New order for Büttner: The specialist for energy and drying systems will deliver four new drum dryers to the American pellet producer Highland Pellets LLC. Büttner convinced the Arkansas-based company with a practical conversion project and its many years of expertise in drying technology.

At the end of June both cooperation partners signed the supply contract for the new plant, which will be installed in Pine Bluff, Arkansas. Here Highland Pellets has been operating a plant for the production of wood pellets since 2017, which are mainly supplied to the European market. The total of eight existing dryers – four pre-dryers and four main-dryers – from another supplier did not achieve the planned capacity, so that replacement with new equipment was necessary.

Büttner, known for its high-performance and reliable drying systems for pellet production, has already supplied numerous dryers to US customers. Decades of experience as well as technical innovation also stabilized the Krefeld company’s high reputation in this market. This expertise paved the way for Büttner also in this current project: The four existing energy plants in Pine Bluff will be connected to four new, identical, directly heated drum dryers type 4.2 x 24 R.

The aspect of sustainability is also taken into account by the new equipment: “The new high-performance drying technology […] will significantly improve production volumes, quality, reliability and ensure we remain in full compliance with our air permit obligations”, says Jeff Vanderpool, CEO of Highland Pellets LLC, about the new project.

“We are pleased that Highland Pellets has chosen us as a new partner and is convinced of our expertise”, says Andreas Klug, Managing Director Büttner.

Main Photo: New business partnership, modern contract conclusion via video conference, from top left to bottom right: Dirk Koltze (President Buettner Energy and Drying Systems North America LLC), Andreas Klug (Managing Director Büttner), Gottfried Bluthardt (Sales Manager Büttner), Tom Reilley (Chairman Highland Pellets), Stephen Rice (Director of Engineering, Highland Pellets), Dirk Homann (Managing Director Büttner)

Photo Left: 3D layout of the new order: Four Büttner drum dryers, divided into two groups – open spaces in front and behind the dryers mark the locations of the existing energy plants

SCA has confirmed a new harvesting plan which shows that the harvesting level in their own forest will increase over the coming five years by an additional one million cubic meters per year more than the current level. The increased harvesting level gives an increased cash flow of 300-400 MSEK per year with full effect from 2025.

In 2019, SCA made a new forest survey which showed that the company’s forests had a higher standing volume and a higher growth rate than previously estimated. A higher growth rate gives higher long term harvesting potential.

The new harvesting plan is now confirmed and it is based on calculations of the development of the forest over more than one hundred years into the future. It shows that harvesting over the coming five year period can successively increase from todays level of 4.3 million cubics meter solid wood under bark (m3sub) to 5.4 million m3sub per year.
For further information, please contact:
Toby Lawton, CFO, +46 (0) 60 19 31 09
Josefine Bonnevier, Director Investor Relations, +46 (0) 60 19 33 90
Björn Lyngfelt, SVP Communications, +46 (0)60 19 34 98

The core of SCA’s business is the forest, Europe’s largest private forest holding. Around this unique resource, they have built a well-developed value chain based on renewable raw material from our own and others’ forests.

They offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions.
In 2019, the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 19.6bn (EUR 1.9bn).
SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com

Holmen has signed an agreement to acquire Martinsons, one of Sweden’s leading players in sawn and processed wood products. The purchase price is SEK 1.0 billion for 100 per cent of the shares. The acquisition will almost double Holmen’s sales of wood products to over SEK 3 billion, while also advancing positions in wood construction and providing Holmen with the capacity to process the majority of the raw material from its own forests in its own industry.

Martinsons consists of two well-invested sawmills in northern Sweden with extensive processing of wood products for Scandinavian wood construction, as well as a project operation for construction of complete frames made of cross-laminated timber (CLT) and glulam beams for purposes such as offices, sports centres and apartment buildings. The company has 470 employees, most of whom work in processing.

“Martinsons is an extremely well-run family-owned company that has built a strong brand and succeeded in achieving growth with solid profitability. As our largest timber customer, we have followed their progress for a long time and have been impressed by of how they have developed a leading position in sustainable wood construction in Sweden. Backed by our large forest holdings, we look forward to continuing to grow the business and to contributing to increased construction using wood, which is part of the solution to the climate challenge”, says Henrik Sjölund, President and CEO of Holmen.

“Holmen has met all of our high expectations for a new owner. It is a stable company with the power to grow, though equally important for us is their genuine interest in the knowledge and experience accumulated in our operations. We are particularly pleased to have found an owner with a corporate culture that we believe will be an excellent fit with the culture that we have built up”, says Lars Martinson, CEO and one of the owners of Martinsons.

