Kährs Group announced it acquires part of recently formed Croatian Pozgaj Flooring to strengthen the supply footprint.
The acquisition adds Kährs Group's own production of wood flooring near the important Central European market and supply of the high-quality Croatian oak to the Group.
Pozgaj has a profile that fits well with Kährs Group and is a strategic complement through the company's location in Southeast Europe, the company said in a press release. Pozgaj Flooring, which was previously part of Pozgaj Group, manufactures wood flooring and also has sawmill operations.
''This partnership is a further step to develop Kährs Group and to strengthen our market position in Central Europe,'' says president and CEO Christer Persson. ''It also means we can better serve our customers in Central Europe by moving production closer to them, meeting the strong demand for our 2-layer wood floors,'' he added.
Through the acquisition, Kährs Group becomes a minority owner in Pozgaj Flooring with an option to acquire the remaining shares.
About Kährs Group
Kährs Group is a world leading wood and resilient flooring manufacturer with well-known and globally recognized brands such as Kährs, Karelia and Upofloor. Kährs Group delivers products to more than 50 countries and have a market leading position in Sweden, Finland, Norway and Russia as well as a strong position in other important markets such as the UK and Germany. The group employs 1,600 people and has yearly sales of around 300 MEUR.
Article archive
Japan: Forecast for wood products imports in 2015
The Japan Lumber Importers Association and relating divisions came up with demand forecast of major import wood products for 2015.
Total volume of logs and other wood products is 10,310,000 cbms, which is the same volume of 2009 when the demand dropped by the Lehman shock and is 3.7% less than 2014. The reasons are that housing starts of this year will be less than 2014 and climbing cost of imported products by weak yen about 120 yen for the dollar.
General view is that demand for building materials would decrease so that import would be curtailed. Log volumes are expected to stay unchanged but lumber volume would drop compared to 2014 because the import of lumber in the first half of 2014 was heavy in an anticipation of active demand before the consumption tax increase. This is why decrease of North American, European and Russian lumber is expected to be rather large.
Switzerland: Price of wood pellets under currency pressures
The monetary shock which occured last month has marked the pellet market. The sudden appreciation of the Swiss franc against the Euro by about 30 percent has led to a boom in Switzerland's price of wood pellets.
In February, as calculated by pelletpreis.ch, the average pellet price in Switzerland stands at 409.2 CHF per tonne, on a declining trend compared to January (-1%). However, in Euro terms the price has increased by no more than 14 percent or EUR 47 per tonne (EUR 391.32/t in February 2015 Vs. EUR 344.30/t in January 2015).
As compared to the same month of last year, the price in February is also higher in Euro by about 14% (EUR 391.32/t in February 2015 as compared to EUR 343.14/t in February 2014). In CHF terms, the price of pellets is lower by 2,5% year-on-year.
In February, depending on the delivery quantity, the price varies between CHF 396.73/t (EUR 379.39/t) for 8 tonnes purchases and CHF 423.36 (EUR 404.86/t), for 3 tonnes.
Plywood made in China facing EUTR sanctions in UK
A number of UK Chinese plywood companies are facing sanctions under the EU Timber Regulation (EUTR) following an official investigation by the government which found failings in due diligence systems and product descriptions.
United Kingdom's National Measurement Office (NMO) enforces a number of areas of legislation in the UK, including the EU Timber Regulation (EUTR). This puts obligations on those who trade in timber and some timber products to help ensure that the wood has been legally sourced.
Intelligence led the NMO to assess the risk of plywood imported from China and placed on the UK market. Plywood is a product that potentially represents an area of high risk, says NMO, due to long supply chains and the species used in production, being derived from illegally logged sources, notably Africa.
Sixteen companies were identified as operators by the National Measurement Office and were requested to supply the due diligence system for the Chinese plywood that they place on the market in the EU. Of these, 14 companies submitted due diligence systems that were insufficient when compared to Article 6 of the European Timber Regulation (EUTR) No. 995/2010 that outlines an operators obligation to implement a due diligence system.
The common thread running through these failures was a lack of narrative explaining how the combination of document gathering, risk assessment and mitigation (where necessary) enable the company to reach a conclusion of negligible risk that the timber in the product was sourced illegally, says NMO.
Alongside engagement with these non-compliant companies, products were purchased from the operators and subjected to microscopic analysis to ascertain the contents of the product. Of the 13 purchases tested, 9 products did not match the declaration supplied by each company regarding the species contained within the plywood, further indicating the unreliability of the supply chain of these products. In all, only one company was found to be compliant with the EUTR as a result of testing and the submission of their due diligence system.
The NMO continues to investigate the remaining cases. Various sanctions will be applied to the companies in question, including the possibility of prosecution based on non-compliance with a Notice of Remedial Action. The combined value of the imports of the companies in this project amounts to 10% of the plywood imported from China into the UK in the last year, indicating the potential scale of non compliance in the industry.
