The coming into effect of the ASEAN Economic Community (AEC) at the end of 2015 is believed to be an opportunity for the Indonesian furniture industry because Indonesian furniture can readily penetrate ASEAN markets and increase market share in the region according to Indonesia's Minister of Industry, Saleh Husin.
He also said this new economic pact will present new opportunities for local companies as they will have access to the ASEAN consumer market of 620 million.
Currently the intra-ASEAN trade represents only about 25% of total exports but with almost all tariffs being abolished all ASEAN countries stand to benefit immediately and long into the future as it is forecast that by 2025, more than half of the world‟s consumers would live within a five to six hour flight from ASEAN.
According to the Asian Economic Journal the AEC could generate trade of between US$280 and US$615 billion by 2030, equivalent to 5- 12% of projected ASEAN GDP.
Article archive
China: Tough domestic standards for wooden furniture
The air pollutant emission standard for the Chinese wooden furniture manufacturing industry (DB11/1202-2015） has been released. This has been hailed as Beijing's strictest environment standard for wooden furniture. The new standard has come into effect 1 July 2015.
The new standard not only widens the restrictions applied it also has detailed provisions on coatings, production environment, production technology used in furniture manufacturing.
In the new standard, pollutant limits are 30 times lower than in the old standard. For example, the maximum allowable emission concentration of Benzene is 17 mg/m3 in the old standard, however, it is 0.5 mg/m3 in the new standard.
One of the main purposes to formulating the new emission standard is to eliminate oil based coatings. Water based coatings paint are considered more environmentally friendly.
However, less than 15% of the furniture production companies in China use water based coatings as oil based materials are esier and cheaper to apply.
Canada: Wood products industry set for growth in 2015
Canada's wood products industry is benefiting from the ongoing recovery in the U.S. housing and a weaker Canadian dollar, according to The Conference Board of Canada's latest outlook for Canada's wood products industry.
"The continued recovery in the U.S. housing market is supporting increased demand for Canadian wood products, leading to a 8.7 per cent increase in export volumes this year," said Michael Burt, Director, Industrial Economic Trends, The Conference Board of Canada. "However, while production should remain strong over the next five years, growth is set to eventually slow due to timber shortages in B.C. and softer growth in demand from China."
Highlights
Rising production and higher prices mean industry revenues are set to reach nearly $29 billion by 2016.
Pushed higher by increases in production and rising material costs, industry costs are expected to rise by 8.7 per cent in 2015.
The spread of the mountain pine beetle continues to pose a risk for Canada's lumber supply. Industry production is expected to grow by 6 per cent in 2015. This, combined with higher prices will support industry revenues, which are set to reach just under $29 billion by 2016. However, rising production and material costs are expected to drive strong cost growth in the industry. Overall, industry costs are set to rise by 8.7 per cent in 2015. The industry will need to find cost-cutting initiatives to help support its bottom line.
With cost increases forecast to exceed revenue growth, pre-tax profits in the wood manufacturing industry are expected to fall 0.2 per cent to $1.4 billion in 2015.
Various risks cloud the outlook over the medium term. While production will continue to increase, timber supply constraints (a result of the mountain pine beetle infestation) will continue to limit domestic production. These supply problem will plague lumber companies operating in British Columbia's interior and could lead to plant closures.
In addition, the current Canada-U.S. Softwood Lumber agreement is set to expire this October, which will likely affect Canadian softwood lumber producers' access to the U.S. market.
Malaysian FOB log prices improve in Q1
Sarawak log exporters report rising FOB prices in the face of firm demand. The domestic newspaper, The Star, has reported the earnings of a few listed timber companies.
Jaya Tiasa Holdings, part of the RH Group, reported that compared to the first quarter 2014 average logs selling prices rose by 8% while sales volume shot up by 12% in the first quarter of this year. The company harvested almost 172,000 cu m of logs some 16% down quarter on quarter.