After completion of current investments, Bygdsiljum, the larger sawmill, will be able to produce 500 000 m³ of wood products annually, while the annual production at Kroksjön is over 100 000 m³. Bygdsiljum also manufactures CLT and glulam beams, while Kroksjön processes wood products through trimming, planing, painting, treatment and finger jointing. Annual timber consumption is 1 million m³, which corresponds with Holmen’s annual timber harvest in northern Sweden.

“In recent years we have invested in gradually increasing value-added and sales to Swedish builders’ merchants. Martinsons provides a good complement to our offering and strengthens our position on the market. Demand for processed wood products, especially CLT and glulam beams, is growing and with rising interest in wood construction we see great opportunities to further develop the business”, says Johan Padel, Senior Vice President Wood Products, Holmen.

In 2019 Martinsons turn-over was SEK 1.8 billion, where SEK 1.1 billion came from sales of sawn and processed wood products, SEK 0.3 billion from major wood construction projects and the remainder from sales of by-products and timber trading. Martinsons’ underlying EBITDA totalled SEK 157 million in 2019 and operating profit amounted to SEK 99 million. The acquisition will be funded from existing credit facilities and is expected to positively contribute to earnings per share from the time of takeover, which is expected to occur during the fourth quarter.

The deal is subject to approval from the relevant competition authority, which is expected in the fall.

Holmen’s wood products business had sales of SEK 1.7 billion in 2019 and EBITDA amounted to SEK 159 million. Production takes place at three plants, Braviken Sawmill with a production capacity of 600 000 m³ after recent investments, Iggesund Sawmill with a capacity of 400 000 m³ and Linghem Sawmill of just under 100 000 m³.

For more information, please contact:
Stina Sandell, Senior Vice President Sustainability and Communications, +46 (0)73 986 51 12

This information is information that Holmen AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 16 July 2020 at 19.00 CEST.

C3’s Portland log marshalling operation has increased throughput by 300% since the deal was completed despite C3 purchasing equipment and commencing operations during the COVID-19 pandemic.

C3, one of Australia’s largest forest products logistics providers and part of LINX Cargo Care Group, has secured a multi-million dollar deal to provide log marshalling services in Portland, Victoria.

The deal with Pacific Forest Products (Australia) (PFP) sees C3 handling all log marshalling operations at the Port of Portland, having previously handled approximately 40 per cent of the volume exported through the port.

“We’re proud of the work we have already done in the region, and the work we’re about to do,” said Anthony Jones, LINX Cargo Care Group CEO. “We’re committed to the region and have hired an additional 30 people from the area.”

In Australia, C3 offers both in-field chipping and cut to length harvest and haulage solutions, along with bulk and containerised export log marshalling and stevedoring services.

The log marshalling contract was signed in March, and work commenced just prior to the COVID-19 crisis and lockdown measures. Jones said the importance of the region to C3’s operations and staff, as well the local economy, ensured that the deal could not wait until after the pandemic subsided.

“We made a significant investment in the region despite the economic headwinds and concerns the world was facing,” said Jones. “Portland, as part of the Green Triangle, is vitally important to the economy. This has been proven with an incredible ramp up in operations and productivity since the contract was signed, driven by customer demand and our ability to quickly adapt and cater to those demands.”

Since work commenced, C3 increased throughput in Portland by 300 per cent despite facing significant constraints in relation to COVID-19, such as limitations around securing medical clearances to onboard new staff.

“C3 took over the receivals in the thick of COVID-19 and have done a fantastic job to adapt and manage with the available resources and additional restrictions brought on by the pandemic,” said Andy Bell, Regional Manager Australia, Pacific Forest Products.

“The Portland Operation is fast becoming a flagship operation for PFP and as we come out of the other side of COVID-19, we remain focused on continuing to provide our suppliers with great service.”

Jones says C3 has been able to achieve increased production rates due to the company’s mandate to remain agile and adapt to external conditions quickly.

“The global supply chain impacts linked to COVID-19 has led to an increase in Portland’s log marshalling activity and as such, we’ve had to handle volumes at levels twice what customers had forecast – and that is just in the first month of operations,” said Jones. “Many companies could not achieve such a quick ramp-up in activity but LINX Cargo Care Group has always maintained agility in our operations and that ability has held us in good stead during this pandemic.”

C3 continues to invest in the operation with the purchase of three new material handlers along with the new members joining the team on-site, to ensure productivity continues to increase.

Contact for further information:
Kate Carulli
Head of Media, Marketing & Sponsorship
+61 458 458 863 or k.carulli@linxcc.com.au

AFM-Forest Ltd. launches the all new AFM 75 processing head model. The new AFM 75 is a tough-built processing head with high feeding power and excellent geometry for the most demanding logging operations worldwide.

