Focused on Unlocking Customer Value, Deere Announces New Operating Model
- Resources will be aligned to deliver a differentiated customer experience through production systems, an intuitive technology stack and lifecycle solutions.
- The new model is designed to unlock new value for customers and respond more quickly to changing market conditions.
- Deere will adopt a more disciplined approach to capital allocation by devoting research and investment dollars to the most promising and profitable opportunities.
Deere & Company (DE) announced June 17th a new vision and operating model in order to accelerate its success in the integration of smart technology innovation with Deere’s legacy of manufacturing excellence.
The Deere Smart Industrial strategy is designed to unlock new value for customers and to help them become more profitable and sustainable, while simultaneously revolutionizing the agriculture and construction industries through the rapid introduction of new technologies.
To ensure success, actions will be concentrated on the following three focus areas:
Production Systems: A strategic alignment of products and solutions around Production Systems roadmaps – which capitalizes on Deere’s industry-leading knowledge of its customers and how they work. The new production systems structure enables the company to drive an integrated product roadmap and related investments that span all aspects of a customer’s jobs and to more fully meet customer needs.
Technology Stack: Investments in technology as well as research and development that deliver intelligent solutions to Deere customers through an intuitive technology stack made up of hardware, embedded software, connectivity, data platforms, and applications. The Deere family of “smart” machines, systems, and solutions unlocks customer economic value through enhanced precision, automation, speed, and efficiency not possible previously.
Lifecycle Solutions: The enterprise integration of Deere’s aftermarket and support capabilities to more effectively manage customer equipment, service, and technology needs across the full lifetime of a John Deere product, and with a specific lifecycle solution focus on the ownership experience.
“As Deere businesses and those of its customers become more competitive and dynamic, Deere’s track record of technological innovation puts it in a position to anticipate, respond, and outpace those dynamics by offering cutting-edge solutions to enhance customers’ productivity, profitability, and sustainability,” said John May, Chairman and Chief Executive Officer. “The new operating model represents a leap forward in performance for the company from an already strong starting point.”
Organization and Personnel Assignments
Effective June 16, 2020, the following individuals will lead redesigned or newly created business units under the Smart Industrial Operating Model:
Cory J. Reed has been appointed to the new role of President, Worldwide Agriculture & Turf Division for Production & Precision Agriculture Equipment and for the Sales & Marketing Regions of the Americas and Australia. In this new role, Reed will be responsible for leading a team to define, develop, and deliver equipment solutions to unlock customer value for production-scale growers in large grains, small grains, and cotton/sugar.
Markwart von Pentz has been appointed to the new role of President, Worldwide Agriculture & Turf Division for Small Ag & Turf and for the Sales & Marketing Regions of Europe, CIS, Asia and Africa. Von Pentz and his team will be responsible for defining, developing, and delivering fit-for-purpose products and solutions to support mid-size and small growers globally, as well as for turf customers. The unit is principally organized around production systems for dairy and livestock as well as high-value crops.
Recently appointed as Senior Vice President, Intelligent Solutions Group, Jahmy J. Hindman has been named to a new position as the Chief Technology Officer, reporting to the CEO. Hindman will oversee the Intelligent Solutions Group, responsible for Deere’s end-to-end technology stack, shared enterprise engineering, and John Deere Electronic Solutions product delivery.
Marc A. Howze, currently serving as Chief Administrative Officer, will continue in that role while also assuming enhanced responsibilities in a new role as Group President, Lifecycle Solutions – responsible for leading a team focused on the enterprise-level integration of aftermarket and support capabilities, and a focus on the full ownership experience over the lifetime of Deere’s products.
Meanwhile, the following members of the leadership team will continue in their current roles and will continue reporting to the CEO:
- Rajesh Kalathur, President, John Deere Financial and Chief Information Officer
- Ryan D. Campbell, Senior Vice President & Chief Financial Officer
- Mary K.W. Jones, Senior Vice President, General Counsel & Worldwide Public Affairs
As previously announced, John H. Stone will assume his new role as President, Worldwide Construction & Forestry and Power Systems on July 1. Deere’s Construction and Forestry division, which was recently organized along production systems for earthmoving, roadbuilding and forestry, will now more fully leverage the technology stack and lifecycle solutions in the future.
“After 183 years of innovation, Deere continues to transform how it operates to build a more customer-driven and streamlined, nimble organization for the future,” said May. “I couldn’t ask for a more talented, dedicated and focused team to lead us there.”
In order to realize the Smart Industrial vision, Deere will adopt a more disciplined approach to capital allocation by devoting research and investment dollars to the most promising and profitable opportunities. Deere plans to dramatically accelerate the speed with which the company brings priority technology to market to drive value creation and capture it more quickly.
“The new operating model will help us respond to changing market conditions with greater speed and efficiency,” May said.
Photo: John May, Chairman and Chief Executive Officer.
It goes without saying the Covid-19 pandemic has been and still is a major challenge to most businesses and employees. Those that stayed in the game did what was necessary to get through the most difficult market since the last recession. Now, many businesses are preparing to transition back their valued employees and implement the changes that will carry them through to full recovery.
