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Resolute Forest Products invests $50 million in its sawmills

International Forest Industries - Tue, 15/06/2021 - 14:12

Each of the projects will serve to generate additional value from Resolute’s wood products segment across market cycles.

Resolute Forest Products Inc. has announced additional capital investments of $50 million in its wood products operations to support its continued growth, and it confirmed the repayment of all amounts outstanding under its revolving and term credit facilities, reducing debt by $180 million in the 2Q.

“The cash generated with our lumber platform in these strong lumber markets provides the opportunity to share benefits directly with shareholders,” said Remi G. Lalonde, president and CEO. “We’re also enhancing long-term value by improving our company fundamentals with investments in high-return and quick payback lumber projects in three key regions for Resolute: the Abitibi in Quebec, Northwestern Ontario and the Southeast U.S. What’s more, we’ve removed a material amount of debt from the balance sheet with the further $180 million repayment in 2Q, leaving as our only remaining debt the $300 million of unsecured 4.875% senior notes due 2026, and our liquidity stands at around $850 million.

The additional $50 million in wood products investments include:

  • $22 million to modernize equipment at the Senneterre (Quebec) sawmill, which will enhance overall efficiency and productivity of the Abitibi regional operations;
  • $13 million at the Thunder Bay / Fort William First Nation (Ontario) sawmill to increase capacity by up to 40 million board feet with new equipment and modifications to the fiber flow; and
  • $15 million at the Glenwood (Arkansas) and Cross City (Florida) sawmills to support fiber optimization and overall efficiency. The Cross City investment will also increase capacity by up to 20 million board feet.

Each of these projects will serve to generate additional value from Resolute’s wood products segment across market cycles. The improvements at the U.S. sawmills build on the previously announced investments associated with the restart of the El Dorado (Arkansas) sawmill. The company anticipates completing all the projects by the end of the 3Q 2022. Accordingly, it is raising its 2021 capital investments guidance from $100 million to $125 million.

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products.

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JCB Pursues Development Of Hydrogen Engine

International Forest Industries - Tue, 15/06/2021 - 12:29

JCB has developed a hydrogen-fueled engine and also set up a specialist development team as the company believes the technology offers the quickest way to reach carbon dioxide emissions targetsreports Ian Cameron CONEXPO-CON/AGG 365.

The company reported it believes hydrogen engines could be used in a variety of its machines although production of the engines would not begin until the end of 2022 at the earliest.

A re-engineered JCB 4.8 L engine is currently running on hydrogen at the company’s engine factory in the UK.

Meanwhile, another JCB 4.8 L hydrogen engine, producing 70 kW, has been fitted into a JCB backhoe-loader and is currently undergoing testing.

JCB Chairman Lord Anthony Bamford told Diesel Progress: “We accept that the days of fossil fuels are numbered. However, we don’t believe that the only way to achieve zero carbon emissions is by the use of fuel-cells or batteries which are more costly and complex.

“We can use our existing, proven engine technology and existing supply base to ensure that internal combustion engines, powered by hydrogen, remain a key part of the drive to achieving zero carbon emissions.

“Hydrogen is a clean, renewable and transportable fuel capable of powering larger, heavier equipment.”

The company said there are several other advantages associated with hydrogen engines, including the fact that a hydrogen engine is approximately the same price as a diesel engine and that it can be implemented into traditional powertrains.

Also, there is no requirement for charging stations and, unlike electric and battery options, hydrogen engines do not require expensive electric motors, JCB added.

“There is much discussion about the merits of using battery and fuel cell technology in machinery,” said Tim Burnhope, JCB chief innovation and growth officer, however, “We believe that the use of hydrogen internal combustion engines will provide the quickest way to reach the target of zero carbon dioxide emissions, especially from high-use, high-energy equipment such as larger excavators, backhoes and loadalls.”

Earlier this year JCB said it had developed the construction industry’s first ever hydrogen-powered excavator.

The 20-tonne 220X excavator, powered by a hydrogen fuel cell, has been undergoing testing at JCB’s quarry proving grounds for more than a year.

