UFP Industries, Inc. (Nasdaq: UFPI) has announced that its wholly owned subsidiary Sunbelt Forest Products Corporation closed on its agreement to purchase the net operating assets of Spartanburg Forest Products, Inc. and its affiliates. The purchase price for Spartanburg’s property, plants and equipment is approximately $16.5 million. Sunbelt also purchased Spartanburg’s net working capital for an amount equal to the net book value determined on the date of closing, which totaled approximately $146.5 million.

“This acquisition will allow Sunbelt to grow by offering more products to Spartanburg’s customers while expanding our capacity and geographic reach to serve our existing customers,” said Ken DelleDonne, president of Sunbelt Forest Products. “In addition, we expect to drive efficiencies in our supply chain and administrative services as we combine our operations. We’re excited to welcome the Spartanburg team to Sunbelt and look forward to building an even stronger future together.”

Sunbelt Forest Products Corporation

Based in Bartow, Florida, Sunbelt Forest Products Corporation is a leading producer of pressure-treated lumber and residential fencing in the Southeast, with 300 employees. The company is an affiliate of UFP Retail Solutions, which is a subsidiary of UFP Industries.

Spartanburg Forest Products

Headquartered in Greer, South Carolina, Spartanburg Forest Products and its affiliates are a premier wood treating operation in the U.S., with approximately 150 employees and operations in five states. Its affiliates include Appalachian Forest Products, Innovative Design Industries, Blue Ridge Wood Preserving, Blue Ridge Wood Products, and Tidewater Wood Products.

UFP Industries, Inc.

UFP Industries is a holding company whose operating subsidiaries – UFP Industrial, UFP Construction and UFP Retail Solutions – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Michigan, with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.

China saw a decline in 2020 log imports – According to China Customs, log imports in 2020 totalled 59.20 million cubic metres valued at US$8.415 billion (CIF), a year on year decline of 2% in volume and 11% in value. The average price for imported logs was US$141 (CIF) per cubic metre, down 9% on levels in 2019. Of total 2020 log imports, softwood log imports rose 4% to 46.86 million cubic metres, accounting for 79% of the national total, 4% up on 2019. The average price for imported softwood logs was US$117 (CIF) per cubic metre, down 6% on levels in 2019.

Chinese analysts say China’s log imports fell mainly because of the impact of the pandemic but that the increase in softwood logs imports was due to the large volume of harvested logs available in Europe due to heavy felling as a pest control measure.

It has been forecast that as much as 500 million cubic metres of European spruce will be harvested by 2024 and most of these softwood logs will be imported by China via the China-Europe Railway Express. Softwood log imports from Germany soared – In 2020 the volume of softwood log imports from most countries however, from Germany, the Czech Republic and Japan imports increased which contribute to the overall rise increase in softwood log imports even during the pandemic.

New Zealand was the main softwood log supplier to China in 2020 accounting for 34% of total softwood log imports. Softwood log imports from New Zealand totalled 16.15 million cubic metres in 2020, a year on year decline of 8%.

Germany became the second main supplier of softwood logs imports at 9.98 million cubic metres, a year on year increase of 162%, accounting for about 21% of the total softwood log imports in 2020, exceeding imports from Russia for the first time.

China’s softwood log imports from the Czech Republic and Japan in 2020 rose 47% and 23% to 3.38 million cubic metres and 1.15 million cubic metres respectively. Russia ranked the third supplier of China’s softwood logs imports at 4.43 million cubic metres in 2020, a year-on-year decline of 24% and accounted for 9.5% of total softwood log imports in 2020.

Source: ITTO TTM Report

John Deere increases the range of its grade control solutions with the launch of SmartGrade on its 210G LC and 350G LC excavators.

The factory-installed and -calibrated 3D SmartGrade system is designed to deliver increased productivity and accuracy on the job and provide ease of use to contractors at all levels.

