Travis Perkins plans to close approximately 30 branches of the group, which will cost the jobs of 600 people in the company. Continue reading "Travis Perkins plan to close 30 branches of the group; 600 jobs to be lost"
Article archive
Lumber Liquidators appoints new CEO
Lumber Liquidators announced that John M. Presley is resigning as CEO, effective November 9, 2016 and the Board of Directors has appointed Dennis R. Knowles (in the photo), the company's Chief Operating Officer, to succeed Mr. Presley as CEO.
Mr. Presley is resigning from the Board of Directors effective December 15, 2016 and Mr. Knowles has been elected to the Board, effective the same date, as a director in the class of directors whose current terms expire in 2017.
Mr. Knowles joined the Company in March 2016 as Chief Operating Officer responsible for the Company's stores organization, sales, merchandising and marketing, installation, distribution and related operations.
Mr. Knowles previously served in store operations leadership roles at Lowe's Companies, Inc. since 2001, most recently as Chief Store Operations Officer. In addition to overseeing store operations at Lowe's, Mr. Knowles had broad strategic and operational leadership roles in merchandising, installation, internet sales, specialty sales, proprietary credit and communications, contributing to Lowe's growth in sales and earnings during his tenure there.
Mr. Presley served as a Director of the Company since April 2006, stepping forward in November, 2015 to serve as the Company's CEO.
Lumber Liquidators is North America's largest specialty retailer of hardwood flooring.
Central/West Africa: Sapelli and sipo prices spiralling down
A few minor price movements have been reported with both sapelli and sipo prices dipping once more however sawnwood prices for most species remain stable in spite of a general slackening in demand in the US and in Europe.
Demand in the UK has been affected by a slowing in infrastructure spending and investment in large housing developments which, say analysts, is probably a ‘wait and see’ response related to the decision in the UK to exit the EU.
Scottish Construction, Scotland's daily construction news service has reported that Travis Perkins, Continue reading "Central/West Africa: Sapelli and sipo prices spiralling down"
2016 International Woodworking Fair in Atlanta report
The 2016 International Woodworking Fair (IWF) in Atlanta, Georgia, the major show for panel manufacturers, has had great success for the industry this year.
In recent years the biennial International Woodworking Fair in Atlanta had shrunk from its pre-2008 heyday. The 2014 show was bigger than 2012; the 2016 show, held from August 24-27, was bigger again. Two large halls were packed solid with stands. Exhibitors came from as far away as Turkey and China – 90 countries in all were represented, Continue reading "2016 International Woodworking Fair in Atlanta report"
The Belgian furniture industry increased its turnover, but caution is advised on Brexit effects
On the occasion of the Brussels Furniture Fair that will be held at the Heysel exhibition halls from 6 to 9 November 2016, Fedustria, the Belgian federation of the textile, wood and furniture industries has measured the economic situation of the Belgian furniture sector.
The Belgian furniture industry generated a turnover of 1,261.7 million Euros in the first half of 2016, a rise of 3.2 % compared with the first half of 2015. This means that 2016 has begun better than the previous year, which was considered more a year of stabilization.
The question remains whether this positive evolution will be kept up in the coming months. Indeed, the production capacity utilization rate is encouraging and investment levels are good, however the Brexit is also causing a certain unease in the industry and the financial markets, and consumer confidence and furniture order levels are in the red.
Investments and production capacity utilization rate
During the first half of 2016, the Belgian furniture industry invested 44.7 million Euros, which is 8.1 % more than in the same period last year . In this way the trend in increased investment that began last year was continued.
The Belgian furniture industry's production capacity utilization rate has now exceeded 75 % for 10 quarters in a row, and has been above 80 % for 5 quarters in a row. A slight decline has been visible over the last two quarters. This is probably influenced by the heavy decline in the rate of furniture orders.
Employment level
Employment in the Belgian furniture industry stood at 11,150 staff across 844 companies in 2015. In other words: employment in the Belgian furniture industry is being well maintained.
Order levels in the furniture trade
According to the monthly survey by the National Bank of Belgium, the orders received in the Belgian furniture trade in the first eight months of 2016 declined cumulatively by 2.1 %. The only ray of hope after a poor start came in the month of June, but the rate then dropped down considerably during the summer months, leading to a poor discounted sales period.
Foreign trade and import
2015 was a good year for Belgian furniture exports, with a global increase in exports of 5.5 %, primarily thanks to the good export levels to other EU countries, the Middle-East and North America.
Despite continued growth being evident in the first 6 months of 2016 the actual result of +1.8 % is considerably more moderate. Within the EU, exports have grown by 3.7 %, with a light increase to France (+1.5 %), the Netherlands (+3.4 %) and Germany (3.7 %), these being our top-3 export markets by far.