Ta Ann Holdings Bhd, another major log exporter also reported higer average log prices and improved prices for plywood(+6%). In the first quarter, Ta Ann group produced just over 80,000 cu m of logs, significantly lower than the almost 110,000 in the first quarter last year.
WTK group's log production in the first quarter fell to 85,535 cu m from 118.225 cu m last year and said the 28% drop was because of bad weather and the long holiday period for Chinese New year. However, the company reported a 20% increase in log sales in the first quarter due to higher domestic sales.
Sarawak plywood export prices
- Sarawak plywood traders report the following FOB export prices.
- Floor base (FB) 11.5mm, US$600
- Concrete formboard (CP) 3‟x 6‟ US$ 560
- Coated formboard (UCP) US$ 640
- Standard plywood: 8.5 – 17.5mm
- South Korea, US$ 455
- Taiwan P.o.C, US$460
- Hong Kong, US$ 465
Moelven closes sawmill in Nössemark, Sweden
Norwegian wood-products company Moelven will shut down Nössemark Trä AB sawmill in Nössemark, Sweden, impacting 40 jobs, Sverige Radio reported.
Moleven's CEO, Erik Sjölund, stated that there are hopes that a new owner could be found. For the moment, a potential buyer has shown interest, however no deal was concluded. As a result, said Sjölund, a decision had been taken to decommission the mill.
Sverige Radio notes that the the sawmill had been making losses for some time. According other reports of the Nordic media, the sawmill's results had been impacted by downward price pressure on raw materials and a less prominent position as an exporter to Norway.
Nössemark mill has a production capacity of 95,000 m3 of sawn timber, with whitewood accounting for 75% of output and redwood for 25%.
EUTR's impact on the European furniture market
The recent downturn and subsequent recovery in deliveries from China and Vietnam may be partly attributable to the EU Timber Regulation (EUTR). The sharp fall occurred at around the time the EUTR came into force in March 2013 and may have been partly due to concerns about the reliability of evidence provided by Chinese and Vietnamese suppliers to demonstrate negligible risk of illegal timber origin.
Now the EUTR has been in effect for two years, more buyers may have established reliable supply chains and documentation and feel more confident about importing wood furniture from outside the EU.There is some evidence for the impact of EUTR from interviews with large European retailers.
A recent trade article based on interviews with representatives of European furniture manufacturer and retailer IKEA, flooring manufacturer Kahrs, and DIY retailer B&Q observes:
“EUTR did not require major revision of their anti-illegal timber strategies. Illegality risk assessment and due diligence were already integrated into their operations, and they are also all working towards 100% certified sustainable sourcing. What the EUTR did do, however, was prompt renewed scrutiny and reappraisal of existing systems and a step up in communication on illegality risk”.
The interviewees noted that EUTR prompted an extensive effort to tighten and extend existing procedures, gather additional data from suppliers and to train staff but did not generally lead to any significant change in the supply base. The interviewees said that they had to temporarily stop sourcing from some companies when documentation was inadequate. However problems were almost always resolved so that trading could resume.
Another line of evidence for the impact of EUTR is provided by analysis of the share wood in total furniture imports. Wood's share of total furniture import value fell in the second half of 2013 when EUTR was first implemented, from around 55% to 53%.
This loss of share was at the expense of metals and, to a lesser extent, plastic. However, wood's share of import value stabilised in 2014 and 2015. In the 12 months to March 2015, wood still accounted for 53% of furniture import value, compared to 38% for metals, 3.5% for plastic, 1% for bamboo and 5.5% for other materials.
EUTR’s impact on the European furniture market
The recent downturn and subsequent recovery in deliveries from China and Vietnam may be partly attributable to the EU Timber Regulation (EUTR). The sharp fall occurred at around the time the EUTR came into force in March 2013 and may have been partly due to concerns about the reliability of evidence provided by Chinese and Vietnamese suppliers to demonstrate negligible risk of illegal timber origin.
