Log trains are running again on the Wairoa-Napier line from this weekend. Services were suspended earlier this year as a result of COVID-19’s impact on the forestry industry. KiwiRail Chief Operating Officer Todd Moyle said the first train ran last weekend.

He said, “We’re pleased to get the service up and running again, however, with the track now back in regular use, people travelling in the area will need to take special care around level crossings. Those crossing the tracks should expect trains at any time and from either direction.”

“Initially there will be two return trains each weekend. Each train is expected to consist of 24 wagons, the equivalent of 24 truckloads of logs,” he added

Over time, as log volumes increase, they expect to run trains daily as there are significant numbers of forests in the Wairoa catchment that are reaching maturity. Harvest volumes in the Hawke’s Bay region are predicted to reach 3.3 million tonnes per annum in the next few years and remain at high levels until the mid-2030s, so we know there is a demand for rail.

Rail infrastructure investment has multiple, long-term benefits, some of which are not immediately obvious. For example, moving more logs by rail instead of trucks reduces road maintenance costs and congestion and improves road safety – particularly on regional roads like those between Napier and Wairoa which were not designed for heavy trucks. Given trains have 70 per cent fewer emissions than trucks per tonne of freight, it also helps reduce transport emissions.

The line was rebuilt with $6.2 million provided to the project through the Provincial Growth Fund.

Source: Scoop
Photo: KiwiRail Chief Operating Officer Todd Moyle

Timo Savornin has been appointed as Sales Director at Nisula Forest Oy on November 1^st, 2020. Timo has strong practical knowledge of mechanical timber harvesting and years of experience in international trade. “The ongoing expansion of the factory as well as upcoming products will open new market areas and possibilities in the near future. Timo is the best person to export high-quality Nisula products to new market areas, says Kalle Mattsson from Nisula Forest Oy.

Scottish timber initiative – Pilot project could result in more mainstream use of UK-grown wood in construction and the country’s first engineered timber manufacturing plant.

Greater use of home-grown timber in UK construction is taking a significant step forward through a new demonstrator project, which could lead to a major boost for Scotland’s economy and the industry’s environmental impact.

A consortium of partners – comprising of Construction Scotland Innovation Centre (CSIC), Edinburgh Napier University (ENU) Centre for Offsite Construction and Innovative Structures (COCIS), Scottish Forestry, Confederation of Forest Industries (Confor), and SNRG – has secured funding from Innovate UK’s Sustainable Innovation Fund to prove the business case for using Scottish timber to create the structural elements of buildings.

The initiative will manufacture the first Scottish-sourced cross laminated timber (CLT) and nail laminated timber (NLT) housing unit – including wall, roof, and floor – using the UK’s only vacuum  press at CSIC’s 35,000 sq. ft. innovation factory in Hamilton. The demonstrator project could ultimately lead to the mainstream use of home-grown timber in Scotland and the rest of the UK construction, as well as the development of the country’s first engineered timber manufacturing plant.

Set to complete by the end of 2020, the CLT and NLT superstructure will be showcased at next year’s COP26 United Nations conference on climate change, set to take place in Glasgow between November 1^st and 12^th 2021.

Sam Hart, innovation manager at CSIC, said: “The project is an important milestone in the move towards more mainstream use of home-grown timber in the UK’s construction sector, the majority of which is grown in Scotland. Research has proven that, with the right treatment and processing, our timber can be used for a wide variety of higher-value purposes beyond its relatively limited set of current applications. Through its increased use in commercial construction and housebuilding, we can also reduce our reliance on imported timber.

“The next step from there will be to make the industry aware of this transformational potential and make it a reality. Greater use of our natural and renewable resources will deliver a range of environmental, cost, and economic benefits for Scotland and the wider UK. COP26 is a once in a generation opportunity to showcase what can be achieved.”

Among a range of benefits, using more home-grown timber is expected to significantly lower costs for the construction industry – initial figures suggest a potential reduction of as much as 10% compared to imported CLT – cut carbon emissions through reduced need for transportation, and open new markets to the UK-based timber sector.

