Katerra, a high-tech construction firm, has secured $865 million in funding from SoftBank Vision Fund. That money will go toward ongoing projects in the US, like the company’s planned cross-laminated timber plant in Washington, as well as research & development activities.

Katerra says its upcoming 250,000-square-foot Washington plant will help scale up U.S. production of CLT so that the material can be more broadly adopted across the construction industry. Katerra’s manufacturing presence in the region will provide hundreds of jobs and stimulate additional jobs through the larger supply chain and associated industries, including design, engineering, and construction. More than 150 construction-specific jobs will be created to build the CLT factory.

Cross-laminated timber, or CLT, is a key ingredient in the so-called timber towers – multi-story high rises built of wood, some reaching 18 stories or higher. Katerra says CLT is valued due to its low carbon footprint and strength.

“CLT is a material that creates beautiful spaces, is designed for manufacturing, and is sustainable all at the same time,” said Michael Marks, chairman and co-founder of Katerra. “This material represents a great opportunity to create new value within the construction industry and will be central to many of the projects we’ll be designing and building.” “We feel very comfortable and excited, particularly with the knowledgeable team we have, to make the jump into manufacturing mass timber. We are ready to help bring mass timber to the mainstream of US construction.”

Katerra is already applying its high-tech construction techniques to manufacture building sections in an existing Phoenix factory, in processes similar to auto plants. The Phoenix plant uses CR Onsrud and Laguna machinery, and fabricates rooms and building sections, including cabinetry, plumbing and wiring.

Canada – In British Columbia, the provincial government is committing Cdn $7.8 million to promote the use of BC wood overseas, advance wood building systems and products, and expand global markets.

BC Government announced the funding at a national forestry convention in Prince George, alongside Doug Donaldson, Minister of Forests, Lands, Natural Resource Operations and Rural Development.

“Expanding our international markets, especially in Asia, is crucial to the long-term success of BC’s forest sector,” said Ralston. “This funding support opens the door to more trade opportunities for BC companies, and will lead to greater innovation in the industry.”

Through a competitive bid process, 13 industry groups were selected to receive funding and deliver market development, or wood innovation programs, on behalf of government and industry. BC’s contribution is being managed through Forestry Innovation Investment, the province’s market development agency for forest products. The province will cost-share these activities, with additional funding provided by BC industry and the federal government, through Natural Resources Canada.

“Building with wood has many benefits: its lower carbon footprint, its cost- effectiveness and its versatility,” said Donaldson. “The funding announced today will help continue to position British Columbia as a preferred supplier of environmentally friendly forest products.”

Of the Cdn$7.8 million, $5.9 million will be made available for activities targeted at expanding markets for BC’s wood products, with investment priorities that reflect evolving market opportunities in Asia and North America. The remaining $1.9 million will be made available for activities delivered through the Wood First program, which fosters the innovative use of wood and wood building systems in BC through research, education, marketing and capacity building.

Late last week Associated Kiln Driers Softwoods (AKD) officially took ownership of the Yarram Sawmill after finalising the purchase with Carter Holt Harvey Woodproducts earlier this month.

Regular operations of the mill will resume from Monday 25th March, with all 60 existing employees offered ongoing employment. The Yarram Sawmill processes approximately 150,000 cubic meters of saw-log into a range of timber products from its location in Gippsland, Victoria.

AKD Softwoods CEO Shane Vicary believes Yarram is the perfect fit for the AKD Group. “The Yarram business just like the Caboolture business purchased earlier in March, is a very well-run operation, with a fantastic team, and excellent plant” Mr. Vicary said, “we see this as a perfect fit for AKD, and will complement our existing operations in Victoria.”

“This exciting acquisition in eastern Victoria provides us with new customers and a greater range of products to offer our existing customers” “Through our long history we have a proven record of building and developing our business through strategic acquisitions and continual capital investment in our core business.”

AKD will continue to work with key log suppliers and provide customers with quality locally grown and produced products, from renewable resources.

Through AKD’s acquisitions of the Caboolture and Yarram operations, as well as a brand new Sawmill in Colac the company and management has shown it’s long term commitment to the Australian forest products industry.

