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The 22nd China International Furniture Expo registered 17.75% more visitors

The 22nd China International Furniture Expo and the first Maison Shanghai ended on September 11, setting a new record for audience figures.

There was a total of 119,975 visitors from 158 countries and regions over the four days, which represented a year-on-year growth of 17.75%. Yet, the number of overseas visitors decreased for the first time, to 15,077, a year-on-year decrease of 21.58%.

The decrease was influenced by the G20 summit from Hangzhou, which made visa applications more difficult – plus the decline of the Chinese furniture industry in the first half of the year, which decreased by 10.73%.

National exhibition groups from seven countries have gathered in Hall W – from France, German, Belgium, Italy and Malaysia – as well as a total of 236 overseas brands from 26 countries and regions.

There were also domestic original furniture brands present such as HC28, Qumei Furniture, Norya, U+, Dickson and Expocasa.

Wang Mingliang, the founder and board director of Shanghai UBM Sinoexpo International Exhibition Co, says that Shanghai would become a core city of Chinese furniture expos, and that Shanghai Furniture Expo would continue to help make the city a pioneer in global furniture trends.

 

Tolko Industries closes Nicola Valley mill in BC

Tolko Industries announced on the 23rd of September that it will permanently close its Nicola Valley (Merritt, B.C.) operation on December 16th, 2016.

Making the decision to close an operation is never easy,” said Brad Thorlakson, President and CEO. Continue reading "Tolko Industries closes Nicola Valley mill in BC"

Lumber prices movements in the US surrounded by uncertainty in lumber trade issues

The framing lumber market met an ascended trend last week in some species, yet other species started to descend. Trading was most active in Southern Pine and Canadian S-P-F, especially Wednesday and Thursday as the futures board prices increased. Uncertainty surrounded the U.S.-Canada lumber trade issue, but traders sensed that futures was pricing in potential litigation and duties on Canadian shipments to the U.S. Continue reading "Lumber prices movements in the US surrounded by uncertainty in lumber trade issues"

Weinig acquires 100% stake in GreCon

At its meeting of September 16 in Tauberbischofsheim, the supervisory board of Michael Weinig AG made a decision to acquire the outstanding shares in Weinig Grecon GmbH & Co. KG. The technology leader for machines and systems for solid wood processing had already acquired 60 percent of the company in 1998. Continue reading "Weinig acquires 100% stake in GreCon"

Tembec’s Senneterre sawmill acquired by Resolute Forest Products

Resolute Forest Products Inc. announced on the 22nd of September the signing of an agreement to acquire the assets of Tembec's sawmill located in Senneterre, Quebec.

By adding the operations of the Tembec sawmill to those of the company's existing Senneterre sawmill, Resolute expects to improve the productivity of its facilities and optimize the related woodlands operations in the Abitibi and Nord-du-Québec regions. Continue reading "Tembec’s Senneterre sawmill acquired by Resolute Forest Products"

Infographic: Wood pellets price in Austria starts its way up

During September 2016, the price of Enplus A1 pellets in Austria reached an average of EUR 222.9 per tonne, or 4.55 Cent per kWh. This represents a 0.2% increase over August 2016 and a -2.8% drop, as compared to September 2015.
Austrian wood pellets presently offer a price advantage of 27.3% as opposed to extra light heating oil and 45.6% as opposed to natural gas.
Wood pellets in bags cost an average of EUR 3.78 per 15 kg sack (when ordered by the pallet).This represents a -0.8% decrease as compared to August and a -1.4% decrease as compared to September 2015.

Wood pellet price evolution in Austria

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Hasslacher Norica Timber takes over 75% of Hess Timber shares

With the intention to bring the timber engineering on a common next level and in the view of further expansion, Hasslacher Norica Timber takes over 75% of the shares of Hess Timber GMBH & CO. KG as of January 1st 2017. Continue reading "Hasslacher Norica Timber takes over 75% of Hess Timber shares"

Italian Natuzzi receives FSC certification

Natuzzi S.p.A., the largest Italian furniture company, has been FSC (Forest Stewardship Council) certified by the Accredited Certification Body, Bureau Veritas.

The FSC Chain-of-Custody certification ensures the consumers that the raw material used to make a wooden product come from well-managed forests, respecting the social, economic and environmental needs of present and future generations.

In addition to the Natuzzi S.p.A., even the Natuzzi production and trading sites based in China and Romania were certified. Beyond the production of sofa and armchairs, the Natuzzi plant in Baia Mare, Romania, houses a large industrial woodwork destined to the procurement and processing of raw wood into finished materials for the entire Group.

"The FSC certification - said Pasquale Natuzzi, Chairman and Group CEO - confirms our strong commitment to a crucial issue that is the environmental protection. The use of photovoltaic energy, low environmental impact technologies, natural materials such as wood and leather, the stringent corporate policies on deforestation, environmental and quality certifications are all actions that protect the environment and point to a target consumers looking for a beautiful and functional but also sustainable design".

