Portuguese Sonae Indústria announced that its indirect affiliate, Isoroy SAS, has entered into an agreement for the sale of the business and assets relating to its MDF Ussel plant, located in France, including the transfer of the employees dedicated to this business.
The identity of the buyer or the amount of the transaction were not disclosed.
To be concluded, the transaction is subject to certain conditions, mainly related with pre-emption rights of the local municipalities in respect of the real estate and administrative authorisations, and is expected to take place by the end of March 2015.
The company says its decision to sell the business and assets of the Ussel plant is aligned with the company's strategy of optimizing its industrial footprint.
The identity of the buyer or the amount of the transaction were not disclosed.
In 2014, Sonae also sold its plant located in Pontecaldelas (Spain) with an annual production capacity of 4,000,000 m2 of laminate flooring. Moreover, Sonae sold two of its plants plants in France (Auxerre and Le Creusot) to Austrian company Kronospan.
Article archive
Teak logs, sawnwood and plywood prices in India
The series of auctions in Central India continued and prices were firmer as buyers were active having refused to participate in the sales in Gujarat.
Auction sales at depots of Western India Because many buyers refused to attend the most recent eauction as the terms of trade and the transparency in dealings were considered unacceptable the sales were postponed.
Domestic natural forest teak logs are preferred over imported plantation teak as logs from domestic forests are of a greater diameter and thus the sap is proportionally smaller which results in higher recovery rates. Teak log buyers are hopeful that their concerns on the eauction process can be address providing for a quick resumption of sales to clear the backlog of timber in the depots.
US$4.5 billion investment in housing
The CREDAI newsletter of December last year reported the real estate sector attracted US$4.5 billion in investments between January and September last year with Mumbai topping the list of recipients. Of the total investment, land and development stage transactions attracted nearly 60 per cent from domestic as well as foreign entities.
Re-zoning Mumbai to boost housing development
In related news the VOX news site has an analysis of the negative impact of restrictions on residential housing in India and the initiative of the government to rezone parts of Mumbai.
This rezoning says Matthew Yglesias in the VOX write-up “is probably the most important urban-policy development in the world today. It should fairly dramatically increase living standards in one of the biggest cities on the planet and possibly do a great deal to drive economic growth forward throughout India.”
The VOX report says “Greater Mumbai's governing authority is proposing a sweeping change to the permitted Floor Space Index (FSI, the ratio of a building's total floor area to the size of the piece of land upon which it is built).
Under the plan, Mumbai is set to be divided into five zones with an FSI of 8 allowed in the very densest areas and FSIs in the 5-6 range in places well-served by mass transit. Fifty-eight percent of the city's land area would remain below 3.5, resulting in an increase in the amount of building allowed in many areas.
Because Mumbai offers job opportunities people continue to move into the city putting a massive strain on housing development which is constrained by regulations which have not keep pace with urbanisation. The VOX report says in 2009 the Mumbai resident had an average residential space only 12% of that of Shanghai residents.”
Domestic natural forest teak log prices
| 4-5 m length | ||
| 91 cms & up girth | 1800-2000 | |
| 76 to 90 cms girth | 1700-1800 | |
| 61 to 75 cms girth | 1400-1600 | |
| 46 to 60 cms girth | 1200-1350 | |
| 3-4 m length | ||
| 91 cms & up girth | 1450-1550 | |
| 76 to 90 cms girth | 1300-1400 | |
| 61 to 75 cms girth | 1250-1350 | |
| 46 to 60 cms girth | 1000-1100 | |
| 2-3m length | ||
| 91 cms & up girth | 1250-1300 | |
| 76 to 90 cms girth | 1100-1200 | |
| 61 to 75 cms girth | 1000-1100 | |
| 46 to 60 cms girth | 900-1000 |
Current C&F prices for plantation teak
C&F prices have not changed over the past two weeks
| US$ per m3 | |
| Belize logs | 350-400 |
| Benin logs | 367-680 |
| Benin sawn | 530-872 |
| Brazil logs | 402-797 |
| Brazil squares | 390-680 |
| Cameroon logs | 365-510 |
| Colombia logs | 520-650 |
| Congo logs | 380-710 |
| Costa Rica logs | 414-840 |
| Côte d'Ivoire logs | 303-720 |
| Ecuador squares | 315-540 |
| El-Salvador logs | 377-712 |
| Ghana logs | 286-650 |
| Guatemala logs | 404-550 |
| Guyana logs | 300-450 |
| Uganda teak sawn | 680-900 |
| Kenya logs | 350-600 |
| Laos logs | 300-605 |
| Liberia logs | 350-460 |
| Malaysian teak logs | 363-525 |
| Nicaragua logs | 350-596 |
| Panama logs | 319-750 |
| PNG logs | 400-575 |
| Sudan logs | 479-820 |
| Tanzania, teak, sawn | 307-885 |
| Thailand logs | 460-700 |
| Togo logs | 230-715 |
| Trinidad and Tobago logs | 420-680 |
| Uganda logs | 408-860 |
| Uganda Teak sawn | 680-900 |
Variations are based on quality, length and average girth of logs
Prices for domestically milled sawnwood from imported logs
Current exmill prices for air dried sawnwood are shown below. Prices have not changed over the past two weeks.
