Article archive

Kährs Group reports rising sales

Posted on by GWMI Admin

Net sales for the Swedish wood flooring manufacturer Kährs Group totalled SEK 782 million during the first quarter of 2017 (Jan - March - SEK 695 million), an increase of 13 per cent compared with the same period in 2016.

Organic sales growth was 9 per cent, while the EBITA increased by 28 per cent in the first quarter and amounted to SEK 64 million (Jan - March - SEK 50 million), corresponding to 8.2 per cent increase. Also, the operating EBITA was SEK 69 million (Jan - March - SEK 53 million), corresponding to an operating margin of 8.8 per cent.

Consolidated profit for the quarter was SEK 45 million (Jan - March - SEK 33 million) and the improvement was mainly related to higher net sales and a stronger operating profit

President and CEO Christer Persson comments:
”Kährs Group performed well during the first quarter 2017, with increased sales and improved operating profit. All four segments contributed to the sales increase of 13 per cent, with the strongest growth in the Nordics and Resilient Global segments, which grew by 18 and 27 per cent respectively.  Based on the Kährs Group’s attractive market position in both the professional market and the consumer market, growth opportunities in the coming years continue to be promising. We expect our growth to be organic by taking advantage of the opportunities provided by innovation, design development and an advanced commercial offering. We also see potential growth opportunities through carefully chosen supplementary acquisitions.”

About Kährs Holding AB 

Kährs Holding AB (publ) is a world-leading flooring manufacturer in hardwood and resilient flooring with a number of strong brands in its product portfolio, including Kährs, Karelia and Upofloor. The Company's innovations have shaped the industry throughout history and Kährs Group is dedicated to providing the market with innovative new flooring solutions. Kährs Group, which delivers products to more than 70 countries, is the market leader in Sweden, Finland, Norway and Russia and holds a strong position in other key markets, such as the UK and Germany. The Group has approximately 1,700 employees and annual sales of EUR 300 million.

Global softwood markets prices went upward in Q1/2017

Posted on by GWMI Admin

Global softwood lumber prices trended upward in early 2017 with prices in North America hitting a 13-year high, Chinese import prices increasing 13% in 18 months and Japanese prices moving modestly higher in the 1Q/17. Continue reading "Global softwood markets prices went upward in Q1/2017"

EBRD to finance Barlinek investments with 200 million Polish zloty

Posted on by GWMI Admin

The European Bank for Reconstruction and Development (EBRD) will finance investments of the Polish wood floor producer Barlinek in Poland and Ukraine.

Recipients of long-term financing in the amount of 200 million Polish zloty (~ 47.7 million euros) is Barlinek Invest LLC, a subsidiary of Barlinek SA, having its headquarters in Kielce in Poland. The total amount of investment amounts to 250 million zlotys, the equivalent of about 59.6 million euros.

In Ukraine, at the Vinnytsi sitea, Barlinek plans to double its production capacity and invest around 30 million euros there.

In Poland the measures will be to increase energy and resource efficiency, mainly through a biomass power plant. Thus the Polish site will comply with EU environmental policies.

Both Barlinek locations are also FSC certified.

UK imports of US wood pellets stagnate after years of growth

Posted on by GWMI Admin

During the first quarter of 2017, the US wood pellets exports to the European Union countries increased by 8%, reaching 1,5 million tonnes, as compared to the same quarter of 2016. Continue reading "UK imports of US wood pellets stagnate after years of growth"

Shanghai wood processing plants began to relocate

Posted on by GWMI Admin

Traders report that activity in the Shanghai timber markets is very quiet. Analysts say one reason is that many wood processing plants have relocated.

As early as March this year wood processing enterprises in Shanghai without environment impact assessment certificates were asked to stop production.

Also many wood processing factories began to move to Zhangjiagang and Taicang Ports due to the increase in rent and labour costs in Shanghai.

It is estimated that about 1,000 furniture makers have moved out.