Filip De Jaeger , deputy general manager responsible for the furniture sector at Fedustria : “There may well be considerable changes in the exports to the United Kingdom as a result of the Brexit. This is likely to depend heavily on the product. There is already a direct impact due to the strong decline in the value of the British pound, which in turn puts pressure on the margins and/or volumes of those exporting. This should already start to show in the figures for the 2nd half of 2016.”
On the import side we see the opposite trend, with a slight increase of 0.9 % in the first 6 months. Imports from EU countries grew by a total of 2.4 %.
Forecast: Caution is advised, the consequences of Brexit are hard to predict
The Federal Plan office anticipates that, after two years of moderation, the world economy will grow slightly in 2017, led by the US and emerging countries. Economic growth in the eurozone, as the most important export market for the Belgian furniture sector, is also likely to remain moderate due to uncertainty around the consequences of the Brexit.
Taking all these elements into consideration we still expect a slight growth in furniture activity in 2017.
Indonesia, Thailand, Vietnam and Cambodia see improved sales of flooring to US
US hardwood flooring imports were almost unchanged in August at US$4.2 million. Assembled flooring panels imports grew 7% from July to US$16.5 million.
Malaysia’s and Indonesia’s shares in US imports of hardwood flooring declined in 2016. Year-to-date imports from Malaysia and Indonesia were 34% and 15%, respectively, lower than in August 2015. Continue reading "Indonesia, Thailand, Vietnam and Cambodia see improved sales of flooring to US"
Moelven to increase drying capacity at Nötnäs sawmill in Sweden
Moelven Nötnäs AB, based in Torsby, Sweden, is ordering HCH forklift-loaded chamber kilns from Heinola. Initially these will replace older drying kilns, improving both drying quality and working conditions. The next stage will increase future capacity. With this order, Heinola has made a breakthrough onto the Swedish market, signing its first drying kiln deal with the Moelven Group.
The investment includes turnkey delivery of two chamber kilns. At the same time, 12 existing chamber kilns will be connected to the Heinola Eco Kiln Automation System. The deal also includes an option for an additional two new chamber kilns and improvement of the board drying Continue reading "Moelven to increase drying capacity at Nötnäs sawmill in Sweden"
Impact of potential US import duties on Canadian lumber
After the expiry of the 9-year Softwood Lumber Agreement, Americans are still claiming that Canadian sawmills are subsidized by government timber pricing.
The differences between mainly public timberland ownership in Canada as compared to mainly private timberland ownership in the U.S. will always draw conflicting conclusions. Continue reading "Impact of potential US import duties on Canadian lumber"
China shows increasing interest in Swedish wood
China Fenglin Group abandons plans to build massive sawmill in New Zealand
The Chinese Fenglin Group recently announced that the company has decided to terminate its intention to invest a massive wood processing project in New Zealand.
According to Chinese media, the reason for the termination is due to the fact that Fenglin is undergoing a major asset restructuring plan, and the company can not take into account the New Zealand project. Therefore, Fengling decided to suspend the feasibility study for the investment, and company officials said that there are no intentions to restart the feasability study in the future.
Chinese Fenglin Group planned an investment of $250 million to build a sawmill and wood-processing plant in Taupo, New Zealand, last year. Rumours say that the China-based company has put the project on stop, as they became interested in buying a competitor.
Fenglin Group was initiating a study on the possibility of moving part of its operations near Taupo after they had been appealed to by the economic development agency Enterprise Great Lake Taupo (EGLT) in January 2015.
EGLT has been searching for a company to do a feasibility study on constructing, owning and operating a sawmill, laminated veneer lumber and medium density fibreboard plant near Taupo, for two years. According to the initial plan, radiata pine logs would be processed using geothermal energy before being shipped to China, as Rotorua Daily Post stated.
In September 2015, the Chinese group sent a delegation to Taupo as to see about the case and they also appointed a project director. The Taupo business option was very attractive, as it had easy access to forestry, geothermal heat, central location and labour force. The Enterprise Great Lake Taupo general manager Fritz Frohlke stated that there $1 million invested for Fenglin Group to do the feasibility study.
Frohlke added that the payback would come between 4 to 6 years. Money from the Strategic Investment Fund of New Zealand Trade and Enterprise were also invested in the project. Yet, the Taupo study was stopped in March 2016 because the Fenglin Group’s board of directors decided to go for the purchase of Weihua Corporation competitor.
Guangxi Fenglin Wood Industry Group Co.,Ltd. is principally engaged in the production and distribution of middle and high density fiberboards, plywood, shaving boards, as well as forest management and restoration business. The company's fiberboards are mainly applied in furniture, wood floors, buildings, decorations, middle and high cars and ship fitments, handicraft products, high grade loudspeaker boxes, instruments and electronics, among others. Its plywood are primarily used in furniture, floor boards, decoration materials and buildings, among others. The company mainly distributes its products under the brand name of Fenglin. The company's forest management and restoration businesses include growing trees planting, stock growing, as well as woods and stocks distribution.
