Paged, a Polish company, plans to build its plywood plant in the Russian region of Nizhny Novgorod, the press office of the regional Ministry of Investments, Land and Property Relations told reported this week..
Now the investor is examining nine potential construction sites, at one of which will the projected enterprise will be built. Continue reading "Polish company plans to invest 2 billion roubles in a plywood plant in Russia"
Kährs Group's 3Q 2016 net sales amounted to SEK 708 million ($77 million), an increase of SEK 19 million ($2 million), or 3% compared with the 3Q 2015. The increase in sales can be attributed to continued good growth in the Nordics and Europe segments, while the other markets and Resilient Global segments were somewhat weaker.
Net sales for the Group during the January to September period amounted to SEK 2,158 million ($234 million), an increase of 5% compared with the corresponding period in 2015. The Europe and Nordics segments showed the highest growth rate of 10% and 5%, respectively.
3Q 2016 operating profit (EBIT) for the quarter amounted to SEK 50 million ($5.4 million), a SEK 4 million ($434,782) improvement largely attribut able to higher sales.
Operating profit excluding non-recurring items (adjusted EBIT) was SEK 59 million ($6.4 million), or 8.3%.
Operating profit before depreciation, amortisation, and non-recurring items (adjusted EBITDA) reached SEK 81 million ($8.8 million), or 11.4%. Profit for the quarter totalled SEK 21 million ($2.3 million).
Operating profit (EBIT) for the January to September period amounted to SEK 157 million ($17 million), a 3% improvement.
President and CEO Christer Persson commented: “Kährs Group continued to develop positively in the 3Q, with sales and profitability growth of 3% and 7%, respectively. Most of our core markets, including Sweden, Norway, the US and several large markets in Europe performed well, and provided good balance for the markets that currently have a less favourable market situation. The Group's product strategy is working well and our assessment is that we are gaining market share in several core markets.”
Kährs Holding AB is a world-leading flooring manufacturer in hardwood and resilient flooring.
Housing starts fell 9% in September to a seasonally adjusted annual rate of 1.05 million units, according to the US Department of Housing and Urban Development and the Commerce Department. The decline was due to significantly lower multi-family housing construction in September (-38%).
The National Association of Home Builders expects lower multi-family construction this year.
Single-family home construction increased 8.1% in September. The number of single-family starts was the highest since February.
Single-family home builders were optimistic about market conditions in October, according to the National Home Builder Association. Low mortgage rates support demand for new and existing single-family houses.
The number of building permits issues, which indicates future building activity, rose 6.3% in September at a seasonally adjusted annual rate.
Sales of existing homes sales rebounded strongly in September, according to the National Association of Realtors. Sales to first-time buyers accounted for 34% of total sales, which is the highest level in over four years.
Canadian housing market overheated
Housing starts in Canada increased 20% in September at a seasonally adjusted annual rate. Both multi-family and single-family construction grew.
For the first time the Canada Housing and Mortgage Corporation flagged the overall housing market as overvalued. The federal agency found price overvaluation in nine metropolitan areas and overbuilding in seven.
Overvaluation in metropolitan centres like Toronto and Vancouver has spread to the suburbs.
The latest initiative by the federal government to cool the housing market is a stress test for all insured mortgage borrowers with a down payment of less 20%. Introduced in October, the test determines whether a borrower could afford to pay back a loan at a rate higher than currently offered by lenders. Both the IMF and OECD have called on Canada to act on its high household debt relative to GDP, which is a concern for the country’s financial stability.
The China fibreboard industry has developed very quickly with large capital investments over the last ten years. China completed 20 new fibreboard production lines in 2015, adding 3 million m3 new production capacity. 27 fibreboard plants were built in China in 2014 adding around 4.4 million cubic metres of new annual capacity.
By the end of 2015, China operated about 667 fibreboard production lines totalling 50.9 million m3 of production capacity, a slightly drop of 0.6% from 2014. Continue reading "China’s fibreboard industry adding more capacity"
The Timber Trade Federation has released its annual Statistical Review for 2016. The review shows that timber has maintained its place among the larger manufacturing sectors, and moved into the top 10 fastest growing UK manufacturing sectors, achieving 11.4% growth in wood products on the previous year. UK forestry and logging was shown to have grown by 20.4%. The growth rate in the wood and wood products sector also outperformed many related industries, such as furniture, plastics and the construction of buildings.
Together, the forestry and wood products sector achieved a combined value of £9.5 billion in turnover.
Despite this, the figures show that the timber market for 2015 suffered a small contraction from the previous two very strong years of growth. This was not exclusive to the timber industry however and reflected the overall economic slowdown in the UK, Eurozone and across the globe.