As this trend continues the timber markets at Taicang and Zhangjiagang will play a greater role in distribution.

CLT market expected to double by 2022

Posted on by GWMI Admin

The global cross-laminated timber market continues to experience solid growth. Market advances over the last several years stem from mechanical properties of cross-laminated timber that make the product suitable for use in residential and commercial spaces. Continue reading "CLT market expected to double by 2022"

SCA to expand Östrand pulp mill in Sweden

Posted on by GWMI Admin

SCA decided to increase capacity for pulp production at its Östrand pulp mill in Timrå, Sweden. Production is expected to commence in 2018.

According to the announcement, the annual production capacity of bleached sulphate pulp will increase from the current level of approximately 430ktpa to about 900ktpa. The investment will amount to about SEK 7.8 billion (arround USD 900 million) over a three-year period.

Magnus Groth, President and CEO of SCA, commented: “A cohesive forest products operation in a single division further highlights the value created and optimizes synergies between the forest industry and ownership of forest land. Over time, the investment in Östrand will increase sales and competitiveness and create a world-class cost position and higher margins.”

Recently, SCA announced closure of a tissue production plant in Flagstaff, Arizona, in the US.

Canadian lumber being used in massive Chinese eco-district project

Posted on by GWMI Admin

About 100 townhomes will be built in Tianjin, China’s Sino-Canadian Low-Carbon Eco-District using Canadian lumber. Energy efficiency standards and clean technologies developed by Natural Resources Canada are also being implemented in the CAD$2.5-billion project.

Canadian wood product exports to China currently total $1.6 billion since 2002, according to Natural Resources Canada.

Minister of Natural Resources Jim Carr, and China's vice-minister of Housing and Urban-Rural Development Yi Jun met this week to reaffirm the two countries’ agreement to support the development of eco-cities in China using Canadian wood products and technology.

Carr visited the eco-district on Friday. "The eco-district in Tianjin is a remarkable testament to what can be achieved when international partners cooperate in the interest of promoting environmental best practices,” he said in a statement. “Canada is a proud participant in this ambitious project and will be happy to work with China to realize its goal of creating thriving green cities."

Natural Resources Canada said the project will help support jobs in Canada’s $22-billion forest industry by expanding market opportunities for Canadian wood products.

Currently, Canada’s wood products are exported globally to more than 140 countries.

Egger Romania to invest EUR 23.9 million in recycling installation

Posted on by GWMI Admin

Egger Romania has invested EUR 23.9 million in a recycling installation at its plant in Radauti and in the Egger Timberpark platforms of collecting the recycled wood.

The collection division of recycled wood and the recycling installation of wood from Romania are the company’s solution for a secondary, sustainable life cycle of materials based on wood.

„The recycling wood quantities which were elaborated and recycled in 2016 by Egger Romania replaced the potential of usage of 35,000 hectares of forests. We have a unique wood recycling installation in Romania, dedicated and used exclusively for this purpose. At European level, Egger uses in average 30 percent recycled wood for the production of panels based on wood. Last year, Egger Romania reached a level of approximately 8 percent and in the half of 2017, we’ll reach 15 percent of recycled wood and we estimate a share of 17 percent for the second half of the year. (…) Our objective for 2020 is to recycle more than 150,000 tonnes of materials based on wood annually, equivalent to more than 30 percent of the volume of wood from forest works, ” said Ioan Banciu, technical director of Egger Eastern Europe division.

The company developed similar locations in UK and Germany and collects overall 480,000 tonnes of recycled wood annually.

Egger is an Austrian family business set up in 1961 and has approximately 8,000 employees and a turnover of EUR 2.34 billion in the financial year 2015-2016.

