New Chairman of the Board of Directors for Ponsse Plc – Marko Mattila joins the company’s Management Team

Ponsse Plc has appointed a new Chairman of the Board of Directors. At its organising meeting held on 27 May, Ponsse’s Board of Directors elected Jarmo Vidgrén (44) as its Chairman. Juha Vidgrén (49), Chairman of the company’s Board of Directors since 2010, will continue as an ordinary member of the Board. At the same time, Marko Mattila will join the company’s Management Team.

“I have chaired our company’s Board of Directors for ten years, and it’s now time to bring fresh energy to the Board. Jarmo’s vast experience, starting from 1997, in various positions in Ponsse’s customer interface strengthens our Board of Directors. I will continue as an ordinary member of the Board and work daily in the field of HR and public affairs, just like before”, says Juha Vidgrén, member of Ponsse Plc’s Board of Directors.

Jarmo Vidgrén was appointed to Ponsse Plc’s Board of Directors at the Annual General Meeting held 27 May. Before his election as the Chairman of the Board of Directors, he worked as the Sales and Marketing Director and Deputy CEO, being in charge of Ponsse’s global sales and after-sales services since 2008.  As a result of this change, all head owners of the family-owned company, four sons of Ponsse’s founder Einari Vidgrén, are members of the company’s Board of Directors. Mammu Kaario will continue as Vice Chair of the Board of Directors.

“The Chairman of Ponsse’s Board of Directors has traditionally worked close to the operational management and has highlighted the company’s customer-driven approach. These changes streamline our operations and clarify roles in the organisation and the owner family”, says Jarmo Vidgrén, chair of Ponsse Plc’s Board of Directors.

CFO Petri Härkönen will act as the company’s Deputy CEO.

Marko Mattila appointed to Ponsse Plc’s Management Team

Marko Mattila (46), forest engineer, MBA, will replace Jarmo Vidgrén as the Sales and Marketing Director, starting from 1 June 2020. At the same time, Mattila will start as a member of Ponsse Plc’s Management Team.

Marko Mattila has vast experience in the operation and development of Ponsse’s network. He will transfer to his new position from the position of the Director, retail network development. Mattila has worked at Ponsse Plc since 2007. In addition, he has worked as the Managing Director of Ponsse North America Inc, Ponsse’s subsidiary in the US, and Ponsse Latin America Ltda, Ponsse’s subsidiary in Brazil. He has also worked as an Area Director responsible for North America´s dealer network, Baltic countries and Chile.

Marko Mattila will be responsible for Ponsse Plc’s sales, marketing and maintenance throughout the Ponsse network. In the Ponsse retail network, Mattila will be responsible for retailers operating under Ponsse’s subsidiaries. 

Marko Mattila will be located in Jyväskylä, Finland and he will report to Juho Nummela, President and CEO of Ponsse Plc.

Jussi Hentunen to lead retail network development
Jussi Hentunen (37) will replace Marko Mattila as the Director, Dealer development, starting from 1 June 2020. Hentunen will transfer to his new position from the position of the Director, Used Machines Global Business. He has worked at Ponsse in various sales, marketing and used machine positions since 2004.

Jussi Hentunen will be located in Vieremä, and he will report to Sales and Marketing Director Marko Mattila.

Vieremä, 27 May 2020

Further information:
Jarmo Vidgrén, Chairman of the Board of Directors of Ponsse Plc, tel. +358 40 519 1486
Juha Vidgrén, Member of the Board of Directors of Ponsse Plc, tel. +358 40 518 6286
Juho Nummela, President and CEO of Ponsse Plc, tel. +358 40 0495690
Marko Mattila, Sales and Marketing Director of Ponsse Plc starting from 1 June 2020, tel. +358 40 059 6297

Ponsse Plc specialises in the sale, production, maintenance and technology of cut-to-length method forest machines and is driven by a genuine interest in its customers and their business operations. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customer needs.

The company was established by forest machine entrepreneur Einari Vidgrén in 1970 and has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the NASDAQ OMX Nordic List. This year, the company celebrates its 50th anniversary.

DelfieArt have recently released a new version of Sing for the Climate.

For more info contact:
DelfieArt
Lucy Hamilton: hi@DelfieArt.com
DelfieArt Co-founder

The Coronavirus Epidemic has negatively impacted the supply chains for numerous industry sectors worldwide the past few months.

Many commodity products saw reduced trade during March and April, a result of reduced demand, closures of manufacturing facilities to protect workers, constraint in the handling capacity of goods at many ports, and widespread financial distress. However, one sector that has remained fairly strong during the initial period of the epidemic is the forest products industry.

