Stora Enso’s 4Q 2020 sales decreased by 11%, or €257 million from the previous year to €2 154 million. Sales were negatively affected by mix and lower prices especially in the Paper and Forest divisions. Lower by-product sales decreased the top line further. Deliveries were clearly lower in Paper, as the global overcapacity and Covid-19 pandemic reduced demand. The divestment and closures of paper production at Oulu Mill in Finland, the Kitee and Pfarrkirchen sawmills in Finland and Germany, as well as a small packaging paper machine closure at Imatra Mills in Finland reduced sales.

4Q 2020 operational EBIT decreased by 5%, or €6 million, from the previous year to €118 million. The operational EBIT margin increased to 5.5%.

FY 2020 sales, at €8 553 million, were 14.9% lower than a year earlier. Deliveries reduced in all divisions and the largest drop was in paper volumes. Sales prices were lower in all divisions, with the biggest negative price impacts coming from pulp and paper. The impact of the foreign exchange rate movements on sales was €19 million positive.

FY 2020 operational EBIT, at € 650 million, decreased by 35.2%, or €353 million and represents a margin of 7.6%. Operational EBIT decreased due to lower sales prices and lower volumes in all divisions. The biggest negative impact came from the lower paper volumes and prices and the significantly lower pulp prices.

Variable costs were €340 million lower, mainly fibre costs including wood, pulp and recycled paper. Fixed costs decreased by €117 million due to Covid-19 and profit protection programme actions. The net foreign exchange impact increased operational EBIT by €123 million. The operational result from equity accounted investments was €16 million lower, mainly due to the Bergvik Skog transaction in 2019.

Stora Enso’s President and CEO Annica Bresky said: “Looking back at 2020, my first year as CEO for Stora Enso, I can undoubtedly say that it has been extremely eventful. The year has been marked by the global pandemic and slowdown of the global economy, but also by geopolitical unrest, Brexit and – for Stora Enso during the 1Q – the strikes in Finland. So, concluding with the 4Q, in an environment that is still volatile, I am very satisfied that we deliver steady results in line with 4Q 2019. If we exclude Paper, operational EBIT increased to €122 million. Sequentially quarter on quarter, we can see improved sales, an indication that the markets are moving in the right direction. We are delivering on our €400m savings promise and we have further reduced working capital to record low levels, enhancing our cash flow.”

Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.

Photo:Stora Enso’s President and CEO Annica Bresky

After serving the southern pine industry for nearly 45 years with the Southern Forest Products Association (SFPA), Tami Kessler will retire on April 2, 2021.

Tami began her life-long career with SFPA after graduating from Soule Business College in December 1976, joining the association as Secretary to the Forest Resource Division. Her path to Executive Director began as she moved into SFPA’s Accounting Department following the retirement of Elsie Wichterich. In 1982 she was promoted to Office Manager and then to Director of Administration in 1986 as she quickly ascended through the ranks. In 2002, she was named as Exposition Director for the association’s Forest Products Machinery & Equipment Exposition, followed by the board-level role of SFPA Secretary and Director of Administration. In January 2014, Tami became SFPA’s Executive Director. Tami is one of the longest-serving employees in SFPA history.

As part of an orderly transfer of leadership, Eric Gee will assume the role as Executive Director.

Eric Gee

The Southern Forest Products Association is a non-profit trade association benefiting the Southern Yellow Pine industry.

Drax is pleased to announce that it has signed an agreement (the “Acquisition Agreement”) with Pinnacle Renewable Energy Inc. (PL.TO) (“Pinnacle”), providing for the acquisition by Drax Canadian Holdings Inc., an indirect, wholly-owned subsidiary of Drax, of the entire issued share capital of Pinnacle (the “Acquisition”).

The Acquisition will be implemented by way of a statutory plan of arrangement in accordance with the laws of the Province of British Columbia, Canada, at a price of C$11.30 per share (representing a premium of 13% based on the closing market price as at 5 February of C$10.04 per share and valuing the fully diluted equity of Pinnacle at C$385 million (£226 million⁽¹⁾), with an implied enterprise value of C$741 million, including C$356 million of net debt⁽²⁾).