Södra expands sawn timber deliveries to the United States
Södra seeks to increase deliveries to the United States in the spring of 2015, as demand for wood products in US is on the rise. This Tuesday, from the Swedish port of Varberg, Södra's largest delivery of sawn timber (30,000 cubic meters) will leave to the United States, said Håkan Svensson, Business Manager of Södra Wood.
Södra's prospects in the US are positive from a market point of view, but also because of the favourable US dollar currency. Södra already has two warehouses in the US, one in New London (Connecticut) and one in Philadelphia (south of Washington). Now, a third one will be opened in Cape Canaveral, on Florida's east coast.
''We decided to open a third warehouse in Florida because the market has recovered in this part of the United States. Thus, we will be able to get closer to our customers and offer a cost effective storage solution. Another major advantage of a warehouse in Florida is that the climate assures a smoother consumption throughout the year,'' said Håkan Svensson.
''Södra has today a competitive offer on the US east coast, compared with sawmills from Canada,'' Mr. Svensson concluded.
Asia: A major cause for dropping North American sawlog prices
Sawlog prices were generally lower in the 3Q/14 than in the same quarter in 2013 in most of the major log-consuming regions of the US and Canada.
A noticeable decrease in log exports from Western US and lower production in the sawmilling sector resulted in declining prices for domestically consumed Douglas-fir and hemlock sawlogs for the second straight quarter in the 3Q/14. Despite the price declines during the latter half of 2014, the average log prices for the year were among the highest over the past decade. In late 2014, log costs for the region’s sawmills were almost double those that sawmills had to pay in 2009 just after the crash of the housing market in the US.
The softwood sawlog prices in the US Southeast held steady in the 3Q/14, as a spate of dry weather helped sawmills attain normal inventory levels even as lumber production across the South rose. In the US South Central region, pine sawlog prices fell three percent from the previous quarter, as favorable access to the woods allowed sawmills to reach their targeted late fall log inventories. Sawlog prices in the Southern states have slowly trended upward for the past two years but are still below the 10-year average.
Sawlog prices in both Coastal and Interior British Columbia continue to show volatility, seesawing up and down through the first three quarters of 2014. The average Coastal hemlock sawlog price rose six percent in the 3Q/14 as the wildfire season tightened harvest restrictions. Log prices in the interior of the province fell 10 percent in the 3Q/14 from the previous quarter, as lumber production fell and access to the forests was favorable.
Sawlog prices in Eastern Canada continued their modest but multi-year slide with the softwood sawlog price in the 3Q/14 averaging about ten percent lower than in early 2013.
The trend of lowering log prices over the past two years may soon come to an end with the region now witnessing announcements to restart idled sawmills with the expectation of exporting lumber into the growing US lumber market.
Belgium is still an important tropical wood transit country
In the first ten months of 2014, the volume of tropical wood product imports into Belgium fell very slightly (-0.5%) to 748,000 cu.m RWE. Belgium's domestic market for tropical hardwood was very slow last year, but any weakness at home was offset by a rise in Belgium's re-exports of tropical hardwood products to neighbouring countries.
Belgium's re-exports to other EU countries of all wood products identified as containing tropical wood was 251,000 cu.m RWE in the first 10 months of 2014, 12% more than the same period in 2013. Most of this volume was destined for France, Netherlands and Germany.
Increased flows of tropical wood through Belgium suggests a continuing trend towards concentration of trade in a smaller number of larger importers close to the major ports.
In part this reflects much tighter control of stock levels by merchants and manufacturers who prefer to buy small but regular volumes of mixed containers.
To some extent this trend is being reinforced by EUTR which may be seen as another reason to avoid buying direct and instead rely on timber placed on the EU market by larger companies.
Stora Enso invests in wooden building element production
Stora Enso is investing EUR 43 million in a new production line for wooden building elements located in Varkaus, Finland. The investment is based on peeling technology which will further enhance Stora Enso’s position as a global provider of engineered wooden elements. The new products complement the existing product portfolio.
Production is scheduled to begin in the second quarter of 2016. The estimated yearly capacity of the production line will be around 100,000 m3. The investment is expected to generate annual sales of EUR 50 million when run at full capacity.
“This investment is part of Stora Enso’s transformation to a customer-focused renewable materials company. With this investment we will be able to meet growing urban construction needs, serve new geographic areas and markets and offer our customers a wider range of wood product solutions,” says Jari Suominen, EVP, Head of Stora Enso’s Wood Products.
Tembec invests US$50 million in Ontario sawmill
Tembec plans to invest about $50 million over the next five years to upgrade its Ontario sawmills, but will put off any spending in Quebec until the province lowers wood costs, which are the highest in North America.
