Over 50% of the timber harvest in New Zealand is being exported in log form. However, some sawmills in the country have taken advantage of the growing demand for softwood lumber in the US the past few years, with the total export value having gone 37% from 2012 to 2016, reports the Wood Resource Quarterly.

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The total value of logs exported from New Zealand in the 1Q/17 was almost three times as high as the value of exported lumber, reports the Wood Resource Quarterly

Over 50% of the timber harvest in New Zealand is being exported in log form. However, some sawmills in the country have taken advantage of the growing demand for softwood lumber in the US the past few years, with the total export value having gone 37% from 2012 to 2016, reports the Wood Resource Quarterly.

Seattle, USA.
New Zealand’s log exports have fallen for two consecutive quarters and were at 3.8 million m3 in the 1Q/17, down 12% from the two-year high in the 3Q/16. China continues to be the major destination for the radiata pine logs, accounting for 70% of the shipments during the first three months of 2017, followed by South Korea (16%), India (9%) and Japan (4%), as reported in the latest issue of the Wood Resource Quarterly (WRQ).

No country in the world exports a higher percentage of its harvested conifer timber in unprocessed form than New Zealand. Although the share has declined over the past three years, the log export volume accounted for 52% of the total harvest in 2016. There has long been a debate about how the country could expand domestic processing of forest products and increase exports of lumber and other further processed forest products. The good news is that lumber production has gone up by about ten percent over the past three years. The “less good” news is that there has not yet been any major progress in the expansion of lumber sales to the international arena. Quite to the contrary, New Zealand lumber export volumes were 15% lower in 2016 than in 2013.

The exported logs from New Zealand value was just over 1.6 billion US dollars in 2016, which was almost three times as much as the price for softwood lumber. The total export value for lumber fluctuated within a fairly narrow range over the past seven years, ranging between 570 million US dollars and 660 million dollars, reports the WRQ. The biggest shift in market export sales in the past few years (by value) has been that the US has overtaken Australia as the number one destination for pine lumber produced in New Zealand. In terms of value, New Zealand is the second largest overseas lumber supplier to the US, behind Chile, but ahead of lumber exporters from Europe. Shipments from New Zealand have gone up 37% over just the past four years and during the first five months of 2017, the upward trends continued with another 16% increase from the same period in 2016.

With lumber demand expected to continue to improve in the US market, there continue to be opportunities for overseas lumber producers to expand their sales to North America in the coming years.

Global lumber, sawlog and pulpwood market reporting is included in the 52-page quarterly publication Wood Resource Quarterly (WRQ). The report, which was established in 1988 and has subscribers in over 30 countries, tracks sawlog, pulpwood, wood chip, 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

Hakan Ekstrom
Wood Resources International LLC
Seattle, USA
www.woodprices.com

INTERNATIONAL FOREST INDUSTRIES (IFI) covers everything from silviculture through timber harvesting to forwarding and haulage to sawmills and pulp mills. We also give full coverage to sawmill activities from timber handling in woodyards and at the mill through to the cutting technology and the logistics involved in carrying them to the customer for downstream processing. In addition, IFI covers biomass collection and processing. IFI fills a void within forest related industries that suppliers in timber harvesting, sawmill operations and biomass management have believed to exist for many years.

Chris Cann
EDITOR

In 2016, the total production of European wood-based panels increased by 1.8%, reaching a total of 55.6 million cubic metres. Particleboard production increased by 0.8% to 30.2 million cubic metres, reports the European Panel Federation.

Medium Density Fibreboard (MDF) also grew, recording an increase of 2% to a total of 12 million cubic metres. Oriented Strand Board (OSB), the third largest panel type by volume, rose strongly by 6.9% to 5.4 million cubic metres. Second only to OSB in terms of growth rate was Softboard, which increased by 4% to 4.6 million cubic metres.

Plywood production in Europe developed positively with a 2.5% increase to 2.9 million cubic metres. The only panel type that did not increase in production terms during 2016 was Hardboard which dropped 5.6% to 0.5 million cubic metres.

The European Panel Federation has members in 25 countries and represents the manufacturers of particleboard, MDF, OSB, hardboard, softboard and plywood.

Kadant Inc. completes acquisition of the forest products business of NII FPG Company, a global leader in the design and manufacture of equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry, for approximately $173 million, net of cash acquired, subject to a post-closing adjustment. The transaction was financed through borrowings under the Company’s revolving credit facility. The business will be integrated into Kadant’s Wood Processing Segment.