Analysis has suggested that around 85% of all new homes in Scotland are built using timber and recent UK Government statistics show that, in 2018, the UK was the world’s second largest net importer of forest products – including timber – behind only China^[1].

Timber grown in the UK has historically been used for non-structural applications, such as fencing and palettes. However, ENU COCIS has led on research and development to determine the viability of using home-grown timber for the production of mass timber products and systems, such as CLT, NLT, Glue Laminated Timber (GLT), and Dowel Laminated Timber.

As a result, a number of UK-sourced mass timber products have been pilot manufactured, tested, and analysed. The latest project is a natural progression to trialling home-grown timber in a live environment, demonstrating the investment case for developing a Scottish manufacturing facility that can offer an alternative to products currently imported from Europe.

Professor Robert Hairstans, Head of the Centre for Offsite Construction and Innovative Structures, said: “Scotland has the renewable resource , internationally recognised expertise and technical capabilities necessary to be at the forefront of a new approach to delivering a sustainable built environment in response to the climate crisis. Leveraging this potential Scotland can deliver the human capital and built assets necessary to form the fabric of a circular economy. Digitally enabled, these assets can instigate an ecosystem of organic growth unlocking the potential of a sector that can lead the way in making the new normal a sustainable future.”

Jason Hubert, head of business development at Scottish Forestry, said: “Scottish Forestry, and the wider Scottish Government, recognises the importance of increasing Scottish timber in construction as a means of storing carbon for the long term as well as generating green jobs for the country. This project will provide the springboard for the sector to start manufacturing a great engineering product which can be used in large-scale buildings using home-gown timber.

“The Scottish Government is committed to getting more Scottish timber into construction and aims to increase the current 2.2 million cubic metres to 2.6 million cubic metres each year by 2021/2022.”

· Complementary OSB business expands product and geographic diversity

· Greater scale and customer relevance unlocks and de-risks growth opportunities

· West Fraser and Norbord shareholders to benefit from a stronger value creation platform

·  Joint investment community conference call today at 7:00 a.m. PT / 10:00 a.m. ET

West Fraser Timber Co. Ltd. (“West Fraser”) (TSX: WFT) and Norbord Inc. (“Norbord”) (TSX and NYSE: OSB) announced November 19 that they have entered into a strategic business combination pursuant to which West Fraser, a leading North American diversified wood products company will acquire all of the outstanding common shares of Norbord, the world’s largest OSB producer, in an all-stock transaction valued at approximately C$4.0 billion (US $3.1 billion) (the “Transaction”). Following closing, the combined company will operate as West Fraser.

With a complementary range of products, increased scale, and greater geographic and end-market diversification, West Fraser will be a global wood products leader, with established and growing positions in both North America and Europe. With low cost and profitable operations in complementary sectors, West Fraser is expected to generate more stable and resilient earnings through the cycle, with a best-in-class platform for future growth and value enhancement. At the close of this Transaction, West Fraser will be a top global producer of both lumber and OSB.

“Norbord’s OSB production is a perfect complement to the West Fraser portfolio, enabling us to deliver a wider range of wood products, and making us a more complete, efficient and valuable partner for our customers,” said Raymond Ferris, President and Chief Executive Officer of West Fraser. “Norbord is the largest global OSB producer with a well-earned reputation for cost and margin performance, and for expanding the use of OSB in new applications and industries. The Norbord business will also bring additional geographic diversity, and an expanded opportunity set, from its well-established positions in the United Kingdom and Western Europe. This Transaction gives us additional financial flexibility to pursue strategic growth opportunities, and better positions our company to deliver value to shareholders through the cycle. Our companies have complementary operating cultures, with a common priority on safety, sustainability and cost management, and we are thrilled to welcome Norbord’s talented employees to West Fraser. We look forward to drawing from best practices across the operations as we pursue the significant strategic opportunities this Transaction will unlock.”