The Acquisition, which remains subject to Drax and Pinnacle shareholder approval, court approval, regulatory approvals and the satisfaction of certain other customary conditions, has been unanimously recommended by the board of Pinnacle and has the full support of Pinnacle’s major shareholder, affiliates of ONCAP (which, together hold shares representing approximately 31% of Pinnacle’s shares as at 5 February 2021). Completion is expected to occur in the second or third quarter of 2021.

The Board believes that the Acquisition advances Drax’s biomass strategy by more than doubling its biomass production capacity, significantly reducing its cost of biomass production and adding a major biomass supply business underpinned by long-term contracts with high-quality Asian and European counterparties. The Acquisition positions Drax as the world’s leading sustainable biomass generation and supply business alongside the continued development of Drax’s ambition to be a carbon negative company by 2030, using Bioenergy Carbon Capture and Storage (BECCS).

Highlights

• Compelling opportunity to advance Drax biomass strategy
  • Adds 2.9 million tonnes of biomass production capacity
  • Significantly reduces Drax average cost of production⁽³⁾
  •  
• Increased global reach and presence in third-party markets
  • C$6.7 billion of contracted sales to counterparties in Asia and Europe
  • 99% of capacity contracted through to 2026, significant volumes contracted post 2027
  •  
• Strong return on investment
  • Cash generative with 2022 EBITDA consensus of C$99 million
  • Expected returns significantly ahead of Drax’s WACC
  • Funded from cash and existing agreements
  •  
• Reinforces sustainable and growing dividend

The world’s leading sustainable biomass generation and supply business

• Drax and Pinnacle combined
  • 17 pellets plants, three major fibre baskets, four deep water ports
  • 4.9Mt capacity from 2022 – 2.9Mt available for self-supply
  • 2.6GW of renewable biomass generation, with potential for BECCS
  •  
• Global growth opportunities for sustainable biomass

Commenting on today’s announcement Will Gardiner, Chief Executive Officer of Drax, said:

“I am excited about this deal which positions Drax as the world’s leading sustainable biomass generation and supply business, progressing our strategy to increase our self-supply, reduce our biomass production cost and create a long-term future for sustainable biomass.

“We expect to benefit greatly from Pinnacle’s operational and commercial expertise, and I am looking forward to what we can achieve together.

“It will pave the way for our plans to use Bioenergy with Carbon Capture and Storage (BECCS), and become a carbon negative company by 2030 – permanently removing millions of tonnes of carbon dioxide from the atmosphere each year. Negative emissions from BECCS are vital if we are to address the global climate emergency whilst also providing renewable electricity needed in a net zero economy, supporting jobs and clean growth in a post-COVID recovery.”

Photo: Drax Group CEO Will Gardiner in the control room at Drax Power Station

The strategy, including the G, P and X tiers, offers contractors three choices of solutions to meet their needs.

• Performance Tiers are differentiated by varying levels of performance, serviceability, innovation and comfort.

• The 644 X-tier and the 444-724 P-tier models are offered in the U.S. and Canada.

• The first John Deere G tier product, the 644 G-tier, a rugged, reliable and economical model, will be offered in Canada and other global markets.

Developed in response to evolving customer needs and expectations, John Deere launches its Performance Tiering Strategy, delivering a range of products at different levels of capability and user experience. Available first on the wheel loader lineup, the Performance Tiering Strategy supports customers by providing machine solutions built for various applications and jobs to enhance profitability and efficiency. Moving away from the traditional series letter designations, the Performance Tiering Strategy provides three tiers of machines — G tier, P tier and X tier.

“Every job site is unique, and customers want machine solutions that can be personalized to meet their diverse needs, including performance, price and comfort,” said Jason Daly, global director, production systems, technology and marketing, John Deere. “By offering three tiers, customers can move up or down the spectrum to find the right mix of features, performance and innovation for their business and application.”

The Performance Tiers are defined as:

• Adding a premium edge, the X-tier models are built with the most innovative John Deere technology and features, delivering the highest levels of productivity, efficiency and customer experience.

• P-tier models can be counted on to produce at high levels, day in and day out. Advanced features deliver exceptional performance, efficiency, comfort and service life in demanding, high-production applications.

• The G-tier models are practically equipped and economical, providing proven capabilities with the reliability and ruggedness expected from John Deere. These machines are ideal for customers in need of a reliable machine to complete common light- to medium-duty tasks.

