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Finland: Roundwood prices dropped in December

Posted on by GWMI Admin

Except birch logs, all prices for roundwood in Finland have declined in December 2015 compared to the previous month. Moreover, nearly all prices are well below last year. Pine and spruce log prices have decreased only minimal compared to November, while pulpwood assortments have registered an average decline of -1.37/m3.
Year-over-year, however, the price downfall is more significant in December. On average, sawlogs price dropped by almost 3 euro, with pulpwood being cheaper by around 1 euro.

Roadside prices of roundwood in Finland EUR/m³ over bark

 December 2014 November 2015 December 2015 Change
Dec./2014
to Dec./2015
LOGS
Pine 57.48 56.02 55.78 -2.95%
Spruce 55.69 54.85 54.83 -1.54%
Birch 46.60 46.27 46.34 -0.55%
PULPWOOD
Pine 28.12 27.80 27.29 -3.20%
Spruce 29.33 29.43 29.41 %
Birch 29.15 29.69 28.85 -1,00%

The above prices are collected from metla.fi

Lowe's acquires RONA for $2.3 billion

Posted on by GWMI Admin

Lowe’s Companies, the world’s second-largest home improvement retail chain, have agreed to acquire RONA, Canada’s largest home improvement retailer. All of the issued and outstanding common shares of RONA will be bought for C$24 per share in cash and all of the issued and outstanding preferred shares of RONA for C$20 per share in cash. A total of C$2.3 billion.
The plan built together with this purchase is that the two companies’ stores develop the leading home improvement retailer from Canada. The deal represents a premium of 104% over RONA’s share price in February 2, 2016 and a 38% premium on RONA's 52-week high.
"The transaction is expected to accelerate Lowe's growth strategy by significantly expanding our presence in the Canadian market through the addition of RONA's attractive business and excellent store locations across the country," said Lowe's Chairman, President and CEO Robert A. Niblock.
Lowe’s also plans to invest over $720 million to increase profitability in expanding customer reach and serving a new portion of the market.
 
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Lowe’s acquires RONA for $2.3 billion

Posted on by GWMI Admin

Lowe’s Companies, the world’s second-largest home improvement retail chain, have agreed to acquire RONA, Canada’s largest home improvement retailer. All of the issued and outstanding common shares of RONA will be bought for C$24 per share in cash and all of the issued and outstanding preferred shares of RONA for C$20 per share in cash. A total of C$2.3 billion.

The plan built together with this purchase is that the two companies’ stores develop the leading home improvement retailer from Canada. The deal represents a premium of 104% over RONA’s share price in February 2, 2016 and a 38% premium on RONA's 52-week high.

"The transaction is expected to accelerate Lowe's growth strategy by significantly expanding our presence in the Canadian market through the addition of RONA's attractive business and excellent store locations across the country," said Lowe's Chairman, President and CEO Robert A. Niblock.

Lowe’s also plans to invest over $720 million to increase profitability in expanding customer reach and serving a new portion of the market.

 

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Dubai WoodShow to continue partnership with EUMABOIS

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The Dubai WoodShow, the largest trade fair for wood products in the Middle East, has renewed its agreement with European Federation of Woodworking Machinery Manufacturers (EUMABOIS), a nonprofit Federation grouping 14 national Associations and 2 single members representing major European Manufacturers of machines and accessories for woodworking.
This comes at a time when the European woodworking machinery and tool industry recorded a 9.4% increase in 2014 according to the annual report of EUMABOIS.
According to the same EUMABOIS report, there are more than 1000 significant companies in the woodworking machinery and tool industry in Europe with a workforce of more than 35,000 employees. The highest number of companies is in Germany and Italy. Considering the turnover of companies, Germany industry covers a market share of 45% whereas Italy in 2014 registered a market share of 29%.
Through this agreement, the Dubai WoodShow will feature an extensive European line-up. The European Federation of Woodworking has opened channels with the world’s most renowned wood associations including FMMI from Austria, SVDSZ from Czech Republic, SMT from Denmark, The Federation of Finnish Technology Industries from Finland, SYMOP from France, VDMA from Germany, ACIMALL from Italy, DROMA from Poland, AIMMAP - UNIMAP Division from Portugal, DREVMASH from Russia, ZSDSR from Slovak Republic, AFEMMA from Spain, HBT from Switzerland, AIMSAD from Turkey, ROBLAND BVBA from Belgium, and MPM from Lithuania.