“By incorporating precision technology, such as SmartGrade, on our excavator lineup, we are boosting job site productivity and efficiency while enhancing the capabilities of our operators,” said Justin Steger, solutions marketing manager, John Deere. “However, there isn’t a one-size-fits-all solution, and contractors need options to pair the right technology with their business needs. This is where customers really benefit from the flexibility of our grade management path.”

At CONEXPO-CON/AGG 2020 last March, John Deere became the first equipment manufacturer to fully integrate grade control technology in compact equipment with the introduction of the SmartGrade 33G compact track loader.

For its excavators, John Deere now offers four grade management options to choose from:

• SmartGrade
• SmartGrade-Ready with 2D
• 3D Grade Guidance
• 2D Grade Guidance

Additionally, John Deere offers upgrade kits for each grade management option so customers can adopt technology at their own pace.

A SmartGrade excavator automates the boom and bucket functions for the operator to achieve a smooth and accurate finish grade. Using GNSS positioning technology for accurate horizontal and vertical positioning, the machine controls boom and bucket movements to a precise design target. This enables the operator to focus on controlling the arm function while the system raises and lowers the boom to maintain grade.

“We’ve equipped the 210 LC and the 350 LC with SmartGrade to give operators at every level of experience the ability to quickly and confidently achieve grade by controlling the boom and bucket,” Steger said. “The semi-automatic technology frees up the operator to concentrate on the arm function, resulting in fewer periodic grade checks every time.”

Steger added, “John Deere understands that every contractor has different business needs, and therefore, different requirements when it comes to returns on their investments. SmartGrade reinforces our belief that every operation deserves to benefit from the advancements technology has to offer.”

The SmartGrade-Ready with 2D option provides a 2D system with semi-automated functions, improving the ease of use without the need for GNSS technology or 3D design plans. Additionally, the SmartGrade-Ready machines arrive from the factory prewired for the SmartGrade system, enabling the owner to upgrade in the future, if they choose.

The 3D or 2D Grade Guidance options provide reference information to the operator in the cab to improve productivity. The 2D Grade Guidance option shares bucket tooth and cutting-edge elevation information relative to a benchmark with the operator through the in-cab monitor.

The 3D Grade Guidance option accurately provides the horizontal and vertical bucket position using GNSS technology and can make use of a 3D design plan. All guidance and control options are available with an optional laser receiver, which leverages an ultra-precise local external elevation reference.

With SmartGrade or SmartGrade-Ready machines, the selectable bucket control feature automatically maintains the user-defined bucket angle throughout grading passes. This feature helps the operator place material more effectively, reducing waste and saving money.

Factory joystick integration provides the ability to adjust the grade offset, set a benchmark on the 2D system, measure a desired point on the bucket with the 3D system or easily turn on and off automatics and protect features, helping further boost productivity by keeping the operator’s hands on the joystick and in control.

New precision technology features include Virtual Front, which hydraulically limits and automatically stops the bucket cutting edge from contacting the front of the machine at a selectable distance, preventing machine damage. The over-dig protect feature limits the bucket’s cutting edge from going below the target design surface, preventing costly over digging on the job.

Additional virtual fence technology features, such as Virtual Ceiling, Virtual Floor, Virtual Swing and Virtual Wall, provide the operator with audible alerts as the machine approaches an adjustable setpoint, allowing operators to focus on the task at hand.

“This 360-degree range of coverage means there are no surprises, including the job done well at the end of the day,” Steger said.

To boost uptime, John Deere SmartGrade Remote Support enables the dealer to remotely monitor and support the machine from miles away. Wireless data transfer provides the ability to remotely send updated design files to the machine, saving trips to the job site.

Additionally, the SmartGrade excavators are compatible with JDLink telematics, increasing visibility to machine utilization and reducing costly downtime.

Source: 365 News

Paper Excellence announces the acquisition of an interest in the Atli Chip Limited Partnership. The Partnership has acquired the assets of the North Island Chipping facility situated in Beaver Cove, BC, located on the traditional territory of the ‘Namgis First Nation. The facility is capable of processing 300,000 to 400,000 m3 of chips per year for use in the pulp and paper industry from local supplies of pulpwood and salvage wood.