The 444-724 P-tier machines reflect the performance capabilities and features that most customers expect from John Deere, such as those found on the current L-Series wheel loaders, including a redesigned cab, standard parallel lift Z-Bar loader linkage, high-lift plus option, electrohydraulic controls and dual return-to-dig settings. A highly productive and efficient 5-metric-ton wheel loader, the 644 X-tier features E-Drive technology, comprises a diesel-electric drivetrain and exemplifies the type of innovative features that distinguish the X tier.

The 644 G-tier is the first model to be available in the lineup of G-tier Wheel Loaders. Leveraging proven components and technologies, the 644 G-tier is equipped with an all-new cab designed to boost operator comfort and productivity. Customers can customize the machine through a variety of base-level packages, including axles, tires, ride control, seats, radio and rear chassis work-light selections. With the 644 G-tier machine, John Deere delivers a solution ideal for light to medium construction jobs, such as stockpiling, short load-and-carry, truck and hopper loading, and material handling.

Designed and manufactured by John Deere, all tiered machines are backed by the same level of excellent support that customers have grown to rely on — including John Deere Connected Support™ and a five-year subscription to JDLink™. Customers can distinguish the different levels of tiering by not only the attributes and capabilities, but also by the distinct branding and design cues on the machines

The John Deere X and P machines are now available for purchase in the U.S. and Canada, and the 644 G machine is available in Canada and other global markets. Other product categories will follow our Performance Tiering Strategy over time. To learn more about the John Deere Performance Tiering Strategy, as well as the G, P and X-tier models, visit www.JohnDeere.com/Findyourfit.

Bruno Villeneuve joins the Tigercat team in the role of product support representative for Quebec and northeastern Ontario.

Based in Dolbeau-Mistassini, Quebec, Bruno Villeneuve comes to Tigercat with eighteen years experience in the heavy equipment industry, ranging from equipment technician to field service manager. In Bruno’s new product field support role, he will be working closely with Tigercat district manager Yannick Lapointe and Thunder Bay based product support representative Keith Gauvreau.

“Bruno is well known in the forests of Quebec, a very dedicated individual with a contagious good mood. His passion and experience will bring a lot to us and to our customers. If you travel with him, be ready to get up early and get back when it’s done. I am very happy he joined our team,” explains Yannick.

Bruno’s appointment represents the latest effort in Tigercat’s ongoing goal to provide the best after sale support in the industry by monitoring and matching increases in field population to field team resources.

International technology Group ANDRITZ has received an order from Guangxi Chongzuo Lelin Forestry Development Co. Ltd. to supply a chip washing system and pressurized refining system for its production line near Chongzuo in Guangxi province, China.

With a design capacity of 80 bdmt/h, this will be the largest MDF line ever installed worldwide.

The technological solution proposed by ANDRITZ covers a chip washing system, a chip bin discharger suitable for high-capacity discharge rates, a 28” plug screw feeder for highest dewatering efficiency, an 84” digester and discharger with the latest C-feeder concept as well as an S2074M refiner with the proven swing-door design.

ANDRITZ’s extensive experience worldwide in high-capacity lines as well as its well-established service network in China were decisive in award of the order.

With many successful references already worldwide, this exceptional order again strengthens ANDRITZ’s strong position as technology leader in the global panelboard industry.

Guangxi Chongzuo Lelin Forestry Development Co. Ltd. is part of the Lelin Group, headquartered in Nanning, Guangxi, which has been focusing on wood-based panel production for nearly 20 years. The company owns two biomass power plants as well as four wood-based panel manufacturing enterprises, which will have an annual fiberboard output of 1,300,000 m3 after the new line is completed. Guangxi Lelin Group is well-known for its high-quality products, from door panels to engraving and milling panels, formaldehyde-free board and furniture board.

ANDRITZ GROUP

International technology group ANDRITZ offers a broad portfolio of innovative plants, equipment, systems and services for the pulp and paper industry, the hydropower sector, the metals processing and forming industry, pumps, solid/liquid separation in the municipal and industrial sectors, as well as animal feed and biomass pelleting. The global product and service portfolio is rounded off with plants for power generation, flue gas cleaning, recycling, the production of nonwovens and panelboard, as well as automation and digital solutions offered under the brand name of Metris. The publicly listed group today has around 27,800 employees and more than 280 locations in over 40 countries.