The Quebec-based forestry company said it can't justify investing in the province where log costs are 20 per cent higher than Ontario.
Chief executive James Lopez said Quebec could lose hundreds of millions of dollars in investments if Tembec's rivals also put off spending until the government changes its policies.
"The longer they wait, the longer we have to wait. I just hope they don't wait so long that some of these mills become uncompetitive and we have to shut then down because they are losing money," he told reporters before the company's annual meeting.
Tembec is prepared to spend as much as $35 million to upgrade its three mills in Quebec if the provincial government makes changes to charge market prices for wood instead of using an auction system that establishes higher minimum prices.
The investments by the company would be used to modernize its equipment and bring its sawmills up to the same standards as the industry in British Columbia.
Some jobs would be lost with automation, but Lopez said shifts would be added at some mills to maintain overall employment. Tembec employs 450 workers at its Quebec sawmills and 650 in Ontario out of the 3,500 total it employs in Canada and Europe.
Earlier Thursday, Tembec said it lost $62 million or 62 cents per share in the first quarter. That compared to a net profit of $2 million or two cents a year earlier.
The results were hit by lower sales, the impact of a strike that cost $5 million, a $37-million charge to refinance its debt and a $17-million non-cash loss related to the impact of the lower Canadian dollar on the value of debt denominated in U.S. dollars.
Sales for the three-month period ended Dec. 27 fell to $332 million from $354 million a year earlier.
The company expects to get some benefit from the lower dollar which makes its operations more competitive and boosts the value of exports. Lower oil prices should save about $10 million to transport logs to its sawmills.
However, Tembec says its cellulose pulp business will continue to face pressure because of increased capacity in the United States and Brazil that is reducing prices.
North American wood pellet exports reach a new record high
Pellet exports from North America rose in the 3Q/14 after a stable first half of the year that could be characterized as a temporary plateau. While pellet exports to Europe were up just marginally, the increase to Asia was more noticeable. Up until 2014, more than 95% of wood pellets leaving US and Canadian ports were destined for Europe.
However, during 2014 there was a shift in Canadian exports from Europe to Asia, with pellet plants in British Columbia shipping record volumes to South Korea during the 3Q/14, as reported in the North American Wood Fiber Review. (Note. Due to irregularities with Customs data, NAWFR collects trade data from a number of sources including Canadian and US customs export data, European import data and from quarterly conversations with both pellet exporters and port contacts.)
Total Canadian overseas pellet exports rose slightly in the 3Q/14 from the previous quarter, but they were still 15 percent below their high of over half a million tons in the last quarter of 2013. Shipments from both Western and Eastern Canada to Europe fell in the first three quarters of 2014; in the 3Q/14, shipments were at their lowest level since 2011. Export volumes for the Asian market have followed a more positive trend, with increased shipments for six consecutive quarters.
British Columbia’s pellet shipments overseas will likely remain stable during most of 2015 until the first of five announced pellet mills starts commercial operation late in 2015 or early 2016. There are currently plans to add over 800,000 tons of pellet capacity in the province during 2015/16 with South Korea being the target market.
In the US, pellet exports continue to be dominated by bulk shipments out of the US South to Europe, with only minor container volumes primarily shipped from the US West Coast to Asia. The US overseas pellet exports rose to over one million tons in the 3Q/14, with the growth in shipments having continued without pause since late in 2011.
LIGNA 2015: Global innovations showcase for forestry and wood industries
More international business. More innovations. More integration. That’s what visitors and exhibitors can expect when the international wood industry demonstrates its immense capabilities and innovative spirit at the upcoming LIGNA in Hannover, Germany. The event runs from 11 to 15 May 2015, and all the market leaders will be there to impress solution-seekers with a tremendous array of products and services. Together, they will present key technologies for every single links of the wood value chain – i.e. plant, tools and machinery for industrial furniture manufacturers, carpenters, joiners and cabinetmakers; solutions for processing and working with solid wood; sawmill technology; systems for wood panel and veneer production; forestry equipment and machinery; and a range of technologies for extracting energy from wood. And as diverse as the technologies on display may be, they are united in promoting greater efficiency for every stage of production and processing.
“LIGNA is championing the cause of greater efficiency and integration in production by means of advanced technology. Like no other trade fair in the world, it features entire production lines in action – as tangible proof that integrated production and Industry 4.0 are indeed within reach. LIGNA is an absolute must if you want to find out about the latest developments and advances in automation and digitization in the wood industry,” said Dr. Jochen Köckler, the member of the Management Board at Deutsche Messe responsible for LIGNA. “Survival in today’s competitive markets belongs to those who master the latest strategies, systems and solutions. The ‘fourth industrial revolution’ has reached the wood and furniture industries, sparking a move towards total integration that shows no signs of abating. To take advantage of this trend and remain competitive, manufacturers need to optimize their data flows. And that’s true whether they are engaged in mass or one-off production. In the near future, workpieces, machines and logistic systems will be able to ‘talk’ to one another, and IT, telecommunications technology and manufacturing will merge to form a seamlessly integrated system. It’s a new production paradigm and it offers enormous opportunities for everyone concerned.”