Roundwood prices trending higher in Sweden
During the second quarter of 2016, the roundwood prices in Sweden have slightly increased as compared to the previous quarter and the Q2 of the previous year.
Pine sawlogs were more expensive as their price in the Q2/2016 increased by 3.48% as compared to the previous year and by 1.71% as compared to the Q1/2016.
All the other price increases didn't overcome 1%, but kept a steady rise. During the mentioned period, spruce sawlogs could be bought for EUR 53,94/m3m as compared to the EUR 54,47/m3 in the Q1/2016 and the EUR 54,26/m3 in the same quarter last year. Continue reading "Roundwood prices trending higher in Sweden"
Timber Innovation Act aims to advance tall wood building construction in the US
The Timber Innovation Act has been introduced to the US Congress by senators and representatives from Washington State.
The Timber Innovation Act is set to establish a new research and development program advancing tall wood building construction in the US. Continue reading "Timber Innovation Act aims to advance tall wood building construction in the US"
Canada exports of wood pellets are now heading to Japan
The Canadian wood industry is mostly centered on export and has a production capacity that’s far exceeding domestic demand.
In 2016, year to date, the exports to the UK accounted for 74% of total exports. Wood pellets have been going to Europe to meet the increased demand for biomass used in European heat and power plants, as shown in an USDA report on Canada’s biofuels. Continue reading "Canada exports of wood pellets are now heading to Japan"
Firestixx, the former company of the bankrupt German Pellets, has reorganized
The German Pellets daughter company FireStixx Holz-Energie GmbH, with one of the most famous brands in the pellets business in central Europe, is since July 27 2016 now organised in a new company FireStixx GmbH & Co KG, based in Essenbach-Altheim (Landshut), Germany.
The company states that the business is continued without any changes for the customers. Managing directors are still Stefan Käss and Christian Franz. The available information says only that a private investor has made the change to a new company possible. Continue reading "Firestixx, the former company of the bankrupt German Pellets, has reorganized"
Japan’s wood self-sufficiency rate reaches 5th y-o-y improvement
Japan's degree of self-sufficiency of wood in 2015 was 33.3%, 2.1 points up from 2014. This represents a five straight years improvement.
Total wood demand in 2015 was 75,300,000 cbm, 0.7% less than 2014, out of which domestic wood was 25,060,000 cbm, 6.0 % up. This pushed the degree of self-sufficiency up in 2015 too.
Total demand in the industry use was 70,880,000 cbm, 2.3% less. Out of this, domestic demand Continue reading "Japan’s wood self-sufficiency rate reaches 5th y-o-y improvement"
Caverion takes over maintenance services for Metsä Fibre sawmills in Finland
Caverion has concluded an partnership agreement with Metsä Fibre concerning sawmills in Vilppula, Finland. Caverion will be responsible for maintenance and related managed services on the site until further notice, from December 2016. The value of the agreement will not be disclosed.
Earlier this year, Metsä Fibre and Caverion announced a partnership agreement on maintenance concerning sawmills in Lappeenranta and Renko, in Finland.
The agreement is now public and extends the current co-operation. The partnership aims to continuously improve operations, competitiveness and quality and it supports the efficiency of Metsä Fibre and concentrating on its own core business.
"With the help of this partnership, we aim to make our operations more efficient. Caverion has expertise in maintenance in several sectors, along with the resources to invest in the broad-based development of its operations," says Jani Riissanen, Senior Vice President, Sawmill Business at Metsä Fibre.
"This new agreement will extend our strategic partnership with Metsä Group. Our strategic growth target is to further strengthen our position as a provider of maintenance services for industrial clients, especially in the forestry industry as a whole," says Juhani Pitkäkoski, Executive Vice President & CEO, Division Industrial Solutions at Caverion.
Metsä Fibre is part of Metsä Group and it belongs to Caverion's industrial client segment.
Moelven to acquire DLH’s Swedish operations
Metsä Wood’s sells Hartola glulam factory to Versowood
US Lumber Coalition is ready to file for trade complaint against Canada
The American lumber industry expects the Q3/2016 results as to have additional data confirming that the Canadian lumber exports harm the US industry.
As reported by Business in Vancouver, the U.S. Lumber Coalition, the lobby group representing the American softwood industry, is expected to file a trade complaint with the U.S. Department of Commerce if negotiations break down between the Canadian and American governments to settle the lumber dispute. Included in that petition will be quarterly results from publicly traded companies. Continue reading "US Lumber Coalition is ready to file for trade complaint against Canada"
RusForest might be sold for EUR 23.5 million
Dimesilia Holdings Ltd announced on October 24 the offer they made for buying all RusForest shares at a price of SEK 2.12 in cash per share. Continue reading "RusForest might be sold for EUR 23.5 million"