“Our agreement with EUMABOIS, a federation that produces more than 56% of the world's output of woodworking machinery, not only boosts the position of Dubai WoodShow globally, but also transfers industry development and knowledge in the fields of technology and science,” said Dawood Al Shezawi, CEO, Strategic Marketing & Exhibitions, organisers of the Dubai WoodShow.
“The Woodshow in Dubai, which will take place from 4 to 6 April 2016, represents an ideal meeting place for the industry players worldwide, and presents a significant opportunity for European manufacturers who wish to tap into the Middle East's growing market,” he said.

“Many trade visitors find in Dubai WoodShow a platform to clinch major deals on new wood making machineries, and benefit from the competitive business environment at the venue. We have seen local manufacturers interact with European companies for supply not only of machineries, but also timber raw materials,” added Al Shezawi.
EUMABOIS member associations include associations from Austria, Czech Republic, Denmark, Finland, France, Germany, Italy, Poland, Portugal, Russia, Slovak Republic, Spain, Switzerland, Turkey, Belgium and Lithuania.

“The Dubai WoodShow has succeeded in expanding its global footprint over the years to become a one-stop destination showcasing latest technologies, tools and machineries for all types of wood. Through 14 Member Associations, and around 800 Member Companies, we bring the world’s most prestigious industry players to Dubai WoodShow 2016,” explained Al Shezawi.

Among the most interesting events on the international calendar, the previous Dubai WoodShows hosted 225 exhibitors, more than 10,000 visitors and 7 national pavilions of USA, Spain, France, Malaysia, Sweden, Canada, and China. This year the show will record the participation of Turkey and India pavilions on above to last year’s participants.
 
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EC launches anti-dumping investigation on China’s okoumé plywood

Posted on by GWMI Admin

The European Panel Federation has lodged a complaint to the European Union on the 22nd of October 2015, asking for an investigation on China’s plywood imports. The EU will conduct the investigation on okoumé plywood (HS 44123110), which covers the period starting January 1, 2012 to December 2015. The EPF represents producers of more than 25 % of the total Union production of okoumé plywood.
Until now, the Chinese plywood has been sold at a very low price, a thing that led to an unstable market, according to the complaint.
The EPF stated that the exporting producers from China weren’t offered the normal market economy treatment and the EU should impose measures in force of constructing a normal value for the plywood imported.
See the European Commission anti-dumping procedures document here
 
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Indonesia: VPA with EU in danger due to SVLK issues

Posted on by GWMI Admin

The EU has alerted Indonesia to the risk that the country would miss the opportunity to become the first in the world to achieve recognition of FLEGT licensed exports if the Ministry of Trade continues to allow the export of many wood products without the national SVLK license.
An extensive list of products were initially included in the VPA/FLEGT negotiations between Indonesia and the EU but the Indonesian Ministry of Trade has removed the requirement for SVLK certification from several items produced by small and medium sized companies arguing they could neither afford nor have the capacity to cope with the requirements of the SVLK.
Indonesia had agreed to reinstate the SVLK to products earlier agreed by the end of 2015 but this deadline was not achieved.
Agus Sarsito, Indonesia’s chief negotiator for the VPA and for the items included in the FLEGT scheme said the EU is ready to fully implement the VPA when Indonesia annuls the changes made to the product list.
Asmindo, the Indonesian Furniture Entrepreneurs Association says it recognises the benefits of SVLK certification since this will lead to FLEGT licensing and easy access to EU markets but wants furniture SMEs to be offered an easy and low cost way to comply.