| Sawnwood, (Ex-mill) (AD) | Rs. per ft3 |
|
Merbau
|
1550-1650 |
|
Balau
|
1700-1900 |
|
Resak
|
1200-1400 |
|
Kapur
|
1250-1300 |
|
Kempas
|
1100-1200 |
|
Red Meranti
|
925-975 |
|
Radiata pine AD
|
550-650 |
|
Whitewood
|
600-650 |
Variations are based on quality, length and average girth of logs
Prices for domestically milled Myanmar teak
Prices are generally stable but prices for decking have seen a correction.
| Sawnwood (Ex-mill) | Rs. per ft3 |
| Myanmar Teak (AD) | |
|
Export Grade F.E.Q.
|
8000-18500 |
|
Plantation Teak A grade
|
6000-7000 |
|
Plantation Teak B grade
|
4250-4500 |
|
Plantation Teak FAS grade
|
3500-3700 |
Price variations depend mainly on length and cross section
Imported 12% KD sawn wood prices per cu.ft ex-warehouse
No price changes have been reported.
| Sawnwood, (Ex-warehouse) (KD) | Rs per ft3 |
| Beech | 1300-1350 |
| Sycamore | 1300-1400 |
| Red oak | 1500-1650 |
| White Oak | 1600-1800 |
| American Walnut | 2300-2400 |
| Hemlock clear grade | 1300-1400 |
| Hemlock AB grade | 1100-1200 |
| Western Red Cedar | 1600-1650 |
| Douglas Fir | 1200-1300 |
Price variations depend mainly on length and cross section.
Prices for WBP Marine grade plywood from domestic mills
| Plywood, | Rs per sq.ft |
| Ex-warehouse. (MR Quality) | |
| 4 mm | 40.00 |
| 6 mm | 53.50 |
| 9 mm | 67.75 |
| 12 mm | 84.00 |
| 15 mm | 111.00 |
| 18 mm | 117.00 |
Domestic ex-warehouse prices for locally manufactured MR plywood
| Locally Manufactured Plywood “Commercial Grade” |
Rs per sq.ft | |
| Rubberwood | Hardwood | |
| 4mm | Rs.20.40 | Rs.30.20 |
| 6mm | Rs.31.00 | Rs.38.85 |
| 8mm | Rs.39.00 | Rs.47.00 |
| 12mm | Rs.46.40 | Rs.57.00 |
| 15mm | Rs.57.00 | Rs.69.50 |
| 19mm | RS.66.00 | Rs.78.00 |
| 5mm Flexible ply | Rs.41.25 | |
Global furniture trade climbs to US$128 billion
The Italy-based furniture industry research association CSIL analysis of world furniture trade, which draws on data from the world's 70 largest economies, indicates that total trade value was US$128 billion in 2013, around 1% of all global trade in manufactured products. The leading furniture importers during the year were the United States, Germany, France, the UK and Canada.
The annual trend in global furniture trade reported by CSIL is shown in Chart 6. In the period 2004 to 2008, global trade was rising driven primarily by imports into the United States, with smaller increases into the United Kingdom, France, Germany and Canada.
Trade declined during the financial crises in 2009, but there was uninterrupted growth in the 2010 to 2013 period. This was driven mainly by recovery in North America and growth in emerging markets. The European market remained relatively weak during this period, although there was some growth in imports into Germany and the UK.
CSIL estimates that growth in global trade continued into 2014 and projected a further increase to close to US$140 billion in 2015. Import penetration for furniture (measured as the ratio between imports and consumption) is presently about 30% on a world scale.