The theme of integrated production is central to many areas of the upcoming LIGNA show. Among much else, it will have its own Guided Tour and be addressed at a series of talks to be held within the on-site Robotation Academy.
The upcoming show will feature more than 1,500 exhibitors from over 40 countries, whose displays will fill some 120,000 square meters (over 1,290,000 sq. ft.) of space and impress solution-seekers in need of the latest furniture industry plant and equipment and innovative technologies for the wood and forestry industries. “Quite a lot of first-time exhibitors will be using this year’s LIGNA to present their innovations to the world. They include providers of solutions for the joinery and cabinetmaking trades, manufacturers of machinery for the furniture industry, production automation specialists, and suppliers of technology for processing solid wood and for sawmilling. These newcomers –and the fact that some of our regular exhibitors have markedly increased their booked space – bode well for LIGNA 2015,” said Köckler. “LIGNA features a wealth of information on the latest products, trends and innovations. It provides the ideas, inspiration and solutions that wood industry professionals need in order to future-proof their business models.”
LIGNA’s strong level of international participation sets it apart from rival shows. This year, its top ten exhibiting nations, apart from Germany, are Italy, Austria, China, Sweden, Taiwan, Switzerland, Turkey, France, Spain and the USA. Much of the growth in terms of leased exhibition space has come from Italy, China, Turkey and the USA.
One of the exciting new developments at LIGNA 2015 is that some of the fair's exhibitors of woodworking and processing equipment will be showcasing the non-wood capabilities of their machines. In other words, visitors will see machines that can handle not just wood, but plastics, composite panels, composites, insulation and construction materials as well. Some of the machine tools on display are even capable of processing light alloys. These additional, non-wood applications are advantageous in a range of fields, particularly caravan and boat building, vehicle customization, ship and aircraft interior finishing, and plastics processing and fabrication. The ability to process plastics and composites is also becoming increasingly important in the joinery and cabinetmaking trades.
CNC technology is also growing in importance in these trades. More and more joiners and cabinetmakers are investing in CNC processing centers in order to be able to deliver on the most exacting customer specifications and produce custom furniture and joinery quickly and at highly competitive rates. This growth is due in part to the increasing range of compact, high-performance options available at the trades end of the market and will be reflected at LIGNA, with its solid lineup of state-of-the art CNC technology. The exhibitors in halls 11, 12, 14 and 15 will present innovative solutions and entry-level CNC options for joinery and cabinetmaking firms of all sizes, from tech-savvy niche craftsmen to SMEs engaged in series production.
The other major new development at LIGNA 2015 is the premiere of the Wood Industry Summit, an intelligent, integrated platform comprising an exhibition area, a matchmaking platform, and a dialogue forum. The Summit targets exhibitors from international companies and economic regions that provide large-scale forestry machinery and other primary wood processing technologies. These exhibitors will have the opportunity to network directly with visitors from integrated companies operating in areas such as pulp and paper, forestry and log and timber processing. They will also meet forest owners, wood/timber merchants, investors, researchers and representatives of the timber-rich regions of Russia, China, Eastern Europe and North and South America. In this way, the Wood Industry Summit will broker new opportunities in growth markets.
Each day of the Summit will start with a brief lead-in presentation on a highly topical issue, followed by an in-depth lecture on market entry conditions for a selected export market. Each day’s proceedings will also include presentations on various solutions by exhibitors and will be rounded off with a tour of the exhibition, followed by an expert discussion panel. Among the big highlights of the Summit will be the displays of John Deere equipment, as Dr. Köckler explains: “Thanks to the presence of John Deere and other key players, the Wood Industry Summit means that Hall 13 will, for the very first time, also feature large-scale forestry machines. John Deere’s involvement effectively endorses the Wood Industry Summit and its chosen format, while at the same time making LIGNA’s forestry technology offerings more international than ever.”
LIGNA 2015 will also feature the Fibers in Process@LIGNA marketplace – a group pavilion that will provide a wood industry perspective on the various processes and technologies used in the pulp and paper industry. As well as offering an integrated overview of the entire resource cycle in this industry, the pavilion will focus on measurement and control systems, process optimization in automation, industry services and asset management, and resource and energy efficiency.
The open-air site and neighboring pavilions will also feature a number of exhibitors offering the latest in sustainable forestry and wood-energy equipment and solutions.