Photo: A JCB 4.8 L hydrogen engine, producing 70 kW, has been fitted into this JCB backhoe loader and is currently undergoing testing at a nearby proving ground in Staffordshire.

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Segezha Group to restore about 33 thousand hectares of forest in 2021

International Forest Industries - Tue, 15/06/2021 - 11:59

May to November 2021, Segezha Group (part of Sistema PJSFC) will carry out a set of scheduled reforestation measures in all logging regions: Krasnoyarsk Krai – 11.6 thousand hectares, Republic of Karelia – 9.5 thousand hectares, Vologda Oblast – 4.6 thousand hectares, Arkhangelsk Oblast – 4.1 thousand hectares, Kirov Oblast – 3.1 thousand hectares. The total area is 32.9 thousand hectares which is 3.8 thousand hectares greater than last year. For these purposes, 178 million rubles were allocated, an increase of 25 % yoy.

The holding aims to equalise the area of logging and the area of restored forests. The works are carried out in strict compliance with the Russian forest legislation. At each stage of the forest management process, Segezha Group acts taking into account the need to create and maintain forest infrastructure facilities in good condition, in particular, for the purposes of restoring and protecting forest lands; the transformation of animal habitats; the condition of water and soil environments and unique vulnerable landscapes classified as protection forests. Also, Segezha Group fulfils its voluntary liabilities under the international forest certification. It covers 83% of the leased state-owned forest lands that equal a total of 8.1 million hectares as of late 2020.

Natural, artificial and combined reforestation methods are used. Natural reforestation implies the preservation of viable understorey and stimulation of volunteer plants. Artificial reforestation involves sowing seeds or planting seedlings This year, Segezha Group will sow 830 kg of seeds and plant about 9 million seedlings.

Root ball seedlings have the greatest survival index. Every year, the number of root ball seedlings used increases.

“Our concern about forest lands is based on the general principles of forest management. Apart fr om that, when assessing the completeness of reforestation works, we must take into account that forest restoration is a time-consuming process. It takes two years after clearcutting. We also must consider that, in the areas wh ere temporary forest infrastructure facilities were previously placed, reforestation works can only be performed after the facilities are removed,” Natalya Konovalova, Director Forest Management at Segezha Group, noted.

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Welcome to Shaping the Future – Data and Digitalization in Logging webinar!

International Forest Industries - Tue, 15/06/2021 - 10:19

Ponsse wants to lead the development of future forestry business models and that is why digitalization and data are already part of our sustainable forestry roadmap.

Data acquisition and management enable the development of new tools (e.g., remote machine data configuration and scalable data platform) for business development. Also new services (e.g., fleet management, predictive maintenance and sustainability reporting) are developed together with our customers.

We are organizing “Shaping the Future” webinars on June 16, where our experts discuss about future logging and forestry operations enriched by digital services.

The English spoken webinars are live at 10:00 (Swedish and Finnish subtitles) and 16:00 EEST (Spanish and Portuguese subtitles).

Secure your spot now at: http://www.ponsse.com/…/pons…/shaping-the-future-webinar  

The participants of the panel discussion
• Senni Huutera, Director, Business Development & Strategy, Epec Oy
• Juho Leskinen, Product Group Manager, Digitalization & Information systems, Ponsse Plc
• Miika Soininen, Director, Digital Services & IT, Ponsse Plc
• Jaakko Kuivanen, Project Manager, Information Systems, Ponsse Plc

Welcome!

Juho Leskinen
Ponsse Plc, Product Group Manager, Digitalization and Information Systems,
juho.leskinen@ponsse.com, tel. +358 40 5742704

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Segezha Group Sends Its First Container Train to China from Arkhangelsk Region

International Forest Industries - Fri, 11/06/2021 - 14:25

On May 21, 2021, for the first time in its history, the Arkhangelsk Region-based Onega Sawmills (Segezha Group PJSC, a subsidiary of Sistema PJSFC) has sent a high-speed container train along the Onega—Grodekovo—Ganzhou Guojigang (China) route. Sixty-two forty-foot containers, carrying a total of 2,850 cubic meters of export lumber, were shipped to the Chinese customers. Haulage is organized by Swift-Rus Ltd. Once the containers reach the border, they will be loaded onto Chinese rail cars which will take them to their destination. The transportation time will take 15–20 days, which is 4–5 times faster than by sea. The plant has further plans for the route, intending to ship two freight trains per month.