Now the EUTR has been in effect for two years, more buyers may have established reliable supply chains and documentation and feel more confident about importing wood furniture from outside the EU.There is some evidence for the impact of EUTR from interviews with large European retailers.
A recent trade article based on interviews with representatives of European furniture manufacturer and retailer IKEA, flooring manufacturer Kahrs, and DIY retailer B&Q observes:
“EUTR did not require major revision of their anti-illegal timber strategies. Illegality risk assessment and due diligence were already integrated into their operations, and they are also all working towards 100% certified sustainable sourcing. What the EUTR did do, however, was prompt renewed scrutiny and reappraisal of existing systems and a step up in communication on illegality risk”.
The interviewees noted that EUTR prompted an extensive effort to tighten and extend existing procedures, gather additional data from suppliers and to train staff but did not generally lead to any significant change in the supply base. The interviewees said that they had to temporarily stop sourcing from some companies when documentation was inadequate. However problems were almost always resolved so that trading could resume.
Another line of evidence for the impact of EUTR is provided by analysis of the share wood in total furniture imports. Wood's share of total furniture import value fell in the second half of 2013 when EUTR was first implemented, from around 55% to 53%.
This loss of share was at the expense of metals and, to a lesser extent, plastic. However, wood's share of import value stabilised in 2014 and 2015. In the 12 months to March 2015, wood still accounted for 53% of furniture import value, compared to 38% for metals, 3.5% for plastic, 1% for bamboo and 5.5% for other materials.
Malaysia plans to double furniture exports by 2020
A new programme developed by the Malaysian Timber Industry Board (MTIB) ''Professional Designer Programme (PDP)'' aims to double Malaysia's furniture exports in the upcoming years. From the current RM8 billion (1.8 billion euros), the new programme might drive exports up to RM 16 billion (3.6 billion euros) by 2020.
PDP is an initiative and a joint programme with the Malaysian Furniture Promotion Council in integrating designs and designers into the furniture production in the country. MTIB director-general Dr Jalaluddin Harun said the programme aims to encourage more creativity and innovations in terms of furniture designs among young local designers.
“We hope with PDP programme, we can enhance exports with less volume but of higher value,” he said during a press conference this week.
Furniture exports stood at RM2.26 billion between January and April 2015, 6.5% higher from RM2.089 billion in the same period in 2014. Jalaluddin said Malaysia needs to strengthen its supply chain, production of new market-oriented value-added products and explore new markets.
“Under the programme, local designers will have the opportunity to engage with the international designers and share ideas to come out with innovative productions which are expected to lead to the higher demand from consumers.”
PDP, which began today, will end on March 12, 2016.
Metsä Group divests Metsä Wood France
Metsä Group announced the divestment of the entire share capital of Metsä Wood France SAS to German Mutares AG. as the Finnish giant says in a press release. Mutares submitted an irrevocable offer to Metsäliitto Cooperative (the parent company of Metsä) and the transaction will now be subject to the information and consultation process of employee representatives of Metsä Wood France. The amount of the transaction was not disclosed.
With the transaction Metsä Wood would discontinue the upgrading and distribution operations in France and the employees of Honfleur and Boulleville units, a total of 115 employees, would automatically transfer to the buyer. Metsä Wood’s sales operation of sawn timber, plywood and Kerto LVL products would continue in France. As a part of the transaction, the parties will agree on commercial cooperation in the supply of sawn timber for the upgrading operations.
Metsä says that the transaction will support Metsä Wood’s industrial efficiency strategy enabling Metsä Wood to focus on its core businesses – industrial scale production and sales of Nordic sawn timber, plywood and Kerto LVL as well as the timber upgrading and distribution operations in the UK.
The transaction is estimated to have a negative non-recurring impact of approximately EUR 20 million on Metsä Group’s Q2/2015 operating result. The transaction is estimated to be completed at the end of October 2015 at the latest.