Global timber and wood products market update show modest increases in wood fiber costs and a substantial rise in market pulp prices have improved profitability for many market pulp manufacturers worldwide during the second half of 2017, reports the Wood Resource Quarterly

Pulp manufacturers in many countries have seen their wood fiber costs go up during 2017. In the 4Q/17, both the global softwood and hardwood fiber price indices reached their highest levels in over a year, according to the Wood Resource Quarterly. However, market pulp prices increased even faster, resulting in a period of increased earnings by the pulp industry.

Seattle, USA. Pulp manufacturers in many countries have seen their wood fiber costs go up during 2017, with the biggest increases in US dollar terms occurring in Western North America, Europe, Russia and Australia, according to the Wood Resource Quarterly (WRQ). The Global Softwood Fiber Price Index (SFPI) increased for the third consecutive quarter to reach $89.08/odmt in the 4Q/17, 4.0% higher than in the same quarter in 2016.

Hardwood fiber prices have also trended upwards over the past year, with the Global Hardwood Fiber Price Index (HFPI) reaching its highest level in almost three years during the 4Q/17. In US dollar terms, hardwood fiber prices have gone up the most in Europe, Russia and Indonesia during 2017. The only region that has experienced a decline in wood fiber costs has been the US South, where hardwood pulplog prices were 2.3 % lower in the 4Q/17 than in the 4Q/16.

Wood fiber costs remain the single largest cost component in the manufacture of wood pulp, ranging between 40-60% of the total cash costs, depending on region and pulp grade. The wood fiber costs as a percentage of the price of Northern Bleached Softwood Kraft market pulp (NBSK) have been on a downward trajectory over the past eight years.

The substantial increases in market pulp prices during the 4Q/17 and only small upward price adjustments of pulpwood resulted in the wood fiber cost percentage reaching a record low of 23.2% in the last quarter of 2017 (down from 36% in 2012). Since wood fiber costs account for a majority of the pulp manufacturing costs, the low wood cost share has improved profitability for market pulp manufacturers throughout the world during 2017.

www.woodprices.com

Wood pellet production in Finland in 2017,  produced a total of 324,000 tonnes of wood pellets. That is one fifth more than in the previous year and the third highest result in history. The production volume was highest in 2008 at 373,000 tonnes, reports Natural Resource Institute Finland (Luke).

A new record was reached in the Finnish imports of wood pellets. In 2017, a total of 87,000 tonnes of wood pellets were imported to Finland, being 74% more than in the previous year. Exports of wood pellets, 37,000 tonnes, increased by 8% over the year before. The apparent consumption (production + imports – exports) of wood pellets in Finland amounted to 373,000 tonnes.

Deliveries by pellet producers based on domestic pellet production grew by 15% compared to the previous year, amounting to 349,000 tonnes, which is the highest volume ever. The amount of wood pellets delivered to power and heating plants and large buildings increased by 18% to 288,000 tonnes. The amount of wood pellets delivered to small-scale housing and farms increased by 6% to 62,000 tonnes.

The Board of Directors of the BC Forest Safety Council (BCFSC) is pleased to announce that Dave Lehane has been appointed chair of the BCFSC, effective March 22, 2018. Dave takes over from Ken Higginbotham, who retired at the end of 2017.

Lehane is a retired forest industry executive with more than 35 years of diverse experience. From the woods to the mill floor and the boardroom, Lehane’s experience includes reforestation, harvesting, mill management, fibre supply, government and community relations.

Dave LeHane has held a number senior executive positions including vice-president of woodlands for West Fraser and vice-president of Alberta Operations for Weldwood of Canada. Earlier in his career, he held senior management positions including woodlands manager, general manager and operations manager. He has worked in British Columbia, Alberta and the southeast United States.

Lehane retired in 2016 and holds a bachelor of science in forestry and a masters of business administration in international business.

“I am looking forward to supporting both the BCFSC and industry as we work towards the elimination of work-related deaths and serious injuries. We have an obligation to ensure that all forest workers return home safely each day,” Lehane said. “I believe our industry has an exciting future, built firmly on the cornerstone of safe and healthy workplaces.”