With its new HD frame and pins made from SSAB RUUKKI Scandinavian quality steel and nylon bushings it can fit on different tracked base machines.

A wide tilt angle and the geometry of the front knifes will guaranty an efficient and ergonomic way to pick up logs in steep slopes. The new design of the AFM 75 offers easy access for daily maintenance and hydraulic hoses change, maximizing production.

Optional feeding motors and rollers make the new AFM 75 a perfect tool for harvesting and debarking operations in the most difficult species of plantation grown eucalyptus by offering good debarking results during the first feed. AFM-Forest proportional saw system and saw control will guaranty a fast and efficient sawing in all tree species.

AFM-Forest Ltd is a Finnish company manufacturing high-quality single-grip harvester, processor, combi and energy wood heads for demanding forest operations.

Effective July 2, the Brandt Group of Companies successfully acquired the assets of Ontario-based Sokkia Canada in a deal with owner Topcon Positioning Systems.

The acquisition, which directly affects the Ontario and Quebec markets, makes Brandt the exclusive dealer for Sokkia optical survey instruments, accessories and parts for the Canadian market.

The news signals Brandt’s entry into Central Canada’s geopositioning technology market and is the latest in a growing list of acquisitions and dealer agreements made by the Regina, SK-based company since its purchase of Ontario/Quebec/Newfoundland and Labrador John Deere Construction & Forestry dealer Nortrax in late 2019.

“Expanding our Sokkia offering into Ontario and Quebec has been a high priority for Brandt,” said Brandt CEO Shaun Semple. “Central Canada is an important new market for us and we are 100% committed to delivering exceptional value for the survey, engineering and construction industry here. This addition is a big step forward for us.”

The survey-focused Sokkia brand has a 100-year history and is owned and marketed by Topcon Positioning Systems, a U.S.-based division of Japanese precision equipment manufacturer Topcon Corporation.

The Sokkia product lineup will be distributed and supported through the company’s Brandt Positioning Technology division and includes total stations, GNSS receivers, data collectors, digital levels and a full complement of field accessories.

The move will consolidate Sokkia distribution for the first time under one banner and will further establish the Brandt’s position as a premier privately-held Canadian company.

The Brandt Group of Companies — headquartered in Regina, Saskatchewan, Canada — is comprised of Brandt Agricultural Products, Brandt Engineered Products, Brandt Equipment Solutions, Brandt Road Rail, Brandt Positioning Technology, Brandt Truck Rigging & Trailers, Brandt Finance, Brandt Developments Ltd., Brandt Road Technology, Brandt Mineral Technology and Brandt Tractor Ltd. (the world’s largest privately owned John Deere Construction & Forestry equipment dealer.)

Brandt has more than 100 locations in Canada and the U.S., more than 3,400 employees, and a growing international customer base. It serves the construction, forestry, agriculture, rail, mining, steel and energy industries.

Segezha Group, one of the leading Russian wood processing company, intends to build new CLT plant in Arkhangelsk region, said Mikhail Shamolin, president of Segezha, at the meeting with Arkhangelsk governor.

Segezha expects a CLT plant to be operational by 2023 with capacity of 50 thousand m3. Company plans to spend $25.5 million (1.8 billion roubles) on the plant.

At this time of year it is usual for softwood lumber prices to be lowering, as end-users would be stocked-up on inventory needs for ongoing building projects, and sawmills would be slowing down as normal seasonal closures and curtailments come into effect, according to Madison’s Lumber Reporter.

However, this year – having largely stopped production during spring as industry responded to Covid-19 infections – softwood lumber producers across North America are still operating at relatively high capacity levels. Inventories in the field remain sketchy to weak and lumber manufacturers continue running at higher-than-normal production levels for the time of year, to try to feed buyer hunger.

Prices, of course, have responded according. While beginning to rise well above this time last year, the price of most benchmark construction framing dimension softwood lumber items are far below mid-2018 levels. This week the price of Western Spruce-Pine-Fir KD 2×4 #2&Btr again rose significantly. Particularly in the Western region standard wood building materials prices are up +7%. As prices of this commodity approach levels of March 2020, these rises are expected to slow as more long-delayed deliveries arrive to customers daily. While order files at sawmills are claimed to be 3 weeks, demand lately has mostly been for small volumes of very specific items.

Demand for Western S-P-F in the United States remained steady last week even as players on both sides of the border celebrated their respective national holidays. Suppliers were confident that business will improve even further this week after everyone gets back to their desks and sawmill orders start flowing again with increased fervour. Asking prices continued to rise.