Mutares AG is a German industrial holding company that focuses on acquiring medium-sized companies with the goal of sustainably increasing their value in close co-operation with their management and employees. Annual sales of Mutares group was approximately EUR 650 million in 2014.
Back in May 2015, Metsä Board also divested to Mutares the Gohrsmühle mill in Germany.
Housing starts drop 11% in US
US housing starts fell 11.1% in May to an annual rate of 1.04 million, following a sharp rise in April, when starts rose to the fatest pace seen since 2007.
Starts for single-family homes declined by 5.4% to an annual rate of 680,000, while starts in buildings with at least five units dropped by 18.5%, to a pace of 349,000.
However, building permits, a sign of future construction, increased 11.8 percent to an annual rate of 1.28 million units. This is the highest pace since August 2007. Moreover, permits have been above a 1 million-unit pace since July.
Mohawk Industries completes takeover of Belgian IVC Group
This week, American Mohawk Industries has completed its acquisition of the Belgian IVC Group for $1.2 billion in cash and stock.
The IVC Group is a major manufacturer of sheet vinyl, luxury vinyl tile (LVT) and laminate, with operations in Europe and the United States and sales of approximately $700 million. The IVC Group was founded in Belgium in 1997 by Filip Balcaen, who is currently IVC's chairman and primary shareholder. IVC is a sheet vinyl provider in Europe and the U.S. and is also a leading player in the fast growing LVT category. IVC primarily distributes their products through large retailers, home centers and regional distributors and is focused on the residential sector. The company employs approximately 1300 people around the globe.
LVT now represents about 5% of the U.S. flooring market, with sales projected to grow more than 15% annually through the end of the decade.
Mohawk’s IVC acquisition also includes a new LVT manufacturing facility in Dalton, Georgia, which is in the initial stages of production. The facility features one of the world’s largest, most efficient production lines and will position the business to support the rapidly growing demand for LVT in residential and commercial channels.
Review of the worldwide woodworking technology market in 2014
The top five exporting countries of woodworking technologies- Germany, Italy, China, Taiwan and Austria- recorded positive figures. Only the U.S. closed 2014 with a negative (-0.7%), a sign of stability and a consistently upbeat domestic market for the past two years.
Germany closed the year with much better results than expected after the first half of 2014: after a postive 0.44%, a 2.3% increase over 2013 was achieved in the second half, with an export value close to EUR1.8 billion. Made-in-Italy exports amounted to EUR 1,169.8 million, a 5.3% increase compared to 2013. Unfortunately, annual growth rate fell short of the 7% achieved in the first half of 2014, which means that Italian export in the second half was less ‘lively'. The second half of 2014 saw China doing better. In the January-June period, exports were EUR 376 million, a 13.6% increase year-on-year.
The growth rate of Chinese export was twice that of Italy; the proportion has now changed further to 4:1 (+22% for China; +2.3% for Italy). In absolute value, the gap has shrunk to just EUR 200 million approximately (1,169 versus 964 million). However, ‘made-in-Italy' can be satisfied with an export growth rate in 2014 double that of Germany.
Taiwan, at number four in the ranking with EUR 517 million, recorded a 13.5% growth compared to 2013.
The U.S. is the world's biggest market for woodworking technologies. Imports amounted to EUR 987.6 million, up 18.1% from 2013. Russia closed 2014 with imports worth EUR 554.3 million, a 4.5% increase.
Germany remains the third biggest ‘consumer country' (EUR 401.3 million, +5.8%), followed by China (EUR 331.6 million), with imports down by 6.2% from 2013; Canada (EUR 249.7 million, -0.14%); France (EUR 247 million, +9.1%); Belarus (EUR 221 million, +143.2%).
EU imports of tropical hardwood plywood up 19%
EU imports of tropical hardwood plywood were 105,201 cu.m in the first quarter of 2015, 19% more than the same period in 2014. Imports from Malaysia, the largest supplier, were 33% up at 30,658 cu.m.