“This Transaction recognizes Norbord’s global OSB position and is a very exciting opportunity for our customers, our employees and our shareholders,” said Peter Wijnbergen, President and Chief Executive Officer of Norbord. “Joining West Fraser will allow us to expand our profile with our core new home construction customers, and provides a stronger platform to pursue our industrial OSB products strategy. Norbord shareholders will have meaningful participation in a more diversified and resilient wood products leader with a superior ability to accelerate growth, and an impressive track record of cost leadership, margin performance, and shareholder returns. For our team, this will provide expanded opportunities as part of a larger company with common values and a shared priority on safety. Our Board and executive team have great respect for West Fraser, and we look forward to being a part of a much broader business with the West Fraser team.”

The companies have entered into a definitive agreement pursuant to which West Fraser will acquire all of the shares of Norbord. Norbord shareholders will receive 0.675 of a West Fraser share for each Norbord share, which equates to C$49.35 (US$37.78) per Norbord common share, based on the closing price of West Fraser common shares on November 18, 2020. This represents a 13.6% premium to the closing price of Norbord’s shares on the TSX on November 18, 2020, and a premium of 8.0% based on the 10 day volume weighted average trading prices of both companies. Upon closing current West Fraser shareholders will own approximately 56% of the company, with current Norbord shareholders owning approximately 44%.

West Fraser shares trade on the Toronto Stock Exchange under the symbol: “WFT”.

For more information:

Chris Virostek, Vice-President, Finance and Chief Financial Officer
(604) 895-2700, media@westfraser.com

James Jones & Sons commences GBP 3 million extension to Stevens Croft site in UK. A four acre extension to Lockerbie mill 1 log yard is well underway, with phase one of the project on schedule to be completed by Christmas.

The northern extension will provide a larger storage area for unsorted and sorted logs, increasing the range and flexibility with which the logs can be cut in mill 1.

The extension includes the construction of a perimeter road and concrete slab for log storage. It will be serviced by a purpose built Sustainable Drainage System (SuDS), including solids and oil interceptors to handle all surface water drainage. The project has been supported by design engineers, Asher Associates, while the principal contractor on site is Hardie Engineering.

James Jones & Sons Ltd is the UK’s most diversified, family owned timber processor. The company today operates from 20 sites across the UK.

The corona pandemic affects the whole society and our ambition has always been to take responsibility and create security in this difficult time. I feel proud that we have taken many initiatives to support and secure everyday life for all our employees, entrepreneurs and customers, says Hannele Arvonen, CEO of Sveaskog.

Sveaskog is Sweden’s largest forest owner with just over 800 employees, 300 contractors and just over 40 offices across the country. The corona pandemic affects the whole world and also us. We have therefore carried out a number of initiatives for our own staff, customers, contractors and those who operate on our land, such as hunters, fishermen and nature tourism companies.

Below is a selection of the initiatives that the company has implemented so far:

Customers

A rapid change in Sveaskog’s timber production has meant that sawmills in northern Sweden did not have to lay off during the pandemic. By focusing on Asia, sawmills continue to export. When Europe closed down in the spring, Sveaskog’s sawmill customers had major concerns.
– Our customers have a very large share of their exports exposed globally, but the competition is extreme, says Erik Levén, customer manager at Sveaskog.

Asia was ahead of Europe in the progress of the pandemic and had begun to reopen, so the sawmills focused their focus there.
– Different parts of the world have different needs. In consultation with the sawmills, we changed how we cut timber to suit Asia. Lengths and dimensions of the wood have been specified and adapted, Erik Levén explains.

– We have previously discussed a similar flexibility when we are going to produce, but with the corona pandemic we had to switch quickly out in the woods so that customers could deliver their products. The way of thinking has taken hold and now we are on the cutting edge and checking which markets are doing well for our customers and how we should act to help them, Erik Léven continues.

Entrepreneurs

Sveaskog developed a support package that creates the conditions for survival and management of the Corona pandemic for the company’s contractors in felling, forest management and transport. The “Sveaskog package” has provided support to our important forest and transport contractors.

– In the current situation, it is especially important that contractors receive support in financial and personnel matters. We have therefore offered shortened payment times on invoices temporarily and offered our contractors the opportunity to use our channels for recruitment, says Mats Oja, Purchasing Manager at Sveaskog.

Tourism and hospitality industry

The new situation has also hit the tourism and hospitality industry hard. Therefore, the contractors who rent buildings from Sveaskog, during the spring and summer, have been given three months rent-free.