The company had committed to achieve the FSC certification by the year.

The Natuzzi Group designs, produces and sells an extensive range of sofas, armchairs, home furniture and home accessories. With revenues of Euro 488.5 million in 2015, the Natuzzi Group is the largest Italian furniture house and the only player with global reach and has eight manufacturing plant, twelve commercial offices and 363 brand stores globally.

Japan imported 24% more lumber from the Europe during 1H/2016

The total imported volume of European lumber to Japan, from January to June 2016, was 1,419,329 cbms, 24% more than the same period of last year.

During the mentioned period, there was an active demand for laminated lumber on the Japanese domestic market, while laminate supply continued to improve. The export prices increased because of huge demand from the European market and the export prices of lamina and KD stud advanced by EUR 20 per cbm, compared to last January prices.

There was a strong resistance for laminate price on the Japanese laminated lumber market, so the volume did not increase. Therefore, laminate supply was chronically tight by limited supply and increased production of laminated lumber in Japan. Lamina supply continued to improve through the second half of the year, while the demand for structural laminated lumber stayed active.

Stud supply was unstable because of delayed shipments by the major suppliers. Yet, the supply was supplemented by other smaller importers, so the market did not react so much.

The market prices softened as the imported cost was reduced by the weak Euro. In Central Europe, quality log supply is steady after beetle damage started, so the supply for Japan didn't seem to increase so much in the second half. Considering the import sources, the volume from Sweden and Finland, which are main supply source of lamina, increased considerably, while Romania supplies dropped. Yet, Austria, a common lumber supply source, increased significantly.

Forecast: China’s wood hunger to be driven up by logging bans in the next years

The lack of forest resources, wood quality, and some structural problems, are issues that on the short term can't be fundamentally solved by the Chinese government. Faced with an insufficient forestry development, China's huge wood demand, driven by the country's economic and social evolution, cannot be satisfied by domestic resources and will have to rely more and more on imports.

By 2017, China will push forward its Natural Forest Protection Program and phase out all commercial logging in natural forests. A logging ban is already active in some of the country's key regions, especially in three northeastern provinces. It seems that the ban will be extended to all state-owned forests next year, and logging on privately owned land will be ceased by the end of 2017.

These bans will reduce logging output by 50 million cubic meters per year.

At the moment, China has 198 million hectares of natural forests, of which 127 million hectares have been put under the administration of reservations since the launch of the forest protection program in 1998. Continue reading "Forecast: China’s wood hunger to be driven up by logging bans in the next years"

Former German Pellets subsidiary informs on rising business

Wismar Pellets, which owns and operates the bankrupted German Pellets GmbH pellet production plant in Wismar, has reported a rise in its business. Together with the wood supply, all things work smoothly.

The company, owned by Metropolitan Equity Partners (MEP), Continue reading "Former German Pellets subsidiary informs on rising business"

Keitele installs new progressive kilns from Heinola at a sawmill in Finland

Keitele invests into new 2-zone Progressive Kilns type HTC at its Kemijärvi Sawmill in Finland. The company placed an order with Heinola Sawmill Machinery for three units with annual capacity of around 190.000 3 (based on drying pine sideboards to 18 % final moisture content). The start of the production is scheduled for the beginning of 2017.

According  to the equipment supplier, the progressive kilns are equipped with heat recovery units, pressure frames and high-pressure water spraying unit. The kilns are delivered as turnkey connected to the existing progressive kilns.

Heinola states that 2-zone continuous progressive kiln is best suited for large-scale production. Best results are achieved when drying one dimension and tree species continually to the same end moisture content. Loading and unloading can be automated.

About Keitele Group:

The group includes Keitele Forest Oy, Keitele Timber Oy and Lappitimber Oy, Keitele Wood Products and Keitele Energy Oy (enerates energy from sawing by-products). The group’s revenues exceed EUR 170 million. It employs around 400 people.

Södra Group achieves historical operating profit in January-August 2016

Net sales of the Södra Group for the first eight months of 2016  rose slightly to EUR 1.729 billion (1.271), while operating profit declined to EUR 57.69 million compared with a historically high year-on-year operating profit of EUR 173.17 million. Both prices and currencies have shown an unfavourable trend since last year, which affected the results, says Södra.

Earnings were also charged with restructuring costs of EUR 21.28 million related to Södra Wood, while the year-on-year comparative figures included a positive nonrecurring item of EUR 13.87 million derived from the sale of shares in Södra Cell Tofte AS.

"With account for prices, currencies and restructuring costs, the underlying operations delivered in line with the preceding year. 2016 is a year of transition for Södra. We are now realising our Group strategy with investments of EUR 630 million to increase the capacity of our pulp mills, and a major restructure of our sawn timber and interior wood operations," said Lars Idermark.