There were also significant gains in imports from Indonesia (up 21% to 28,521 cu.m) and China (up 9% to 23,675 cu.m). After several years of decline, imports from Brazil increased by 19% to 4090 cu.m during the period. For the first time ever, the Bahamas has emerged as a significant supplier in 2015, contributing 5124 cu.m in the first quarter of the year. However imports from Gabon were down 30% at 7328 cu.m during this period.
Over 80% of all EU imports of tropical hardwood plywood in the first quarter of 2015 was destined for only four Member States. In declining order of significance, these were the UK, Belgium, Netherlands and France.
In the 12 months to March 2015, there has been a consistent increase in demand for tropical hardwood plywood in both the UK and Netherlands. Demand has been more changeable in France and Belgium during this period, but imports of tropical hardwood into both countries began 2015 more strongly than in 2014.
The sharp year-on-year rise in EU plywood imports from Malaysia in the first quarter of 2015 is partly explained by particularly low levels of trade during the same period in 2014.
Malaysia lost GSP preferential tariff status from 1 January 2014 which contributed to a spike in EU imports from Malaysia in the closing months of 2013 followed by a slowdown in early 2014.
European imports of Indonesian plywood benefitted during the first quarter of this year from stronger construction sector activity, particularly in the UK and Netherlands, and from more regular break-bulk shipments.
However, there has also been intense competition from European birch plywood which has been readily available at relatively low prices during 2015.
The extreme weakness of the rouble against both the euro and the dollar has particularly boosted the price competitiveness of Russian birch plywood. EU imports of Indonesian plywood are widely expected to have been weaker in the second quarter than in the first quarter of 2015.
Although imports of okoume plywood from Gabon were slow in the first quarter of 2015, recent reports indicate that overall European demand for okoume plywood has been reasonable this year.
Ordering of okoume plywood by the construction industry has been quite lively, particularly for interior remodelling and especially in the Netherlands. There's also been a slow rise in okoume plywood consumption in the boat industry. The French market, while still subdued, has regained a little ground this year.
Improved demand combined with limited supply, especially for FSC certified material, has allowed okoume plywood manufacturers to push through minor price increases this year. Lead times for delivery are also becoming more extended.
Given the low level of import of finished plywood from Gabon, the signs are that this trend is benefitting Europe‟s domestic manufacturers of okoume plywood more than Gabon-based operations.
Growing wood flooring market share forecast for domestic producers in US
US demand for hard surface flooring is forecast to grow over 6% per year to 2019. A new market research report by Freedonia forecasts higher demand due to new construction, renovation and repair of buildings. A second demand driver is replacement of carpeting for better durability, appearance and lower maintenance.
Freedonia estimates total hard surface flooring demand in 2019 at US$16.7 billion or US$1 billion sq.m. However, the largest growth will not be in wood flooring, but in vinyl flooring. Luxury vinyl tiles are very popular in residential and non-residential buildings for their ability to copy the appearance of hardwood flooring and tile.
Demand for hardwood flooring will also grow, but at a lesser rate than vinyl. Laminate flooring is expected to lose market share to vinyl wood imitation flooring.
New residential construction and renovation will account for the largest share of total wood flooring demand. The continuing recovery in the housing market will fuel demand for all types of hard surface flooring, including wood.
Non-residential construction, such as offices and commercial buildings, will also increase. Wood flooring demand for non-residential applications will grow in the next five years, but at a lesser rate and from a smaller volume than residential flooring.
Wood flooring imports have recovered since the US economic recession. The import value of hardwood flooring and assembled wood flooring panels was US$168.8 million in 2014, an increase by one third from 2010.
However, the market share of domestically produced hard surface flooring is expected to increase, according to the Freedonia report. Favourable costs of production in the US, including low energy cost, will encourage companies to expand existing plants or open new plants in the US.
Most European countries have fulfilled EUTR obligations
On 19 June the European Commission has published a table with information on the state of implementation of the European Union Timber Regulation (EUTR) by the EU Member States. The table regards whether the member countries have complied with their obligations provided for by the EUTR.