Demand for toilet paper, face masks, disinfecting wipes, corrugated paper for cardboard boxes, and wood products for home renovations are just a few forest products that have been in unusually high demand in many countries during this spring.

A closer look at the March 2020 trade data, the first “Coronavirus month”, reveals that global trade of lumber, logs, wood chips and pulp increased in March as compared to the previous month.

The following snapshot illustrates a few interesting examples from the WRQ of positive developments in the forest industry sector from February to March this year:

• Softwood Logs – China increased imports by 14% m-o-m, with most of the added logs originating from New Zealand, Germany and Russia. Log imports to South Korea rose 19%, while Australia and Canada shipped about 70% more logs in March than in the previous month.

• Softwood Lumber – Lumber shipments from New Zealand and Canada were up 32% and 25% m-o-m, respectively. Lumber importation was up in most of the major markets in March, including China (+59% m-o-m), the US (+27%), the United Kingdom (+13%), and Japan (+10%).

• Wood Pulp – Three of the four largest pulp-exporting countries, Brazil, the US and Chile, increased their shipments between 12% and 26% in March (m-o-m). The five top importing countries all purchased more pulp in March than in February, with China and South Korea increasing their volumes the most (40% and 29% respectively).

• Hardwood Chips – China, Portugal, and South Korea imported more chips for their pulp industry in March than in the previous month. Most of the major chipexporting countries, including Australia, Thailand, South Africa, and Brazil shipped more chips in March than in February.

In the coming months, numerous countries around the world are planning to ease lockdown policies and loosen the rules that are restricting house constructions, international commerce and consumer shopping. These changes may further benefit many companies in the forest industry sector. However, expect a rough road ahead.

Interested in wood products market information from around the world? Please consider subscribing to the Wood Resource Quarterly (WRQ), a 56-page report, established in 1988 and with subscribers in over 30 countries. The report tracks prices for sawlog, pulpwood, lumber & pellets worldwide and reports on trade and wood market developments in most key regions around the world. For more insights on the latest international forest product market trends, please go to www.WoodPrices.com

Contact Information
Wood Resources International LLC
Hakan Ekstrom, Seattle, USA
info@WoodPrices.com

Wallingford’s Inc. is seeking a qualified bilingual applicant for a full-time position of Sales Representative based out of their office in Oakland, ME.  The job requires fluency in French and international travel to Canada.  The Sales Representative’s core responsibilities will include having designated accounts where business needs to be maintained in Eastern Canada while continuing to identify sales opportunities to capture new business.  Basic computer and communication skills is a requirement.

College degree not necessarily required.  Inquiries please contact chip@wallingfords.com.

Maine Loggers – The Professional Logging Contractors (PLC) of Maine released in March results of a comprehensive study of the economic impact of Maine logging, showing the industry contributed an estimated $619 million to the state economy in 2017.

The study, The Economic Contribution of Logging and Trucking in Maine, conducted by the University of Maine and the Margaret Chase Smith Policy Center, revealed that in 2017 logging supported approximately 9,366 Maine jobs either directly or indirectly, generated $342 million in labor income, pumped an estimated $25 million into state and local tax coffers, and remains critical to a range of industries and communities across Maine.

“This study demonstrates the vast impact logging has on the Maine economy and highlights its role as the foundation of the state’s entire $7.7 billion forest products industry,” Dana Doran, Executive Director of the Professional Logging Contractors of Maine, said. “It also shows what Maine stands to lose if the mounting challenges to the logging industry are not overcome.”

To better understand the nature of the harvesting industry in Maine, analysts combined a traditional input-output (IMPLAN) analysis with primary data gathered from member companies of the PLC, the logging trade association representing companies that together harvest more than 75 percent of all timber harvested in Maine. The study calculates the economic impact of logging in the state of Maine for 2017 through both the IMPLAN analysis as well as a survey delivered to members of the PLC in 2018. Where appropriate, results were also compared with findings of a previous, similar study on the 2014 impact of Maine logging to identify industry trends. Data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, and other appropriate sources was incorporated in the analysis to present a complete picture of the industry’s status.

In addition to overall economic impact and jobs, findings of the study and associated research included:

• According to U.S. Bureau of Labor Statistics data, the real average wage for workers in the logging industry in 2017 was $47,289 (in 2018 dollars). This represents a 3.2 percent increase in wages since 2014.