Atli Chip Limited Partnership is majority owned by Atli Resources LP with minority stakes owned by Paper Excellence and Wahkash Contracting Ltd. Atli Resources LP is a forest company beneficially owned by the ‘Namgis First Nation and Wahkash Contracting Ltd. is a stump-to-dump logging contractor specializing in remote logging in coastal BC.

“Paper Excellence is proud to be a part of the Atli Chip Limited Partnership,” said Quinton Hayward, Chief Forester for Paper Excellence. “As a company, we understand the importance of being good neighbors and greatly value our relationships with Indigenous communities and their business ventures. This is an exciting opportunity to build mutually beneficial business partnerships and support community investment.”

Don Svanvik, ‘Namgis Chief Councillor added, “We are very excited about the opportunity for Atli Chip Limited Partnership to take over operations of this facility to meet the growing needs of the industry and to acquire a business that we believe will have long-term economic and environmental benefits for the ‘Namgis people and the north Island as a whole. The ‘Namgis have long been a significant contributor to the economic health of the north Island and this acquisition will continue that tradition. We look forward to working together with our new partners.”

Dorian Uzzell, President of Wahkash Contracting added, “We are proud and excited for the opportunity to work with these partners. It’s partnerships like this one that build confidence in the forest industry by providing long-term job security in our rural communities.”

In conjunction with the acquisition, Paper Excellence is entering into a chipping services agreement to receive all the chip and hog production from the facility and a Salvage Agreement with Atli Resources LP to increase First Nations participation in the forest sector.

A key goal of the new business is increasing the utilization of local waste and salvage wood in the operations. “Atli Chip Limited Partnership will serve a key role in reducing the amount of residual fibre left behind after primary forest harvesting,” said Hayward. “Processing fibre that currently is left on the forest floor will result in less slash burning of post-harvest waste ensuring better utilization of the forest resources and carbon reduction.”

Södra is acquiring Ture Johanssons Trävaru AB and AB Tenhults Impregneringsverk. The new sawmill and timber treatment facility will provide a better market for wood in a prioritised area and strengthen Södra’s customer offering in the Swedish building trade. It will also improve Södra’s ability to implement its Group strategy.

“We look at specific needs and criteria when we develop our industrial structure. We are therefore delighted to welcome Ture Johanssons Trävaru and Tenhults to Södra. The companies will strengthen our operations and be an excellent complement along the E4 motorway. They have a long history in the area and will enable us to grow more together with our customers. We are looking forward to continuing to develop the operations together with the employees in Klevshult and Vaggeryd,” said Peter Jhaveri, Interim President of the Södra Wood business area.

The sawmill produces 100,000 m³ per year

Ture Johanssons Trävaru is a sawmill located in Klevshult in the southern region of Vaggeryd Municipality, with 55 employees. The sawmill produces approximately 100,000 m³ of sawn timber annually. Production mainly focuses on the building materials trade and offers a range of planed and primed timber products.

AB Tenhults Impregneringsverk is located at the Götafors industrial site in Vaggeryd and comprises four impregnation autoclaves. More than 100,000 m³ of timber are pressure treated at the facility every year. Tenhults has seven employees and is known for its environmental and NTR certified processes.

Södra currently has six sawmills and two timber treatment facilities in Sweden. The newly acquired facilities are located in an area where Södra already has a stable raw material supply, but where it does not conduct its own industrial operations. These acquisitions will now help to strengthen the market for wood in central Götaland and improve Södra’s position in the Swedish building trade. This, in turn, will further strengthen the organisation by increasing the overall capacity and creating synergies with Södra’s existing production units.

“Södra is to ensure a market for its members’ raw materials and increasing the value of their wood. Having relevant industrial operations in relevant central locations is a key part of this. These acquisitions will allow us to do just that. Ture Johanssons Trävaru and Tenhults will strengthen Södra’s customer offering and market for wood in an important geographic area. This is in line with our Group strategy and will provide us with better conditions for sustainable and profitable growth,” said Lotta Lyrå, Södra’s President and CEO.