“The dispatch of the first container train to China by Onega Sawmills is an important step, which allows to switch part of the cargo traffic to direct railway communication and remove the corresponding cargo volumes from the traditional sea route through St. Petersburg”, comments Andrey Yudin, Director of Logistics of Segezha Group PJSC. “The container train to China consists of several batches of lumber for different customers at different destinations in China. This logistic scheme allows for more efficient and faster dispatch of the train from the plant. This type of transportation is also quite competitive in comparison with sea routе and can become regular.

“The launch of container shipping is always interesting because the equipment for dispatching freight trains must be built up from scratch. And ultimately, what we get in the end is not just a whole new form of logistics for the enterprise but also, in a way, a whole new type of product, as the product cost changes, new sales models emerge, our consumer outreach expands, and our product range gets an update,” notes Ilya Mezhevoy, Deputy Development Officer at Swift-Rus Ltd.

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Segezha Group – Official Partner of the Siberian Logger Championship

International Forest Industries - Fri, 11/06/2021 - 11:53

Segezha Group, an international timber holding company (a subsidiary of Sistema PJSFC), became an official partner of the VII regional qualifying competition Siberian Logger. The championship took place on 3–4 June this year in Divnogorsk, Krasnoyarsk Krai.

Divnogorsk Technical School of Forestry Technologies held the competition for logging machine operators (harvesters, forwarders, fork loaders) and wood fellers. More than 30 logging specialists took part in the competition. The Mayor of Divnogorsk expressed his gratitude to Segezha Group for providing sponsorship support for the championship.

‘Support for the Siberian Logger by major woodworking enterprises of the Krasnoyarsk Krai in tandem with the Ministry of Forestry will contribute greatly to the development of the human resources in the timber industry,’ says Olga Shirman, Head of the Forest Industry Department of the Ministry of Forestry of the Krasnoyarsk Krai. ‘Demonstrating professional skills, exchanging experience and assessing participants’ skills and competencies at the regional level all enhance the prestige of the logging industry. It also helps improve the main business processes of the industry.’

The winners of the regional competition will represent the Krasnoyarsk Krai at the VI Russian Championship ‘Logger XXI century’ this August.

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Stora Enso plants more than 48 million tree seedlings in Nordic forests in 2021

International Forest Industries - Thu, 10/06/2021 - 11:46

It is the busiest time of the year, when forests are being regenerated by planting or seeding. This year, Stora Enso will plant a total of more than 48 million tree seedlings in Finland, Sweden, Russia and Estonia. In northern forests, the planting season is typically about 150 days long, which means that, during this year’s planting season, about 320 000 seedlings are planted every day.

Using cultivated plants and seeds, forests can grow as much as 20% faster than they would naturally. This means added value for forest owners and Stora Enso, as well as for nature and the climate. In 2020, Stora Enso invested 68 million euros in forest growth.

In 2021, Stora Enso and Tornator are, together, planting 14 million seedlings in Finland. In Sweden, where Stora Enso owns approximately 1.4 million hectares of forest and where seedlings are delivered from Stora Enso’s own nurseries, the company is planting 33 million seedlings. Russia follows, with approximately 850 000 plants in Carelia and 250 000 in Novgorod. In Estonia, Stora Enso is planting around 31 000 seedlings in private forests.

Healthy and growing forests mitigate climate change impacts, and with sustainable forest management, including planting, the role of forests in this can be enhanced further. Only growing forests absorb carbon dioxide from the atmosphere and store carbon throughout their lifetime. Carbon stays in the fibers when the tree is used in wood-based products, such as building elements, books and packaging – and it stays there even when these products are recycled.

