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Universal Forest Products to acquire Robbins treated lumber business

Posted on by GWMI Admin

Universal Forest Products, Inc. announced that one of its subsidiaries has signed a letter of intent to purchase certain assets of Robbins Manufacturing Co., a Tampa, Fla.-based manufacturer of treated wood products with facilities in Florida, Georgia and North Carolina.

Founded in 1938, Robbins is a leading supplier of preservative-treated wood products. The company has two divisions, including Robbins Treating and Manufacturing, which operates six wood treating facilities in Florida, Georgia and North Carolina, including an operation in Tarrytown, Fla., which Robbins will continue to operate. The remaining five operations are included in the acquisition and had 2015 net sales of $83 million. The acquisition is expected to close by the end of August 2016.
Terms of the acquisition were not disclosed.
UFPI CEO Matthew Missad called Robbins a “formidable competitor” that will fit “strategically and culturally” under the Universal Forest Products banner. The deal allows the Grand Rapids company to bolster its preservative-treated lumber business in the Southeastern U.S., he added.
Robbins, on the other hand, will focus on a niche operation in Tarrytown that makes and sells treated wood for various applications, including pilings, poles, posts as well as lumber for agricultural, marine and permanent wood foundations, according to a statement.

Duz Cho inaugurates new sawmill in BC; to process 240,000 m3 of timber annually

Posted on by GWMI Admin

Duz Cho Forest Products celebrated the official grand opening of its new cant mill, Forests, Lands and Natural Resource Operations, Minister Steve Thomson announced on the 13th of June.
The mill was designed to cut cants specifically for export to China, the Middle East, and a small percentage to the United States. Continue reading "Duz Cho inaugurates new sawmill in BC; to process 240,000 m3 of timber annually"

Russia: Lumber shipments to China up by 81%

Posted on by GWMI Admin

Russian softwood lumber exports to China reached 1.55 million m3 in April, up by 81% from March’s 853,000 m3. March volumes were already up by 55% from February.
In fact, Russia’s March export volumes to China had been the largest-ever single month’s volume to China by a single country. Now, the Russian softwood lumber exports are now 50% higher than the same four-month period in 2015 — or 3.6 million m3 (2.2 billion bf- nominal) versus 2.4 million m3, according to an Continue reading "Russia: Lumber shipments to China up by 81%"

Softwood fiber price index at its lowest level since 2006

Posted on by GWMI Admin

Both the HFPI and the SFPI price indices fell in the 1Q/16 with generally lower prices in Europe, Canada and Russia partly because of weakening currencies against the US Dollar. For many countries, current prices are at their lowest levels in almost ten years.
Continue reading "Softwood fiber price index at its lowest level since 2006"

Schweighofer's certifier suspended by FSC

Posted on by GWMI Admin

Quality Austria, the certification body which certified the Austrian company Schweighofer, can’t issue Forest Stewardship Council (FSC) certificates worldwide anymore.
WWF Austria has recently filed a complaint regarding the Chain of Custody certification of Schweighofer. Thus, Accreditation Services International (ASI) suspended Quality Austria starting May 29. The suspension is valid for 6 months, as reported by Environmental Investigation Agency (EIA).
Quality Austria has issued the FSC Chain of Custody / Controlled Wood certificate for Schweighofer in January 2016 and WWF Austria filed the complaint with ASI in March 2016. The certificate was released for Schweighofer’s operations in Romania and other countries.
According to the EIA, there is also an ongoing investigation made by FSC into Schweighofer, which accuses the timber company for violating the organization’s Policy of Association and for “serious allegations of trading and processing illegal timber in Romania”, as the FSC had announced back in February 2016.

“ASI’s action sends a clear signal to Schweighofer’s customers and to the public that allegations leveled against Schweighofer are solid and deeply troubling. This action marks an important success for the Romanian people in their struggle to regain control of their forest sector from illegal loggers and those companies who profit from illegal logging,” said EIA Executive Director Alexander von Bismarck.

The Romanian government is also on an ongoing investigation over Schweighofer’s purchasing of illegal timber and the Austrian company’s involvement in organized crimes. As preliminary reports show, there are over 100,000 m2 of stolen logs in one of the mills owned by Holzindustrie Schweighofer in Romania.