– The hospitality industry is important for Sweden and our local entrepreneurs that we work with have a very tough period now. We want to help as best we can so that our tourism entrepreneurs will remain when the situation turns around, says Ola Söderdahl, head of marketing communications at Sveaskog.

Staff and security

Since mid-March, all employees who have the opportunity have been encouraged to work from home. The company has also reduced travel and for the most part refrains from all physical internal and external meetings in favor of digital meetings instead.

– In these times, it is important to be sensitive to both emotions and practical help, we should and we want to take responsibility, says Fredrik Bergström, HR partner at Sveaskog.

For more information contact:

Sveaskog’s press service
Tel: 08-655 90 50

Sveaskog’s 3Q 2020 net sales decreased by 16% to SEK 1,307 million, compared to SEK 1,547 million. Prices of wood raw materials were down by 9% on average while total delivery volumes declined 7%. High stock levels with customers in the pulp and paper industry combined with shutdowns of maintenance have restricted deliveries during the quarter.

3Q 2020 operating profit decreased by 55% to SEK 136 million ($15.8 million), compared to SEK 301 million ($35 million) in the 3Q 2019. The decrease in profit can be attributed primarily to lower prices, lower volumes and increased costs of forest management, nature conservation and IT development. Deliveries have been lower, both from our own forests and from externally acquired raw materials.

Sveaskog’s President and CEO Hannele Arvonen said: “A dip in earnings was expected, as prices of our products declined gradually in 2019, and the trend has continued into 2020. Sveaskog has conducted its forestry operations to date with no operational disruptions during the coronavirus pandemic. Sveaskog contributes to the recovery of society by supporting local contractors through unchanged employment and by refraining from collecting rent from companies that are dependent on tourism. September saw the launch of Entrén, a new web portal aimed at all our contractors. This is a unique initiative that is intended to provide our key contractors with a series of benefits and to strengthen our shared business.”

Sveaskog’s  net sales decreased by 9% to SEK 4,916 million in January–September 2020.

Operating profit decreased by 28% to SEK 812 million ($94.4 million) in January–September 2020. The decrease in profit can be attributed primarily to lower prices and increased costs of forest management, nature conservation and roads, but has been partly offset by higher delivery volumes from its own forests. However, deliveries from externally sourced wood raw materials were lower.

Sveaskog is Sweden’s largest forest owner and sells timber, pulpwood and biofuel

Main Photo: Sveaskog’s President and CEO Hannele Arvonen

Waratah Forestry Equipment has announced the addition of a mapping technology option to its TimberRite^TM H-16 control system. The all-new mapping feature provides customers with a new jobsite perspective to increase operational productivity and precision.

“The new mapping technology option on the TimberRite H-16 benefits our customers’ bottom line,” said Brent Fisher, product marketing manager for Waratah. “TimberRite H-16 is already the ultimate measuring and control system, but now with mapping capabilities, our customers have a new vantage point to see their jobsite work progress, eliminate operational guesswork and improve productivity and efficiency.”

More productivity

One of the key benefits of the mapping technology option on the TimberRite H-16 system is how it enables visualization of production on the jobsite. In conjunction with H-16, the mapping links valuable production data and information to location – improving productivity and operational precision.

Operators benefit from the mapping technology option with improved jobsite planning for harvesting routes and increased awareness of jobsite progress. The mapping system tracks productivity and provides capabilities to mark boundaries and area as well as identify points of interest such as hazards, obstacles, soft ground and challenging terrain.

“What I like about the mapping solution is being able to identify hazards onsite,” said Jamie Cross, JSX Harvesting owner and S&R Logging operator. “The automatic alarms are a great reminder, especially when working around powerlines and roads.”

More precision

TimberRite H-16 complements the new mapping technology option with its powerful Windows PC. Controlling the head for accurate measuring and precise log control, it also serves to display the mapping technology, records production information, tracks productivity and packages appropriate files in the latest format to ensure data interchanges virtually with any professional system in the forestry industry.

The touch-screen display or wireless keyboard and touch pad mouse assist the user in setting boundaries, area or points of interest – and make any necessary adjustments.