But are the employees ready? Numerous new polices, compliance requirements and new ways of engagement are stressful and confusing for many. Combine this with the uncertainty most employees have been living with for months now, and we have a work force that is feeling tense and insecure.
Many employees lost some of their co-workers, teammates, and friends… solid people with skills who were good at what they did. Some may be feeling survivor guilt or anger towards their company for doing what it needed to do and wondering if they are next. Some have lost their career or business mentor, the person who was helping them at work and advance to the next level.
Spending so much time at home has its own challenges and may have caused some to realize how lonely and unfulfilled they are.. or how unhappy they are in their marriage… or how difficult it is to care for children and ageing parents. Or, they may have finally had the time to consider something they would really like to change about themselves or their relationships.
Now more than ever companies need a workforce that is energized, focused and productive. Employees need as much clear, concise and honest communication as possible.
The past months have brought about a quantum leap in the acceptance and ease of connecting online. Families from grandparents to toddlers have gathered and shared stories, businesses have completed transactions and doctors are dispensing medical advice all from the convenience of and privacy of just about anywhere.
Online therapy offers relief from loneliness, anxiety, and depression, but for the most part, not much else. Coaching, by contrast, provides for meaningful discussion and guidance on everything else that makes up a whole person and is specifically designed for people who want to genuinely improve their lives.
For those unfamiliar with the concept of coaching, the simplest comparison is to that of an athletic coach. Just like how all great athletes have coaches, the same concept can be applied to other aspects of life as well, included relationships, stress management, work life balance, and more. The International Coaching Federation (ICF) defines coaching as “partnering with clients in a thought provoking and creative process that inspires them to maximize their personal and professional potential.”
In fact, by 2022, coaching in the United States alone will represent a $1.34 billion-dollar industry (1). There is a reason top level executives, Olympic athletes, star performers, and some of the most accomplished people in the world all attribute so much of their success to coaching; because it works.
An example of a business working to make the power of coaching more accessible is Hundred Life Design, a digital coaching platform that offers access to top tier, unconventional coaches, all of whom excelled or continue to excel and innovate in their field of expertise. Users can select from a broad range of topics including personal and work relationships, health & wellbeing, business, leadership, career planning, interpersonal skills and more.
And it works, both on an individual level and within organizations. A recent corporate client of Hundred Life Design, Roseburg Forest Products, based in Springfield, Oregon. With close to 4,000 employees in numerous locations across North America, Roseburg engaged Hundred Life Design to put a confidential, individually focused coaching program in place that would provide selected individuals in the company with access to their choice of a coach or coaches for a period of 6 months. The results were positive.
Scott Folk, Roseburg’s Senior Vice President of Resources commented, “the program was well received by the company and our participating teammates because of the highly confidential nature of the coaching, this gave our employees the comfort that whatever was discussed with the coach would not be shared with the company or anyone at anytime ever”. Folk believes this is absolutely necessary in order to make yourself vulnerable and have the brutally honest conversations you need to have to make real change in life.
Following the 6-month coaching program, Hundred followed up with each participant and asked them to complete a confidential survey. The survey results were then consolidated and shared with the company without disclosing names or any detail. The results were impressive. Those who received coaching on average showed a 90% improvement in their attitude towards their personal life and a 70% improvement in attitude towards work life. Equally interesting was the cost effectiveness of the program. Roseburg spent on average $886 per employee over the 6 month period.
When asked if Roseburg will be continuing on with the program, Folk replied, “coaching is not for everyone, but when used on a selected basis, particularly for teammates who are key contributors, new in a role, going through transitions or developing into leaders, coaching from someone outside of the company can be highly beneficial. It’s also proven to be very cost-effective for the company and one that does not require time off or travel. For all of these reasons, Roseburg will continue to partner with Hundred Life Design”.
Time will tell whether or not the future of coaching will be online and adopted by more businesses. Yet considering the increasing initiatives companies are making to invest in employee wellbeing, new businesses like Hundred Life Design may be on to something.
The Bavarian Ministry of Economic Affairs has announced further steps to open up the economy: as of September 1, trade fairs can also be held again in Bavaria. This is the starting signal for the GrindTec 2020.
Augsburg – „The course has been set for the GrindTec 2020,” said Henning and Thilo Könicke, the Managing Directors of the GrindTec organiser AFAG Messen und Ausstellungen. “We will make intensive use of the approximately six months until the trade fair in order to be able to present the world’s leading trade fair for grinding technology in accordance with the safety and hygiene standards that will then be in force”.
The Bavarian Ministry of Economic Affairs gave organizers, exhibitors and visitors of Bavarian trade fairs planning security and clarity on Tuesday, May 26. From September trade fairs can take place again, the final confirmation for the GrindTec 2020, which will now take place as planned from 10th to 13th November at the Augsburg Trade Fair Centre. AFAG considers itself well prepared. Together with the Bavarian trade fair locations, the managing directors have already been working for weeks on the development of a coordinated hygiene concept. By the autumn, the safety and hygiene concept is to be tested for its practical suitability and adapted to current conditions.