According to CSIL, the main furniture exporting countries in 2013 were China, Italy, Germany, Poland and the United States. The relative positions of the main exporting countries changed considerably between 2004 and 2013. CSIL highlight that a significant proportion of furniture trade is more accurately described as “intra-regional” rather than truly “international”. This is particularly true of Europe.
China has become the world's leading exporter, overtaking Italy which is currently in second position. Between 2004 and 2013 China increased share of global furniture trade from 14% to 38%. Another major change is the rapid emergence of Vietnam, which jumped from 15th to 6th position in the period 2004 to 2013.
CSIL highlight that a significant proportion of furniture trade is more accurately described as “intra-regional” rather than truly “international”. This is particularly true of Europe.
In the EU plus Norway, Switzerland and Iceland, 76% of trade takes place between countries within the region and only 24% is with countries in other parts of the world. In the NAFTA area (USA, Canada and Mexico), about 27% of foreign furniture trade is within the three countries and 73% is with countries outside the region.
In the Asia and Pacific region, about 39% of furniture trade is within the region.
20% more orders for the Italian woodworking industry
The fourth quarter 2014 brought more optimism about the “health” of Italian wood technology. In the final quarter of the year, orders increased by as much as 20.1 percent compared to the same period of 2013. Furthermore, domestic orders showed the liveliest trend, with a significant 24.7 percent increase, compared to the October-December 2013 period. Good results also for orders from abroad, up by 19.7 percent. This positive figure has generated a climate of confidence and strengthened the feeling that 2015 might be a better year than expected.
Waiting for further necessary evidence about the near future, we can say that 2014, opened in a climate of substantial stability, had three consecutive months of growth since April, with stronger propensity to invest on the "domestic front", certainly supported by laws like Sabatini-bis and tax credits.
Export, instead, was impacted by the collapse of Russian sales, luckily compensated by a real boom of export to North America, driven by the United States.
The figures of the trend survey by Acimall’s Studies Office, which involves a statistic sample representing the entire wood and wood materials technology industry, indicate that the orders book currently spans 2.5 months (versus 2.2 in the fourth quarter 2013), while price increase in 2014 amounted to 1.3 percent.
According to the quality survey, 39 percent of the interviewed companies indicate a positive production trend, 44 percent stable and 17 percent decreasing. The mood is positive also for employment: 22 percent of the sample declared that employment has gone back to growth, while nobody dared give such opinion at the end of 2013, when occupation was considered “stable” by 91 percent (today only 72 percent) and decreasing according to 9 percent (now 6 percent). As a result, the final balance of the last quarter 2014 is positive by 31 points. Available stocks are stationary according to 56 percent, decreasing according to the remaining 44 percent.
An outlook of possible developments in the wood technology industry is offered by the forecast survey, though with contrasting signs: according to 61 percent of the interviewees, in the JanuaryMarch 2015 period foreign orders will be stable, while they will increase for 33 percent and decrease for 6 percent (positive balance 27). Different expectations for the domestic market: 72 percent of the sample predict that orders from Italian companies will remain basically unvaried, 22 percent fear reduction, while 6 percent expect further growth (negative balance 16).
New wood pellet plant in Latvia
Sia Broceni Pellets, a subsidiary of AS Graanul Invest, has acquired 16 hectares of land in the region of Western Latvia Broceni district and has received permission from the local government to build there a pellet factory.
At the same time, long-term raw material supply contracts have been entered with the region’s major companies to guarantee the factory with steady flow of raw material.
The plant estimated capacity is around 150,000 tons of pellets per year and it is expected to start production in the beginning of 2016. It would be Graanul Invest group 8th pellet factory.
AS Graanul Invest is a privately owned Estonian company, established in 2003, and works with forestry, development of bioenergy and the production of renewable energy. The company is at the moment the biggest producer of pellets in the Baltic countries. Company’s production volume is the second largest in Europe with 820,000 tons of pellets per year.
Exports of increasing importance for EU furniture manufacturers
While external trade forms only a small part of the EU furniture sector, it is becoming much more relevant to European furniture manufacturers, ITTO reported.
During the current recession, manufacturers have become more focused on improving competitiveness relative to manufacturers in other countries, particularly China. With consumption static in domestic markets, European furniture companies are seeking to increase sales in other parts of the world.
This outward looking strategy has led to a consistent rise in EU wooden furniture exports over the last five years (Chart 2). In 2014, EU28 export values increased to North America (+15% to €1.48 billion), China (+17% to €570 million), the Middle East (+3% to €900 million), and Africa (+11% to €520 million).