The mapping technology has compatibility with all map formats including shapefiles, pdfs, standard satellite or topographical imagery, and it’s capable on all carrier brands with a new or existing TimberRite H-16 system.

For more information about Waratah, please visit Waratah.com or contact Sarah Larson at slarson@mindfirecomm.com.

Ponsse is introducing firefighting equipment to be installed in the load spaces of forwarders for extinguishing wildfires.

“Forest machine is the most natural and effective way to access a forest fire area. Operations in difficult terrain come as second nature to them, and they have more than enough capacity in their hydraulic system for demanding conditions”, says Juha Haverinen, Ponsse´s product manager of forwarders.“ When the rescue authorities asked us if we were willing to develop this product together, we were ready right from the beginning, because rescue professionals and our customers had a clear demand for firefighting equipment”, Juha continues.

The firefighting equipment is available for PONSSE Buffalo and PONSSE Elephant forwarders. The minimum loader requirement is PONSSE K90+.

There when needed

The firefighting equipment is delivered to the fire location as a single package – and after it has been connected to forest machine hydraulics, the equipment is ready to operate. The 10 m³ water tank of the firefighting equipment can be filled with its own pump from a natural water source or the tank of a fire truck. The water cannon has a range of 47 metres and a turning radius of 360 degrees.

A carefully thought-out system

• An economical solution – the forwarder can be engaged in productive forest operations when the firefighting equipment is not needed.
• The water tank withstands the use of various chemicals mixed with water, as well as seawater. It is also light enough to be lifted into the machine load space.
• The powerful pump can fill the water tank from a natural water source or the tank of a fire truck.
• The wireless remote controller can adjust the water spray direction vertically and horizontally, as well as the spray pattern.

The local rescue department is responsible for planning firefighting activities. A properly trained rescue employee is responsible for the safety of firefighting. Rescue personnel operate the firefighting equipment and guide the forest machine operator’s actions when putting out fires.

At the video you can see how it works. Video

Join webinar to learn more about the new product. Sign up

The webinar will be held in English, Spanish, Swedish, Portuguese, Russian and Finnish.

PONSSE firefighting equipment complies with the requirements of the European Union Machinery Directive 2006/42/EC. Before the firefighting equipment is placed on the market outside the EU the local distributor (e.g. subsidiary, authorized dealer) needs to ensure that the equipment fulfills the local laws and regulations.

Further information

Juha Haverinen, Ponsse Plc, Product Manager, Forwarders,
juha.haverinen@ponsse.com, tel. +358 40 839 8529.

Miika Soininen (38), student of technology, has been appointed Director of IT and Digital Services in Ponsse Plc’s Management Team. He will start in his new position on 1 December 2020. Soininen will report to Ponsse Plc’s President and CEO Juho Nummela, and his location will be in Vieremä.

“The significance of digitalisation for the company’s operations has increased considerably, and data-based services will be a significant part of Ponsse’s future solutions and service range. The aim is to use the opportunities offered by digitalisation in developing Ponsse’s operations throughout the group. Ponsse will use modern technologies in the development of solutions provided for customers. Ponsse will invest heavily in the development of digital solutions in the next few years”, says Juho Nummela, President and CEO of Ponsse Plc.

Miika Soininen will transfer to his new position from the position of Manager of Ponsse Plc’s IT and Digital Services. Soininen started working at Ponsse in February 2018 as an IT Manager, and he has also been responsible for the company’s digital services starting from the beginning of September 2020. Before transferring to Ponsse Plc, Soininen was the Managing Director of Qentinel Finland Oy.

In addition to Miika Soininen, other members of Ponsse Plc’s eight-member Management Team are President and CEO Juho Nummela, Chair of the Management Team; Petri Härkönen, CFO and Deputy CEO; Juha Inberg, Technology and R&D Director; Marko Mattila, Sales, Marketing and Service Director; Tapio Mertanen, Service Director; Paula Oksman, HR Director; and Tommi Väänänen, Supply Chain Director.

Vieremä, 17 November 2020

PONSSE PLC
Juho Nummela
President and CEO

FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690