There has been a pleasing development with regard to exhibitor participation at the GrindTec 2020: Since the postponement of the trade fair there have been some cancellations by exhibitors due to scheduling, but these have already been compensated for by new registrations. At present there are approx. 670 exhibitor registrations.
The organiser AFAG will present the GrindTec 2020 and the underlying safety and hygiene concept in a press conference on 2 July at the Augsburg Trade Fair Centre.
Stora Enso’s drone research used a drone and a multispectral camera to detect insect damages in Finnish forests. The image interpretation application was able to identify trees where spruce bark beetles nestled. The new forest health data can be used for example to plan forest management, timely silvicultural work and harvesting.
The spruce bark beetle, which damages spruces in particular, is estimated to become more common in the northern forests as the climate warms. Stora Enso Forest division’s drone was able to detect spruce bark beetle exposure much faster and more efficiently than the human eye. Research flights were conducted in in South Karelia, Finland in the vicinity of Lappeenranta in the summer of 2019, and the research results were recently finalised.
The spruce bark beetle prevents the normal flow of water from tree’s root system to the top of the spruce, which causes the tree to die upright before long. A multispectral camera connected to the drone identified the trees whose fluid circulation was disturbed. In the image, the exposed trees appeared in different colors than the healthy trees. This enables the observation of spruce bark beetle damage even in a large forest area, says forest specialist Saana Pulkkinen, from Stora Enso Forest division, who did her thesis as part of the research.
The study showed that the observation of spruce bark beetle exposure made by drones and the image interpretation application was reliable. It also turned out that the larger the tree in question, the easier it was to detect the exposure. In addition, the image interpretation application was programmed to identify spruces from the other tree species: identification was 97% correct. The findings of the application were further confirmed by a field trip. From the point of view of image interpretation, a cloudy weather was the best for the flights.
This was still research work and testing, but we can already now rely on our image interpretation application when it identifies an unhealthy or damaged tree. At some points, the application was still cautious in its interpretations, but the situation will improve as we get more data on the forests that have been photographed. Based on the research results, the health classification of trees was 86% correct, Pulkkinen states.
Drone research is part of a bigger development stream that we call precision forestry. Precision forestry will offer new opportunities to monitoring forest, management decisions optimization and increasing the value for forest owners and the industry, says Mikko Juhola SVP, Innovation & Development, Stora Enso Forest division.
In addition to Finland, forest research flights and image interpretation have been performed in Sweden and the Czech Republic. Health information on thousands of conifers has been accumulated on flights. Stora Enso’s drone pilots have already scanned hundreds of hectares of forest, and more and more forest data is being accumulated. Descriptions are always made with the permission of the forest owner.
Cooperation between our various forest units will ultimately benefit forest owners not only in Finland, but also in other countries where we operate. As a first step, we intend to utilize image interpretation data to locate spruce bark beetle damage. Going forward, data accumulated from the forest can also be used in forest plans and inventories. We will continue development work so that in the future we can provide drone scanning as a service to forest owners. Already now, some of our forest experts use the drone in their own work, for example in seedling monitoring, Mikko Juhola states.
The new Forest division, which started operations in the beginning of 2020, includes Stora Enso’s Swedish forest assets and the 41% share of Tornator with the majority of its forest assets located in Finland. The division also includes wood supply operations in Finland, Sweden, Russia and the Baltic countries. We create value to our customers and private forest owners with competitive wood supply, sustainable forest management and innovation. As a major player in the bioeconomy, access to wood is critical for Stora Enso. Today, Stora Enso is one of the biggest private forest owners and wood supply organizations in the world.
PONSSE Manager 1.7 released! PONSSE Manager 1.7 presents forwarder production reporting, a function highly requested by customers, alongside the system’s other top features. As a new feature, PONSSE Manager displays the progress of work areas in a separate graph, showing harvester production and forwarder production relative to the total estimated volume of the work area in question.
Printable load certificate
The PONSSE Manager load certificate displays work area identification data and local transportation per storage location, both as sum totals and operator-specific values. The printable load certificate also includes the volume of each load, the assortments delivered, and the distance travelled.
“Forwarder production volumes will be updated in PONSSE Manager reports if the forwarder is equipped with a compatible PONSSE Load Optimizer loader scale or the Opti 4G operator load details feature, which allows operators to enter their roadside deliveries in the Opti 4G system. These features raise machine chain reporting to a whole new level and offer a better overview of total harvesting production”, says Juho Leskinen, Product Group Manager, information systems and digitalisation.
PONSSE Parts Online, a system for ordering spare parts, can be accessed from the PONSSE Manager main menu in countries where Parts Online service is available.
PONSSE Manager is a continuously developed data management system
To support their operations, forest machine entrepreneurs need a reliable partner to develop services that truly improve customers’ business. PONSSE Manager is a modern forest machine monitoring and data transfer system that forest machine entrepreneurs can use to see their machines’ location, productivity figures and fuel consumption, among others.