These gains during 2014 offset a 9% decline in exports to the CIS region to €1.46 billion. Falling exports to the CIS are due mainly to slowing sales in Russia following economic sanctions in response to the Ukraine conflict and declining international prices for Russian oil and gas which has weakened the economy and affected consumer spending.
The rise in EU exports of wooden furniture is being led by manufacturers in Italy, Poland and Germany (Chart
3). Preliminary data for 2014 indicates that exports of wooden furniture (including intra-EU trade) increased from Italy (+4% to €5.25 billion), Poland (+12% to €4.14 billion) and Germany (+2% to €4.12 billion).
Last year, Poland overtook Germany to become Europe‟s second largest exporter of wooden furniture. Wooden furniture exports have also been rising rapidly from Lithuania, Romania, Spain and Portugal in the last five years. However exports from Sweden and France have declined while exports from Denmark have been stable.
Interfor acquires 4 sawmills in the US; boosts production capacity by 30%
Interfor announced today it has completed the acquisition of four sawmills from Simpson Lumber Company, LLC, increasing its annual lumber production capacity by 30 percent to 3.1 billion board feet (7,31 million cbm).
The purchase of the sawmills in Tacoma (Commencement Bay), WA; Longview, WA; Meldrim, GA; and Georgetown, SC, are key to Interfor's growth strategy and firmly establishes its presence in the US, the company stated in a press release.
The sawmill operations have a combined annual lumber capacity of 750 million board feet (1,76 million cubic meters) and produced around 555 million board feet (1,30 million cbm) in 2014. As a result of this transaction, Interfor's total capacity will increase by 30% to 3.1 billion board feet (7,31 million cbm), reinforcing its position as the fastest growing lumber company in the world, Interfor says.
The company's lumber capacity in the US Southeast and Pacific Northwest will total 1.2 billion board feet (2,83 million) and 900 million board feet (2,12 million cbm), respectively, representing 67% of the company's total pro forma capacity.
"Simpson is an iconic company in our industry, founded in 1890," said Interfor's president and CEO Duncan Davies. "We take great pride in the fact that Simpson's Vice Chair Allan Trinkwald, its Board of Directors and shareholders had the faith in Interfor to take on the responsibility for these mills which have been a core piece of their lumber business."
Interfor purchased the four mills for US$94.7 million plus working capital and contingent future payments.
Metsä reduces production at LVL mills
Metsä Wood will initiate statutory labour negotiations at its Kerto LVL mills in Punkaharju and Lohja in order to adjust production in response to decreased demand in main markets.
The planned temporary layoffs concern the whole personnel at both mills. The statutory labour negotiations are expected to be concluded during March and the possible curtailments are scheduled to take place mainly by the end of June 2015.
A similar announcement was made back in August 2014, when besides adjusted LVL production at Kerto mills, Metsä also announced production cuts at its glulam mill in Hartola. Metsä said then that the this decision comes after the prolonged and strong decline in the construction industry which continued in Finland and throughout Europe. As a result, demand for Kerto LVL and glulam products has been weaker than expected.
Metsä Woods Kerto is a laminated veneer lumber (LVL) product used in all types of construction projects, from new buildings to renovation and repair. Kerto is produced from 3 mm thick, rotary-peeled softwood veneers that are glued together to form a continuous sheet. The sheet is cut to length and sawn into beams, planks or panels in according to customer´s requirements. Metsä's Kerto products are CE marked and certified by VTT Technical Research Centre of Finland.
Trade in EU wood furniture rises in 2014
The sharp rise in the EU trade surplus in wooden furniture between 2010 and 2013 came to a halt last year as the pace of increase in EU exports slowed while there was an upturn in imports.
EU28 wooden furniture exports were valued at €8.43 billion in 2014, 2.3% more than in 2013. EU28 imports of wooden furniture were valued at €5.11 billion in 2014, 10.4% greater than the previous year.
The EU 28's trade surplus in wooden furniture fell 8.2% from €3.62 billion in 2013 to €3.32 billion in 2014.
Nevertheless, the trade surplus remains very high compared to the boom years prior to the financial crises when European manufacturers were focusing most of their attention on domestic sales and external suppliers, notably in China, were making significant inroads into the market.
Putting these figures into perspective it will be seen that EU external trade in wooden furniture is relatively small compared to total consumption, which is about €50 billion per year most of which is from domestic manufacturers.