“Planting and following forestry work are the most important climate actions that can be carried out in the forest. The more trees grow, the more they absorb carbon dioxide,” says Kari Kuusniemi, Forest Service Manager at Wood Supply Finland.

“Properly timed and implemented forest management measures increase the growth and vitality of the forest. Therefore we always strive to keep forests healthy while promoting biodiversity and other aspects of sustainable forestry. We want to ensure that our forests are fit for the future,” says Jari Suominen, Executive Vice President, Forest Division.

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Maxam Debuts The Full MS933 LOGXTRA Series

International Forest Industries - Thu, 10/06/2021 - 11:26

Delivering a Formidable Solution for Demanding Forestry Equipment

Adding two new sizes to its forestry lineup, the 73×44.00-32 and 73×50.00-32, MAXAM debut the complete range of the MS933 LOGXTRA, high flotation tire. Engineered from the inside out to provide demanding forestry equipment with a formidable solution, the MS933 delivers unparalleled performance, enhanced traction, and superior flotation in severe logging applications.

The MS933 LOGXTRA was designed with a high-strength, belt-stabilized construction to tackle the harshest terrains. Featuring the signature LOGXTRA compounding technology and manufacturing, the MS933 provides maximum protection from cuts and impacts in the toughest working environment. Additionally, the heavy-duty shoulder and sidewall allow users to take on the extreme without worrying about punctures.

Manufactured with an extra-wide footprint that delivers exceptional flotation in muddy and wet ground conditions, the MS933 increases productivity on all sites. To prevent common bead winding and mounting defects, the MS933’s bead is designed with a thick and short cross-section for added stability and strength. The cutting-edge bead package is also nylon-wrapped, allowing the MS933 to outlast alternative options in extreme conditions.

The MS933 LOGXTRA delivers maximum performance, extreme traction, and increased productivity at an undeniable value. The MS933 is available for skidder fitment in sizes to meet the needs of each application.

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Bergkvist Siljan can increase production by 60% at the Insjön sawmill

International Forest Industries - Wed, 09/06/2021 - 14:51

The Environmental Impact Assessment Delegation has granted the sawmill group Bergkvist Siljan permission to increase the production of sawn wood products at the Insjön sawmill by approximately 60%, from 400 000 to 650 000 m3 per year.

This a very positive decision, says Anders Nilsson, CEO of Bergkvist Siljan. The decision means that Bergkvist Siljan gradually will increase the production in a first phase from 400 000 to 500 000 m3 sawn wood products.

We see a significant increase in global demand of sawn wood products. The demand is driven by consumers choosing  sustainable materials to a larger extent. In addition, the technology to build tall buildings in wood has developed, says Anders Nilsson.

Contacts:
Anders Nilsson, CEO Bergkvist Siljan 070 574 19 17
Ulf Bergkvist, Chairman Bergkvist Siljan 070 594 02 20

Photo: Anders Nilsson, CEO Bergkvist Siljan

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Project Bois Factory BF70 – progressive kiln FLOW

International Forest Industries - Wed, 09/06/2021 - 14:22

Fully automated progressive kiln for Poujoulat Group’s BF70 plant now in successful operation.

The Poujoulat Group has been producing high-quality wood fuels (pellets, firewood …) at 6 locations across Europe (3 of them in France) since 2008. At the new Bois Factory 70 in Demangevelle, the company is now using a Mühlböck progressive kiln with fully automated feed system for drying its firewood.

Besides its two production facilities for high-quality firewood in Indre and Loire, the Poujoulat Group has recently taken into operation its newest plant in Demangevelle in the North of the Departement Haut-Saône. Built on the premises of a former spinning plant, the new factory is responsible for producing high-quality beech firewood using state-of-the-art and mostly fully automated technology from renowned equipment manufactures. In the mid-term the plant is supposed to process up to 150,000 m3 of round timber from the surrounding region annually.