Schweighofer’s certifier suspended by FSC

Posted on by GWMI Admin

Quality Austria, the certification body which certified the Austrian company Schweighofer, can’t issue Forest Stewardship Council (FSC) certificates worldwide anymore.

WWF Austria has recently filed a complaint regarding the Chain of Custody certification of Schweighofer. Thus, Accreditation Services International (ASI) suspended Quality Austria starting May 29. The suspension is valid for 6 months, as reported by Environmental Investigation Agency (EIA).

Quality Austria has issued the FSC Chain of Custody / Controlled Wood certificate for Schweighofer in January 2016 and WWF Austria filed the complaint with ASI in March 2016. The certificate was released for Schweighofer’s operations in Romania and other countries.

According to the EIA, there is also an ongoing investigation made by FSC into Schweighofer, which accuses the timber company for violating the organization’s Policy of Association and for “serious allegations of trading and processing illegal timber in Romania”, as the FSC had announced back in February 2016.

“ASI’s action sends a clear signal to Schweighofer’s customers and to the public that allegations leveled against Schweighofer are solid and deeply troubling. This action marks an important success for the Romanian people in their struggle to regain control of their forest sector from illegal loggers and those companies who profit from illegal logging,” said EIA Executive Director Alexander von Bismarck.

The Romanian government is also on an ongoing investigation over Schweighofer’s purchasing of illegal timber and the Austrian company’s involvement in organized crimes. As preliminary reports show, there are over 100,000 m2 of stolen logs in one of the mills owned by Holzindustrie Schweighofer in Romania.

Central/West Africa: Demand trend shifts to quality rather than pursuit of lowest price

Posted on by GWMI Admin

Log prices were unchanged throughout May in Central/West Africa and show no signs of movement even though there are reports of some modest increases in demand. Over the past few months analysts note a developing trend towards demand for better quality wood products with both buyers and consumers, through their own choice, being prepared to pay a fair price for a good product rather than pursuing the lowest price.
There are reports of some demand for okoume logs in Equatorial Guinea and Congo Brazzaville and this is mainly from buyers for the Chinese market.
As will be seen in the price tables below there were some slight movements in sawnwood prices during the second half of the month. Producers are satisfied with the current (slight) upward trend in demand and expect this to continue into the third quarter of the year.
Expansion of peeling capacity in Gabon
The ban on log exports in Gabon is still in place and observers report that some Chinese companies, which were previously trading logs, are investing in milling capacity to produce peeled okoume veneers for export.
Log buyers say that Gabon okoume is of superior quality in terms of texture and appearance compared to okoume from neighbouring countries. If this is the case then the investment in peeling capacity in Gabon will yield high quality veneers.
No decision yet on kilning requirement or marketing board in Gabon
The proposal for mandatory kiln drying of export sawnwood is reported to be slowly moving through the government systems along with a proposal to establish a timber marketing board.
There is no information as to when or even if these policies will be adopted with or without the suggestions offered by the timber industry.
Customs inspection process even tighter – pushes up transaction costs
The ban on harvesting, processing and export of kevazingo remains in place while the government is continuing to assess and inspect stocks held by timber companies and traders.
There are ongoing discussion between the government and private sector on the high Customs Charges for container scanning. Analysts say the Gabon Customs Department seems determined to maintain the current rates and now require even more detailed documentation before exports are approved.
Log Export Prices

West Africa logs, FOB € per m³
Asian market
LM
B
BC/C
Acajou/ Khaya/N’Gollon
230
230
 160
Ayous/Obéché/Wawa
260
260
180
Azobe & Ekki
230
230
160
Belli
250
250
–
Bibolo/Dibétou
150
145
Iroko 330
290
260
Okoume (60% CI, 40% CE, 20% CS) (China only) 200 200 160
Moabi 335 305 225
Movingui 210
210
160
Niove
160
160
–
Okan
250
 250
–
Padouk
310
 285
225
Sapele 315 305 220
Sipo/Utile
345
 340
265
Tali 320 320
–

 
Sawnwood Export Prices

West Africa sawnwood, FOB
€ per m³
Ayous FAS GMS 410
Bilinga FAS GMS 500
Okoumé FAS GMS
350
Merchantable 225
Std/Btr GMS 270
Sipo FAS GMS
610
FAS fixed sizes 610
FAS scantlings 640
Padouk FAS GMS 930
FAS scantlings 1020
Strips 680
Sapele FAS Spanish sizes 610
FAS scantlings 620
Iroko FAS GMS 630
Scantlings 700
Strips
440
Khaya FAS GMS
450
FAS fixed
460
Maobi FAS GMS
610
Scantlings
630
Movingui FAS GMS
420