Only about one quarter of wooden furniture consumed in the EU member states ever crosses a national boundary. Total internal trade in wooden furniture between EU countries has averaged around €15 billion per year since 2009.
China stops commercial logging in natural forests
President Xi Jinping has signalled that all natural forests should be protected. According to Zhao Shucong, Head of the State Forestry Administration (SFA), China will stop commercial logging in natural forests in three stages.
In the first stage commercial logging in natural forests in the state-owned forests in the Northeast and Inner Mongolia will be halted. These areas provide around 2.56 million cubic metres of logs annually. At the same time logging bans will be piloted in state-owned forest farms, collectives and individual natural forests falling outside protected forest areas.
In the second stage, commercial logging in other categories of natural forests will be phased out but logging will continue non-natural forests falling within collective and individual non-natural forest areas. The final stage will be the cessation of commercial harvesting in all natural forests by the end of 2020.
China has implemented a Natural Forest Protection Programme (NFPP) for the past 16 years but the forests in many provinces have not recovered as anticipated. It is estimated that almost 200 million hectares of natural forests need to be protected but currently only 64% fall with the NFPP.
The loss of around 50 million cubic metres of annual harvests from the natural forests in China will add to the already huge gap between demand for timber and supply and greater reliance will fall on imports until sufficient plantation areas can be established.
Logs&sawnwood prices in China
This report contains latest prices of logs and sawnwood from main timber markets in China. (Source: ITTO).
1 Yuan=0.14 EUR
1 Yuan=0.16 US$
Guangzhou Yuzhu International Timber Market
| Logs | yuan/cu.m. | |
| Merbau | Dia. 100 cm+ | 5200-5400 |
| Bangkirai | Dia. 100 cm+ | 5300-5500 |
| Kapur | Dia. 80 cm+ | 2800-3000 |
| Ulin | All grades | 6500 |
| Lauan | Dia. 60 cm+ | 2000-2200 |
| Kempas | Dia. 60 cm+ | 2000-2100 |
| Teak | Dia. 30-60 cm+ | 8000-12000 |
| Logs | yuan/cu.m. | |
| Greenheart | Dia. 40 cm+ | 2300-2450 |
| Purpleheart | Dia. 60 cm+ | 3100-3300 |
| Pau Rosa | Dia. 60 cm+ | 4700-4800 |
| Ipe | Dia. 40 cm+ | 4000-4800 |
| Yuan per tonne | ||
| Cocobolo | All grades | 53000-58000 |
| Logs | yuan/cu.m | |
| Wenge | All grades | 4300-5200 |
| Okoume | All grades | 2200-2500 |
| Okan | All grades | 3700-3800 |
| African blackwood | All grades | 8000-15000 |
| African rosewood | All grades | 5000-6500 |
| Bubinga | Dia. 80 cm+ | 13000-15000 |
| Logs | yuan/cu.m | |
| Ash | Dia. 35 cm+ | 4200-4300 |
| Basswood | Dia. 36 cm+ | 3500-3800 |
| Elm | Dia. 36 | 2800-3600 |
| Catalpa | Dia. 36 | 2800-4200 |
| Oak | Dia. 36 cm+ | 4000-5500 |
| Scots pine | Dia. 36 cm+ | 2000-2200 |
| Larch | Dia. 36 cm+ | 1550-1900 |
| Maple | Dia. 36 cm+ | 2700-3050 |
| Poplar | Dia. 36 cm+ | 1650-1950 |
| Red Oak | Dia. 30 cm+ | 2500-2600 |
Sawnwood
| Sawnwood | yuan/cu.m | |
| Makore | Grade A | 7300 |
| Zebrano | Grade A | 12000-15000 |
| Walnut | Grade A | 9500-10000 |
| Sapelli | Grade A | 7500-7900 |
| Okoume | Grade A | 4200-4500 |
| Padauk | Grade A | 14500-17000 |
| Mahogany | Grade A | 6500-7000 |
| yuan/tonne | ||
| Ebony | Special grade | 16000 |
| Sawnwood | yuan/cu.m | |
| Ulin | All grade | 9000-10000 |
| Merbau | Special grade | 8600-9500 |