First fully automated progressive kiln used for drying firewood
In order to maximally automate the entire production process, a progressive kiln FLOW was adapted to the drying of firewood together with Austrian drying specialist Mühlböck.

While the firewood used to be placed in the drying systems with forklifts, dried and retrieved, the entire feed and drying process is now fully automated and continuous. The firewood is transported through the drying system on a rail system in specially developed lattice boxes and optimally dried to the target moisture content of approx. 18 % in individually controlled drying zones.

Optimal solution 5 years in the making

“We informed Mühlböck about our plans for this plant several years ago,” says Plant Manager Pierre Jean Dexample. “Now, they have presented us with a system that precisely meets our requirements: A concept involving the multi-zone progressive kiln FLOW, combined with a rail transport system using lattice boxes.

”The project’s challenges lay in the special drying requirements of firewood and the high air resistance created by the logs of wood stacked in the boxes. “Separating the system into smaller drying zones and the possibility of individually equipping every zone with a matching ventilation and heating power creates an efficient and energy-optimised drying process,” report Mühlböck’s drying experts. “The newly developed progressive kiln FLOW was the perfect basis for Bois Factory 70.”

Extension decided – trust confirmed

Due to the positive experience with the drying system that was taken into service in 2020, Mühlböck received an order for yet another FLOW model progressive kiln in the Spring of 2021. With this 2nd investment tranche the plant in Demangevelle – with its some 40 staff – will contribute to the economic development of its region and create additional jobs in said region.

The fact that the company has decided to purchase a second Mühlböck drying system also shows that this system achieves and maintains the anticipated performance and consumption figures. The Austrian manufacturer is proud of the trust extended to them: “This also highlights Bois Factory 70’s satisfaction with the entire order process and Mühlböck’s after sales service.”

Mühlböck Holztrocknungsanlagen GmbH
4906 Eberschwang 45 – Austria , phone +43 / 77 53 / 22 96-0 , fax +43 / 77 53 / 22 96-9000
E-Mail: office@muehlboeck.com , VAT: AT U68 151 37

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Canfor to Invest in New Sawmill in Louisiana

International Forest Industries - Wed, 09/06/2021 - 13:52

Canfor Corporation (TSX:CFP) is excited to announce it will invest approximately $160 million USD to build a new, state-of-the-art sawmill near DeRidder, Louisiana. The Company is pleased to be receiving significant state and local incentives in support of the project. The facility will have an annual production capacity of 250 million board feet on a two-shift basis and will directly employ about 130 people plus create significant additional indirect jobs.

The Louisiana facility will have manufacturing capacity and flexibility to produce a wide variety of highvalue wood products for our customers. Startup is expected to commence late in the third quarter of 2022.

The investment in Louisiana is in addition to the approximately $300 million of 2021 capital spending, including about $200 million for the solid wood and pulp operations in Western Canada and $100 million for the solid wood operations in the U.S. South. “We are excited to grow our operating footprint with the greenfield project in Louisiana, which will increase our production capacity and allow us to meet the growing demands of our customers. We also continue to invest significant capital in our British Columbia and U.S. South facilities to ensure we sustain our top quartile operations and strategically grow our global operating platform,” said Don Kayne, President and CEO, Canfor.

“Agribusiness remains one of our key industries for growing Louisiana’s economy, and our state offers unique advantages that attracted Canfor here,” said Governor John Bel Edwards, State of Louisiana. “This major new manufacturing project can resonate across the region’s economy in a variety of ways. We welcome plans for this foreign direct investment in Louisiana by this industry leader, and we look forward to the good jobs this project is expected to create in Beauregard Parish for the region’s skilled workforce.”

Given the decision to build a new facility in Louisiana, Canfor will not be proceeding with the greenfield project in Washington, Georgia that was previously announced on February 22, 2018.

About Canfor Corporation

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 visit canfor.com.