The acquisition will take effect following approval.

Ture Johanssons Trävaru was established in 1950 and has operated in Klevshult since 1957. Lennart Johansson, son of the founder Ture Johansson, is CEO of the company.

“Södra will create opportunities for the continued development of the operations. It feels great to be handing over the reins to a member-owned association – with solid local roots and a long-term ownership horizon. Together, we will make our customer offering even stronger,” said Lennart Johansson.

The acquisitions will take effect immediately following approval by the Swedish Competition Authority. This process is expected to take up to six weeks.

For more information, please contact:
Södra’s Pressroom
Tel: +46 (0)470-890 90
E-mail: press@sodra.com

Nanaimo, BC  ̶  Mosaic Forest Management is announcing its partnership with local Vancouver Island service provider, EcoWest Driven, to introduce several Tesla semi-trucks into log hauling. There are currently no commercially available electric log trucks solutions appropriate for the terrain on Vancouver Island.

The BC forest sector has a significant role to play in addressing climate change. The working forest captures carbon as it grows, and wood products keep that carbon locked-up for decades. New trees are planted and the renewable cycle repeats. However, forestry operations generate tailpipe emissions, including from log trucks. Electrifying the fleet is a particularly good approach in British Columbia where over 90% of power in the Province is generated from clean hydroelectric sources.

“We are committed to achieving carbon neutrality by 2035 and electrifying our log hauling fleet is a significant step in that direction” said Jeff Zweig, President and CEO of Mosaic Forest Management. “BC is a global centre of excellence in forestry, and we are proud to work with our local partner, EcoWest Driven, on this important project”.

“With our in-depth experience and knowledge of the forestry industry on Vancouver Island, we are excited to partner with Mosaic to utilize Tesla’s innovative electric semis into log haulers,” said Timber Johnson, Director and Co-Founder of EcoWest Driven. “We have begun the process of creating charging infrastructure and a new electric vehicle maintenance facility in Parksville, BC to accommodate this new demand for emission-free heavy haulers,” added Jarvis Shaver, Director and Co-Founder of EcoWest Driven.

“Mosaic’s commitment to carbon neutrality, and these innovative actions in support of that commitment, align with our CleanBC objectives to build a cleaner and better low carbon economy for British Columbians,” said Katrine Conroy, Minister of Forests, Lands, Natural Resource Operations and Rural Development.

About Mosaic Forest Management Corp.

Mosaic Forest Management is the timberlands manager for TimberWest and Island Timberlands – two affiliated companies that have operated on Vancouver Island for over a century, delivering sustainable forest management within their private forest lands and Crown tenure areas. Mosaic employs several thousand people directly and indirectly striving to achieve the positive economic, social and sustainability outcomes from the working forest. For more information, visit mosaicforests.com.

About EcoWest Driven

EcoWest is a recently incorporated company formed specifically to introduce electric semi-trucks to the transportation industry. EcoWest’s goal is to be the catalyst to utilizing hauling fleets, in a variety of industries, from fossil-fueled trucks to electric trucks and in doing so provide a service to our clients that is both efficient and cost competitive. Converting to electric semi-trucks will also significantly reduce, or eliminate, the carbon footprint for the hauling component of the client’s businesses.

Tesla
For more information on the Tesla semi, please visit: https://www.tesla.com/en_CA/semi
For downloadable photography, please visit: https://www.tesla.com/en_CA/tesla-gallery

Media Inquiries

Mosaic Forest Management
Evelina Lamu
Manager, Communications
Media@MosaicForests.com

TOKYO — Japanese equipment maker Komatsu hopes to generate 140 billion yen ($1.27 billion) in revenue from forest machinery after four years, which would mark a 40% increase, due to robust housing and material demand reports HIROFUMI YAMANAKA NIKKEI Asia.