Deutsche Messe AG
With revenue of 312 million euros (2013), Deutsche Messe AG ranks among the world’s ten largest trade fair companies and operates the world’s largest exhibition center. In 2013, Deutsche Messe planned and staged 119 trade fairs and congresses around the world – events which hosted a total of 41,000 exhibitors and some four million visitors. The company’s event portfolio includes such world-leading trade fairs as CeBIT (IT and telecommunications), HANNOVER MESSE (industrial technology), BIOTECHNICA (biotechnology), CeMAT (intralogistics), didacta (education), DOMOTEX (floor coverings), INTERSCHUTZ (fire prevention and rescue), and LIGNA (wood processing and forestry). With over 1,000 employees and a network of 66 representatives, subsidiaries and branch offices, Deutsche Messe is present in more than 100 countries worldwide.
Germany: Prices for wood products remain stable
In December 2014, Germany's producer prices of wood products have hardly changed as compared to November. Boards, battens and squared timber have recorded a minimal decline of around 0.4-0.5%.
Hardwood lumber and beech frames have grown by about 0.36%. These were the strongest price movements. In sum, the price movements of last month are on a slight downward trend.
Compared to last year, a similar picture as in the previous months can be noticed. Especially pellets and wood chips are significant cheaper over the previous year. Also KVH is again on a negative trend after a high phase registered in the first half of 2014.
On the other hand, rawboards are still well above last year's level. In addition, hardwood lumber and beech frames are up, as well as wide boards and raw HDF boards.
| Germany's Producer Price Index Commercial Products (2000=100) |
Dec. 2013 |
Nov. 2014 |
Dec. 2014 |
Change Dec. '13 to '14 |
| Spruce and Fir lumber (Picea abies Karst.) | 113.6 | 114.0 | 113.7 | +0,09% |
| Lumber according to DIN 4074/S10 | 117.5 | 115.2 | 115.0 | -2,13% |
| Finger-jointed squares and beams (KVH) | 106.9 | 100.3 | 100.6 | -5,89% |
| Boards, width over 16 cm | 117.2 | 121.7 | 121.7 | +3,84% |
| Boards, width from 8 to 16 cm, size from 15 to 24 mm | 111.8 | 110.1 | 109.6 | -1,97% |
| Roof battens according to DIN 4074/S10 | 114.6 | 118.3 | 117.7 | +2,71% |
| Reserve squared timber, A/B, 10X10 - 12X12 | 113.5 | 114.7 | 114.2 | +0,62% |
| Softwood, size>6mm, planed, sanded, finger-jointed | 113.9 | 110.9 | 111.0 | -2,55% |
| Wood chips from softwood | 117.3 | 98.4 | 98.0 | -16,45% |
| Pellets and Briquets, compressed | 136.0 | 120.5 | 120.6 | -11,32% |
| Hardwood lumber | 106.4 | 110.2 | 110.6 | +3,95% |
| Beech blocks, A/B, size 50-60 mm, length 3m, damped | 102.3 | 103.8 | 103.8 | +1.47% |
| Beech frames, size 26-32 mm, length 3m, undamped | 106.9 | 110.9 | 111.3 | +4,12% |
| Particle boards, raw or sanded | 105.7 | 118.1 | 118.0 | +11,64% |
| Particle boards, laminated with decor | 114.4 | 115.2 | 115.2 | +0,70% |
| HDF panels, size > 800 kg/m³, raw/sanded | 110.5 | 114.6 | 114.4 | +3,53% |
| Laminate floorings, density > 800 kg/m³ | 110.2 | 108.9 | 109.0 | -1.09% |
Finland: Crown Timber's sawmill to receive progressive kiln from Valutec
Valutec will supply a progressive kiln for Crown Timber’s sawmill in Hamina, Finland. Valutec will begin installation of the progressive kiln in March and by early July it is expected to be in production. All the work will be dealt with by Valutec, as the company said in a press release.
Crown Timber, which is primarily known as a distributor of timber products, acquired the Finnish sawmill nearly eighteen months ago. Production consists of specific lengths of spruce timber, which is an important element in the company’s product mix. The progressive kiln, which is of the FB type, will replace an older concrete batch kiln. This investment will also increase the sawmill’s drying capacity from 110,000 m2 to 150,000 m2. Crown Timber has also opted to equip the kiln with pressure frames and a heat recovery system.
“Crown Timber is a new and very serious customer. They have studied both us and our products carefully and taken great pains to buy kilns of the best possible quality in terms of both energy consumption and capacity. That means it feels particularly good to know that they chose us,” says Mikko Pitkänen, site manager at Valutec in Finland.
Crown Timber is one of the leading distributors of construction timber in the United Kingdom.
Valutec is one of Europe’s leading suppliers of wood kilns.