With PONSSE Manager, entrepreneurs can improve the efficiency of their business and enhance productivity, thanks to real-time field operations monitoring. With Manager, entrepreneurs can monitor the progress of stands, plan and manage machine transportation, keep track of machine outputs according to assortment and print out measuring certificates. In addition, Manager informs entrepreneurs of machine maintenance needs and displays any maintenance-related notes made by the operator.
The post New version of PONSSE Manager improves reporting of machine chain productivity appeared first on International Forest Industries.
Between 2017 and 2019, over 270 million m3 of standing timber in Central Europe was damaged by a combination of factors: primarily, changing climate conditions that featured hotter, drier summers and warmer winters. In combination with frequent windstorms, this created ideal conditions for the spread of spruce bark beetles, especially at lower elevations.
The damage is across many countries, including Poland, Switzerland, Slovakia, Italy and Sweden, but the most severe losses have been in Germany, the Czech Republic and Austria. The outbreak in these three countries is so severe that FEA analysis predicts that the killed timber volume from the European spruce bark beetle will eventually exceed that of the British Columbia Interior’s mountain pine beetle outbreak.
The increased salvage of dying and dead spruce timber will create more sawlogs than the sawmilling industry can process, not only in the three impacted countries, the Czech Republic, Germany and Austria, but also beyond their borders given that some logs are exported to other European countries. This will result in certain market implications and shifting trade trends through the first half of this decade and beyond — changes that will alter overall market dynamics and disrupt producers and exporters in other regions.
The sheer volume of damaged timber harvested in Central Europe has yielded logs of relatively good quality so far. Beetle-killed logs that are harvested in the winter for processing are of very high quality — almost like “fresh-cut” green sawlogs. Logs harvested in the summer, however, are more prone to blue stain and checking, and rot can even occur. The worst time for beetle wood quality is July to September due to the higher temperatures and blue stain, and especially if it rains.
Many sawmill companies are betting that the surplus timber will be around for some time — enough to justify adding sawmill capacity or even building greenfield sawmills. Up to a dozen sawmilling companies have planned for, started or even completed new capacity installations to process incremental sawlogs from the damaged timber by the end of 2021; if there is any question about how long the storm- and beetle-damaged timber is going to be around in Central Europe, these investors are providing the answer. We expect at least 2 million m3 of new sawmill capacity based on confirmed projects, although others are still in the planning stages. These sawmill capacities are being constructed based on the potential for increased harvesting of damaged timber in the future and a likely glut of low-cost sawlogs.
The increased availability of low-cost damaged timber will lead to higher lumber production in Central Europe. With the massive timber salvage producing a glut of sawlogs of varying quality, there has been downward pressure on sawlog prices in Central Europe. Germany has seen a steady decline in its sawlog prices since early 2018 due to spruce bark beetle and storm wood availability, with prices there down almost 50% by the end of 2019; this approaches levels in the U.S. South (the region with some of the lowest log costs in North America).
The current price of sawlog-grade timber is considered close to the cost of harvesting and delivery to sawmills, pointing to scant potential for a reduction in log prices. However, lower-quality logs are being produced with blue stain, checking and even decay, and selling at large discounts, leading some mills to process these logs as well. Since the salvage program is likely to be in place with high volumes for some time before it eventually slows down, domestic spruce sawlog prices will probably remain near current levels. This will provide central European sawmills with a competitive advantage in both domestic and export markets.
With rising volumes of distressed sawlogs at low prices, there will be an increase in central European lumber production. Existing mills are experiencing a critical shortage of skilled workers, so adding capacity is difficult (aside from extending shifts or operating on Saturdays). However, we expect total lumber production in the three impacted countries to generally expand (aside from 2020 output slippage due to COVID-19) before production eventually eases back toward pre-beetle levels near the end of the decade. This means that sawmills in Germany, the Czech Republic and Austria should remain the low-cost operators in Europe, and should be able to access most (if not all) export markets competitively and with positive margins.
Most of the top-quartile central European sawmills are export-oriented, meaning they have kilns as well as planers. With the acceleration of the spruce beetle salvage in Europe providing mills with low-cost logs, a higher proportion of production at these large-scale mills will likely be directed to export markets that require planed lumber (especially the U.S., but also China, Australia, the United Kingdom and others). According to FEA’s 2019 Global Sawmill Cost Benchmarking Report, central European sawmills are among the lowest-cost lumber suppliers of dimension lumber in export markets such as the U.S. South. This will enable European sawmills to gain market share in the U.S. at the expense of higher-cost Canadian and U.S. producers if they need to export increased lumber volumes outside Europe. From a European exporter’s perspective, the U.S. market also has the advantage of being accessible by both break-bulk vessels and containers.
Ultimately, central European mills will select lumber export markets based on net mill returns and market risk. The U.S. looks to be a very good fit for central European mills in an era of spruce bark beetles, but it will depend on net lumber returns and prices relative to other markets. Lumber exports to China are also expected to continue rising. In 2019, lumber exports from Germany totaled 692,000 m3 (versus only 154,000 m3 in 2018) and, in the first three months of 2020, reached 185,000 m3 (60% higher than a year earlier). Similar to exports to the U.S., trade to China will be dependent on conditions in other markets (MENA and Japan, for instance).