The British Columbia Forest Safety Council is a not-for-profit health and safety association (HSA) for forest harvesting, sawmills and pellet manufacturing in British Columbia. The organization is directed by industry and provides training, information, guidance, safety advisor advocacy, safety reviews and audits to industry. The focus is on preventing fatalities and injuries by supporting industry participants implement best practice performance. Safety is good business.
See www.bcforestsafe.org

Forest Products Association of Canada (FPAC) applauds the Canadian government, and in particular Minister Champagne, on the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. This agreement will benefit the Canadian forest products industry by eliminating tariffs, as well as providing clear provisions to help settle disputes and avoid unfair blocking of imports because of concerns about issues such as insects or other contaminants. For example, forest products from Canada now face:

• 31% tariff to Vietnam for certain kinds of wood, going down to 0% starting Year 1 and up to 27% for paper, which will be at 0% by Year 4.
• 40% tariff to Malaysia for plywood and up to 25% for paper, down to 0% by Year 6.
• 10% tariff to Japan for wood products, going down as low as 5% in Year 1 and 0% as early as Year 11.

“The CPTPP will increase Canadian forest products access to key global markets,” says CEO of FPAC, Derek Nighbor. “Growing exports will create more middle class jobs in the over 600 forest dependent communities across Canada and help the forest sector diversify its markets.” Nighbor added further.

Between 2012 and 2016 Canadian forest products, exports to the remaining members of TPP grew 18% to over $2 billion, with exports to Vietnam, New Zealand and Mexico growing the most by 312%, 90% and 44%, respectively. FPAC believes that with the elimination of tariffs and strengthening trade relations between countries, Canadian forest products exports will grow even more.

“The sector is working hard to diversify its markets, especially beyond the United States who have enacted unfounded protectionist measures against our industry; and we encourage the government to continue with its efforts to extend freer trade and increase our country’s competitiveness,” says Nighbor. “Canada needs to be part of the first 6 countries to ratify the CPTPP in order to ensure we have first access to these growing markets.” Nighbor concluded.

FPAC urges the speedy ratification by governments of this 21st-century deal.

INTERFORST 2018 is backed, at least indirectly, by an industry with considerable economic strength. In nearly 128,000 companies of the forestry and wood cluster, more than 1.1 employees generate annual sales of approximately 180 billion euros. Thus, more people are working in this sector than for example in the mechanical engineering and plant manufacturing sectors or in the automotive industry, as the Federation of German Forest Owners Associations [Arbeitsgemeinschaft Deutscher Waldbesitzer, AGDW 2018] and the German Forestry Council [Deutscher Forstwirtschaftsrat, DFWR 2018] emphasize.

The forestry and wood cluster includes the following economic sectors: the forestry sector, the woodworking industry, the wood processing industry, wood processing in the building industry, the paper industry, the publishing and printing sector as well as the timber business. Even though the forestry sector, with shares of two percent in sales and eight percent in the number of employees, only plays a subordinate role, it forms the basis of the wood processing chain and its economic output due to sustainable forest management.

Great significance for rural areas
“Particularly in rural areas, many workplaces depend directly or indirectly on the forest sector and the forest-based industries. They have a great economic importance here. Thus, this economic sector provides an income to approximately two million forest owners. Many companies from the forest-based industries have their location entirely or partially in rural areas”, states Georg Schirmbeck, President of the DFWR. Globalization has brought about an enormous boom for the forestry sector and the forest-based industries in the last few years, partly because of the increasing scarcity of fossil resources (cluster analysis, NW-FVA 2007). “In this context, our forest owners, who are cultivating their forests in a sustainable and forward-looking manner, supply wood as a climate-neutral raw material. The used wood removes carbon from the atmosphere and binds it in wood products. In addition, it replaces energy-intensive substances, such as concrete, steel or oil”, Georg Schirmbeck goes on to say.

48 percent of the forest is privately owned
One third of Germany, namely 11.4 million hectares in total, is covered by forests. The basis for the high benefit of the forestry and wood cluster are sustainably cultivated forests. According to information provided by the Federal Statistical Office, there were 29,408 forestry operations in total in 2016. They cultivated a forest area (including short rotational plantations) covering 7,155,201 ha. A large part of the forest belongs to private forest owners (48 percent). Fifty percent of the private forest account for what is referred to as private micro forests, i.e. forests smaller than 20 hectares in size. To be able to ensure sustainable forest management in spite of this unfavorable ownership structure, approximately 430,000 forest owners have organized themselves in some 3,600 forestry cooperatives.