Komatsu intends to fulfill its goal by offering a stronger lineup of equipment such as feller bunchers and forwarders for the North American market. The U.S. has the fourth largest distribution of forests in the world, in terms of area.

Up to now, Komatsu’s forestry equipment has been compatible with the European logging process in which timber is carefully arranged on the spot before being hauled out. For North America, the company will also offer equipment that will carry timber as is to processing centers.

Komatsu will develop the Russian and Southeast Asian markets as well. Indonesia and Russia still rely heavily on chainsaws wielded by human hands. While Western logging industries have a 70-80% penetration of forestry machinery, Asia remains behind at roughly 20%. Komatsu’s equipment will compensate for the labor shortage and improve on-site productivity.

In the interest of climate change, the manufacturer will also invest resources into promoting reforestation, selling bulldozer-like equipment for prepping the ground, along with automated tree planters.

Because trees absorb carbon dioxide in the air, the early cultivation of forests is expected to slow global warming.

Demand for housing construction material and pulp remains strong, with paper in particular gaining attention as a substitute for plastic.

The global market for forestry equipment is growing by 2% to 3% a year on average. This sector outpaces that for the construction machinery market, which rises at a roughly 1% clip.

Komatsu hopes to nurture forestry equipment into its third-largest moneymaker, behind machinery for civil engineering and mining. By the fiscal year ending March 2025, it looks to capture a 20% global share in forestry equipment.

Source : HIROFUMI YAMANAKA, Nikkei staff writer https://asia.nikkei.com/

The decision made by CHH to discontinue supply of structural timber to some merchants comes as no surprise says NZTIF. In recent months all New Zealand sawmills have been under pressure to supply a booming domestic timber market for all end uses; residential building and outdoor timber for uses including fencing decking and landscaping.

However, based on other available timber milling production capacity and previous cyclical shortages, the New Zealand Timber Industry Federation doesn’t expect the current timber shortage to be overly prolonged. Efforts are being made to supply the demand in some cases mills are diverting export timber back into the New Zealand market.

However, sawmills’ ability to ramp up production quickly has been constrained in regions by a lack of availability and rising costs of logs and labour. Apart from the two remaining CHH sawmills, there are still a good number of other mills operating and all are lifting capacity as much as they are able to meet this current increase in demand. The biggest challenge to lifting production for mills is getting enough logs and in turn, competing on supply and price with the Chinese buyers and the export demand for NZ logs.

The next challenge then is getting enough skilled staff to put on additional shifts. Getting the mix of skills required, or training staff, has been an ongoing issue to the timber industry for a number of years.

Users of timber need to avoid panic buying, plan well ahead and consider using other timber sizes, grades and specifications that may be more available. Councils and building consenting authorities should in turn be going out of their way and putting provisions in place to remove compliance barriers and make it straight forward for builders to make any timber specification changes, deemed necessary, without undue hassles and delays. (e.g. substituting sizes and grades and in many cases “brand name” such as where plans specify “Laser frame” a CHH product which could readily be substituted by a product from a different mill).

The government could assist by including the specialised skills, applicable to sawmilling, on the Essential Skills Shortage List so the immigrant labour could be utilised in the short term.

New Zealand sawmills have historically been able to supply all of the country’s timber needs with few shortages ever occurring or lasting for long. Timber retailers and builders have, in the past, been spoilt with timely deliveries and choice of timber suppliers leading to few supply constraints and timber prices being held down.

The squeeze between rising log and labour costs and sawn timber sales prices has led to numerous sawmill closures over recent years. Some regions of NZ now have no, or few, sawmills making these communities more exposed to timber supply shortages.

Over the last two years alone, we have seen five significantly sized sawmills close down, representing an estimated 400,000 cubic meters of production. A major factor in these closures has been uncertainty and the high cost of log supply. Whilst the remaining sawmills have taken steps to plug the shortfall, lost capacity to service the local market is evident.