| Lauan | Special grade | 4600-4800 |
| Kapur | Special grade | 5500-6000 |
| Teak | Grade A | 9600 |
| Teak | Special grade | 14000-20000 |
| Sawnwood | yuan/cu.m | |
| Maple | Grade A | 10000-10500 |
| Beech | Special grade | 5300 |
| Ash | no knot | 5000-5800 |
| Basswood | no knot | 2700-3500 |
| Oak | no knot | 4000-5500 |
| Scots pine | no knot | 2800 |
| Sawnwood | yuan/cu.m | |
| Cherry | Fas 2 inch | 10000-12800 |
| Black walnut | Fas 2 inch | 14000-16000 |
| Maple | Fas | 7500-10000 |
| White Oak | Fas | 8000-11000 |
| Red Oak | Fas | 6800-9000 |
| Finnish pine | Grade A | 3000 |
Shanghai Furen Forest Products Market Wholesale Prices
Logs
| Logs- All grades | 000's yuan/tonne |
| Bois de rose | 250-300 |
| Red sandalwood | 1600-2000 |
| Siam rosewood | 100-550 |
| Burma padauk | 27-45 |
| Rengas | 8-15 |
| Mai dou lai | 6000-8000 |
| Neang noun | 32-65 |
| Burma tulipwood | 28-60 |
| Cocobolo | 43-180 |
| Morado | 10-15 |
| Ebony | 15-40 |
| Trebol | 7-8 |
| African sandalwood | 18-32 |
Sawnwood
| Sawnwood | yuan/cu.m | |
| Okoume | Grade A | 4500-4700 |
| Sapelli | Grade A | 7600-7900 |
| Zebrano | Grade A | 8000-9000 |
| Bubinga | Grade A | 13500-15800 |
| Mahogany | Grade A | 6000-7000 |
| Wawa | FAS | 3700-3900 |
| Ayous | FAS | 4000-4200 |
| Sawnwood | yuan/cu.m | |
| Lauan | Grade A | 3700-3900 |
| Merbau | All grades | 8000-10000 |
| Teak | All grades | 11500-36000 |
| Sawnwood | yuan/cu.m | |
| Beech | Grade A | 4200-4800 |
| Ash | Grade A | 5500-5800 |
| Elm | Grade A | 4900-5300 |
| Red oak | 2 inch FAS | 8000-8600 |
| White oak | 2 inch FAS | 7500-8500 |
| Maple | 2 inch FAS | 9800-10500 |
| Cherry | 2 inch | 9500-10500 |
| Black walnut | 2 inch | 15000-17000 |
Zhangjiagang Timber Market Wholesale Prices
| Logs, all grades | yuan/tonne |
| Sapelli | 4500-5700 |
| Kevazingo | 8700-34000 |
| Padouk de africa | 3000-3800 |
| Okoume | 2100-2600 |
| Okan | 3490-3650 |
| Dibetou | 2200-2500 |
| Afrormosia | 5500-6500 |
| Wenge | 4500-5000 |
| Zingana | 4200-5500 |
| Acajou de Africa | 3100-3600 |
| Ovengkol | 3850-4300 |
| Pao rosa | 5950-6600 |
| Logs, all grades | yuan/tonne |
| Merbau | 3500-5800 |
| Lauan | 1600-2400 |
| Kapur | 2020-2500 |
| Keruing | 1700-2200 |
| Geronggang | 1600 |
| Kauri | 1700-1850 |
| Logs, all grades | yuan/tonne |
| Amoora | 1900-2080 |
| Calophyllum | 2150-2350 |
| Red Ganarium | 1300-1400 |
| Gray Ganarium | 1100-1200 |
| Red-brown terminalia | 1680-1750 |
| Basswood | 1200-1400 |
| Sureni toona | 1500-1650 |
| Bunya | 1400-1550 |
| Walnut | 2900-3350 |
Martco to build new OSB plant in Texas
Martco L.L.C. announced the selection of Corrigan, Texas as the location for a new, state-of-the-art oriented strandboard (OSB) facility. The facility is expected to employ 165. Construction is scheduled to begin this summer, with startup anticipated by fall 2017.
Corrigan OSB, L.L.C. will complement Martco L.L.C.’s existing wood products manufacturing plants in Oakdale, La. (OSB); Chopin, La. (plywood); and Mexia, Ala. (lumber and timbers).
According to Martin Companies, L.L.C. Chairman and CEO Jonathan Martin, “Ever since my grandfather started out in the wood product industry more than 90 years ago, our family has taken pride in utilizing raw materials to the fullest extent possible. This business model has led to Martco’s growth as a leading supplier in the wood products industry. The timing is right for us to position ourselves to more effectively meet the increasing demand for building products into the foreseeable future.”