Sustainable exploitation—timber reserves are steadily increasing
Another 19 percent of the German forest area are part of the municipal and corporate forests. The rest of the forest area is broken down into the state-forest of the federal states (29 percent) and the federal government (4 percent). German forestry is considered as the cradle of sustainability, and the present generations profit from the fact that felling does not outpace growth in Germany’s forests. Approximately 122 million cubic meters of wood is growing in the forests annually; 7.0 cubic meter per hectare and year, or 76 million cubic meter of raw wood (cubic meters of harvested wood), are harvested annually throughout Germany, sometimes slightly more, sometimes less, but always below the forest growth rate. As a result, the timber reserves are steadily increasing.

Wood as an energy carrier
Increasing energy consumption with simultaneous shortages of fossil resources and anthropogenic climate change are the great challenges of today. In this connection, wood as a renewable resource is of particular importance. By reducing the energy consumption for the fabrication of timber construction products alone, almost twice as many emissions than by the substitution of fossil fuels by wood as an energy carrier could be saved in Germany in the last few years. In addition, there is the immense effect of the domestic forestry and wood sector as a huge carbon pool. (RÜTER, Thünen-Institut 2016)

More timber reserves than Sweden and Finland
Thanks to the foresighted work of several generations of forest owners and foresters, timber reserves in Germany are high and even continue to increase (Forest Report of the Federal Government Federal Ministry of Food and Agricultures (BMEL) 2017). By means of a comparison, the high level of the reserves becomes particularly clear: actually, Germany has larger timber reserves than, for example, Sweden and Finland with their seemingly endless forests (AGDW 2018). Therefore, most of the German need for wood can be covered from its own forestry sector; however, Germany has been a net importer of (coniferous) raw wood since 2009. At the same time, Germany remains the largest exporter (predominantly to other EU countries) of timber and timber-based products, preceded by China and the USA. (Forest Report of the Federal Government Federal Ministry of Food and Agriculture (BMEL) 2017).

Revenues from the sale of wood
The main product for the revenues of German forest operations still is raw wood. Its share in the value of the products originating from forestry accounts for more than 90 percent. In 2016, for example, 52 million cubic meters were logged (calculated without bark). Of this amount, 9.4 million cubic meters were used for energetic purposes, slightly above one million more than ten years ago (Federal Ministry of Food and Agriculture BMEL 2018). Even if the focus is meanwhile shifting for several forest owners, especially for those from urban areas, who consider nature conservation as a primary objective rather than the generation of revenues from the forest, the revenues generated from the sale of timber remain decisive.

Services for society
Secondary forest products, ancillary uses and services, such as hunting and fishing, Christmas trees and ornamental wreath or revenues from the leasing of real estate merely contribute a small share to value creation (approximately 70 million euros annually, according to the 2017 Forest Report of the Federal Government). Protective and social services are largely not or only to a very small extent remunerated. In addition, there is a range other services rendered to society, the positive effects of which are often—sometimes out of ignorance—taken for granted, such as for example the construction, maintenance and safeguarding of the forest road network, local recreation facilities or measures for the conservation of water protection functions. (Increasing) revenues from woodland burial grounds and wind energy plants are still relatively new in the portfolio, just like compensation measures, e.g. for building or traffic surfaces.

The forest as a workplace
Due to their forestry activities, private forest businesses as well as municipal and state-owned state forestry enterprises are employers for many other specialists and suppliers. There are more than 3000 forestry enterprises in Germany; their employees plant trees for the forest owners, care for their forest resources and finally harvest the wood, move it out of the forest and ensure its transportation. Despite all mechanization and digitization, forestry work still is one of the most dangerous and accident-prone activities of all. Safety at work and occupation-specific health risks will play an important role at Interforst 2018, too. Likewise, high-quality equipment and advanced procedures will be on display at the show. In addition, leading organizations and associations of the forestry and wood cluster will present the latest figures and topical research results, and will discuss the most important topics from the spheres of politics and business. The complete range of the German and the international forest sectors and forest-based industries will present itself at Interforst.

