The company had its inception in 1954 in Izmir, Üstünkarli Makine A.S as a small workshop for saw production and sawmill machinery. At present, the workshop near Izmir Adnan Menderes Airport spans some 20,000 square meters, as well as the unique machines, are shipped all over the globe. Üstünkarli Makine A.S is thus exhibiting at LIGNA, with its strong reputation and for attracting the audience from far and wide.

Üstünkarli Makine A.S is showcasing a line of unique innovations at LIGNA this year, displaying new machinery near the Franco-German border. The audience at LIGNA will have the chance to explore these machines and equipment at the show.

The developers and production team of Üstünkarli Makine A.S will be present at the centre to explain the technology behind the developments that include an inclined hydraulic log carriage with an optimization-software-operated 2D scanner, a chipping canter with adequate speed control functionality and an automatic edger line with chipping canters.

In March, the notified area of final felling in Sweden increased by 16% compared with the corresponding month in 2018. It is the second highest monthly recorded data for the whole country in for March month in the last 12 years, according to the Swedish Forest Agency.

The total area of notified final felling in the whole country amounted to 18,103 hectares. The increase is partly due to the extensive attacks by bark beetle in large parts of South of Sweden and Central Sweden. Furthermore, storms Alfrida and Jan also affect where forest owners now make notifications to be able to take care of the forest that has been affected.

The notified area of final felling increased in all regions except for the region South of Northern Sweden where it decreased by 24% to 3,799 hectares. In the region North of Sweden, it was unchanged amounting to 2,429 hectares. In the region Central Sweden, the notified area of final felling increased by 74% and amounted to 5,266 hectares, which is the highest monthly recorded data for March since 2007. In the region South of Sweden, the increase was 29% and amounted to 6,608 hectares.

At county level, the notified area of final felling increased in 16 of 21 counties. The highest increase percentage was in Örebro County. In Stockholm, Kalmar and Värmland counties, the increase was more than a doubling of the notified final felling area. It is the highest monthly recorded data for March month since 2007 in all these four counties, but also in Uppsala and Västra Götaland County.

In Jämtland County, the notified area of final felling decreased by 41%.

During the 1Q 2019, 25% larger area of notified final felling compared with the same quarter last year.

Ponsse’s consolidated net sales for 2018 amounted to Euro 143.1 million, which is 0.7% more than in 2017. International business operations accounted for 76.3% of net sales.

The operating result amounted to Euro 12.9 million. The operating result equalled 9% of net sales for the period under review. Consolidated return on capital employed (ROCE) stood at 19.8%.

Order intake for the period totalled Euro 222.8 million, while period-end order books were valued at Euro 367.9 million.

Ponsse Plc is a company specialising in the sales, manufacture, servicing and technology of cut-to-length method forest machines.

At LIGNA 2019, Linck will be showcasing a further development in the shape of its log motion control: a Microtec Truespin unit tracks and maps the actual position of the log as it is spun.

The Linck optimization program calculates the deviation from the ideal position, and adjusts the spin trajectory if necessary. The more accurately the log can be positioned, the more useable – and saleable – timber it will yield.

Linck’s optimization software calculates the precise angle of spin from the dimensional data provided by a 3D scan. To visit Linck click here.