Based in Alexandria, La., Martco L.L.C.’s existing manufacturing facilities employ 1,100. All of Martco L.L.C.’s wood products are available Forest Stewardship Council (FSC) certified.
Lumber Liquidators facing criminal charges for importing illegally harvested wood
Lumber Liquidators on Wednesday revealed that the U.S. Department of Justice is contemplating criminal charges under the Lacey Act for importing illegally harvested wood. Lumber Liquidators’ stock value dropped by nearly 20 percent immediately following the news.
Lumber Liquidators has been under federal investigation since September 2013, when the Environmental Investigation Agency (EIA) published its report “Liquidating the Forests”, which documented that Lumber Liquidators imported large quantities of wood illegally sourced in the Russian Far East.
In response to yesterday’s announcement, Alexander von Bismarck, Executive Director of EIA, said, “We were in Russia and China, and saw the devastation caused by illegal logging. Lumber Liquidators was getting illegal wood from Russia, lots of it, and should be held accountable."
The news follows a recent announcement that a key Russian supplier of high value timber to Lumber Liquidators had been convicted of organized crime by a Russian court. Senior executives of the Russian timber company Beryozoviy, which supplied high value timber to Lumber Liquidators, were found guilty in December 2014 of fifteen counts of illegal logging occurring between 2010-2012 and of participation in a criminal network.
As detailed in EIA’s report, Beryozoviy was a key supplier of valuable timber to a Chinese flooring manufacturer called Suifenhe Xingjia Group (Xingjia), the primary supplier of U.S. flooring retailer Lumber Liquidators’ Virginia Millworks line of solid oak and birch hand-scraped flooring. Since the Lacey Act became law, Lumber Liquidators has imported millions of square feet of illegally sourced hardwood flooring from Xingjia.
Posing as timber buyers, EIA investigators went undercover to expose the illegal wood trade in the Russian Far East and found that a company called Xingjia freely admitted to illegal logging and paying bribes and that its single biggest trading partner was Lumber Liquidators. EIA investigators recorded Xingjia officials saying that Lumber Liquidators knew where the wood came from. EIA’s report also relied on publically available trade data, copies of court cases from Russian authorities, scientific analyses, and shipment records.
Chinese wood products industry on the rise in 2014
In 2014, China's forest products industry output value and trade value reached US$ 848 billion and US$ 138 billion, up 11% and 9.5% respectively, as compared with 2013.
China's imports of log, lumber and wood-based panel all have had substantial growth in 2014, International Wood Markets reports quoting data from the Chinese State Forestry Administration.
In 2014, China's imports of logs were 51.4 million m³ valued at nearly US$ 11.8 billion, a rise of 14% in volume and 26% in value from the previous year. Of the total log imports, softwood logs reached a volume of 35.7 million m³ and a value of US$ 5.4 billion. Imports of hardwood logs went up to 15.7 million m3 in volume and a value of nearly US$ 6.3 billion.
The import of softwood logs increased 8% in volume and 7% in value, respectively, compared with 2013, whereas the import volume and value of hardwood logs grew much higher, or by 28% and 49%, respectively, compared with 2013.
Andritz sues Valmet for patent infringement
Andritz Oy has filed a summons application with the Stockholm District Court against Valmet AB, a subsidiary of Valmet Corporation, regarding patent infringement.
In the claim Andritz is asking that Valmet under a penalty ceases to utilize the patent allegedly infringing Andritz's patent and the Court to impose royalty and damages on Valmet AB with Euro 52 million and interest for the alleged infringement.
In previous correspondence between Valmet and Andritz, Valmet has disputed the claims of infringement as unfounded. Valmet's standpoint, as the company says in a press release, is based on a thorough analysis of Andritz's patent and its scope.
According to Valmet, the validity of Andritz's patent has been challenged by the company, and that matter is awaiting a decision from the Swedish Court of Patent Appeals.
John Deere's forestry equipment sales up 13%
For the first quarter ended January 31, worldwide net sales of John Deere registered a 17 percent decline, down to US $6.383 billion, compared with $7.654 billion last year. Deere's net sales of the equipment operations were $5.605 billion for the quarter compared with $6.949 billion a year ago.
The decline in sales was due to sluggish conditions in the global farm sector, which reduced demand for agricultural machinery, particularly larger models, and led to lower sales and income.