In 2017, Russia sharply increased woodworking machines imported (+60.7%) after a decline of 15.6% in 2016. This may indicate that companies of Russian forest-based industries have adapted to the current exchange rate of the national currency, according to the analytical report “Russian forest-based industries in 2017″, prepared by Lesprom Network’s Research Department.

Investments in fixed assets in the production of paper and paper products increased by 33.3%, and investments in wood processing (excluding furniture production) up 5.5%. In 2017, favorable situation on foreign markets formed a steady growing demand for the main products of the Russian forest-based industries.

At the same time, the turn of the national economy from a recession to growth (GDP grew by 1.5%) led to a revival of demand for products for domestic market. These trends are expected to continue in 2018.

China remains the main consumer of products of the Russian forest-based industries. In 2017, China’s share in the Russian export of logs was 66%, in lumber exports – 55%, in pulp exports – 58%. According to the World Bank, the growth of China’s economy amounted to 6.8% in 2017, and it is expected to grow 6.4% in 2018. According to the analytical report, the process of structural changes in exports (from raw materials to wood processing products) continues: Russia’s log exports decreased, but lumber exports increased by 10.1% in 2017. Overproduction in the Russian MDF market led to an increase in MDF exports by 36.1% compared to 2016, and MDF exports grew almost 2 times compared to 2014.

Growth (+34.1%) of wood pellets production in Russia in the coming years will continue at a rapid pace, due to Russian and foreign companies are planning to launch a new production facilities in the country, according to the analytical report.

Increased attention of the state to the development of the forest-based industries and the beginning of a number of incentive measures for the development of wooden housing construction can contribute to increased demand for lumber within the country in the next 3-5 years.

Analytical research “Russian forest-based industries in 2017″, contains 119 pages, it is annually issued by Lesprom Network’s Research Department for 15 years. The report is the only annual comprehensive study of the the Russian forest-based industries. The report contains an analysis of the markets of wood raw materials, lumber, wood panels, pellets, pulp, paper and cardboard, as well as trends in the main export markets for Russian timber products.

FUCHS continues to drive momentum in the North American scrap, waste, forestry and port sectors.

Fuchs will exhibit at ISRI April 14-19, 2018 at the Mandalay Bay Resort & Casino in Las Vegas, Nevada, in booth A6. Two machines will be on display: the MHL340 F2 and MHL350 F2 material handlers.
Commenting on the lineup Todd Goss, General Manger for Fuchs in North America, said the features and solutions on these machines enable customers in the four core segments of scrap, waste, forestry and port industry to operate efficiently and boost return on investment.

He says Fuchs has continued to focus on growing distribution globally, to ensure customers experience more responsive service and parts support locally. Currently, there are 23 Fuchs equipment dealers throughout North America.

MHL340F: A top performer in the recycling business
Even heavy recycling loads requiring precise handling within a specific work radius are easily dealt with using the MHL 340 mobile material handler. The particularly solid undercarriage, with its larger outrigger cylinders and a stabilization footprint measuring 16ˈ9″ x 14ˈ1″, ensures stability when heavy ton-loads are to be handled, utilizing a reach of up to 41´11″. This makes it so that in such situations neither speed nor precision is compromised, slewing motors and slewing gears are fine-tuned, and the lifting and stick cylinders come equipped with special end-position damping.

MHL350F: Outstanding stability for the toughest jobs
Cutting-edge engine technology combined with intelligent hydraulics make the MHL350 one of the fastest and most sensitive material handlers in scrap handling. With an operating weight of up to 78,263 lbs, a reach of 52ˈ6″ and an undercarriage width of 9ˈ10″.

The MHL 350 is a particularly stable machine, with its statistics conclusively bearing out its performance. The high-output 215hp turbo diesel engine and powerful hydraulics operating in a notably efficient dual-circuit system ensure that even heavier loads are handled with precision and speed. Alongside its near legendary ruggedness, state-of-the-art technology and maximal occupational safety are further advantages offered by this machine.

“These are exciting times for the Fuchs business,” commented Goss. “We have significantly strengthened the Fuchs team, increased local support by growing our distribution network, broadened and updated our purpose-built handler line for the market, and customized our equipment to meet specific application needs for our customers. It’s a good time to be a Fuchs material handler customer.”