EU imports of tropical veneers rise in 2015

Posted on by GWMI Admin

EU imports of EUtropicalveneerimportsincreased by 7% to 257,700m3 in the first 11 months of 2015, with growth driven primarily by rising trade between Gabon and France. Growth in volume was matched by a 6% increase in value to €162 million.
EU imports from Gabon increased 13% to 126,300m3 during the first 11 months of 2015. Since okoumé log exports were banned by Gabon in 2010, the southern European okoumé plywood sector – now much diminished – relies more heavily on imports of veneer.
The French company Rougier which produces okoumé veneers and plywood in France and Gabon, booked an 11.8% increase in revenues in its European business during the first nine months of 2015 and reports an improved economic climate in Europe.
In addition to Gabon, EU imports of tropical veneer also increased during the first 11 months of 2015 from Cameroon (+16% to 27,100 m3), Congo (+2% to 14,500 cu.m), and Ghana (+22% to 8,600 cu.m). However imports from Ivory Coast declined 3% to 60,800 cu.m (see chart).
Imports into France and Italy, now the largest EU markets for tropical veneer, both registered double-digit increases between January and November 2015, rising 14% to 104,791cu.m and 16% to 60,737m3, respectively. There were also significant increases in imports by Greece (+25% to 14,467 cu.m) and Romania (+43% to 14,034 cu.m).
Of the five largest EU markets for tropical veneer, Spain (- 16% to 32,411 cu.m) was the only to report declining imports in the first 11 months of 2015. However imports also declined into Germany (-17% to 12893 cu.m) and Belgium (-47% to 6343 cu.m) during the period.
The German veneer association IFN concluded during its annual meeting in June 2015 that veneers were increasingly becoming a niche product in the German market – a startling conclusion in a country which little more than a decade ago was at the very centre of the global veneer industry.
 
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Interfor reports halved Q4 earnings; expects better results for mid-term

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Interfor reported low results for Q4 2015. The lumber company is still optimistic about the demand in lumber for the mid-term. 2015’s Q4 brought the company adjusted net earnings of $5.5 million ($0.08 per diluted share), compared to the $10.2 million in 2014. For the quarter, the sales brought $411.4 million, an increase from the $389 million of the same period in 2014.
The 2015 production was 10 million board feet lower than 2014 and 50 million board feet lower than the preceding quarter, reaching only 568 million board feet.
Compared to 2015’s Q3, Interfor’s nine sawmills in south US summed 243 million board feet in Q4 of the same year. The decrease was due to the temporary market-related adjustments to operating schedules across the U.S. South platform and severe weather events which impacted the Georgetown sawmill most significantly.
The  company's Canadian production increased 5 million board feet from 2015’s Q3, to 186 million board feet in the Q4. The start-up of Castlegar sawmill in the quarter reduced operationg hours at the other mills in the region, thus increasing the production.
Also, Interfor shipped approximately 90 million board feet of lumber to U.S. markets from its B.C. sawmills in Q4, which represents approximately 15% of Interfor's total current quarterly production. Moreover, the export taxes on lumber shipments from Canada into the U.S. were negligible in the Q4 because of the SLA that expired on October 12, 2015. The agreement included a standstill provision that precludes the U.S. from bringing trade action against Canadian softwood lumber producers for a 12 month period following expiry of the agreement.
Interfor's Northwest US operations summed 139 million board feet in the Q4, a decrease of 11 million board feet compared to the prior quarter.
The demand for lumber is expected to grow in the mid-term. Now that the US housing market is recovering and the market promotion in North America will reach full capacity, the sales will also increase. Also, in both US and Canada there are a lot of targeted initiatives to margin improvement opportunities.
 
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The TPP to benefit the US wood industry