Effectively, this means that central European mills will be a threat to high-cost lumber producers in other parts of Europe — and to suppliers in export markets — for at least the first half of this decade.
In 2019, log export markets proved to be an important release valve for excess salvage spruce logs that were surplus to domestic mills’ needs in Germany and the Czech Republic. This trend will continue throughout the salvage harvest, especially since beetle-killed logs are being harvested at close to cost levels in Central Europe, allowing for exported logs to be competitively priced for volume sales to China.
In the current year, the rise in log exports is expected to pause due to curtailments related to the COVID-19 pandemic; however, this assumption could quickly change if China’s log demand picks up. Note that Germany and the Czech Republic accounted for 80% of log exports from Europe to China in 2019, a proportion we expect to grow in 2020 and beyond.
Assuming that markets return to more normal conditions later this year, log exports from Central Europe should continue to rise — perhaps even sharply, depending on market demand, container rates and container availability. Based on the potential harvest of damaged timber and the capacity limits of the central European sawmill industry to process the damaged logs, rising log export volumes could result in major disruptions to global trade flows.
The new FEA report, Central European Beetle & Windstorm Timber Disaster: Outlook to 2030, is now available. For more information, a brochure is available here
Source: Russ Taylor, Managing Director, FEA-Canada & Rocky Goodnow, VP, North America Timber Service, FEA LLC
Silviculture in New Zealand got a boost with a support subsidy package announced last week from the Ministry of Social Development (MSD) which will assist this sector to secure a workforce to meet the 2020 planting season labour requirements.
Border closures as part of the NZ COVID-19 elimination strategy have meant the sector couldn’t rely on seasonal workers from the Pacific Islands, as it has done in in the past. It means there are now jobs in the Silviculture/forestry sector for New Zealanders that need jobs. The subsidy will assist contractors to employ “Kiwi Locals” and support sustainability in the sector.
“In collaboration with MSD we will work with forest owners and management companies and take responsibility for creating new jobs and job security for the next six months,” says Prue Younger, CEO for Forest Industry Contractors Association. The $2.5M subsidy package will be based on a series of milestones with support payments to both the employer and employee.
Minister for Social Development Hon Carmel Sepuloni said the funding was for jobs in an industry needing workers right now. “This funding is getting New Zealanders working and assisting the forestry sector to get on with the business of planting for next season. We’re also keen that this investment has an eye on the future too as it supports upskilling the forestry workforce.”
There will be a requirement for the employee to enrol in the new micro-credential unit standards and the offer to undertake further work-ready standards that Competenz, the industry ITO, launched this year. These will be offered online and provide the employee opportunity to understand the career pathways available in forestry. Contractors will also be urged to register their job vacancies on the Work the Seasons website www.worktheseasons.co.nz to promote availability to job seekers and people looking for work.
The planting season will run from May through to October and support new plantings as part of the 1Billion Tree Programme along with replants in existing forestry estates. Forest Industry Contractors Association will administer the subsidy and more information along with registration details can be found on www.fica.org.nz
Source: Forest Industry Contractors Association
Scantec, based in Feldkirchen, Germany, offers professional consulting, customer-oriented sales and the highest level of service. The company has planned, delivered and installed more than 750 projects ranging from individual machines to major turnkey projects in the sawmilling industry.
“Scantec has decades of experience in the wood industry and excellent contacts to the leading sawmills and wood processors,” Heidi Danbrook, Sales Manager at Gilbert. “We are very fortunate to have Scantec as a sales partner in our team.”
Scantec Managing Director Stephan Lohmeyer: “Gilbert won us over right from the start with the quality and performance of their products. The Gilbert Planer equipment is a perfect addition for us in the high-performance wood processing sector.”
Today, over 130 Gilbert Planers are operating worldwide; in Canada, USA, Australia, New Zealand, Brazil, Sweden, Denmark and Germany. Proven to be the fastest planer in the world, the Gilbert High Speed Planer runs over 300 boards/minute, leaving any competition in the dust.
A new Gilbert Planer has recently started up at Mercer Timber in Saalburg-Ebersdorf, Deutschland, designed to run up to 1,200 m/m. This will certainly be one of the most exciting planer mills in Europe! With this new partnership, Scantec and Gilbert will put their efforts together to further develop its presence in the Central and Eastern Europe market.
For the past 30 years, Gilbert has been a recognized leader in the design and manufacturing of forestry, sawmill, construction and surfacing equipment. The company is located in Roberval, Canada and employs 125 people who devote themselves to offering the best planer expertise and technology on the market.
Vermeer is enhancing its stump cutter product line with the introduction of the patent-pending Vermeer cutting system (VCS).
The VCS incorporates a new tooth design that helps reduce pocket rotation and a cutter wheel that reduces material from recirculating during operation. The VCS is available now on select new Vermeer stump cutters and will soon be available across the entire line, as well as an option for many existing models.