"In the second four-month period, operations resumed in the mill at Värö after investments of just over EUR 420 million and in 2017, we will achieve the expected production rate of 700,000 tonnes per year. The new mill will be one of the most advanced mills in the world, and our energy efficiency will continue to improve," said Lars Idermark.

"In sawn timber, we are restructuring and investing to boost profitability and secure long-term competitiveness, which will impact earnings for the second four-month period. Sawn timber is Södra's backbone and vital for promoting the profitability of forest estates," said Lars Idermark.

In the January-August period, operating profit for the Södra Skog business area totalled EUR 6.26 million (7.72). The earnings trend was attributable to lower year-on-year margins on field wood volumes.

Operating loss for Södra Wood totalled EUR 32.96 million (profit: 210,000). The lower earnings were mainly attributable to restructuring costs of EUR 21.28 million, but also to weaker prices for sawn timber and an unfavourable currency trend.

Operating profit for Södra Cell totalled EUR 92.42 million (178.70). The lower earnings were mainly the result of a weaker price trend.

The interim report in brief:

sodra

Husqvarna Group increases capacity for UK facility; expands robotics manufacturing

To strengthen the ability to serve the growing robotic mower market, Husqvarna Group will increase the capacity for its Newton Aycliffe factory in England. At the same time the Group will expand and build up capacity at the existing Husqvarna Group site in Vrbno, Czech Republic.

“We expect the overall robotics market to continue to be a fast growing segment in the coming years. Our aim is to maintain our leadership position by providing the most reliable and efficient products, giving the end-users a great result – where the robotic lawn mower does all the work. Beyond the current success with Husqvarna and Gardena we plan to introduce robotic mowers also for the McCulloch brand for the 2017 season,” says Kai Wärn, President and CEO for the Husqvarna Group.

Additional investments are planned for the Newton Aycliffe factory in order to increase robotic manufacturing capacity. In parallel, Husqvarna Group will expand and build manufacturing capability and capacity of robotics at the existing Husqvarna Group site in Vrbno, to be a complement from the 2018 season.

“Due to the strategic importance of this product, we see the need to manufacture robotic mowers in more than one site to meet the growing market and limit the risk with only one factory. In order to leverage the many years of knowledge and experience, the Newton Aycliffe factory will take on a lead manufacturing engineering role for robotics in the Group”, says Kai Wärn.

Husqvarna Group is a world-leading producer of outdoor power products for garden, park and forest care. Products include chainsaws, trimmers, robotic lawn mowers and ride-on lawn mowers.

Chinese plywood prices go down on the international markets

China’s plywood exports amounted to 5.52 million m3, valued at US $2,610 million in the first half of 2016, nearly the same volume as in the same period last year.

The average unit price for exported plywood in the first half of 2016 was US$473 per cubic metre, a year on year decline of 6%.

In the first half of this year the main markets for China‘s plywood Continue reading "Chinese plywood prices go down on the international markets"

Logging in Norway rises by 8%; roundwood prices drop

During the 2nd quarter of 2016, 2.9 million m3 of timber were cut for sale in Norway. This represents a 8% increase compared to the 2nd quarter last year. Also, the average timber price in Norway decreased by 5%.

Out of the 941 million m3 of the forests in Norway, 840 million m3 belong to the productive forest area.

The annual increment was of 26.1 million m3, the highest increment ever calculated. In productive forest terms, the annual increment amounted to 24.1 million m3; of which 18.8 million m3 are in conifer forest.

Spruce is the most common species of tree, with 44% of the total growing stock, followed by pine with 31% and broad-leaved with 25%.

The productive forest area is estimated at 83 000 km2, or one quarter of the Norwegian land area. Protected or other closed-off areas of productive forest are not included. The total area of unproductive forest and other wooded land was 57 000 m2.

Commercial roundwood removals in Norway
  2nd quarter 2016 Price change %
1000 cubic metres NOK per cubic metre 2nd quarter 2015 - 2nd quarter 2016 2nd quarter 2013 - 2nd quarter 2016
Total 2 920 321 -5,3% 5.9
       
Spruce      
Sawlogs 1 143 420 -3,4% 12,3
Pulpwood 884 197 -3,4% -7,9
Unsorted saw logs 105 278 -9,4% -2,1
Pine      
Sawlogs 420 432 -4,6% 10,8
Pulpwood 295 190 -2,1% -7,8
Unsorted sawlogs 24 233 -10,0% :
Broad-leaved      
Sawlogs 2 291  -23,6  -2,7
Pulpwood 48  200 -1,5%  -16,7
Unsorted saw logs .. .. .. ..
1 NOK=0,11 EUR

Source: Statistics Norway

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