• The survey sent to PLC contractors showed mechanization remains dominant in the industry: Fully 56 percent of surveyed firms were identified as whole tree harvesting operations, and another 35 percent as cut-to-length harvesting operations – both of which use combinations of mechanized logging equipment such as feller bunchers, delimbers, grapple skidders, forwarders, and harvesters to cut, yard, and process wood. Only 8 percent were identified as conventional hand crews using chain saws. Respondent companies employed slightly fewer crews on average in 2018 than in 2014. Interestingly, the proportion of cut-to-length crews in mechanized logging (while still a minority) increased in 2018.

• According to the Bureau of Labor Statistics Quarterly Census of Employment and Wages, Maine’s logging sector is heavily dominated by small businesses, with an average (between 2006 and 2016) of 67% of employing establishments in the industry employing fewer than 5 people. Additionally, 1,719 non-employer entities in the logging and harvest sector were reported in Maine during 2017. These entities are overwhelmingly (94%) sole proprietorships.

• Survey respondents reported an average of 13 full-time equivalent employees per firm. As in 2014, the majority of respondent employees work in the woods, on average 7 per firm; an additional average of 2 per firm provide office support, 3 trucking and 1 mechanical support. It is notable that the average number of wood-based employees per firm, as calculated from survey responses, is a little more than half of what it was in 2014.

• On average, survey respondents had 42 operational weeks in 2018 and harvested 1,621 acres per firm.

• Trucking remains critical to the logging industry. Most survey respondents (26%) trucked either all or the majority (37%) of the material harvested by their firm. Thirteen percent rarely (less than 50% of the time) trucked their own material and 24% contracted with an outside source for all their trucking needs.

• Logging is a capital-intensive industry. Survey respondents reported $21.1 million in new capital investment – 76% of which was spent on new equipment.

• For 2018, Maine Forest Service data showed 11,817,367 tons of timber were harvested in Maine including 4,222,170 tons of saw timber, 5,391,052 tons of pulp wood, and 2,204,145 tons of biomass. That was an overall decrease of from 2014, when data showed 14,188,085 tons of timber were harvested in Maine, including 4,004,051 tons of saw timber, 7,289,270 tons of pulp wood, and 2,894,764 tons of biomass.

The economic study released today comes in the wake of a 2019 Maine Logger and Log Trucker Employment Availability and Wage Analysis Report prepared by the Maine Center for Business and Economic Research at the University of Southern Maine that found Maine is facing a shortage of loggers and log truckers that will grow and which could hinder the growth of the forest products industry in the state if wage growth does not occur. That study revealed wages for logging equipment operators and log truckers in Maine are lower than those for comparable jobs in competing industries in the state, and this combined with a tight labor market and looming retirement for large numbers of loggers is concerning for Maine’s forest economy.

The heart of the issue identified by the 2019 study is profit margins for logging contractors have dwindled as costs of doing business have risen, limiting the ability of contractors to raise pay for workers. With low unemployment and strong competition for skilled operators of heavy machinery and trucks, logging contractors are struggling simply to keep the workers they have, let alone attract new ones.

“The inevitable conclusion based on a review of the new study and of the wage and employment study released last year is that logging is a critical Maine industry under threat that must be preserved if the state is to avoid a collapse of its forest products industry and the deep and irreversible impacts that would have on Maine’s economy, rural communities, and character,” Doran said. “The challenges facing loggers are not insurmountable, but failure to overcome them would be disastrous for Maine.”

Harvesting is an integral part of Maine’s forest products industry. Wood pulp, wood, and paper and paperboard are Maine’s 5^th, 6th and 7^th most valuable exports, respectively, according to the U.S. Census Bureau. In an increasingly global world, the competitiveness of these exports relies on the economic feasibility and health of the harvesting industry that makes it all possible. The industry today faces many challenges but is meeting them by seeking new and nontraditional markets, increasing the focus on professionalism and safety, utilizing the latest technology, and working to educate a new and highly skilled generation of loggers for the future.

One key to the future of the increasingly complex logging industry is education, and this means the Mechanized Logging Operations Programs (MLOP) created by the PLC in partnership with the Maine Community College System, and with support from the state and industry partners, is critical to training a new generation of loggers ready to enter to the industry as older workers reach retirement age. The program is currently recruiting students for its fourth 12-week class, scheduled to begin June 22 in the Old Town area.

More information is available at http://maineloggers.com/mechanized-logging-operations-program/

Maine’s loggers are a vital part of the state’s forest products sector, which is worth an estimated $7.7 billion annually.

The rail link has increased capacity to deliver more sustainable biomass from Drax’s LaSalle BioEnergy pellet plant in Louisiana, USA to its UK power station, taking thousands of trucks off local roads.