According to Matt Hutchinson, product manager for tree care, rental and landscape at Vermeer, the new VCS solves many of the challenges associated with traditional stump cutting systems. “Torquing cutter teeth daily is pretty common for most stump cutter users,” he explained. “Bolts that aren’t torqued properly tend to rotate in the pocket, causing premature wear and impacting the performance of the cutter wheel. The tooth design on the VCS has a mounting and retention structure that helps keep teeth from shifting in the pocket while absorbing the shearing force, instead of the bolt securing the tooth to the cutter wheel while operating. This design makes it possible to secure each set of teeth with a single long bolt and reduces the need for retorquing.”
The VCS two-sided carbide V-profile cutter teeth help enhance the cutting performance of the stump cutter and can be flipped to the other side of the cutter wheel for an extended wear life. The redesigned cutting wheel and tooth placement allows material to flow past the wheel after being cut, which reduces recirculation. Also, each side of the wheel is protected by wear plates made from high abrasion resistant steel.
With the new VCS and ever-popular, industry proven Vermeer Yellow Jacket™ cutting system, contractors now have more options to choose from. The VCS will be offered on larger Vermeer stump cutters soon, and across the entire line in the future.
For more information about the new Vermeer cutting system, contact your local Vermeer dealer or visit vermeer.com.
About Vermeer Corporation
Vermeer delivers a real impact in a progressing world through the manufacture of high-quality tree care and environmental, agricultural, underground construction and surface mining equipment. With a reputation for durability and reliability, that equipment is backed by localised customer service and support provided by independent dealers around the world.
Vermeer product manager for tree care, rental and landscape (pictured)
USNR recently installed and started up new vision scanning systems on the edger and trimmer at Waipapa Pine in New Zealand. These systems are the 27th and 28th vision scanning systems that USNR has installed in mills processing Radiata Pine, and adds to the 170+ vision scanning systems sold globally.
“The results we have seen are outstanding, across all key measures within the business. Raw log input costs have reduced, and overall value return has been improved. This investment will provide us the opportunity to maximize efficiencies across our complete processing footprint, and better manage any changing landscape we have in front of us.”
– Grant Arnold, Director at Waipapa Pine
USNR has experience with a very wide range of wood species, for all of our vision scanning systems. These species include Spruce, Pine, Fir, Hemlock, Cedar, Oak, Maple, Aspen, Eucalyptus, and many more.
Read all about the Waipapa Pine as well as a Quebec hardwood vision scanning installation in the next issue of USNR’s MillWide Insider.
The post USNR’s vision scanning numbers continue to grow in a wide range of species appeared first on International Forest Industries.
Sibexport signed a contract with AriVislanda AB for the supply of a Swedish-made modern profiling equipment to its sawmill in Irkutsk region, Russia. Installation and commissioning of the equipment is planned for the 4Q 2020.
“We thank you for your trust and look forward to a good and long-term cooperation,” says Fredrik Lindkvist, Marketing Manager at AriVislanda.
AriVislanda designs, manufactures and delivers sawmill equipment worldwide with a speciality being circular saw technique.
Photo: Fredrik Lindkvist, Marketing Manager at AriVislanda.
The post AriVislanda to supply modern profiling equipment to Sibexport’s sawmill in Russia appeared first on International Forest Industries.
(Released April 2020) Nature conservation consideration taken in connection with Södra’s regeneration harvests and thinning operations has made positive progress over the past decade and is now at a consistently high level. This was revealed by the company’s Green Balance Sheet.
“It is gratifying to see that we can remain at this high level over time, particularly considering the extreme weather conditions we had to manage during the period. The Green Balance Sheet for the entire 2010s indicates that our systematic effort has helped to develop good nature conservation considerations in connection with forestry operations, which is something we want to continue to develop over the coming decade,” said Klara Joelsson, Ecologist at Södra.
The regeneration harvests and thinning operations included in the Green Balance Sheet are assessed using a number of parameters that taken together approve or reject the measure. Over the past ten years, the proportion of final harvesting and thinning operations approved has steadily increased and since 2015, these have been consistently above 90 percent.
Parameters assessed as part of the Green Balance Sheet include:
- Saving and promoting buffer strips towards watercourses, wetlands and open agricultural land
- Leaving dead wood to benefit species that depend on this
- Taking into account the impact on soil and water when driving on forest land
“Södra has improved on all of these points during the decade, though with some variation between the years. In recent years, we have worked with specific measures to prevent damage to soil and water in connection with both final harvesting and thinning and offer a soil protection guarantee when we carry out these services for forest owners. This has helped to reduce driving damage on forest land,” said Klara Joelsson.
“Over the next decade, we will continue to build on our solid platform and work actively with consideration activities. There are always areas for improvement, and we will make sure we maintain or raise the quality of aspects where we are already strong. Measures will include a targeted initiative for cultural environments, where we have seen a need to raise quality. Taking appropriate and effective consideration is a continuous process,” said Klara Joelsson.
Södra prepares a Green Balance Sheet every year. Internal auditors verify how more than 150 regeneration harvests and the same number of thinning operations have complied with the requirements of PEFC™ and FSC® forest certification schemes regarding general considerations in final harvesting and thinning operations. How closely the company has followed its own policies and procedures for environmental considerations is also reviewed. The aim of the Green Balance Sheet is to create a basis for the continuous improvement of consideration activities. External audits are also performed every year by the international certification body, DNV GL.