France: Softwood and hardwood lumber prices for the 1Q/2017

Posted on by GWMI Admin
FRENCH LUMBER PRICES
for the period
April 1-5 2017
1st quarter 2017
 

Price 2017-Q1 (Price for the period April 1-5, 2017) Prices
2016-Q1
€		 Prices
2016-Q4€		 Prices
2017-Q1€		 Index Change
2017-Q1
2016-Q4		 Change
2017-Q1
2016-Q1
OAK Lumber                                                                       Index base 100 : Oct 2006 S20
UNEDGED LOGS  - QBA - Logs, joinery, (KD), length 3 m +
Diameter 40 to 49cm (thickness 34mm)    m3

 996 1 073 1 093 126,3 1,9% 9,8%
Diameter 50cm et + (thickness 50mm)    m3

 1 136 1 200 1 233 127,2 2,8% 8,6%
LOGS  - QB1 - High-value joinery work, 6 months open air drying, length 3 m +
Diameter 40 to 49cm (thickness 27/34mm)    m3

 801 827 833 119,1 0,8% 4,0%
Diameter 50 to 80cm (thickness 54mm)      m3 942 964 979 126,7 1,6% 4,0%
SELECTED LOGS  - QSA/QS1-  (KD)
Thickness 27 to 54mm - length 2m +
Bare 18cm (tolerance 10cm +)     m3

 833 862 866 129,8 0,4% 3,9%
SELECTED LOGS  - QS2 - 6 months open air drying
Thickness 27 to 54mm - length 2m +
Bare 18cm (tolerance 10cm +)     m3

 563 622 588 100,4 -5,5% 4,5%
STRIPS (80x27) OR EDGED (100x27) QF1a - 3 months AD
Length 30 to 50cm     m3 759 825 855 100,4 -5,5% 4,5%
Length 60 to 90cm     m3 759 825 825 119,2 1,0% 8,6%
Length 1m + m3 886 929 944 119,4 1,7% 6,6%
STRIPS (80x27) OR EDGED (100x27) QF1b  - 3 months open air drying
Length 1,50m +    m3 627 641 710 114,3 10,7% 13,2%
EDGED QF2- Thickness 27 mm - length 1,50 m +
Width 100 to 150mm     m3 621 684 748 125,2 9,4% 20,4%
Width 160mm +     m3 693 738 790 129,6 7,0% 13,9%
EDGED QF2/QF3 X – Thickness 27 mm, length 1,50 m +, 3 months AD
Width 160mm +     m3 566 630 633 115,0 0,5% 11,7%
EDGED BEAMS QP1 - Standard beams (fresh)
Camber to max. two edges, red core and sap tolerance
Measure 15x15 - length 4 to 5m     m3 496 517 526 129,3 1,7% 6,0%
Measure 25x25 - length 4 to 5m     m3 532 562 566 124,1 0,6% 6,3%
SPRUCE Lumber (fresh)                                                        Index base 100 : July 1990 S30
Quality 0 - Edged, in all widths
Thickness 27mm     m3 285 279 289 102,8 3,7% 1,3%
Quality 1 - Edged, in all widths
Boards 2 to 5,50m - thickness 27mm     m3 236 244 248 112,3 1,8% 5,3%
Quality 2
Scantlings

75x225 or 63x160 - length 3 to 5m     m3

 191 190 188 160,9 -1,0% -1,5%
Beams
63x75 or 50x75 - length 3 to 4,50m     m3		 200 200 198 106,7 -0,6% -0,9%
Mouldings
27x27 - length 2 to 5m m3		 228 228 228 111,5 -0,1% -0,2%
Quality 3 - Boards edged timber all width
Unedged beams

