NY Timber will be merged with existing Cairngorm portfolio company Thornbridge, which Cairngorm picked up in November last year, the private equity firm’s first investment from Cairngorm Capital II.

The merger is Cairngorm’s latest step in its bid to consolidate the UK value-added timber distribution market. The combined group will generate revenues of over £50m (€44.4m) across its 15 branches in the north of England and Scotland and will employ over 360 people.

Headquartered in Northallerton, NYTimber offers a range of timber, sheet and joinery products and has a specialist roof solutions division. The business saw revenues of £18m last year and employs over 200 staff. NY Timber’s managing director, Nick Kershaw, will continue to lead the business and will join the group board.

Cairngorm’s Edinburgh office head Neil McGill said: “We have been working hard to find opportunities to scale our timber business rapidly. Like Thornbridge, NYTimber is a very high-quality business with a great management team and a shared focus on excellent customer service.”

Rayonier reports Q4 net income of US$64.2M, on revenues of US$239.7M, up from income a year ago of US$48.3M on revenues of US$229.3M, and 2017 net income of US$148.8M on revenues of US$819.6M. It’s reported that the Pacific Northwest, New Zealand and Real Estate performed strongly for the company.

For New Zealand, fourth quarter sales of $59.3 million increased $9.2 million, or 18%, versus the prior year period. Harvest volumes increased 16% to 649,000 tons versus 562,000 tons in the prior year period, driven primarily by incremental volume from recent acquisitions.

Average delivered prices for export sawn timber increased 11% to $115.77 per ton versus $104.26 per ton in the prior year period, while average delivered prices for domestic sawn timber increased 7% to $83.02 per ton versus $77.41 per ton in the prior year period. The increase in export sawn timber prices was primarily due to stronger demand from China.

The increase in domestic sawn timber prices (in U.S. dollar terms) was driven by strong local demand for construction materials, partially offset by a modest decrease in the NZ$/US$ exchange rate (US$0.70 per NZ$1.00 versus US$0.72 per NZ$1.00).

Excluding the impact of foreign exchange rates, domestic sawn timber prices increased 11% from the prior year period. Operating income of $16.1 million increased $4.4 million versus the prior year period due to higher prices ($5.3 million) and higher volumes ($2.1 million), which were partially offset by lower carbon sales ($2.8 million), higher road maintenance costs ($0.1 million) and higher depletion rates ($0.1 million).

Log export prices are having a 25-year high, with southern industry insiders optimistic longer-term gains are likely to be sustained. As of December 17, key indicator the At Wharf Gate price for A-grade logs 30cm or more at the small end, stood at $148 per export cubic metre, according to the latest available data from PF Olsen Ltd.

Invercargill-based Log Marketing NZ Ltd general manager Greg Lindsay said that put average prices at their highest since August 1993. The peak had been driven by strong demand from Chinese and Indian markets.

“China has had environmental constraints applied reducing domestic log production, which has contributed to increased export demand. Shipping rates are also relatively competitive currently. Allied with strong domestic and Australian demand during recent years, typical seasonal price peaks and troughs were also diminishing”, Lindsay said.

Southern Wood Council chairman Grant Dodson said market indicators suggested current good prices would be sustained. “We expect some volatility with price up and downs across the year. This is business as usual for forestry but fundamental demand and market conditions remain strong.”

Although council members across the region were “very positive” about industry prospects, Dodson highlighted possible concerns on the horizon. “The impact of the recent share market correction is yet to play out. There may be some impact depending on how significant the correction ends up,” he said.

“Additionally, although local log demand is strong, local mills are having to compete with export log prices, which is causing some discomfort while markets adjust. But forest owners and mills are simply working through this as they have many times in the past. It’s great to see strong returns from forestry and lots of busy domestic mills.”

Rayonier Matariki Forests managing director Paul Nicholls was also positive, while urging perspective over current prices. “Log prices peaked in 1993 but, when adjusted for inflation, there have been several other price peaks higher than today,” he said.

Rayonier had operated in the south since 1992, with current market conditions allowing for greater business flexibility, he said. “We’re in a good position to export the logs that don’t meet domestic processors’ specifications. We’re also able to harvest and export minor species established by the Forest Service that have been uneconomic until now. This allows us to establish more commercially-focused plantations.”