For questions, please contact:
Klara Joelsson, Ecologist, Södra.
Tel: +46 (0)470-893 35
The post A decade with steadily improving nature conservation considerations appeared first on International Forest Industries.
Pine seedling sales continue to break new records. In four years, the number of pine seedlings from Södra that are sold has risen from just over three million to just over six million.
“Demand is so high that pine seedlings are now in short supply, despite a very robust plan on our part. The plan entailed a major business risk when it was presented, even though we were hoping for, and expected to see, increased demand. It is very gratifying that the interest in pine has actually exceeded our expectations. Our goal for next year will be to further increase production and sell 7.5 million pine seedlings, which is more than double the figure for 2016,” said Olof Hansson, President of Södra Skog Bisnuess Area.
Södra has been actively informing about the importance of planting more pine in the landscape for several years. Not least through the Kraftsamling Tall (pine mobilisation) project that has been ongoing since January 2019. These efforts have now yielded results.
“The are several reasons why interest in planting the right trees in the right place has grown. It will lead to higher profitability and faster growth, better wildlife habitats, and lighter and more open environments. But more pine seedlings are not the only thing needed for success. We will also need to increase hunting in the very near future, otherwise the initiative is at risk of being eaten up by cloven-hoofed game,” said Tomas Andersson, Project Manager of Kraftsamling Tall at Södra.
For many years, far too much of Götaland has been planted with spruce – even areas that are best suited to pine. Due to excessively high game populations, landowners have not dared to adapt stands to the right extent, and have often replaced pine with spruce. This is not sustainable in the long term, since spruce planted in the wrong type of soil will not grow as well, be less vital and more prone to diseases, insect attacks and storms. The effects will be devastating for landowners, biodiversity, the climate, the economy, and especially for wildlife.
We can now see that the trend has turned, and that pine seedling sales are increasing at a very high pace.Statistics show that sales of pine seedlings have risen 100 percent since 2016. However, demand is even higher than expected and at the nurseries, even more pine seedlings are being sown for sales from 2021 and onwards. The production target is 7.5 million seedlings by 2021.
“We can see clearly that Södra’s members have received the message and taken the step to invest in pine regeneration. It’s a question of both biodiversity and the future profitability of forest estates in a changing climate. We can expect drier and warmer periods in some parts of our forestry operations area, and pine is better suited to those conditions. To continue regenerating with spruce on the wrong soil is therefore a major risk,” said Olof Hansson.
Increasing the proportion of pine regeneration also increases the berry bushes and herbs that thrive in pine environments, which is important for creating a balance between cloven-hoofed game populations and feed access.
For more information, please contact:
Olof Hansson, President of Södra Skog Business Area,
Tel: +46 470-857 67
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Södra has now ended the furlough scheme introduced at the sawmill in Hamina, Finland, in April due to reduced demand from the UK, in particular, related to the ongoing pandemic. All of Södra’s sawmills have therefore resumed their normal production rates.
“The UK is opening up again and we have also identified new business opportunities – demand in the building materials trade, in particular, is very strong in several countries. We have been monitoring the market closely and successively ending the furlough schemes. Orrefors was first, followed by Mönsterås and then the port, and Hamina resumes its normal rate of production from 1 June. We will then be back to our normal production rate of 2 million m³ of sawn timber,” said Jörgen Lindquist, President of the Södra Wood business area.
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The purpose of the modernisation is to replace existing frame saws with modern profiling equipment. “This project aims to improve the quality of the products as well as production efficiency as a whole and is the first step in the plant’s modernisation program,” says Viktor Melnik, Investment Director at Ilim Timber LLC. The Ilim Timber branch in Ust-Ilimsk specializes in the production of timber from pine and Siberian larch.
The production capacity of the plant is approximately 600,000 m³ of sawn timber per year. “We thank you for your trust and look forward to a good and long-term cooperation,” says Fredrik Lindkvist, Marketing Manager at AriVislanda. Installation and commissioning of the equipment is planned for the first half of 2021.
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Sawmills across North America looked toward the end of summer last week, as lumber prices continued to rise but sales volumes were unsteady. Lumber producers in the US and Canada considered this current market strength as temporary, and were already making plans for seasonal slow-downs when summer draws to a close. Softwood lumber producers consequently pushed up their asking prices and extended sawmill order files into mid- to late-June, according to Madison’s Lumber Reporter.( madisonsreport.com/)
Prices were nudged up every day as sawmills sold out of stock with ease, and at higher levels. Customers throughout the market were very underbought, and field inventories remained low even as many buyers abandoned their caution and tried to secure volume. Sawmill order files were into the weeks of June 15th and 22nd. Bread-and-butter sizes continued to garner consistently strong demand, while sales of 2×8 and 2×10 were also really hot. As construction in Texas was roaring, 2×4 R/L #3/Utility sold particularly well.