Source: ITTO

Egger to buy a Valutec TC continuous kiln for its Brilon plant in Germany

Posted on by GWMI Admin

The Austrian wood products manufacturer Egger is investing in a TC continuous kiln from Valutec.
“When we make a decision as to what we are going to invest in and who from, we look at reliability, quality, flexibility in the project and, of course, also operating costs,” says Paul Lingemann, CEO at Egger sawmill Brilon GmbH. “The kiln we chose to buy from Valutec meets our customers’ requirements for quality at the best price for us.”  Continue reading "Egger to buy a Valutec TC continuous kiln for its Brilon plant in Germany"

Polish Andrewex buys Rörvik Timber's Tvärskog sawmill

Posted on by GWMI Admin

Polish company Andrewex has acquired a wood processing plant in Sweden, from the Swedish group Rörvik Timber.
Andrewex bought the plant situated in Tvärskog because it brought no profitability for Rörvik because of the high raw material price. Rörvik closed the sawmill in January 2016 also because of the decline in sawn timber prices, the loss of customers from the Arabic countries, which made for 20% of the sales and the strong competition on the local market. Continue reading "Polish Andrewex buys Rörvik Timber's Tvärskog sawmill"

Polish Andrewex buys Rörvik Timber’s Tvärskog sawmill

Posted on by GWMI Admin

Polish company Andrewex has acquired a wood processing plant in Sweden, from the Swedish group Rörvik Timber.

Andrewex bought the plant situated in Tvärskog because it brought no profitability for Rörvik because of the high raw material price. Rörvik closed the sawmill in January 2016 also because of the decline in sawn timber prices, the loss of customers from the Arabic countries, which made for 20% of the sales and the strong competition on the local market. Continue reading "Polish Andrewex buys Rörvik Timber’s Tvärskog sawmill"

Lowe's completes acquisition of RONA for US$2.4 billion

Posted on by GWMI Admin

Lowe's Companies, Inc. announced recently that it has completed its previously announced acquisition of RONA inc. in a transaction valued at C$3.2 billion (US$2.4 billion).
The acquisition creates one of the largest home improvement retailers in Canada, with 539 store locations and pro forma revenues from Canadian operations of approximately C$6 billion. As a result, Lowe's Canada and RONA are well-positioned for continued success serving Canada's over C$45 billion and growing home improvement market.
"We are very pleased to welcome RONA and its talented team into the Lowe's family," said Richard D. Maltsbarger, Lowe's chief development officer and president of international. "This transaction significantly expands our presence in the Canadian market and provides attractive opportunities to drive revenue and profit growth while delivering meaningful long-term benefits to shareholders, customers, suppliers, employees and the communities we serve. We look forward to capitalizing on the significant potential created by bringing together our two great companies."
Robert Sawyer, former president and CEO of RONA, added, "I am confident that RONA will be in good hands as part of Lowe's and will have new opportunities and resources to grow its brands and build upon its heritage, providing Canadians with trusted products and advice to build and renovate their homes in total confidence. This is an excellent next step for our people, our partners, our customers and our former shareholders."
The Canadian operations are led by Sylvain Prud'homme, president and CEO of Lowe's Canada. "We are delighted to join forces with RONA's experienced team to take our businesses to the next level," said Prud'homme. "With the closing now behind us, we have hit the ground running and are focused on assuring a smooth transition and taking full advantage of the outstanding opportunities we see as one of Canada's leading home improvement retailers."
Lowe's Commitments in Canada
As previously announced, as part of its acquisition of RONA, Lowe's made certain key commitments in Canada including:

  • headquartering the Canadian businesses in Boucherville, Quebec;
  • maintaining RONA's multiple retail store banners;
  • enhancing distribution services to dealer owners;
  • continuing RONA's employment of the vast majority of its current employees and maintaining key executives from RONA's strong leadership team;
  • continuing RONA's local and ethical procurement strategy and potentially expanding relationships both Lowe's and RONA have developed with Canadian manufacturers and suppliers; and
  • continuing to support Canadian communities through RONA and Lowe's charitable and environmental initiatives.