Having followed a general trend of growth from 2008 to 2014, domestic and imported wood consumption decreased in 2015 by 1.8%. This was predominantly due to changes in imported product consumption: Hardwood and MDF consumption decreased, whilst softwood remained stable and plywood and fibreboard consumption grew from 2014.
There were also decreases in UK exports, UK production and the share of UK produced timber consumption vs imported timber.
David Hopkins, TTF Managing Director, commented: “These statistics show the value and importance of the timber supply chain to the UK economy. This is a well-established supply chain, with great growth potential. However, like all other sectors we are dependent on a joined up economic policy approach across the country."
"The upheaval of Brexit may have caused uncertainty, but is also an opportunity for us to show our worth. If the Government is serious about creating an “industrial strategy” then we must put forward the case for the timber manufacturing sector providing skilled jobs in every constituency across the country. These statistics help us do just that.”
This year the review has been redesigned with new sections dealing with the impacts of the housing market, GDP and currency movements on the timber industry and a profile of the Grown in Britain campaign.
Bergs Timber AB is continuing discussion of potential acquisition of sawmills in Vimmerby in Sweden with Setra. On September 14, 2016 the parties signed a declaration of intent regarding the sale of the sawmill in Sweden. Meantime, the parties jointly worked to develop a business plan for the integration of operations in Bergs Timber’s existing operations.
According to the announcement, the result of this work is positive and the parties consider the transaction remains interesting. The discussion is therefore entering a new phase with the aim to conduct due diligence and to agree on the final terms of transactions. The parties expect the agreement to a transaction will be concluded in December 2016.
The acquisition is subject to completion of due diligence, any necessary regulatory approvals, secured financing and other customary closing conditions.
Bergs Timber is active in three business areas: forestry services for our forest owners, forest products and timber preservation.
Setra Group is one of Sweden’s largest wood products companies and a leading player in Europe. The group has approximately 900 employees and annual sales of SEK 4.1 billion. Setra Group includes a total of nine sawmills, three processing units and two modular building factories. It exports its products to Europe, North Africa, the Middle East and Japan, which account for almost 60% of sales.
Kronospan will produce its first batch of particleboard using a continuous particleboard line in Veliko Tarnovo, Bulgaria starting this month. As reported earlier, Kronospan wants to increase production at two sites from Bulgaria, where it has been investing since 1997. The Austrian manufacturer now owns three sites in the country. Continue reading "Kronospan might start particleboard production in Veliko Tarnovo, Bulgaria, starting November"
In terms of plywood imports, the Russian birch seems more and more attractive on the EU market. Even though Russia has traditionally been a major plywood supplier for the EU countries, now the country managed to take the lead in the first eight months of 2016, surpassing China.
In Jan.-Aug. 2016, Russia's market share in EU's plywood imports came up to 16,08% (compared to 14,92% in Jan.-Aug. 2015). On contrast, China and Brazil, the two other major suppliers of plywood to the EU slowed down the pace, having decreased their supplies in Jan.-Aug. 2016 by more than -20% each. Therefore, China’s plywood shipments to the EU amounted to 245,70 million euros, running on the second place. Plywood imports from Brazil valued at 159,54 million euros, putting the country to the third position.
In Jan.-Aug. 2016, EU plywood imports from Russia had the following results Continue reading "Russia now with the highest market share in EU plywood imports"
Indonesia just sent on the 15th of November the first batch of plywood commodity that is in accordance with the European Union (EU)-initiated Forest Law Enforcement, Governance and Trade (FLEGT) license to several destination ports in Europe. Continue reading "Indonesia sent first plywood batch to the EU, in accordance with FLEGT"
UK’s furniture imports from outside the European Union have become the biggest challenge for the furniture industry, when it comes to the legitimacy of the timber sourcing. Continue reading "UK’s furniture imports reach £1.6 billion from high-risk countries"
Latest prices for Brazilian logs, sawnwood and plywood prices (16-31 October 2016)
| Brazilian logs, mill yard, domestic | US$ per m3 | ||
| Ipê | 196 | ||
| Jatoba | 108 | ||
| Massaranduba | 113 | ||
| Muiracatiara | 115 | ||
| Angelim Vermelho | 107 | ||
| Mixed redwood and white wood | 92 | ||
Export Sawnwood Prices Continue reading "Latest prices for Brazilian logs, sawnwood and plywood"
China’s log and lumber imports increased during January-September 2016, as compared to same period of 2015.