For the week ending May 22, 2020, the price of Western SPF 2×4 kept rising, this time up +$12, or +3%, to US372 mfbm compared to the previous week when it was US$360. Prices for this benchmark construction framing dimension softwood lumber item were up +$36, or +11% from one month ago. Compared to the same week in 2019 when it was US$310, this price is up +$38, or +13%.
Looking at structural framing softwood lumber, Western-Spruce-Pine-Fir studs continued to be massively undersupplied as pandemic restrictions were lifted and building activity in North America came to life. According to producers in British Columbia, the price of 2×4-8’ studs jumped up $22 to US$392 mfbm. Supply was gone in a flash. Demand for all other trims was feverish also; aside from 2×6-8’s, which remained at $268 and just couldn’t get any sales traction. Even as many stud mills began to ramp up their production levels following periods of curtailment, overall production could only cover a fraction of rapidly-mounting demand.
After taking major tumbles in April, last week’s Western S-P-F 2×4 price dropped by smaller amounts, this time down by -$5, or -1%, relative to the 1-year rolling average price of US$377 mfbm and was down -$33, or -18%, relative to the 2-year rolling average price of US$405 mfbm.
The table (photo) is a comparison of recent highs, in June 2018, and current May 2020 benchmark dimension softwood lumber 2×4 prices compared to historical highs of 2004/05 and compared to recent lows of September 2015.
£10m available from the Woodland Carbon Guarantee’s £50m pot for farmers and land managers to create new woodlands to help tackle the effects of climate change.
Applicants must apply by 5 June to qualify for the next auction starting on 8 June. Given the current situation, the deadline to apply will be kept under review.
Scheme gives land managers the option to sell Woodland Carbon Units to the government at a guaranteed price which is protected against inflation.
The Forestry Commission announced (Tuesday 14 April) that £10m will be available in the second auction of the Woodland Carbon Guarantee. Land managers across England are encouraged to sign up to the scheme by 5 June, ahead of the next auction which will take place online from 8 to 19 June.
Launched in November 2019, the Woodland Carbon Guarantee is a £50 million scheme that aims to help accelerate woodland planting rates and permanently remove carbon dioxide from the atmosphere.
Successful participants will be offered the option to sell Woodland Carbon Units to the government over 35 years at a guaranteed price set by auction, providing new income for land managers who help businesses compensate for their carbon emissions.
This announcement follows the success of the first auction which closed in February 2020 and saw 18 contracts offered by the Forestry Commission to help stimulate the creation of 182 hectares of new woodland, specifically to help combat climate change.
Sir William Worsley, Chair of the Forestry Commission, said:
“The Woodland Carbon Guarantee is the first scheme of its kind to provide land managers with long-term certainty of a guaranteed payment rate for carbon, which their trees lock up and store.
“I’m excited to announce that the first auction has successfully encouraged projects in parts of the country where new planting has been lower in recent years, and across a good range of woodland types.
“There is no reason to delay applying and to plant trees now – I strongly encourage all land managers thinking about planting to sign up ahead of the second auction in June.”
The outcome of the first exploratory auction in February paves the way for larger scale projects to secure funding in forthcoming auctions. A series of auctions will take place every six months for up to five years.
Speaking of the benefits of the Guarantee, Forestry Minister Lord Goldsmith said: “Trees are a precious natural asset and, as a natural carbon sink, are a vital part of the fight against climate change.
“In addition to providing long-term income support to land managers for creating new woodland, it is our hope that this Guarantee will play an important role in developing the domestic carbon market.”
Greg Beeton, Divisional Partner & Agricultural Business Consultant from project developer Brown & Co, said: “We have a long standing involvement in woodland creation so it was great that we were able to help identify landowner clients of ours which could benefit from the Woodland Carbon Guarantee.
“We were excited to see that a number of our clients were successful in the first auction and will now be able to capitalise on the support that the scheme provides, by planting woodland to replace areas of unproductive farming land for example.
“I would certainly encourage landowners to consider the many benefits of the Guarantee. The support provided by the Forestry Commission was fantastic and the scheme could potentially provide new longer term income streams for landowners that can complement more traditional farming incomes.”
The government manifesto commits to increase planting across the UK to 30,000 hectares per year by 2025. This spring, a new English Tree Strategy will be consulted on, looking at policies to expand, support and increase public engagement with woodlands.
While the Woodland Carbon Guarantee is only available in England there are opportunities to secure Woodland Carbon income for projects in Scotland and Wales as well. One of our carbon project developers can help you through the registration process and may also be able to group your project with other landowners to save money on validation and verification costs. Get in touch using the form below or call:
England: Simon Marrington 07825193278
Scotland: Calum Murray 07887630600
Wales: Iwan Parry 07774255595
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Canfor Corporation, further to its announcement on November 9, 2018, completed the purchase of Elliott Sawmilling Company Inc. on May 31, 2020. Elliott adds over 210 million board feet of production capacity.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia (“BC”) with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas, as well as in Sweden with its majority acquisition of Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market Northern Bleached Softwood Kraft Pulp and a leading producer of high performance kraft paper. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP. For more information
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