Posted on by GWMI Admin

The Trans-Pacific Partnership was signed on the 3rd of February 2016 by the 12 Ministries of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam. Among them, Brunei, Japan, Malaysia, New Zealand, and Vietnam have signed the TPP for the first time.
According to the European Organization of the Sawmill Industry (EOS), this agreement aims at creating opportunities for 15 specific industry sectors, such as consumer goods, energy or forest products. It also wants to provide access to some of the fastest-growing markets in the world for the American–made products.
The TPP will eliminate over 18.000 taxes that are placed on exports from America (including all tariffs on U.S. manufactured exports). Thus, 98 % of the U.S. industrial and consumer exports to the TPP countries will be eligible for immediate duty-free treatment. The US seeks to support the creation and retention of high-quality jobs at home by increasing American exports to a region that includes some of the world's most robust economies.
The countries under the TPP make an important market for the US wood products. Moreover, the 40% tariffs in Malaysia and the 31% in Vietnam will be eliminated, as well as the tariffs for the other TPP countries. Japan will leave out the import taxes on 100% of U.S. forest products exports, as well as Malaysia will eliminate import taxes on 85.0% of U.S. forest products exports immediately and 97.0% within 4 years.
Also, New Zealand will clear out import taxes on 99.0% of U.S. forest products exports, while Vietnam will eliminate import taxes on 95.4% of U.S. forest products exports immediately and 100% within 4 years.
There are some partners in the new TPP that make a significant market for US forest products exports, such as Japan ($2.0 billion), Vietnam ($342 million), Malaysia ($164 million), New Zealand ($65 million) and Brunei ($781,924).
Also, the US Forest Products sector is an important one, as it brought 1.2 million workers in 2014 and accounted for 5% of total US manufacturing production in 2013. In 2014, it exported forest products worth $36.4 billion and the total exports to the world grew by 28% between 2009 and 2014.
 
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US: Growth in tropical sawnwood imports from Brazil

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US imports of all sawn hardwood fell 31% between October and November 2015. October import volumes were very high at over 100,000 cu.m but in November fell back to 72,063 cu.m. This month on month drop was mainly in temperate hardwoods but tropical hardwood imports also declined by 16% to 18,023 cu.m. However, Year-to-date tropical imports were 11% higher than in November 2014.
While overall imports of tropical timbers declined in November ipe sawnwood imports were up 3% to 1,413 cu.m.
Year-to-date imports of sapelli, mahogany, acajou d’Afrique and keruing were significantly up despite a month-over-month decline in November. Balsa was the only major species for which a year-to-date decline in imports was registered. Ipe imports dropped 5%) compared to the same time last year.
As reported from Brazil, US imports of Brazilian hardwoods have increased and were up 45% in November compared to the previous month. The growth was mainly in jatoba, and virola.
Tropical sawnwood imports from most other suppliers were down in November. Malaysian shipments to the US fell by almost half, but year-to-date imports remain higher than last year.
The US imported 1,039 cu.m. of keruing sawnwood in November. Ecuador, Peru, Ghana and Cote d’Ivoire exported less sawnwood as of November 2015 compared to a year earlier.
Main species of tropical sawn hardwood imported into the US

January-November 2015 % Change year on year
Africa
Sapelli 38,882 11%
Acajou d'Afrique 23,644 24%
Iroko 682 95%
Padauk 551 1%
Aningre 569 135%
SE Asia
Keruing 20,930 19%
Meranti 9,077 17%
Teak 6,108 29%
Latin America
Balsa 48,131 -5%
Ipe 29,983 16%
Mahogany 18,951 23%
Virola 9,207 -13%
Cedro 8,219 -12%
Jatoba 3,581 26%

Data source: US Department of Commerce, US Census Bureau, Foreign Trade Statistics
 
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DLH closes down its French subsidiary

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DLH (Dalhoff Larsen & Horneman A/S)  has decided to initiate the closure of its French subsidiary. The process is expected to be completed during the next six months. During this period DLH will continue its effort to sell all or parts of the French unit, as the company said in a press release.
DLH will record a provision of DKK 15 million ($2.2 million) in the 2015 accounts on the French assets. The Nordic business unit is unaffected by the decision concerning DLH France.
Back in 2014, DLH's General Assembly decided to dispose of all the Group's companies and operations. Since then, a number of the Group's assets, businesses and companies were sold or closed.
In March 2015, DLH has entered into an agreement with the local management about sale of its Russian and Brazilian companies.
In 2014, DLH sold its hardwood business to A/S Global Timber at a value of DKK 10 million (EUR 1.3 million) and its  its Global Sales entities to the Austrian company Frischeis (JAF Group), including the company's activities in Hong Kong, China, Vietnam, Indonesia and the African units.
Also in 2014, DLH divested parts of its European business (Poland and Slovakia) and also the US trading business.
DLH is a Danish owned group and since 1908 trading in timber and timber products all over the world.
 