“We are pleased to complete this transaction and welcome our new colleagues from NII FPG to the Kadant family,” said Jonathan Painter, president and CEO of Kadant. “With NII FPG’s leading position in its markets and a strong parts and consumables business, we are confident the company will be a solid contributor toward achieving our strategic initiative of growing our aftermarket business.”

The forest products business of NII FPG Company has 275 employees worldwide and generated revenue of approximately $81 million for the twelve months ended December 31, 2016.

 Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide.

 Photo: Jonathan Painter, president and CEO of Kadant

UPM has signed a contract to sell forest estates to Silvestica Green Forest Finland Oy. The contract covers 6,877 hectares of forestry land located in Kajaani, Sonkajärvi and Sotkamo in Finland. In addition, the parties have signed a separate long-term wood purchase and forest management agreement.

Silvestica Green Forest Finland Oy is committed to certify the estates according to FSC® and to join the UPM managed FSC group certificate. For the time being the estates are PEFCTM certified. The parties have agreed not to disclose the purchase price.

“The forests now acquired are very nice mostly high quality pine forests in their most productive age classes meaning a good value growth,” says Rickard Lehmann, Chairman of the board, Silvestica Green Forest Finland Oy.

The forests will be managed by CRK Forest Management AB with CEO Rickard Lehmann in charge of forest activities and reporting to investors.

UPM has regularly sold its forest assets as part of developing its real estate portfolio. At present, UPM owns approximately 640,000 hectares of forestry land in Finland.

Silvestica Green Forest Finland Oy is owned by a Swedish company Silvestica Green Forest AB, which is an investment fund for institutional investors founded in spring 2017 by SEB, the leading Nordic financial services group.

PRT Growing Services Ltd. (PRT)  reached an agreement with the ownership group of Skimikin Nursery Ltd to acquire the company, effective July 1, 2017.

Following the Skimikin acquisition, PRT will grow over 210 million seedlings annually and operate a network of 15 forest seedling nurseries in the US and Canada, as well as Bionera, its short rotation woody crop subsidiary.

Skimikin Nursery is located in Tappen, British Columbia, Canada, approximately one hour north of PRT’s three other BC Okanagan region nurseries.

The nursery is comprised of a 100 acre (40 ha) site with approximately 260,000 square feet of greenhouse facilities and approximately 196,000 square feet of open compound growing space. Skimikin’s customer base comprises both forest industry customers and the BC Ministry of Forests.

The PRT group, through affiliates PRT USA Inc. and PRT Growing Services Ltd, is a forest seedling propagator and the largest producer of container-grown forest seedlings in North America. Following the Skimikin acquisition, PRT will grow over 210 million seedlings annually and operate a network of 15 forest seedling nurseries in the US and Canada, as well as Bionera, its short rotation woody crop subsidiary. For further information, please see PRT’s website at www.prt.com and Bionera’s at www.bionera.com.

The new logistics solution designed specifically for Metsä Group’s bioproduct mill at Äänekoski is ready to serve the mill’s wood and pulp transport.

Once fully operational, the bioproduct mill – set to start up in mid-August 2017 – will use 6.5 million cubic metres of pulpwood and woodchip. It will produce 1.3 million tonnes of pulp a year.

Metsä Group will purchase the pulpwood needed by the bioproduct mill chiefly from within a radius of 100–150 kilometres of Äänekoski. The bioproduct mill will receive an average of 240 truckloads and 70 rail freight carriages of pulpwood a day.

“The timber trucks will transport the wood directly from the forest stocks to the mill or to a buffer stock in one of the fifteen terminals we’ve set up,” says Heikki Karhunen, Metsä Forest´s SVP, Customership.

After the new bioproduct mill is fully operational, its employment effect throughout the value chain in Finland will be to provide 2,500 jobs, of which 1,500 will be new ones.

Pulp deliveries from the new mill to customers will begin in early September 2017. Some 70% of the bioproduct mill’s production will be exported.

“Export logistics will be based on a comprehensive new solution, in which VR Transpoint will be responsible for the rail transport of goods to the Vuosaari port in Helsinki and for the port operations in cooperation with Oy M. Rauanheimo Ab,” says Tarja Nousiainen, Metsä Fibre’s VP, Pulp Supplies.