However, John Deere's construction and forestry sales increased 13 percent in the first quarter. Operating profit was $146 million for the quarter compared with $94 million in 2014. The improvement was due to higher shipment volumes, partially offset by higher sales-incentive costs and the unfavorable effects of foreign-currency exchange.
Deere's worldwide sales of construction and forestry equipment are forecast to increase by about 5 percent for 2015. The gain reflects economic growth and higher housing starts in the U.S. offset in part by weakening conditions in the energy sector and energy-producing regions. Global forestry sales are expected to hold steady with the attractive levels of 2014, as gains in the U.S. and Europe are offset by declines elsewhere.
John Deere’s forestry equipment sales up 13%
For the first quarter ended January 31, worldwide net sales of John Deere registered a 17 percent decline, down to US $6.383 billion, compared with $7.654 billion last year. Deere's net sales of the equipment operations were $5.605 billion for the quarter compared with $6.949 billion a year ago.
The decline in sales was due to sluggish conditions in the global farm sector, which reduced demand for agricultural machinery, particularly larger models, and led to lower sales and income.
However, John Deere's construction and forestry sales increased 13 percent in the first quarter. Operating profit was $146 million for the quarter compared with $94 million in 2014. The improvement was due to higher shipment volumes, partially offset by higher sales-incentive costs and the unfavorable effects of foreign-currency exchange.
Deere's worldwide sales of construction and forestry equipment are forecast to increase by about 5 percent for 2015. The gain reflects economic growth and higher housing starts in the U.S. offset in part by weakening conditions in the energy sector and energy-producing regions. Global forestry sales are expected to hold steady with the attractive levels of 2014, as gains in the U.S. and Europe are offset by declines elsewhere.
Södra raises price for birch sawn timber
Södra is experiencing strong demand for birch sawn timber, thus entailing an adjustment of the price to the market situation. The price has been raised by SEK 100 (EUR 10,48) per cubic metre as of 16 February.
"We have a healthy level of incoming orders and many inquiries, prompting our decision to raise the price," says Håkan Svensson, President of the Södra Wood business area.
"However, Södra is having difficulties securing sufficient volumes of the birch raw material. We therefore raised the price of birch logs by SEK 30 (EUR 3,15) per cubic meter on 26 January. We hope that this will invigorate harvesting and boost supplies of the raw material so that we can manufacture our much-sought-after products. We currently cannot supply all of the customers who have expressed an interest," says Håkan Svensson.
"However, Södra is having difficulties securing sufficient volumes of the birch raw material. We therefore raised the price of birch logs by SEK 30 (EUR 3,15) per cubic meter on 26 January. We hope that this will invigorate harvesting and boost supplies of the raw material so that we can manufacture our much-sought-after products. We currently cannot supply all of the customers who have expressed an interest," says Håkan Svensson.
Schweighofer starts operations at new glulam plant in Romania
After the test period the new Schweighofer glulam plant in Radauti (Romania) received the necessary JAS certificate (Japan Agriculture Standard) and went into operation in February.
BEAMs are made by glueing together strength-tested lamellas in a specially required structure, this ensures a homogene stability. They are used for horizontal applications in traditional Japanese wooden houses.
100.000 cbm JAS certified redwood BEAMs (standard E105-F300) will annually be produced in Radauti and exported to Japan.
As the company states in a press release, at present Holzindustrie Schweighofer is the only company in Eastern Europe, that produces BEAMs for the Japanese market. For sales in Japan an exclusive contract was signed with Lamsell Corporation (Meiken).
Schweighofer invested 14 Mio Euro into the new plant in Radauti, 75 additional work places will be created for the long term.
German wood pellets slightly more expensive
In February, the average price of wood pellets has increased by just under EUR 1 per ton more than in the previous month.
The survey conducted by the German Energy Wood and Pellet Association (DEPV) shows a wood pellets price of 256 EUR/t, higher by 0.4% than in January 2015, but about 10% less than in February 2014. The current price advantage of wood pellets over fuel oil is +18.8%- in January, it stood at +3%.
In February 2015, the price of wood pellets in Germany had the following regional differences: in southern Germany, pellets cost 255.28 EUR/t for 6 tons purchases. In central Germany, at the same quantity, the price was 255.91 EUR/t, while in north, pellets were priced at 263.28 EUR/t.
Larger quantities (26 t) were traded in February 2015 at the following prices: North/East: 241.42 EUR/t, Center: 238.96 EUR/t, South: 241.95 EUR/t (all including VAT).