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IKEA accused of tax evasion of up to € 1 billion in Europe

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The Swedish furniture giant IKEA has been accused of dodging up to EUR 1 billion between 2009 and 2014. The allegations were made in a report of the Green party in the European Parliament.
The Greens are accusing IKEA "large scale tax avoidance." According to the report, IKEA is using a series of tax loopholes in different European countries, namely the Netherlands, Belgium and Luxembourg to avoid paying taxes
One of the techniques is shifting royalties from each IKEA store to a subsidiary in the Netherlands, which acts as a conduit. The royalties go in and out the Netherlands untaxed and end up in Liechtenstein (or at least partly). And for 2014 alone, the Greens estimate it amounts to €35 million of missing tax revenues in Germany, €24 million in France and €11.6 million in the UK. Countries like Sweden, Spain and Belgium are likely losing between €7.5 and €10 million as well, according to the Greens.
IKEA defended itself:  "We pay our taxes in full compliance with national and international tax rules and regulations," the company said in a statement.
The European Commission said it would study the report.
VIDEO:

Source: greens-efa.eu
 
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Lumber price in U.S. gained US$4 last week

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Last week, trading of framing lumber slowed in U.S., but momentum carrying over from the previous week pushed many prices higher. Upward pressure eased as the week progressed. Buyers digested higher prices and order files that often pushed out into late February and early March. Wintry weather in some markets and the sinking stock market in the U.S. were cited as additional factors limiting follow-through from the previous two weeks’ action. The Random Lengths Framing Lumber Composite Price gained $4.

This Week
Feb 12		 Last Week
Feb 5		 Year Ago
2015
Random Lengths Framing Lumber Composite Price* $313 $309 $363
KD Western S-P-F #2&Btr 2x4 R/L Mill Price 260 255 322
KD Eastern S-P-F #1&2 2x4 R/L, delivered Great Lakes 360 359 425
Green Douglas Fir Std&Btr 2x4 R/L (Portland) 308 300 315
Southern Pine (Westside) #2 2x4 R/L 383 385 430
KD Coast Hem-Fir #2&Btr 2x4 R/L 298 298 335
Ponderosa Pine (Inland) #2&Btr 1x12 R/L 665 660 665
* Weighted average of 15 key items

Random Lengths Panel Market Report

Structural panel sales were mixed, but prices generally held. A flurry of activity last week helped OSB producers build order files, and prices in most regions found a bottom. Carryover this week was mixed. Steady sales allowed Southern Pine plywood producers to maintain order files of one to two weeks, and prices were on an even keel. Most orders were for truckloads. The pace and sentiment in the western Fir plywood market varied among producers in an uneven week of trading.

(f.o.b. mill prices) This Week
Feb 12		 Last Week
Feb 5		 Year Ago
2015
Random Lengths Structural Panel Composite Price* $343 $343 $379
Southern (west-east) 15/32-inch 3-ply rated sheathing plywood 365-393 363-393 432-470
Southern (west-east) 15/32-inch 4-ply rated sheathing plywood 370-393 370-393 435-480
Western 1/2-inch 4-ply rated sheathing plywood 337 334 418
North Central 7/16-inch Oriented Strand Board 213 213 195
*Weighted average of 11 key items

 

Source: Random Lengths

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Brazil: Logs, sawnwood, plywood-domestic and export prices

Posted on by GWMI Admin
Brazilian logs, mill yard, domestic US$ per m3
Ipê 144▲
Jatoba 81▲
Massaranduba 85▲
Muiracatiara 87▲
Angelim Vermelho 80▲
Mixed redwood and white wood 69▲

Export Sawnwood Prices

Sawnwood, Belem/Paranagua Ports, FOB US$ per m3
Ipe 1451▲
Jatoba 973▼
Massaranduba 772▼
Muiracatiara 765▼
Pine (KD) 209▼
FOB Belém/PA; Paranaguá/PR; Navegantes/SC and Itajaí/SC Ports. High quality wood (no cracks / without knots) / Measuring 2,50 m in length; 15 cm wide; and 30 mm thick.