Finland: Crown Timber’s sawmill to receive progressive kiln from Valutec
Valutec will supply a progressive kiln for Crown Timber’s sawmill in Hamina, Finland. Valutec will begin installation of the progressive kiln in March and by early July it is expected to be in production. All the work will be dealt with by Valutec, as the company said in a press release.
Crown Timber, which is primarily known as a distributor of timber products, acquired the Finnish sawmill nearly eighteen months ago. Production consists of specific lengths of spruce timber, which is an important element in the company’s product mix. The progressive kiln, which is of the FB type, will replace an older concrete batch kiln. This investment will also increase the sawmill’s drying capacity from 110,000 m2 to 150,000 m2. Crown Timber has also opted to equip the kiln with pressure frames and a heat recovery system.
“Crown Timber is a new and very serious customer. They have studied both us and our products carefully and taken great pains to buy kilns of the best possible quality in terms of both energy consumption and capacity. That means it feels particularly good to know that they chose us,” says Mikko Pitkänen, site manager at Valutec in Finland.
Crown Timber is one of the leading distributors of construction timber in the United Kingdom.
Valutec is one of Europe’s leading suppliers of wood kilns.
Hungary: Wood-based panel plant to be built by Swiss Krono Group
The Swiss Krono Group this spring will begin construction of a €95 mln wood-based panel plant in Vásárosnamény, in northeastern Hungary, with the aim of starting production of oriented strand board (OSB) from the following spring, board member of the company Max von Tippelskirch said yesterday, quoted by the Hungarian online journal Budapest Business Journal.
The investment is expected to create more than 100 jobs at the plant.
The company thanked the Hungarian authorities for expediting the process related to the investment and acknowledged the support of the government. State secretary Levente Magyar said that once an official decision is made on the size of the subsidy, the company would be awarded that amount.
Tippelskirch said the Swiss Krono Group made one of its first investments outside of Switzerland in Vásárosnamény in 1989, but closed the base in 2011 due to economic conditions. Since then, conditions have improved, he added.
The company thanked the Hungarian authorities for expediting the process related to the investment and acknowledged the support of the government. State secretary Levente Magyar said that once an official decision is made on the size of the subsidy, the company would be awarded that amount.
Tippelskirch said the Swiss Krono Group made one of its first investments outside of Switzerland in Vásárosnamény in 1989, but closed the base in 2011 due to economic conditions. Since then, conditions have improved, he added.
Rising sawlog prices in Sweden in 2014
In 2014, Swedish sawlog prices rose, while pulpwood prices fell in comparison to 2013. Moreover, statistics for the fourth quarter of 2014 show an increase in prices when compared to the previous quarter.
Totally, in SEK terms, sawlog prices rose (delivery timber) in Sweden by five percent in 2014 compared to the year 2013. There was an increase in the regions of Central and Southern Sweden by seven percent while prices in the region Northern Sweden fell by five percent. The increase was larger for the sawlog of Norway spruce than of Scots pine with six percent respective three percent.
On contrast, Swedish pulpwood prices fell by four percent in 2014 compared to 2013. Prices fell mainly in the regions of Northern and Central Sweden by eight percent respective four percent.
In the fourth quarter of 2014 the pulpwood prices rose by two percent compared to the previous quarter. The prices mainly increased in the region Northern Sweden by five percent. Sawlog prices rose, particularly in the regions of Northern Sweden and Southern Sweden.
Roundwood price evolution in Sweden in EUR/cbm (Converted from SEK to EUR at ECB rates)
Brazil: Siempelkamp sells complete MDF plant for Asperbras
Brazilian company Asperbras ordered for its Água Clara location a complete MDF plant from Siempelkamp Maschinen- und Anlagenbau GmbH with a contract value of 67 million euro. Siempelkamp supplies all components for the high-end MDF line ranging from the engineering to the steel construction, to the complete fiber preparation technology and forming and press line all the way to the finishing equipment. Additionally, Siempelkamp will supply an energy plant, a short-cycle press line as well as an evaporation plant for the water treatment.
Initially, the supply includes the plant planning and engineering by the Siempelkamp subsidiary Sicoplan in Belgium. Next to the steel construction and sheet metal work, the complete conveyor technology, debarker, chipper, bunker, chip washing, fiber preparation technology, silos equipped with extracting systems, fiber sifters, belt scales, moisture meters as well as the forming machine are part of the scope of supply. The fiber dryer with a dry material throughput of 23 t/h as well as the 42 MW energy plant will be supplied by the Siempelkamp subsidiary Büttner Energie- und Trocknungstechnik GmbH.