One of the key renewals in the production chain is the bioproduct mill’s automated pulp distribution centre, which increases the efficiency and accuracy of deliveries. According to Nousiainen, the new technology has required the large-scale development and integration of IT systems with service providers.

Metsä Fibre has also built its own product warehouse at the Vuosaari port which can house 80,000 tonnes of pulp. The rail freight transports to Vuosaari will be handled in their entirety with environmentally efficient electric locomotives, once the project concerning the rail connection to the Äänekoski bioproduct mill produced by VR Track is completed in the summer of 2017.

Metsä Fibre is a leading producer of bioproducts and bioenergy. Metsä Fibre is part of Metsä Group.

Valmet will deliver an EVO-56 Defibrator system to Chiping County Senqiang MDF in China. This is a new fiberboard line and the Defibrator system will produce 30 tons per hour bd (bone dry) unresinated fiber. The start-up is scheduled for June 2018.

 “The EVO-56 system is specially designed for production levels up to 32 tons per hour, which is perfect in this case. Chiping County Senqiang has one existing line and this is their first EVO system from Valmet. The fiberboard market is growing in China, and Chiping County Senqiang has own flooring manufacturing and their goal is to be number one in fiberboard quality,” says Leif Sundberg, Sales Manager, Pulp and Energy Business Line, Valmet.

The Defibrator system is an essential part in a fiberboard line. Valmet’s defibrators are known for their reliability and provide high-quality, homogenous fiber material. The material from Valmet’s system has a minimum of shives and low fines content, which is a prerequisite for successful fiberboard production.

The Chiping Senqiang MDF belongs to Sensen group, which was founded in 2001. The company owns five Multi opening MDF lines and the annual production is 400,000 cubic metres. Sensen group’s business covers production of formaldehyde, paper printing, lamination, MDF and flooring.

Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries.

Gordon Timber opened its new office facility in Nairn, Scotland. The new office building is situated looking over the log yard, displaying the initial stages of our production process, and positioned centrally on the site, making it an ideal location for all members of staff and visitors.

Gordon Timber Joint Managing Director, Scott Gordon said: “The new building has enabled us to gather all office based staff in one modern facility, creating a positive environment to work in. The completion of the new building is consistent with our drive to strengthen the effectiveness and efficiency of the company’s operations”.
Gordon Timber is one of the top sawmilling companies in the UK.

Blue Lake Power LLC plans to restart its 12 MW biomass plant located in Blue Lake, CA, in July 2017. The facility is a biomass power-generation unit designed to burn wood, create steam and operate a turbine to generate electrical power. The power will be sold into the power grid in Northern California.

Blue Lake Power LLC is presently working to secure short and long-term supplies of high-quality fuel for ongoing operations. An immediate and continuing need for fuel exists at the Blue Lake facility.

Blue Lake Power LLC announces its plans to restart its 12 MW biomass plant located in Blue Lake, CA (10 miles from Eureka) in July 2017. The facility is a biomass power-generation unit designed to burn wood, create steam and operate a turbine to generate electrical power. The power will be sold into the power grid in Northern California.

Blue Lake Power LLC is presently working to secure short and long-term supplies of high-quality fuel for ongoing operations. An immediate and continuing need for fuel exists at the Blue Lake facility. Under its operating permit, the plant may burn fuel consisting of untreated wood including sawmill hog fuel, shavings, bark, branches, cull logs, tree tops, off-spec and waste lumber, skids, yard waste, walnut shells, similar woody agricultural waste, shredded lumber, woody materials from hazardous forest areas, etc. The facility may not accept treated or painted materials.

The facility requires approximately 175 highway loaded chip vans of fuel per week. Blue Lake Power would like to deal in multiple truckload quantities of material. Rail unloading is not available. Deliveries may be possible to a remote site that is being developed by Blue Lake Power. Cull logs and chunks of unground wood are also acceptable.

The price paid, for any potential fuel purchased is dependent on a number of factors and can be negotiated between the parties. Payment terms are also negotiable. The price and terms will be competitive with the existing market.

Blue Lake Power would appreciate the opportunity to discuss the purchase of qualifying fuel from any party in possession of or authorized to sell a present supply or long-term source of such fuel. Calls from brokers are welcomed.

Please call Mr. Mike Dedmore, Plant Manager at 707-362-6175 or Glenn Zane (530-515-7007), authorized agent for Blue Lake Power LLC, to discuss this opportunity.

Please forward this information to any potentially interested party.