Thickness 18/27mm     m3

 145 140 142 101,9 1,0% -2,3%
Quality 4
Scantlings     m3

 144 143 142 104,5 -0,6% -1,6%
Boards any widths    Thickness 27mm     m3 136 137 131 104,9 -4,0% -3,4%
Value added for extra-lengths 5 to 8 m 11 10 10 - -2,0% -4,2%
€/m
MARITIME PINE Lumber (fresh)                                            Index base 100 : July 1990 S50
Quality 0A - edged, in all widths, lengths 2 to 2,70m
3/4 Sidings     Thickness 27/32mm    m3 321 326 327 108,1 0,3% 2,0%
Quality 0 - edged, in all widths, lengths 2 to 2,70m
Thickness 27mm     m3 240 240 250 120,9 4,3% 4,2%
Thickness 32mm     m3 271 271 266 125,3 -2,0% -2,0%
Quality 1 - edged, in all widths, lengths 2 to 2,70m
Thickness 27mm     m3 205 211 200 128,5 -5,2% -2,0%
Thickness 32mm     m3 240 240 240 144,4 -0,1% -0,1%
Quality 2
Scantlings - length 3 to 5m m3 258 258 240 144,6 -7,0% -7,0%
Quality 3 - Boards thickness 27 mm - all widths
length 2 to 5m m3 154 157 152 123,7 -3,0% -0,9%
Beams     m3 143 140 140 109,9 -0,6% -2,6%
Quality 4
Boards 27mm     m3 118 126 112 118,6 -11,7% -5,7%
PINE Lumber(fresh)                                                              Index base 100 : July 1990 S40
Quality 0A
Logs All thicknesss     m3 344 344 320 122,1 -7,0% -7,0%
Quality OB
Logs All thicknesss     m3 291 291 288 125,2 -1,0% -1,0%
Quality OA
Edged
Thickness 18, 27mm +, Width 100mm + m3

 301 301 290 97,6 -3,5% -3,5%
Quality 0
Edged
Thickness 18, 27mm +, Width 100mm +   m3		 292 292 290 121,3 -0,7% -0,7%
Quality 1
Edged

Thickness 18, 27mm +, Width 100mm + m3

 244 244 242 122,2 -0,8% -0,8%
Quality 2
Scantlings
63x163 or 175, 65x175 or 180, 75x165, 80x230
Length 3 to 5m     m3

 202 194 192 111,4 -1,3% -5,1%
Beams : 76x76, 80x80
Length 3 to 5m m3

 211 215 195 109,6 -9,1% -7,5%
Wood frame construction and glulam
Price for drying and planning not included, length 2 to 4m m3		 242 240 227 113,5 -5,5% -6,2%
Quality 3
Boards - Thickness 27 mm - length up to 3 m
All widths     m3

 125 128 128 97,8 0,1% 2,4%
Scantlings : 65x165 or 80x230 m3

 153 149 151 105,6 1,4% -1,6%
Quality 4
Boards 27mm     m3 147 147 139 113,2 -5,3% -5,2%
Scantlings     m3 162 154 151 117,0 -1,8% -7,1%
BEECH Lumber                                                                    Index base 100 : July 1990 S70
Logs (3 months drying)
Thickness 27/54mm , diameter 40cm +, length 3m +
Quality FB1     m3		 307 308 313 108,0 1,7% 2,0%
Quality FB2     m3 212 207 211 97,3 2,0% -0,3%
POPLAR Lumber                                                                  Index base 100 : July 1990 S80
Edged
Thickness : 18, 22, 27mm, length : 1 to 2,67m (10% de 1 to 1,33m), Width : 10 to 25cm (average 17/18cm)
Grade 1 (choice and wood quality) open air drying m3 306 278 288 126,1 3,4% -6,0%
Grade 2 (bedding quality) open air drying     m3 209 211 199 86,7 -6,1% -5,0%
Grade 3 (packaging-pallets quality) fresh m3 156 160 158 110,4 -1,5% 1,5%
DOUGLAS FIR Lumber (fresh)                                                Index base 100 : Jan. 2005 S60
Grade 1 - Edged - length 3 to 5m
42 or 52x150 to 230 m3 255 257 254 134,9 -1,2% -0,6%
Grade 2 - Scantlings - length 3 to 5m
63x150 or 63x175     m3 205 215 203 124,6 -5,7% -1,0%
63 or 75x200 to 225 m3 213 221 210 124,9 -4,9% -1,3%
63 or 75x250 to 300 m3 247 247 253 131,6 2,3% 2,5%
Value added for extra-lengths 5 to 8 m 13 16 16 - 3,8% 23,7%
€/m
PALLET LUMBER (fresh)                                                        Index base 100 : Jan. 2005
All hard- and softwood species - all quality grades
Boards in fixed width – solid wood Frame timber – longitudinally sawn
All thicknesss 18/27mm     m3		 159 158  155 117,8 -1,6% -2,2%
except for maritime pine     m3 160 161 161 - 0,0% 0,7%