Photo: ANDRITZ Single-Disc Refiner S-2000 © ANDRITZ

Harrigan Lumber in Monroeville, AL is investing in a sawmill trimmer line to ramp up its production. Harrigan’s operation is a dimensional lumber mill, and the new trimmer line is designed to operate at 150 lugs per minute. This investment follows the installation of a USNR Transverse High Grader (THG) in 2020.

The new trimmer line includes a double trimmer unscrambler, ElectraTong Lug Loader with backlog controlled by the MillTrak lumber flow management system, Multi-Track Fence, Clamshell style Lineshaft Trimmer, Dual Articulating Smart Gate, 62-bin Pusher Lug Sorter, WinTally sorter management system, and Stick-N-Fork Stacker system.

This line is scheduled to be installed in Q4 2021.

Resolute Forest Products is investing in new Wastewood Chippers at its sites at Saint Thomas and Baie Comeau, Quebec. The company is replacing older technology with USNR’s latest designs. The installations are scheduled for Q2 of 2021

USNR’s Wastewood Chipper processes logs and wastewood slabs, and is proven to produce consistently uniform chips. This high-capacity wastewood chipper is equipped with a very short spout.

Its large “J”-shaped opening is typically fed by a vibrating conveyor that provides automatic self-feeding even through the most difficult surges. The Wastewood Chipper is available in four sizes and three configurations to meet your specific wastewood processing needs.

BID Group (“BID”) is pleased to announce it has received an order from Idaho Forest Group (“IFG”) to deliver its first greenfield sawmill complex project in the Southern United States. In addition to managing engineering, design, and construction of the facility through its Integrated Solutions Team, BID will supply a complete range of industry-leading technologies and reliability services including OPER8^™, the only purpose-built Industrial Internet of Things (IIoT) solution for the Wood Processing Industry.

“We appreciate the opportunity to work with the Comact Team on the integration of their Machine Center Design Expertise into our new mill in Lumberton, Mississippi.  Their partner, BID Integrated Solutions, has a proven track record of coordinating the construction of sawmill complexes in the South.  It is their combined success, intensity of focus and attention to detail that provides us confidence in their abilities to support our IFG Team.  We look forward to the contribution of the Comact/BID Team as we continue to learn about operating in the South,” said Marc Brinkmeyer, Owner and CEO of Idaho Forest Group.

“We would like to thank Idaho Forest Group for their trust in selecting the BID Group to be their partner as they expand into the US South. The combination of IFG’s performance excellence and innovation coupled with BID’s services and technologies will deliver another industry leading facility. We are humbled and honored to be a part of their growth,” said Alistair Cook, President and CEO of BID Group.

On-site civil work will start immediately with sawmill commissioning planned for December 2021.

BID Group has announced it has received an order from Biewer Lumber to deliver its second greenfield sawmill complex project in the southern United States. Through its industry-leading, comprehensive Turnkey solutions offering, BID will manage, design, build, equip, and provide full start-up services for the project.

“We have developed a great trust in the BID team’s ability to go above and beyond to deliver what they commit to. Their dedication to our success is clear in all aspects of their performance. This has been evidenced through the course of two major successful projects together, including our first investment in BID’s industry-transforming mill design at our Newton, MS facility” said Tim Biewer, President and CEO of Biewer Lumber.

The new operation will be fitted with BID’s leading product technologies, optimization software, and artificial intelligence. The sawmill will feature the new Comact Variable Tool Opening (VTO) Debarker complete with in-line variable Flare Reducer, Cant Optimization system, and TrimExpert™.

The planer mill will feature a Miller planer, Comact GradExpert™ with Artificial Intelligence, and the new SortPro lumber sorting software. The lumber drying will be performed with three DelTech continuous dry kilns.

“We would like to thank Biewer Lumber for their ongoing trust in BID. We delivered our very first new generation greenfield lumber complex to the Biewer team in 2016. Since then, we’ve delivered several similar projects.  We are humbled and honored that Biewer has chosen to partner with us again for their next major growth investment” said Alistair Cook, President and CEO of BID Group.

Work on site will begin in the first quarter of 2021 and startup of the sawmill is scheduled for December 2021.