The $15 million rail link and other initiatives have already contributed to a $5/tonne reduction in Drax’s biomass production costs in 2019.

In its first year of operation, a new $15m rail link has increased the flow of sustainable biomass from one of Drax Group’s US pellet plants to its UK power station, reducing emissions and costs whilst increasing the resilience of the energy company’s supply chain.

The five miles of rail track connects Drax’s LaSalle pellet plant in northern Louisiana to the regional rail network, enabling freight trains to deliver the pellets to the company’s dedicated export facility at the Port of Greater Baton Rouge.

From there, the pellets are shipped to Drax Power Station in North Yorkshire, which supplies around 12% of the UK’s renewable electricity.

The new rail link allows Drax to deliver around 7,000 tonnes of sustainable biomass to the Port of Greater Baton Rouge in each train, compared to just 27 tonnes that could be transported by each truck previously.

Drax Biomass Senior Vice President Matt White said:
“The new rail spur has been a great success. Since it was commissioned last May it has significantly increased the amount of sustainable biomass we can deliver. It’s also taken thousands of trucks off local roads, unlocking carbon savings and costs in our supply chain as we build a long-term future for the sustainable biomass that provides millions of UK homes and businesses with renewable power.

“Biomass-generated electricity will be an important part of the global climate change solution. It supports healthy forest growth and biodiversity, while providing reliable, flexible renewable power, and could enable bioenergy with carbon capture and storage, known as BECCS – a vital negative emissions technology that will be crucial to meeting net zero targets.”

A team of up to 40 contractors worked through two of the wettest Louisiana winters in decades to clear the site, excavating around 180,000 cubic yards of dirt to level off the ground and stabilise it before three sets of rail tracks could be laid. The work also included installing conveyors to get the pellets to the new rail loading point.

Rafael Moreno, Drax Biomass associate director of engineering said:
“It was a huge amount of work and the wet winters certainly created some challenges. It’s hard to excavate when everything turns into mud. But the team pulled together and worked through the night to get the track laid and completed so the spur could be commissioned in May last year.”

The rail spur at LaSalle is part of Drax’s wider efforts to cut the costs of its biomass by around a third by 2027. The rail link and other initiatives, including the co-location of a sawmill at the LaSalle site last year, has already contributed to a 3% reduction in biomass production costs to $161/tonne in 2019 compared with $166/tonne in 2018.

Drax acquired the LaSalle BioEnergy plant in Urania in northern Louisiana in 2017. LaSalle BioEnergy is one of three US pellet plants owned by Drax. The three plants produce a total of 1.5 million tonnes of sustainable biomass pellets a year.

Photo: The first train arrives at the LaSalle plant in May 2019. By Rafael Moreno

Swire Bulk, the bulk division of The China Navigation Company, has taken delivery of its new, log ship log-fitted bulk carrier into service. MV Singan is traded worldwide with a strong focus on the logs trade in the Pacific and South Atlantic.

The vessel was named in February 2020 by lady sponsor, Mrs Kaori Imoto, the wife of John Swire & Sons Board Director, Jonathan Swire. The ceremony was held at The Hakodate Dock Co., Ltd.’s shipyard in Hakodate, Japan. MV Singan embarked on her maiden voyage at the end of April for Busan.

The vessel is designed for optimal speed and consumption at 12.5 knots in the laden condition. The eco-efficiency additions of the Rudder Bulb, Wake fin and Pre-swirl will improve vessel hull efficiency, said Rob Aarvold, General Manager, Swire Bulk.

Log carriage requires a high level of structural stability, which MV Singan offers. The vessel is also installed with the latest solid state radar equipment which is integrated with ECDIS. This ensures compliance with the latest and future requirements and for system updates to be managed easily.

MV Singan is the first ship delivered in a wider order book of ten bulk vessels to be built in Japan. The remaining vessels are scheduled for delivery by the end of 2021. “Swire Bulk’s newbuilding programme will enable us to strategically deliver the largest and most eco-friendly fleet trading in the market. We remain committed to delivering market-leading, innovative and sustainable shipping solutions to our customers with our modern eco-designed vessels,” said Mr Aarvold.

MV Sungkiang, MV Singan’s sister vessel, is being built at the same shipyard scheduled for delivery in June 2020. “Having these log-fitted newbuilds on water,” said Mr Aarvold, “would strengthen Swire Bulk’s position in the log market. We are one of the world’s largest handysize logger fleets, and we have the flexibility, supply and consistent technical standards to perform and deliver freight contracts safely, reliably and professionally.”