RONA brings to Lowe's a network of 496 corporate and dealer-owned stores in a number of complementary formats, as well as nine distribution centres serving corporate stores, dealer owners operating under various banners, and Ace for which RONA owns the licensing rights and is the exclusive distributor in Canada.

Lowe’s completes acquisition of RONA for US$2.4 billion

Posted on by GWMI Admin

Lowe's Companies, Inc. announced recently that it has completed its previously announced acquisition of RONA inc. in a transaction valued at C$3.2 billion (US$2.4 billion).

The acquisition creates one of the largest home improvement retailers in Canada, with 539 store locations and pro forma revenues from Canadian operations of approximately C$6 billion. As a result, Lowe's Canada and RONA are well-positioned for continued success serving Canada's over C$45 billion and growing home improvement market.

"We are very pleased to welcome RONA and its talented team into the Lowe's family," said Richard D. Maltsbarger, Lowe's chief development officer and president of international. "This transaction significantly expands our presence in the Canadian market and provides attractive opportunities to drive revenue and profit growth while delivering meaningful long-term benefits to shareholders, customers, suppliers, employees and the communities we serve. We look forward to capitalizing on the significant potential created by bringing together our two great companies."

Robert Sawyer, former president and CEO of RONA, added, "I am confident that RONA will be in good hands as part of Lowe's and will have new opportunities and resources to grow its brands and build upon its heritage, providing Canadians with trusted products and advice to build and renovate their homes in total confidence. This is an excellent next step for our people, our partners, our customers and our former shareholders."

The Canadian operations are led by Sylvain Prud'homme, president and CEO of Lowe's Canada. "We are delighted to join forces with RONA's experienced team to take our businesses to the next level," said Prud'homme. "With the closing now behind us, we have hit the ground running and are focused on assuring a smooth transition and taking full advantage of the outstanding opportunities we see as one of Canada's leading home improvement retailers."

Lowe's Commitments in Canada

As previously announced, as part of its acquisition of RONA, Lowe's made certain key commitments in Canada including:

  • headquartering the Canadian businesses in Boucherville, Quebec;
  • maintaining RONA's multiple retail store banners;
  • enhancing distribution services to dealer owners;
  • continuing RONA's employment of the vast majority of its current employees and maintaining key executives from RONA's strong leadership team;
  • continuing RONA's local and ethical procurement strategy and potentially expanding relationships both Lowe's and RONA have developed with Canadian manufacturers and suppliers; and
  • continuing to support Canadian communities through RONA and Lowe's charitable and environmental initiatives.

RONA brings to Lowe's a network of 496 corporate and dealer-owned stores in a number of complementary formats, as well as nine distribution centres serving corporate stores, dealer owners operating under various banners, and Ace for which RONA owns the licensing rights and is the exclusive distributor in Canada.

US-Canada lumber talks don't seem to reach agreement

Posted on by GWMI Admin

The talks between Canada and the US regarding the renewal of the Softwood Lumber Agreement don’t seem to reach a positive end.
The US producers say that the Canadian softwood lumber is subsidized. Thus, the US was forced to impose billions of dollars in tariffs because of trade challenges, Continue reading "US-Canada lumber talks don't seem to reach agreement"

US-Canada lumber talks don’t seem to reach agreement

Posted on by GWMI Admin

The talks between Canada and the US regarding the renewal of the Softwood Lumber Agreement don’t seem to reach a positive end.

The US producers say that the Canadian softwood lumber is subsidized. Thus, the US was forced to impose billions of dollars in tariffs because of trade challenges, Continue reading "US-Canada lumber talks don’t seem to reach agreement"

US lumber prices fell $3 last week

Posted on by GWMI Admin

Last week’s lumber prices in the US remained unchanged until Thursday, when buyers became more interested in Western and Eastern S-P-F. In the West, inquiries for Coast dry framing increased, but the sales didn’t always keep up.
Southern pine traders were cautious because the demand wasn’t so big. All in all, the Random Lengths Framing Lumber Composite fell $3.

Week Jun 10 Week Jun 3 Year Ago 2015
Random Lengths Framing Lumber Composite Price* $352 $355 $322
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 320 322 $279
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 415 420 $373
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 353 355 $310
Southern Pine (Westside) #2 2x4 R/L 388 395 $336
KD Coast Hem-Fir #2&Btr 2x4 R/L 372 375 $310
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 705 705 $670
* Weighted average of 15 key items

 
Random Lengths Panel Market Report
The structural panel prices were down despite the lukewarm demand. The price decay in the OSB market spread from Western Canada to other regions across North America, while some producers started to sell the available loads for quick shipments.
Also, the Southern pine prices decreased, while the sales of Western fir plywood remained unchanged.