Domestic Sawnwood Prices

Brazilian sawnwood, domestic (Green ex-mill) US$ per m3
Ipê 700▲
Jatoba 348▲
Massaranduba 317▲
Muiracatiara 330▲
Angelim Vermelho 291▲
Mixed red and white 184▲
Eucalyptus (AD) 171▲
Pine (AD) 123▲
Pine (KD) 139▲

Export Plywood Prices

Pine Plywood EU market, FOB US$ per m3
9mm C/CC (WBP) 323▼
12mm C/CC (WBP) 293▼
15mm C/CC (WBP) 291▼
18mm C/CC (WBP) 288▼

Domestic Plywood Prices (excl. taxes)

Parica US$ per m3
4mm WBP 481▲
10mm WBP 381▲
15mm WBP 332▲
4mm MR 432▲
10mm MR 320▲
15mm MR 298▲
Domestic taxes include taxes and may be subject to discounts

Prices For Other Panel Products

Domestic ex-mill Prices US$ per m3
15mm MDParticleboard 209▲
15mm MDF 292▲

Export Prices For Added Value Products

FOB Belem/Paranagua Ports US$ per m3
Decking Boards
Ipê
 2,608▲
Jatoba
 1,613▲

 

Price source: ITTO

Södra lowers price for pine logs

Posted on by GWMI Admin

Södra is reducing its price for pine logs by SEK 25 per cubic metre solid volume underbark (m³sub). The reduction is an adjustment to lower market prices for finished goods.
"The pine market remains under pressure. Intense competition in key pine markets in the Middle East and North Africa, mainly from Russia, has led to lower prices for finished goods from sawn pine timber. At the same time, we have a strong flow of pine logs. Due to this trend, we are now lowering our price for pine logs," says Håkan Larsson, President of the Södra Skog business area.
The price adjustment will be effective from 15 February 2016.
 
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Shareholders approve Weyerhaeuser-Plum Creek mega-merger

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Weyerhaeuser and Plum Creek shareholders have jointly approved the merger between the two companies announced in November.
98 percent of the shares voting at the Weyerhaeuser special meeting voted in favor of the proposal. At the same time, Plum Creek's stockholders overwhelmingly approved the proposed merger of Plum Creek and Weyerhaeuser. Plum Creek common stockholders will receive 1.60 Weyerhaeuser common shares for each share of Plum Creek common stock.
Weyerhaeuser is buying Plum Creek for US$8.44 billion to form the world's biggest timberland and forest products companies. The new company will keep the Weyerhaeuser name and own more than 13 million acres (5.6 million hectares) across the United States. The total worth of the combined companies is US$23 billion based on current share prices.
The companies anticipate that the move will save up to US$100 million every year.
The acquisition is expected to close in the first quarter of 2016 or early in the second quarter. Following closing, Weyerhaeuser and Plum Creek shareholders will own approximately 65% and 35%, respectively, of the combined company's common stock.
 
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Lumber Liquidators sentenced for illegal imports of hardwood

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Lumber Liquidators was fined US$13 million in criminal fines, community service and forfeited assets last week. The U.S. hardwood flooring retailer was sentenced because they had illegally imported hardwood flooring. Moreover, the hardwood was manufactured in China and the timber used for it had been illegally logged from Russia, where the last remaining Siberian tigers and Amur leopards in the world are living.
In addition, the hardwood flooring retailer is on a five-year term of organizational probation and mandatory implementation of an environmental compliance plan approved by the government.
As the U.S. Department of Justice (DoJ) announced, Lumber Liquidators will have to pay $13.15 million, from which $7.8 million represent criminal fines, $969,175 for criminal forfeiture and more than $1.23 million for community service payments. This is the biggest financial penalty for timber trafficking under the Lacey Act and one of the biggest penalties that the Lacey Act has given by now.
Lumber Liquidators acknowledged the illegality and they were charged in October 2015 in the Eastern District of Virginia. The company had one felony count based on the import of goods through false statements and also four misdemeanor violations of the Lacey Act.
The Lacey Act forbids the trade in wildlife, fish or plants that are illegally obtained, transported or sold.
As DoJ explained, this is the first felony conviction related to the import or use of illegal timber.
Still, Lumber Liquidators was involved in other controversies regarding the Lacey Act law. Back in 2013, the EIA investigators posed as timber buyers and exposed the illegal wood trade in the Russian Far East, finding that Chinese company Xingjia had admitted to illegal logging and paying bribes. Lumber Liquidators was their biggest trade partner. The officials of the Chinese company said, at that time, that the flooring retailer knew about the provenience of the wood.
CEO Robert Lynch and CFO Daniel Terrell resigned after these dissensions. Lumber Liquidators has approximately 370 locations and is the biggest specialty retailer of hardwood flooring in North America.
 