Since the last published scoreboard in February this year significant progress was made by some countries. Now, the only countries with obligations in a process of fulfilment are Greece, Hungary, Poland, Romania and Spain. All other countries are considered to have fulfilled all their obligations under EUTR.
For the full table here
Lumber prices falling in some parts of the world
Lumber prices have fallen throughout a majority of the main softwood lumber markets in the world during the 1Q/15. The biggest declines have occurred in the US, Canada and the Nordic countries, while the drop in import prices to China and Japan has been more modest.
So far in 2015, the lumber market in the US has not improved as much as some market observers predicted (or hoped) last year. US housing starts during the four first months have ranged between 900,000 (February) and 1.13 million (April) starts on a seasonally adjusted annual rate. Despite housing starts being lower in the 1Q/15 than in the 4Q/14, lumber production in the US and Canada has increased slightly.
Lumber prices in the US have fallen substantially over the past nine months, with southern yellow pine being down almost 30 percent, Douglas-fir declining 18 percent and spruce-pine-fir in Western Canada dropping 28 percent.
Lumber prices in the Nordic countries have fallen substantially since last summer (in US dollar terms). The price declines in Finland and Sweden from August to February were 18 percent and 22 percent, respectively. Current price levels are the lowest since 2009 in both countries. The competitive prices in US dollar terms have resulted in a sharp increase in shipments from Sweden to the US, though these levels are still low. Finnish sawmills have shipped more lumber to China, Egypt, Saudi Arabia and the UK so far this year as compared to 2014.
With the decline in the value of the Rouble, Russian lumber has been become more competitive over the past 15 months. In dollar terms, the fall in the Russian currency has been about 27 percent, and in Euro terms, just over eight percent. The average value of exported lumber from Russia has declined from $180/m3 in early 2014 to $130/m3 in March of 2015. However, Russian sawmills have been slow to take advantage of their country’s weak currency.
So far this year there have been only been price adjustments in lumber prices in Japan. Average prices for the domestic Sugi have declined slightly in US dollar terms but were unchanged in Yen terms. Of the imported species, European whitewoods and Canadian hemlock have decreased the most, each falling about five percent from January through May.
Demand for softwood lumber in China has increased swiftly this spring. In February, import volumes were down to 860,000 m3, a two-year low, but have since doubled to 1.7 million m3 in just two months. Average import prices have fallen this year, with April prices reaching their lowest level since late 2012. Russian lumber continues to be the low cost supplier.
Siempelkamp receives new orders in Russia and Asia
During the first half of the 2015 business year, Siempelkamp has already record four orders for wood-based material production plants from Asia and Russia. Next to an MDF plant for a Russian customer and another line for a plant operator in China, Wisewoods Green Panel, Thailand, as well as another East Asian customer ordered equipment from Siempelkamp. This means Siempelkamp has sold a total of 290 ContiRoll® presses as part of a partial or complete line since the product’s market entry in 1985.
A customer from Asia ordered a plant for the production of high-quality OSB including a drying system for the production of OSB (a strand dryer made by the Siempelkamp subsidiary Büttner featuring a water evaporation capacity of 32 t/h). The scope of supply also includes a bunker, silo discharge equipment, screens, forming and press line with 9‘ x 28.8 m Generation 8 ContiRoll® press as well as board trimming unit and double diagonal saw. The package is completed with the measurement system SicoScan and the control technology system Prod-IQ.basic.
To Wisewoods Green Panel located in Phetchaburi, Thailand, south of Bangkok, Siempelkamp will supply an MDF plant including a 8‘ x 25.5 m Generation 8 ContiRoll® press. With the new plant, including dryer, sifter, resin dosing system, forming and press line, multi diagonal saw with 3 cross-cut systems, and book forming station, the plant operator complements the existing particleboard production with the production of high-quality MDF.