 (f.o.b. mill prices) Week Jun 10 Week Jun 3 Year Ago 2015
Random Lengths Framing Lumber Composite Price* $372 $376 $370
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 355-375 360-378 $415-442
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 355-375 360-380 $420-442
Western 1/2-inch 4-ply rated sheathing plywood 371 370 $412
North Central 7/16-inch Oriented Strand Board 280 280 $205
* Weighted average of 11 key items

Source: Random Lengths

Sweden: Jarl Timber to specialize on small logs

Posted on by GWMI Admin

Jarl Timber has recently announced that the Broakulla sawmill will specialize in small logs, following the announcement made on the sale of Jarl Timber to Bergs Timber.
The sawmill produces over 120,000 m2 of sawn timber and nearly 80% of this is spruce from local forests located in 150km radius of Broakulla. Continue reading "Sweden: Jarl Timber to specialize on small logs"

US wooden furniture imports down 22%

Posted on by GWMI Admin

US wooden furniture imports fell 22% in March to US$1.08 billion, but imports from most countries grew. The largest decrease was in imports from China (US$397.2 million, - 41%) and Vietnam (US$180.7 million, -36%).
Year-to-date imports were still 6% higher than in March 2015. Continue reading "US wooden furniture imports down 22%"

EUTR starts to change trade practices

Posted on by GWMI Admin

On 4 May, the European Commission (EC) published a comprehensive independent evaluation of the EU FLEGT Action Plan. The report suggests that EUTR is beginning to change trade practices in those countries where implementation is more advanced, as ITTO reported.
Specific changes identified include: increased awareness on risk of illegal timber; increased import of certified timber and a push to certification in some producer countries; positive influence on legislation in producer countries; and some benefits emerging for legal producers due to exclusion of low priced illegal timber from the market.
To some extent these benefits are offset by negative changes including an increased cost and administrative burden on operators, the withdrawal of SMEs in producer countries from export markets, and confusion and concerns in producer countries due to the lack of harmonised implementation across EU countries.
The findings and recommendations of the report will now guide the EC in improving the efficiency, effectiveness and value-for-money of work undertaken to further implement the Action Plan.
The report will also guide the EC in assessing policies to address the broader drivers of deforestation, and in linking action under FLEGT to the international climate change and Sustainable Development Goals agendas.

Rui Correia the new CEO for Sonae-Arauco

Posted on by GWMI Admin

Further to the completion of the strategic partnership between Sonae Indústria and Arauco for the European and South African markets, Rui Correia and Jan Bergmann have been appointed as CEO and CITO of Sonae Arauco, SA (a company held in 50% by Sonae Indústria and in 50% by Arauco).
Further on, Rui Correia and Jan Bergmann have resigned to their positions as Directors of Sonae Indústria, as CEO and CITO, respectively and the Board of Directors co‐opted Louis Brassard, COO of Tafisa Canada, to take up one of the vacancies in the Board of Directors.
Taking into account that with the completion of the partnership with Arauco, the operational activity of Sonae Indústria will be reduced, becoming primarily a financial holding company, The Board of Directors decided to eliminate the Executive Committee, as well as the Corporate Responsibility, Environment and Ethics Committee and the Ethics Sub‐committee, assuming directly those functions.
The Board of Directors has decided to appoint a Management Committee, comprising Christopher Lawrie and Louis Brassard, who will be 100% dedicated to the management of Sonae Indústria and its subsidiaries, and by Frederico Moniz, who is responsible for the Laminates & Components business, and to appoint Christopher Lawrie as Chairman of the Management Committee.

IKEA plans to develop a much simpler and functional furniture

Posted on by GWMI Admin

IKEA wants to create a much simpler and functional generation of furniture, as to bring greater comfort in the life of a modern home.
Thus, the Swedish furniture retailer has recently announced their new partnership with the British Designer Tom Dixon, to produce new furniture solutions for modern living and with Danish design company HAY for living room furniture, as reported by Continue reading "IKEA plans to develop a much simpler and functional furniture"

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