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Romania: Cartel suspicion on the timber market-Kronospan might be involved

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The headquarters of four Romanian companies operating in the timber industry are being checked by the Competition Council in the country, because of cartel suspicion. Also, two stare forest administration departments are suspected to be involved. There is doubt that the companies and the state agencies have reached an anti-competitive agreement, as Bogdan Chiritoiu, head of the Competition Council, told Agerpress.
Kronospan Romania, Kronospan Sebes, Alredia SRL, and Lacul Codrilor are the companies in question, and Alba and Hunedoara the forest administration departments are being controlled at the moment.

Chiritoiu said that they will “analyze the tenders with few bidders, as well as those where the price adjudication was very low.”

The agreement thought to have been set between the companies and the state agencies is based on splitting the market and the distribution sources and on selling the wood at a minimum price in the public auctions that the state agencies organized.
 
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German Pellets has a new provisional insolvency administrator

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Lawyer Bettina Schmudde from Kanzlei White & Case law firm was appointed as provisional solvency administrator in the insolvency proceedings initiated against the assets of German Pellets GmbH. The decision was taken by the competent insolvency court in Schwerin, according to a press release of the company.
According to the resolutions from the 10th of February, the court in Schwerin informed that the provisional solvency administrator has to safeguard the company’s assets, along with taking the tasks of ascertaining whether there are sufficient grounds to commence proceedings and assessing the prospects for the company’s continued existence.
During the provisional insolvency proceedings, the wages and salaries of the approximately 650 employees are guaranteed for three months, by means of insolvency substitute benefits. Also, the insolvency proceedings will probably begin at the beginning of May 2016 and the declaration of claims shall not be possible by this date.
According to German Pellets press release, creditors should refrain from declaring any claims before this date.
On the 10th of February, German Pellets filled for insolvency because of financial issues. One of the reasons for which the Wismar’s wood pellet producer got to this situation is the decline of oil costs, which brought the wood pellets price tag way below pressure. In addition, the incomes have lowered due to the weather conditions (the last two years’ warm winters) and the acquisition of Kago, the furnace producer, in 2010, which turned out to be a bad investment.
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KKR buys half of Swedish Välinge

Posted on by GWMI Admin

KKR, a global investor, has announced the signing of three agreements to ultimately acquire a combined 50% stake in Välinge, a Swedish industrial R&D company founded and owned by the Pervan family. Through the agreements, KKR will acquire the two 20% stakes of the current minority owners, Kronospan and Swiss Krono Group, as well as an additional 10% stake from the founder.
The partnership with KKR will allow Välinge to invest behind new technologies in fast growing areas such as LVT flooring, tool-less furniture assembly, digital micro 3D printing and wood powder technology. The former minority owners, Kronospan and Swiss Krono Group, will remain major licensees of Välinge’s technology and have played an important role in commercialising Välinge’s earlier technologies related to floor locking.
Välinge currently holds around 1,300 patents, and has expanded its IP portfolio significantly over the past five years, with over 12,000 applications in the pipeline today. The company is based in Viken, Sweden, and boasts a state-of-the-art research facility which employs 100 expert employees and researchers. The company has invested over SEK 1,000m in R&D over the last five years.
The transaction will be funded primarily from KKR’s European Fund IV. No financial terms were disclosed.
 
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