In the February this year the value of log exports was $305 million, a 48% increase on the values of logs exported in February 2020. In the quarter to 31 December 2020, we exported 6.0 million tonnes of logs compared to 5.1 million tonnes in the December 2019 quarter, an 18% rise. There is unabated demand for logs in export markets, especially China where other log supplying regions, Australia, eastern Russia and Europe have encountered difficulties in supply.

For further commentary and coverage on the “timber shortages” issue that got it’s fair share of air time this week, see below.

Forest Owners Association on what caused the timber shortage

Carter Holt’s halt on wood supply a ‘sign of a system under stress .

Com Com to look into Carter Holt Harvey halting supply to major retailers

Sources: New Zealand Timber Industry Federation, Stuff, Business Desk, RNZ

A decision by Carter Holt Harvey to stop supplying wood products to major retailers could redefine how houses are built in New Zealand, an industry organisation says. Mitre 10 and Bunnings have confirmed to Stuff Carter Holt Harvey has stopped supplying them with wood products.

Mitre 10 chief of customer solutions Chris Peak said Carter Holt Harvey Woodproducts had told Mitre 10 that it could not supply it with structural timber for the foreseeable future. “This poses an industry-wide issue,” Peak said.

Mitre 10 had multiple supplier relationships and would be working to ensure it could continue to supply customers, he said. Bunnings head of merchandise New Zealand Cameron Rist said it sourced timber from a large number of suppliers and had a range of alternative options so did not expect the change would impact on its product availability.

“Carter Holt Harvey isn’t a major supplier to Bunnings and customers can be assured we will continue to work with our suppliers to meet demand for timber across our store network.”

PlaceMakers chief executive Bruce McEwen told Stuff it was advised by Carter Holt Harvey on Wednesday that it intended to make changes to how it supplied customers. BusinessDesk on Friday reported that Carter Holt Harvey had also stopped supplying ITM.

Building Industries Federation chief executive Julien Leys said it appeared as though Carter Holt Harvey had cut loose smaller retailers but was continuing to supply large customers including Fletcher Building-owned Placemakers and its own subsidiary Carters. “It certainly caught everyone by surprise,” Leys said.

A “perfect storm” had led to Carter Holt Harvey not being able to meet demand for a structural wood product called “wides” – 245mm wide timber used in a wide range of building applications, from flooring to trusses.

He said Carter Holt Harvey was the biggest manufacturer of wides in New Zealand, and it had been caught off guard by a rise in demand from multi-storey housing builds. “We’re seeing all these multi-storey units – two or three floors requiring much more timber. They just haven’t seen it coming. They haven’t been able to gear up their manufacturing capacity.”

Growth in log exports to China had also compounded the issue, he said. “The Chinese are paying top dollar for our logs.” Some timber mills in New Zealand may step in to fill the gap, but the more likely solution would be builders switching to alternative wood products, he said.

“It might mean we start having houses built a little bit differently.” Builders may need to make changes at short notice to building plans and those that were part way through a build would be looking at what the next best alternative to timber wides was, he said. “They might not necessarily go back to that wide timber.”

Source: Stuff

You may have noticed that Holmen has changed colors, icons and a new logo in our digital channels, in the annual report and in social media. It is part of Holmen’s new brand identity and affects how we look and communicate.

The new identity is based on the interplay between nature and technology. Holmen creates a sustainable future for customers and society, and it is through nature and technology that they make it happen. The story of Holmen begins in the forest, in the meeting between the power of nature and man’s curiosity and engineering.

To clarify its story, they have developed a new brand platform and visual identity. The new identity draws inspiration from this duality – the meeting between nature and technology. Soft shapes meet sharp corners and earthy tones contrast with energy-rich, stronger colors. A living brand that can proudly represent the whole of Holmen – from Forest and Energy to Wood Products, Cardboard and Paper.

“The entire group is part of our circular business and our new sharp brand expression that clearly reflects Holmen today; a future-smart, circular business with the power to make a difference and which drives the transition to a sustainable society. ”

Stina Sandell, Sustainability and Communications Director at Holmen