Siempelkamp will manufacture the complete resin preparation and dosing system including an Ecoresinator for fibers as well as a forming and press line with 9’ x 27.1 m ContiRoll® press in its own production facility. The proven continuous press is meanwhile offered to plant operators in its 8th generation and is characterized by excellent pressure distribution due to innovative pressure distribution plates and an additional row of cylinders. The pre-press and the complete finishing line with double diagonal saw, cooling turners, intermediate board storage, sanding machines, dividing saw and packing equipment are supplied and assembled by Siempelkamp Krefeld. Furthermore, the order includes a short-cycle press for the surface lamination of the finished boards. An evaporation facility for the water treatment and a refiner are also part of the scope of supply. The order for Asperbras is completed with the automation technology for the complete plant including SicoScan and Prod-IQ®.
Södra to raise hardwood logs prices and reduce the softwood prices
As the market for sawn timber gradually deteriorated towards the end of 2014 and the uncertainty in the market remains, Södra is making a minor adjustment to the prices of its sawable softwood range. Conversely, the trend for sawn hardwood timber is positive and demand is favourable, thereby meaning that an upward adjustment can be made for birch and oak logs, Södra says in a press release.
The price of spruce and pine sawlogs and small dimension softwood will be reduced by SEK 20 (≈EUR 2,1) per cubic metre solid under bark (m³fub). The price of birch and oak logs will be raised by SEK 30 (≈EUR3,2) per cubic metre solid under bark (m³fub).
Meanwhile, Södra is coordinating forces to deal with timber in the aftermath of Storm Egon.
It is crucial that we now quickly come to grips with the volume of storm-felled forest so that we are able to plan the work and process the windblown trees before forest protection problems arise. We therefore urge all forest owners to speedily take an inventory of their properties and contact their forestry operations area to sign a contract," says Håkan Larsson, President of the Södra Skog business area.
The new prices will apply as of 16 February 2015 and, until that date, it is possible to sign a contract at the current price levels.
2017 predicted to be record-level for U.S. lumber prices
North American and global economies, as well as softwood lumber markets, are forecast to continue expanding in 2015 and even faster in 2016 and 2017. At the same time, there is a continued tightening of the economic wood supply available from North America's forests, says a recent International Wood Markets report.
The bad news is that the key North American and Chinese markets have been growing at a slower rate than was previously expected and the rate of log and lumber production increases have caught up to the market's demand, creating some short-term weakness or concerns.
According to the Wood Markets report, from 2015 to 2019 sustainable timber harvests in key provinces in Canada will continue to decline. As a result of the mountain pine beetle outbreak in the B.C. Interior, the sawlog harvest will be lowered by about 20% by the end of the decade, as compared to the pre-beetle harvest. Even more dramatic is the decline in the allowable timber harvest in Quebec - it has already been lowered by about 35% since 2004. As a result, Canada's total lumber output will start to flatten out in the next few years with no further increases expected.
On the U.S. side, the U.S. West Coast region has seen higher timber harvests, but a large component of this is being exported as logs to China, tightening the wood supply for sawmills and plywood mills, and causing log prices to remain high. The U.S. South is forecast to be one of the fastest growing production regions as it contains incremental timber (the only major wood basket left in North America with ample, surplus timber). As demand increases, it is forecast that log prices will need to go higher to attract incremental wood supplies for sawmills to produce more lumber.
On the demand-side in the key U.S. market, steady growth has been occurring in the repair and remodeling and industrial sectors, but it is the trends in new residential housing construction market segment that will make or break the market. Since the housing market collapse in 2009, U.S. housing starts have come back halfway in five years towards "normal" levels of about 1.5 million units, or from 550,000 units to about one million in 2014. There is still a long way to go with huge upside. However, after an 18% increase (145,000 units) in U.S. housing starts in 2013 that helped to tighten up the market, 2014's result has slowed down to an 8% increase (75,000 units). Wood Markets believes that a structural change has been occurring in the U.S. housing market that will take much of this decade before a "new normal" result emerges.
A potential and short-term "supply gap" in North America is forecast, as rising wood products demand will trigger record-high lumber prices so as to attract more log and/or lumber supply to the market - this includes European lumber exports to the U.S. market. European exports are expected to surge as U.S. lumber prices move higher as a result of tighter wood supplies starting about 2017 and they could reach 3 billion bf by the end of the decade - similar to their 2005 peak.
Some trends assessed in the Wood Markets report include:
- Lumber output in the B.C. Interior has remained relatively constant – near 11 billion bf between 2010 and 2014 – and production could grow only slightly to about 11.2 – 11.3 billion bf in 2015 and 2016 before permanent declines start about 2017 due to a lack of merchantable sawlogs.
- Eastern Canada (Ontario and Quebec) will see lumb er production bounce back in the next few years from very low levels in 2009, but the upside will soon be reached, especially in Quebec.
- The U.S. West lumber output will also steadily increase, but the role of log exports to China continues to squeeze sawmill margins.