Moreover, Siempelkamp will supply to a Russian customer an MDF plant with a yearly capacity of 350,000 m3. This customer ordered all components from the Krefeld machine and plant engineering company ranging from the wood yard to the finishing line. The heart of the plant will be a 9’ x 50.4 m ContiRoll® press.
Estonian log prices in March 2015
In March 2015, roundwood prices in Estonia have registered some disparate developments compared to last year. Large sawlog prices (pine, spruce and birch) show a slight downward trend. For small diameter sawlog(under 18 cm diameter) a price increase of more than 2 percent for pine was registered and a -8 percent decrease for spruce.
Among pulpwood assortments (pine and spruce) a price crash of 23 percent can be noticed in comparison to last year's same month. On contrast, birch pulpwood price inched up slightly.
| Average Prices in State-Owned Forests Free Alongside Forest Road EUR / cbm without VAT |
March 2014 | February 2015 | March 2015 | Change March 2014 to 2015 |
| Pine | 68.51 | 66.75 | 67.22 | -1.88% |
| Pine d<18cm | 55.85 | 56.85 | 57.00 | +2.05% |
| Spruce | 67.42 | 64.11 | 63.86 | -5.28% |
| Spruce d<18cm | 53.15 | 49.95 | 48.78 | -8.22% |
| Birch veneer | 102.73 | 103.44 | 101.07 | -1.62% |
| Birch | 57.91 | 59.73 | 57.35 | -0.96% |
| Pine (pulpwood) | 31.90 | 24.38 | 24.42 | -23.51% |
| Spruce (pulpwood) | 30.30 | 24.17 | 23.29 | -23.13% |
| Birch (pulpwood) | 26.62 | 27.80 | 28.12 | +5.63% |
Weyerhaeuser's expansion of Philadelphia sawmill underway
In the summer of 2014, Weyerhaeuser announced investment plans of US$57 million to modernize its softwood lumber mill in Philadelphia. Now it seems that the investment is well underway. Improvements include a new sorting and stacking system that will be in place next year and a new drying kiln that will go online this summer.
Company officials, quoted by local media, say that the mill needed to update the equipment in order to meet tougher standards set by the federal Environmental Protection Agency.
“The new kilns will comply with the EPA’s more stringent boiler emission standards, effective in January 2016, and offer a variety of operational efficiencies,” Monte Simpson of Weyerhaeuser said. “The new kilns will be more energy efficient, less costly to maintain, and process more lumber faster. And in 2016, when the new planer comes on line, productivity is expected to further improve.”
Weyerhaeuser's Philadelphia sawmill is one of the company's longest-running manufacturing facilities. The mill was purchased from DeWeese Lumber Company in 1967 and employs approximately 188 people. The mill produces approximately 220 million board feet of Southern Yellow Pine lumber. The mill's products are shipped to more than 140 customers in 30 states.
Weyerhaeuser’s expansion of Philadelphia sawmill underway
In the summer of 2014, Weyerhaeuser announced investment plans of US$57 million to modernize its softwood lumber mill in Philadelphia. Now it seems that the investment is well underway. Improvements include a new sorting and stacking system that will be in place next year and a new drying kiln that will go online this summer.
Company officials, quoted by local media, say that the mill needed to update the equipment in order to meet tougher standards set by the federal Environmental Protection Agency.
“The new kilns will comply with the EPA’s more stringent boiler emission standards, effective in January 2016, and offer a variety of operational efficiencies,” Monte Simpson of Weyerhaeuser said. “The new kilns will be more energy efficient, less costly to maintain, and process more lumber faster. And in 2016, when the new planer comes on line, productivity is expected to further improve.”
Weyerhaeuser's Philadelphia sawmill is one of the company's longest-running manufacturing facilities. The mill was purchased from DeWeese Lumber Company in 1967 and employs approximately 188 people. The mill produces approximately 220 million board feet of Southern Yellow Pine lumber. The mill's products are shipped to more than 140 customers in 30 states.