The US and Canada are still far from reaching satisfying resolution on softwood lumber duties

Posted on by GWMI Admin

There is little hope that Canada and the United States solve the issues regarding the softwood lumber agreement, as the two countries remain quite far apart regarding a resolution. Continue reading "The US and Canada are still far from reaching satisfying resolution on softwood lumber duties"

Century Ply makes new investments for production capacity expansion in the next 2 years

Posted on by GWMI Admin

Century Plyboards has released on the 11th of June the company's plan to invest Rs 282 crore in the next two years for its various expansion projects. Continue reading "Century Ply makes new investments for production capacity expansion in the next 2 years"

Finland’s forest industries used 67.4 million cubic metres of roundwood in 2016

Posted on by GWMI Admin

In 2016, Finnish forest industries consumed a total of 67.4 million cubic metres of roundwood, 4% more than a year earlier and 7% above the average over the previous five-year period. Continue reading "Finland’s forest industries used 67.4 million cubic metres of roundwood in 2016"

Croatia’s government issues ban on oak logs exports

Posted on by GWMI Admin

The Croatian Ministry of Agriculture issued a decree on a two-year ban on the exports of oak logs, The main reason is that the oak trees have been infested by the bark beetle in as many as 14 Croatian counties.

Unofficially, this is one of measures to halt the enormous outflow of raw materials from Croatia to the EU countries, the Croatian media reported.

The measure taken by the Minister of Agriculture, Tomislav Tolušić, caused a wave of positive reactions from representatives of the Croatian wood industry, as well as citizens who welcome the ban and the halt of the long-standing export of valuable wood.

Of Croatia's total wood exports in 2016, which amounted to EUR 1.09 billion, it is estimated that almost a third relates to exports of raw materials, while the domestic wood industry has problems with the supply of raw materials for its production

Tolušić believes that the wood industry is one of the most important sectors for the Croatian economy, which annually earns about EUR 17 billion in revenue.

Although the Croatian forests were not selling the logs for exporters, there was unrivaled market turmoil because they did not control where the wood arrived, so false invoices were issued. Thus, oak logs went to Italy, Austria, Germany and Egypt. Obviously, the minister's decision wants to prevent further smuggling of oak logs.

Finland: Sawlog prices more expensive in April

Posted on by GWMI Admin

Finnish roundwood prices went up during April 2017, as compared to the same period last year. 
The prices for logs increased by 2-4% during the mentioned period. The price for pine reached EUR 57.72/m3, going up by 2.72%, while the price for spruce increased by 4.44%, reaching EUR 59.01/m3. Also, the value for birch increased by 4.22%, to EUR 48.89/m3.
As for pulpwood, the prices were stable, with a slight decrease for birch. Thus, the price for birch went down by -2.01%, from EUR 28.84/m3 to EUR 28.26/m3, while the prices for pine and spruce increased by 0.03% and 0.56%.

April 2016 March 2017 April 2017 Change in % April 2016-April 2017
Pine logs 56.19 57.45 57.72 +2.72%
Spruce logs 56.50 58.55 59.01 +4.44%
Birch logs 46.91 47.04 48.89 +4.22%
Pine pulpwood 28.08 27.80 28.09 +0.03%
Spruce pulpwood 30.33 29.95 30.50 +0.56%
Birch pulpwood 28.84 28.23 28.26 -2.01%

Newsletter

Subscribe to our digital newsletter for your daily digest of essential news, views and analysis from the international wood industry delivered directly to your inbox.



0