- In the U.S. South, lumber production will see the fast est growth rate in North America, but there are just a few new greenfield sawmills being planned despite ample timber and a strong lumber demand forecast.
- With China now importing steady volumes of logs a nd lumber from North America, there is still the possibility of disruptions in China’s import raw material supply (i.e., Russia continues to face cost and logistical obstacles) coupled with eventual increases in Chinese demand – this can only further tighten the North American supply base further.
- Throughout the forecast period, the North American supply chain (from loggers to mill workers to truck drivers to retail stores) is expected to remain fragile, stretched or imbalanced at times, causing temporary shortages as well as volatility. Trying to find quality workers is becoming a major problem for many firms.
- With U.S. housing starts set to rebound towards the long-term level of 1.5 million starts by the end of the decade, and Chinese construction and European ma rkets expected to grow further, steady increases in global log and lumber demand are expected with the prospects of higher lumber prices.
- Five-year forecasts of OSB and plywood also see a prolonged period of growth, but without the sustained price increases forecast for lumber. Market volatility will continue, especially for OSB as previously curtailed mills gradually re-enter the ma rket – this sequence of restarts will have more impact on prices than demand.
- For the MDF and particleboard sector, volume and price growth will also occur, but more slowly and evenly as compared to structural panels – as has been the general trend since 2010.
These factors and others contribute to a tightening of the global softwood timber supply base, but it is mainly in North America where the impact will be felt. However, the often-discussed “super-cycle” thesis is still alive on the supply-side, but what has been missing is a steady to strong level of demand in the U.S. market, as well as stable to increasing demand in other global markets. Without improvements in overall global lumber demand, it is becoming more likely that the much anticipated super-cycle may end up more like a “super-spike”.
Source: International Wood Markets Group
Danzer rises capacity for precious hardwoods
Three years ago, Danzer had added a new method to the existing techniques: the precious surface layers for engineered wood flooring can now be sliced with little to no waste; in the past, they were sawn with raw material losses of up to one-third. The new product has been well received by the European parquet industry. The investment in new capacity is needed to meet the growing demand in the coming years.
Slicing precious hardwoods is a long-established technique, which allows cutting thin sheets from a log with little to no loss, says Danzer. But there are thickness limitations in the slicing process, which is why thicker boards are sawn. The disadvantage of sawing though is each saw cut produces sawdust waste as the saw blade advances through a log.
The fact that Danzer is now able to slice thicker lamellae means: we make almost 100% of the valuable raw material available for the following processing steps," says Rudi Heinzelmann, manager of the flooring program at Danzer. At the same time, he points out: "The yield advantage of the slicing process will always benefit the timber resource 100%, but it will not always result in lower cost - due to the higher investments required for slicing, compared to sawing.
For the product development, Danzer could build on its proprietary, best-in-class slicers VS 4000 as well as on its vast experience in veneer production. Pivotal were also joint product optimizations with customers and investments in new technologies at its Mělník plant in the Czech Republic. Two major challenges had to be overcome to successfully introduce sliced surface layers: First of all, thickness tolerances must be kept in the tenths of a millimeter range - despite the huge forces at work, when a log with a weight of up to one ton moves back and forth along the knife, 70 times per minute. On the other hand, the surface quality required had to be ensured by an optimization of the slicing and drying processes; initially, the slicing of thick surface layers results in more stress on the surface than sawing, but this disadvantage could be overcome for many applications in cooperation with customers. Last year, about half a million square feet of cut-to-size thick-cut surface lamellae were produced in Mělník. In 2015, Danzer is investing in additional clippers and drying kilns and will double its capacity.
The thick-cut surface layers are sliced at thicknesses between 2.3mm and 4.1mm; the largest part in 3mm. In 2015, Danzer expects European Oak to be again the wood species in highest demand. Due to their flexibility in procurement and their technical expertise, Danzer can offer thick-cut hardwoods also in many other wood species. Overall, Danzer has sliced more than 100 species last year. Thick-cut surface layers are also used more and more for furniture, where the look of solid wood is desired but a thick surface layer often leads to technically superior characteristics, such as less warping. The more valuable a wood species, the bigger is the economic advantage of sliced lamellae over sawn ones. Species such as Walnut or White Ash can be sliced even easier than Oak. Since Danzer uses the same type of machines in North America as in Europe, thick-cut hardwoods can be offered on both continents.
About Danzer
Danzer is a leading quality hardwood company. The company employs approximately 2,000 employees and services customers from 21 sales offices worldwide. Founded in 1932, the family oriented company is managed by a member of the third generation. Danzer owns and manages forests sustainably and produces veneer, timber and innovative value-added wood products for decorative purposes. Danzer products are being used in high-quality furniture, automobiles, interior architecture and other applications.