Only for September, the total volume of log imports amounted to 4.26 million m3, which represents a 15.41% y-o-y increase. For the whole year, the imports reached a volume of 36.59 million m3, which marks a 6.95% increase compared to the same period last year. Continue reading "China’s log and lumber imports up by more than 15% in September"
The Biesse Group, one of the main global suppliers of woodworking machinery and technology, reported consolidated sales for the 3Q-2016 of EUR 152.7 million an increase of 27.7% compared to 3Q-2015 (EUR 119.6 million).
The Group’s consolidated sales for the first nine months of the year reached EUR 436.4 million compared to EUR 365.1 million in the same period 2015 (+19.5%).
Stefano Porcellini, Biesse Group General Manager stated: "The results for the period to 30 September and the trend for the current quarter indicate that 2016 will – once again – be a record year for Biesse Group revenues, which should grow by about 15% compared with the previous year, approaching our extraordinary target of EURO 600 million. All business segments are increasing their market share, thanks to our innovative and reliable product range and a distribution and service network of which we are extremely proud, and in which we continue to make substantial investments to accompany our clients ever closer to the challenges set by INDUSTRY 4.0".
For the third quarter 2016 EBITDA reached EUR 20.4 million compared to EUR 14.2 million in the same period of last year. Representing an EBITDA margin improvement of 1.5 p.p. from 11.9% in 3Q15 to 13.4% in 3Q16.
Biesse was founded in 1969 in Pesaro, Italy, to design, manufacture and distribute woodworking machines. Of the Group’s 3 main business divisions, the Wood sector continues to predominate (72.5% of revenues) compared to the Glass/Stone/Marble division (15.7% of revenues) and Mechatronics (14.7% excluding intra group sales). The contribution of the “advanced materials” segment continues to grow although it does not yet represent a separate business segment for management purposes.
Biesse Group Results July - September 3Q
EUR million
| 2016 | 2015 | Var (%) | |
|---|---|---|---|
| Sales | 152.7 | 119.6 | 27.7% |
| EBITDA | 20.4 | 14.2 | 43.7% |
| Profit/Loss | 9.1 | 4.4 | 108.8% |
| EBITDA Margin | 13.4% | 11.9% | +1.5 p.p. |
Source: Quarterly Report
Biesse Group Results January - September
EUR million
| 2016 | 2015 | Var (%) | |
|---|---|---|---|
| Sales | 436.4 | 365.1 | 19.5% |
| EBITDA | 50.8 | 43.1 | 17.9% |
| Profit/Loss | 20.9 | 14.9 | 40.4% |
| EBITDA Margin | 11.6% | 11.8% | -0.2 p.p. |
Source: Quarterly Report
Magna ExpoMueblera is just around the corner, running at the Centro Banamex exhibition center in Mexico City from 18 to 21 January 2017. The show has been a staple of the Mexican trade fair market for 22 years. What's different next year is that it will be organized by Deutsche Messe. Magna ExpoMueblera is the top event in the timber processing, woodworking, furniture production and equipment segment of the Mexican trade fair market.
The show's exhibition lineup includes woodworking machinery for the Mexican and Central American furniture industry, forestry technology, living room, kitchen and office furniture, fabrics, upholstery materials and supplies. The 2017 highlights include the premier of the CNC Application Park, a special display where leading manufacturers of CNC machinery, tools, software and control equipment will showcase their products, services and expertise. Visitors to the CNC Application Park will discover innovative technologies for processing a wide range of materials for window, door, staircase and furniture components.
Magna ExpoMueblera 2017, which runs from 18 to 21 January, will occupy some 30,000 square meters (322,900 sq. ft.) of display space and feature 320 exhibitors, including leading providers of wood industry machinery, such as Stiles, Felder, SCM, Biesse and Cehisa, plus the Nowy Styl Group, one of Europe's biggest manufacturers of office chairs and furniture.
Mexico City is a key market hub for the southern United States and Central and Latin America. The last time Magna ExpoMueblera was held (January 2016), it drew more than 80 percent of its 25,000 visitor total from these regions.
The Mexican market is highly dynamic and offers excellent prospects for growth. This is partly because a number of furniture manufacturers are moving their production facilities for the North American market from Asia to Mexico in order to take advantage of logistical and quality benefits. Known as reshoring, this trend is supported by the North American Free Trade Agreement and can also be observed in other industries.
On 8 June 2016, Deutsche Messe acquired a majority stake in Magna ExpoMueblera. The show focuses on the Mexican market, where it is an important facilitator of exports to North and Central America. It is therefore an excellent fit for Deutsche Messe's global network. The acquisition gives Deutsche Messe a presence in Mexico to match its lineup in the USA, Canada and Brazil. The flagship of Deutsche Messe's worldwide portfolio of wood-industry trade shows is LIGNA, which it operates in Hannover, Germany, in partnership with the German Engineering Federation (VDMA). LIGNA is the world's leading trade fair for wood-industry machinery, plant, tools and equipment. No other show offers such in-depth, comprehensive coverage of products and solutions for all areas of the wood value chain. All the global market leaders exhibit at LIGNA.