Source: stuff.co.nz

Hiab, part of Cargotec, is opening a new factory installation and competence centre in Meppel, the Netherlands, during the first quarter of 2018. The new centre will offer FrameWorksTM subframes, truck bodies and complete vehicle solutions for Hiab’s European customer base. It is the global competence centre for Hiab FrameWorks installations as well as the distribution centre for Hiab FrameWorks kits.

“In 2016 we introduced to the market the HIAB FrameWorks, a modular system that provides the customer with a pre-manufactured, ready-to-install subframe that matches the chosen truck. When developing the FrameWorks concept, we wanted to pay special attention to the overall quality and safety of installations, reduce the installation time and have the products ready for our customers’ use more quickly. At the beginning, this new concept was available for our heavy range loader cranes, but we have broadened the offering with solutions for the Hiab medium and light range of cranes as well as options for the LOGLIFT and JONSERED forestry and recycling and also for MULTILIFT demountables,” says Marcel Boxem, Director, Heavy Range Loader Cranes, Hiab.

The new installation centre provides the customers with fully calculated, designed and tested installations as well as a high level of quality and safety due to the very controlled installation process with experienced Hiab professionals. “With the new factory installation centre, we offer quick and reliable complete solutions with the best possible performance from the equipment. The centre will also share expertise in FrameWorks installations with our partners and our own installation shops,” says Joakim Andersson, Senior Vice President, Loader Cranes, Hiab.

Contact:
Marcel Boxem, Director,
Heavy Range Loader Cranes,
Hiab; tel. +31 651 666 009, marcel.boxem@hiab.com

Hanna-Kaisa Talvensaari, Senior Communications Manager,
Hiab; tel. +358 40 758 1572, hanna-kaisa.talvensaari@hiab.com

Hiab is the world’s leading provider of on-road load handling equipment, intelligent services and digitally connected solutions. As the industry pioneer, Hiab’s more than 3,300 employees worldwide focus on our commitment to increase efficiency in our customers’ businesses and to shape the future of intelligent load handling.

Hiab’s offering encompasses class-leading load-handling equipment, including HIAB loader cranes, LOGLIFT and JONSERED forestry and recycling cranes, MOFFETT truck mounted forklifts, MULTILIFT demountables, and tail lifts under the ZEPRO, DEL, and WALTCO brands. Hiab’s ProCareTM service, award-winning HiVisionTM crane control system, and HiConnectTM platform demonstrate our constant drive to provide intelligent services and connected solutions that add value to our customers. www.hiab.com

Hiab is part of Cargotec Corporation. Cargotec’s (Nasdaq Helsinki: CGCBV) sales in 2017 totalled approximately EUR 3.3 billion, and it employs over 11,000 people. www.cargotec.com

IKEA Group acquired its first US forest property, covering approximately 25,000 acres in Lowndes County, Alabama.

The investment in forestry is part of a broader strategy to invest in the sustainable production of resources that IKEA Group consumes directly, such as energy, or indirectly through its products (wood raw material, recycled materials, etc.).

IKEA Group also owns more than 250,000 acres of forest land in Europe, located in Romania and the Baltic States.

“As a responsible forest owner, we are interested in identifying and applying sustainable management methods that will allow us to preserve and even increase the quality of the forest over time,” says Krister Mattsson, Head of Financial Asset Management, IKEA Group. “Entering the US market is a milestone for our investments in forests, and we believe we will learn a lot here while implementing our long-term approach to forest management and applying for the Forest Stewardship Council (FSC) certification.”

IKEA Group is committed to having a positive impact on people and the planet and has allocated over €3 billion for resource and energy independent investments. Those investments support the long-term supply of sustainable materials by investing in forestry, as well as in companies that are active in recycling, renewable energy development, and biomaterial developments. At the end of FY17*, IKEA Group owned 416 wind turbines around the world, including 104 in the US, which produce about 900 million kWh of renewable energy per year.

This new acquisition is in addition to several other significant investments IKEA Group has recently made in the US, where they currently operate 47 stores and seven distribution centers. In 2017, the company opened four new stores and one new distribution and customer fulfillment centre. IKEA Group also acquired San-Francisco-based TaskRabbit, an innovative on-demand services platform company, to provide IKEA customers with additional ways to access flexible and affordable service solutions. Additionally, the company made minority investments in XL Hybrids and AeroFarms, who share the brand’s ongoing commitment to supporting sustainable resources.