Logging halt undercuts strong export month – Log exports fell sharply in April 2020 after logging operations were suspended during alert level 4, but average prices per cubic metre picked up, Stats NZ said this week.

In contrast, dairy and fruit exports were strong despite fears of port congestion amid the COVID-19 pandemic. Total exports fell $220 million (4 percent) to $5.3 billion in April 2020 compared with the same month last year.

“Total exports would have been worth almost the same as April last year, if they had not been undercut by the big drop in logs,” international statistics manager Darren Allan said.

Exports of logs were worth just $96 million in April 2020, down $211 million from $307 million last April. While the quantity of logs exported fell 69 percent, the biggest-ever monthly percentage fall, the price has risen to $170 a cubic metre this month after falling to $137 in July 2019.

“Log harvesting was a non-essential service under alert level 4 and didn’t restart until alert level 3 at the end of April, so it is understandable that log exports have dropped sharply,” Mr Allan said.

Most New Zealand logs are exported to China.

“However, the increase in unit price may suggest there is still unmet demand as log inventories in China are run down and export values may bounce back quickly as harvesting picks up again.”

The value of sawn timber exports also fell $61 million or 79 percent, reflecting the log shortage.

Since mid-January, Anna Fredriksson is the new Plant manager at Komatsu Forest in Umeå. Anna is also the first woman ever to become a Plant manager within the global Komatsu Group.

“It has been my driving force to work with what I think is fun, which is technology, without thinking so much about the expectations on me from the outside world. The fact that the management chose me for this assignment even though I was about to go on parental leave, further reinforced my perception of the company’s good values regarding equality”, Anna says.

Anna has a mechanical engineering degree and joined Komatsu Forest in 2011 when she did her master thesis while working in production. She then joined the quality department, where she over the years has worked with quality investigations and product quality, and then became head of the quality department in 2017. At the same time, she took a place in the factory’s management team where she further strengthened her insights regarding the entire production process.

“With Anna’s commitment, competence in various business issues, collaborative skills and her broad experience of working with quality issues, which is our most important focus area, it was a natural step to the new role as Plant manager,” says Martin Ärlestig, former Plant Manager who now becomes Global Production Manager.

Anna took up the post at a very special time. Despite the current state of the Corona pandemic, the company has been able to keep up a relatively normal business after all. In addition, the major challenge at the moment is to maintain and improve current production while looking ahead and preparing for the move to a new factory and the changes that will entail with a new, more modern production.

“With the new factory, we will take a huge step forward, that will allow us to develop the working environment, the quality and the work processes, which gives us a unique opportunity to improve the entire production”, says Anna.

Footnote: Komatsu Group has 85 factories around the world.

In 2020, more than 41 million tree seedlings will be planted in the forests of Finland, Sweden and Russia by Stora Enso. In the southern parts of the countries, the planting season started as early as April. In May, tree planting will be in full speed even further north. Source: Timberbiz

In northern forests, the planting season lasts about 150 days, which means an average of more than 270,000 tree seedlings per day will be planted by Stora Enso this summer. In Finland, about 80% of the seedlings are spruce.

Most pines are regenerated by sowing or natural regeneration, some birch is also planted. In Sweden, forest is regenerated mainly by seedlings, half of which are spruce and half pine.

Most of the production at Stora Enso’s mills is based on the wood supplied from the northern forests.

Sustainable forest management ensures that a new generation of trees replace the harvested ones. We ensure that forests are productive and healthy also in the future, says Jari Suominen, EVP, Forest Division, Stora Enso.

In Finland, approximately 150 million tree seedlings are planted in the state forests and private forest owners’ forests every year. In Sweden the number is even higher – more than 380 million seedlings. Some private forest owners prefer to plant the seedlings themselves, but there is a growing demand for silvicultural services carried out by forestry professionals.

In Sweden, Stora Enso owns approximately 1.4 million hectares of forest. Seedlings for regeneration sites are delivered from Stora Enso’s own nurseries in central Sweden.

Stora Enso Plantor follow the Swedish forest breeding program, seeking better volume growth, stem straightness, vigor, resistance and higher survival.

Stora Enso Plantor is the third biggest producer of forest seedlings in Sweden with three nurseries working as one unit with orders and deliveries.

In Stora Enso’s long term harvesting rights’ areas in Russia, 1.2 million seedlings will be planted: In Carelia, 945,000 and in Novgorod 257,000.

“We use mostly seedlings with open root system,” Jaakko Rajamäki, Director, Forest operations, Wood Supply Russia said.