According to Canadian Western S-P-F producers, there was no change in the pace of demand from the previous week even though many folks took long weekends in view of Canada Day and Independence Day. Buyers in Canada continued to get to sawmills’ wood piles before US customers even got a whiff, and prices kept climbing. Sawmill order files were to the week of July 27th and were pushing into August.

For the week ending July 3, 2020, prices of standard construction framing dimension softwood lumber items rose yet again. For its part, benchmark lumber item Western S-P-F 2×4 #2&Btr KD rose another +32, or +7%, to US$468 mfbm, from US$436 the week before. The price for this lumber commodity was up +$90, or +24%, from one month ago. Compared to the same week in 2019 this price is up +$66, or +17%.

Purveyors of Eastern S-P-F dimension lumber and studs had another tricky week, with prices again all over the place. Sawmills were tentative about getting their wares to market as they didn’t want to leave potential money on the table. Construction activity remained strong on both sides of the border and many contractors were unable to find wood materials’ coverage for current and upcoming building jobs.

Recovering well compared to last year but still far behind mid-2018, last week’s Western S-P-F 2×4 price improved +$85, or +22%, relative to the 1-year rolling average price of US$383 mfbm and increased +$77, or +20%, relative to the 2-year rolling average price of US$391 mfbm.

The below table is a comparison of recent highs, in June 2018, and current July 2020 benchmark dimension softwood lumber 2×4 prices compared to historical highs of 2004/05 and compared to recent lows of September 2015:

Softwood Lumber Prices Pop During Usual Seasonal Slow-Down

US Softwood Lumber Production Improves in January-February 2020 Compared to One-Year-Ago

For the first two months of 2020 softwood lumber production in the US continued improvements compared to one-year-ago, to increase even more, says the latest issue of the Western Wood Products Association’s monthly Lumber Track.
For January and February 2020 US lumber production volume increased by +5% to 6,163 mfbm compared to the first two months of 2019 when it was 5,862 mfbm. Comparing February to the previous month however, there was a -10% drop in US softwood lumber production in February 2020 likely due to the impact of the global COVID19 pandemic.

In Canada meanwhile, softwood lumber production fell, by -7.8% in the first two months of 2020 to 3,766 mfbm, compared to one-year-ago when it was 4,084 mfbm.

China Restricts Import of Canadian Logs

The Chinese government announced June 16 that it has found pests in logs imported from Canada, and will be treating Canadian lumber with relevant precautions. Though China has not announced any lumber-related export restrictions thus far, Canadian forestry companies are concerned this announcement precedes an official sanction on this key Canadian export.
The Trudeau government is investigating these claims, which come weeks after a Canadian court ruled against Huawei executive Meng Wanzhou. Canada’s Trade Ministry confirmed later on Tuesday that on June 9 it received 16 notifications of non-compliance from China related to the discovery of pests in shipments of hardwood and softwood logs, spokesperson Ryan Nearing said to the Financial Post.

Top of mind are previous Chinese sanctions on Canadian agricultural products, including canola, which despite having been eased, severely affected prairie farmers. China has recently placed sanctions on Australian beef and barley imports, in retaliation for Australia’s calls to investigate Beijing’s handling of the coronavirus pandemic.

Interforst – The next international leading trade fair for forestry and forest technology will take place from July 20 to 23, 2022 in Munich, Germany. The aim of the event is to bring all representatives of the international forestry sector, including representatives from science and politics, together at a trade fair so that visitors can enjoy a high-level exchange.

Personal meetings with members of the Advisory Board and the analysis of the exhibitor survey showed that the majority within the industry welcome a shortened trade fair. Given this broad support, Messe München has decided to reduce the next Interforst to four trade fair days.

 Reinhard Pfeiffer, Deputy Chairman of the Executive Board of Messe München, supports this decision: “Interforst is the leading platform for innovations and solutions in the field of forestry, wood and bioenergy. We owe that primarily to our loyal exhibitors and visitors. That’s why it’s important to us to ensure the best conditions for everyone involved.”

What was noticeable in the analysis of the visitor survey was that visitors spend an average of 1,3 days at the trade fair. The aim is to organize a modern trade fair that offers visitors solutions for various challenges over the long term and adapts to the contemporary forestry culture.

The four days of the fair from Wednesday to Saturday will continue to reach all parts of the forestry sector that work together nationally and globally. Constructive and interactive trade fair programs will be offered from and for the fields of business, science and politics.

Every four years, Interforst, as one of the leading international trade fairs for forestry and forest technology, presents the entire logistics chain from afforestation and timber harvesting to the sawmill. Another focus is on the energetic use of wood.