For its forest management in the US, IKEA Group has partnered with Campbell Global, a leader in sustainable timberland and natural resource investment, to oversee and operate the property.

“We are proud to be working with IKEA to promote our shared values,” said John Gilleland, CEO, and Chairman of Campbell Global.  “Responsible stewardship is the cornerstone of our culture. We are committed to managing sustainable, working forests to foster optimal forest health and provide direct benefits to local communities.”

Source: Clean Technica

Mike Richardson was elected President by the Truck Loggers Association membership at their AGM last month.

With 42 years of experience in the forest industry, Richardson will represent TLA member interests to both government and industry. He is currently a partner in Tsibass Construction Ltd., a stump-to-dump logging contactor based out of Campbell River. However, he spent 14 years of his career working for both a major licensee and a First Nations licensee. “I’ve worn a few different hats over the years and I believe there is common ground that can be reached so all parties can be successful,” said Richardson.

“The Contractor Sustainability Review must be our main advocacy focus in 2018,” said Richardson when asked about his focus as president. “The TLA has worked hard to have the Review happen and we look forward to working with government and industry to implement any recommendations that improve the lot of timber harvesting contractors in BC.”

Richardson has called Campbell River home for 37 years and that’s no surprise—Campbell River is the heartland of forestry on BC’s coast. “There are 100 TLA member companies based in Campbell River which is just over a fifth of our membership,” said Richardson. “I see people in the industry every time I leave my house—grocery store, golf course, boat ramp—Campbell River is full of people making their living in forestry.”

The TLA (Truck Loggers Association) represents 489 independent forest contractors and their suppliers operating in British Columbia. Our membership supports thousands of workers and, along with other independent contractors, accounts for close to 90 per cent of the trees harvested in BC. The TLA promotes a thriving, sustainable forest industry in BC.

The Canadian government has suggested it might drop its major international trade case against the U.S., if it gets a softwood lumber deal.

Canada has filed a wide-ranging complaint to the World Trade Organization about the way the U.S. applies punitive tariffs, infuriating the Americans.

U.S. trade czar Robert Lighthizer called it a “massive attack” on the American system of international trade.

“If it were successful, it would lead to more Chinese imports into the United States and likely fewer Canadian goods being sold in our market,” he said Monday at the end of NAFTA talks in Montreal

Foreign Affairs Minister Chrystia Freeland said the case is directly tied to softwood lumber, where the U.S. imposed duties.

“We are aware that the U.S. is concerned by our litigation. And to those concerns, I have a very clear response and a clear offer, which is: let’s sit down and let’s negotiate a softwood lumber deal,” the minister told reporters following her earlier appearance with Lighthizer and their Mexican counterpart, Ildefonso Guajardo.

“I’m happy to start this afternoon.”

A big challenge in reaching a softwood deal is that it’s not entirely up to the governments of Canada and the U.S.

As part of any deal, the American lumber industry would need to sign off on the right to sue Canada again for punitive duties — and there’s no indication that’s happening.

Source: CTV News  (29 January 2018)

Indexator’s new generation of hose swivels – the K100 – continues to gain ground in the forest sector. With its ball-free design the swivel withstands heavy side loads and peak pressure while eliminating the problem with twisting hoses.

Hydraulic hoses are sensitive for twisting and only a few degrees of twist can reduce hose life by up to 90 %. The elimination of twists increases hydraulic hose life time substantially.

The ball-less design makes the K100-swivel suitable for applications with heavy side loads, high pull force and modern machines with high pressure and flow. With less downtime due to leakage the K100 increase profitability for everyone.

“K100 have been a true success. Especially on extreme applications – for example on hoses to harvester heads and felling heads where you have a lot of bending forces going into the swivel,” says Johnny Karlsson, Area Sales Manager at Indexator Rotator Systems.

The modular construction also provides major customization opportunities with many different connection and seal principles. Due to few components the maintenance of the swivels is easy.

“Our customers really like the compact design with small external diameter. It is a clear advantage when you have limited installation space,” says Karlsson.

Main advantages of K100

• New design with powerful slide bearings
• Resistant to heavy side loads
• Secure solution – it cannot be forced apart during work
• Withstands high pressure levels
• Surface treatment that is highly corrosion and wear resistant
• Dirt and water-resistant seal that protects from outside particles
• Seal and support ring for high pressure
• Easy maintenance
• Hardened bearing surfaces
• Compact dimensions
• Optimized design with few parts

Photo: The K100-design withstands heavy side loads better than competitors.