For further information on Magna ExpoMueblera, visit http://magnaexpomueblera.mx/english/
Huber Engineered Woods LLC (HEW) announced that it will reopen reopen its manufacturing facility in Spring City. Continue reading "Huber Engineered Woods reopens Spring City, US, facility"
Sistema, the Russian conglomerate, is planning to buy Honkarakenne Oyj, a Finland-based company that designs and builds wooden log homes. Continue reading "Russian Sistema made offer for buying Finnish maker of Honka homes"
A teak importer from Myanmar has found guilty for violating the EU Timber Regulation (EUTR). A Swedish court upheld a ruling on the 15th of November which will also set a legal precedent forecast to be followed all across Europe.
Sweden’s forest agency, Skogsstyrelsen, prosecuted the trader, Almtra Nordic, under the EUTR after an investigation found that the company could not demonstrate who harvested its timber or where it was cut prior to the company purchasing it from the state-operated Myanmar Timber Enterprise (MTE), Continue reading "Swedish teak importer from Myanmar fined in Sweden; legal precedent to be set for EUTR"
For the period under review the average unit price of all wood products for 2016 was euro 572/cu.m compared to euro 511/cu.m in 2015 (15-31 October):
Boule Export prices
| Euro per m3 | |
| Black Ofram | 380 |
| Black Ofram Kiln dry | 472▲ |
| Niangon | 530▲ |
| Niangon Kiln dry | 571 |
Export Sawnwood Prices
| Ghana Sawnwood, FOB | EURO per m³ | |
| FAS 25-100mm x 150mm up x 2.4m up | Air-dried | Kiln-dried |
| Afrormosia | 860 | 925 |
| Asanfina | 492 | 564 |
| Ceiba | 297 | 317▲ |
| Dahoma | 363▼ | 429 |
| Edinam (mixed redwood) | 520 | 599 |
| Emeri | 465▼ | 570▲ |
| African mahogany (Ivorensis) | 848 | 1075▲ |
| Makore | 730 | 820 |
| Niangon | 500 | 590▼ |
| Odum | 755 | 869 |
| Sapele | 675▼ | 815c |
| Wawa 1C & Select | 363 | 465▲ |
Continue reading "Ghana: October export prices for logs, sawnwood, veneer, plywood"
Log auctions of the new season have been just concluded in the Dangs Division depots. The logs offered were fresh and of good quality. The total quantity offered was around 8,500 cubic metres, mostly teak.
Analysts report the buying tempo was upbeat and the prices secured were much higher compared to the same time last year. This, say analysts, was due to the scarcity of good quality logs and bidding competition. The prices achieved as shown below:
| Teak logs | Per cubic foot |
| A grade for ship building | Rs. 3300-3500 |
| B grade for ship building | Rs. 3100-.3250 |
| A grade large girth for sawing | Rs. 3000-3050 |
| B grade large girth for sawing | Rs. 2900-2950 |
| A grade long length | Rs. 2700-2800 |
| B grade long length | Rs. 2600-2650 |
| Long length, Medium Quality | Rs. 2000-2100 |
| Short Length, Medium Quality | Rs. 1500-1800 |
| Short Length, small logs | Rs. 1100-1300 |
Good quality non-teak hardwood logs, 3 to 4 metres long having girths 91cms and up of haldu (Adina cordifolia), laurel (Terminalia tomentosa), kalam (Mitragyna parviflora) and Pterocarpus marsupium, fetched lower prices in the range of Rs.700-900 per c.ft for the better qualities and from Rs.600-700 per c.ft for medium quality logs while the lowest quality attracted prices of between Rs.300-450 per c.ft.
Auction sales at depots in Surat Division will begin 8 November and at those in Vyara Division from 10 November. The indications are that the quality of logs to be offered at these auctions is good.
Prices for wood fiber consumed by the pulp industry in North America have fallen over the past year in all regions of the continent with the exception of the US South. The biggest declines have been in the northwestern and northeastern US where prices have fallen between 10- 15% from the 3Q/15 to the 3Q/16.
In the US Northwest, where a majority of the fiber furnish is sawmills residuals, prices have fallen 11% in one year but are still higher than the 25-year average price. Current price levels for softwood chips in Washington and Oregon are the second highest in North America, behind the Lake States region. The lowest cost regions for chips are the US South, British Columbia, Alberta and Quebec, Continue reading "North American wood fiber prices at lowest levels in over two years"
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