Indexator Rotator Systems AB is a global leader in the manufacture of rotators, swivels and accessories. Today, Indexator is an extremely strong brand in the forestry, material handling and recycling industries all over the world. The company conducts world-class R&D that includes a dedicated, in-house test lab that international equipment manufacturers also turn to to develop new products and functions. They currently have 140 employees and annual sales of around SEK 230 million. A high proportion of sales go to export, with around 80 per cent of production being sold to more than 40 markets around the world.

FURTHER INFORMATION
For further information, contact Area Sales Manager Johnny Karlsson on +46 73 038 93 26 or at johnny.karlsson@indexator.com

Activate Tairawhiti and Eastland Community Trust have jointly announced the sale of Prime Sawmill to New Zealand-owned Far East Sawmill, guaranteeing the creation of between 50 and 60 jobs at the Prime Wood Processing Centre of Excellence by April 2018.

Even more encouraging, Far East Sawmill is already in direct discussions with Juken over staff recruitment.

Eastland Community Trust chairman, Michael Muir, says the sale signals a new era for the Prime site.

“We are delighted to welcome Far East Sawmill to Tairawhiti. We’re thrilled to have such a respected operator on-site, and that we can go some way to saving local jobs.

“This is a massive win for our community. And it must be said – there is no way we could have done this without the foresight of the community in establishing the Eastland Community Trust with a mandate to focus on the region’s economic growth,” he says.

Eastland Community Trust CEO, Gavin Murphy, agreed stating “the region should be proud it has the resources to deliver these sorts of results.”

Far East Sawmill is a subsidiary of Spectrum and is a fully integrated forest products business. The company owns the Tregoweth Sawmill in Te Kuiti, forests in Northland, a forestry harvest company and a transport fleet.

Managing director, Wade Glass, considers the investment in Prime and the Tairawhiti region a strategic one, citing log supply, skilled labour and a proactive business network as contributing to their decision.

“We’re excited to enter a region with such a supportive and well-resourced economic development capability. We’re optimistic that our proposed improvements to the mill will result in a sustainable business and employment for locals,” he says.

The company intends to employ up to 60 staff to produce around 60,000 m3 of timber per annum, and will likely invest a further $9 million in the sawmill, initially upgrading ageing technology to improve efficiencies. Ultimately, Mr Glass says it is the company’s goal to run multiple shifts, eventually employing up to 100 staff.

Far East Sawmill will be replicating the product mix from their existing mill in Te Kuiti, targeting high-value appearance grade lumber for export to European and USA markets. They will also partner with secondary processors who intend to incorporate their processing into, or adjacent to, the mill site in Gisborne.

Though the sawmill itself is sold, Eastland Community Trust still retains ownership of all the land (22 hectares) and can now move forward with its phased masterplan, unlocking further jobs on site and improving the value of the region’s forestry stocks.

Activate Tairawhiti chairman, John Rae, says the organisation is excited about the next steps.

Mr Rae confirmed Activate Tairawhiti is in advanced discussions with a second wood processor interested in establishing its business at Prime. He says securing an operator for the sawmill will now fast-track those conversations and, he expects, others.

This is the second investment at the Prime site with the Wood Engineering business on the same site currently employing 15 staff and working to prove up its technology.

“Until ECT and Activate Tairawhiti got involved, Prime lay dormant. But, thanks to the hard work of our team and the contractors on site over the past 18 months, we are continuing to realise the potential of the wood processing centre of excellence as a strategic community asset.”

Source: Activate Tairawhiti / Eastland Community Trust 

As part of a continuing investment programme at its JJI-Joist plant in Forres, Scotland, James Jones & Sons Ltd has announced that a contract has been placed with US based Globe Machine Manufacturing Co. to supply and install a new high-speed, automated I-Joist assembly line. The total project investment will be almost GBP 7 million.

Angus Macfarlane, General Manager of James Jones & Sons’ Timber Systems Division commented: “The new line will be one of the most advanced in the market place and will allow us to offer customers specification flexibility and product innovation. We anticipate that we will see JJI-Joists coming off the new line in 4Q 2018.”

James Jones & Sons Ltd is the UK’s most diversified, family owned timber processor.