Media Contact: Michelle Ward Senior Director, Communications & Government Relations (604) 661-5225 communications@canfor.com

Investor Contact: Pat Elliott Senior Vice President, Corporate Finance and Sustainability (604) 661-5441 Patrick.Elliott@canfor.com

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Focus for WoodTECH21

International Forest Industries - Wed, 09/06/2021 - 10:47

WoodTECH21 – 3-4 August 2021, Rotorua, NEW ZEALAND
Virtual Online, AUSTRALIA & INTERNATIONAL

Two years ago – over two weeks – the FIEA WoodTECH technology series achieved a record turnout of local sawmilling companies. Over 350 delegates from all major sawmilling companies in addition to leading tech providers from throughout Australasia, North America and Europe converged on Melbourne, Australia and Rotorua, New Zealand.

Two years later, after huge disruptions worldwide, WoodTECH 2021 will again be running in this region. In fact, it’s likely to be one of very few major sawmilling events run – anywhere in the world – this year.

What’s been covered?

The list is comprehensive. It’s again going to be one of the largest gatherings of sawmillers, saw-doctors and tech and equipment providers seen in two years.

This year, in addition to a raft of exciting new innovations around sawmilling and saw maintenance, a feature of this year’s event will be the number of practical workshops being given, including:

  • Saw guides and lubrication
  • Fine-tuning your circular and band saws
  • Making use of machine data in the mill
  • Real-time data collection for machine diagnosis and troubleshooting

A focus this year has also been given to one of the major constraints to increased production, how we can retain and attract younger skills into the industry. A series of presentations around new timber treatment and wood modification technologies have also been built into the event.

For a full programme of presentations and workshops planned as part of this year’s WoodTECH 2021, check out the website, www.woodtech.events.

If you have any questions about the programme or are interested in speaking, please contact Brent Apthorp on brent.apthorp@fiea.org.nz.

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Tschopp Holzindustrie AG sawmill – Groundbreaking Ceremony For Chf 75 Million Investment

International Forest Industries - Fri, 04/06/2021 - 14:29

At the beginning of May, construction work started on the new Tschopp Holzindustrie AG sawmill in Buttisholz on the 20,000 m2 area reserved especially for the plant. If everything goes according to schedule, Switzerland’s most modern sawmill will start operations in spring 2023.

Photo: From l/r: Roland Birrer, Head of Sawmill; Daniel Tschopp, Ronald Tschopp

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Metsä Group introduces a new pricing method with thinnings

International Forest Industries - Fri, 04/06/2021 - 13:46

In the new method, trees removed by thinning are paid a trunk price based on their severity. The method has been developed to be able to optimize the value added of wood in all end product market situations.

The steepness trunk price means that the trees to be thinned are purchased as complete trunks and the price received by the forest owner is determined by the average severity of the trees to be removed. The way the logs are cut into fibers and supports does not affect the forest owner’s timber trade income.

Because the wood can be cut into suitable pieces according to need and the market situation, the price frame price is also competitive compared to traditional log-fiber pricing.

“Our forest expert uses a modern measurement tool to assess the severity of the stand and the quality of the stand. Based on this information, we determine the frame price for the stand by tree species, ” says Juha Jumppanen , Metsä Group’s Director of Timber Trade and Forest Services.

The forest owner receives from the forest expert an estimate of the average stiffness of the felled spruce trunks and pine trunks and the trunk price per cubic meter to be paid for each tree species.

“In connection with the timber trade, the forest owner also receives a table from which he can see how the cubic price changes if the steepness changes from the estimated one,” Jumppanen says.

After harvesting, the exact result measured by the harvester on the average roughness of the removed trees is obtained. If the average severity is higher than the average severity estimated by the forest expert, the price to be paid for the wood will increase and otherwise the price will decrease.

“The most common way of thinning is to remove low-quality and low-growing trees so that the best trees have room to be turned into decent logs. If heavier trees are removed during felling, it will also increase the price, ”says Jumppanen.

Until now, Metsä Group has purchased renewal stands at a fixed frame price. In them, it is easier to assess the severity of the trees to be removed than with thinnings. In regeneration felling, timber harvesting also has no effect on the average rutting of the exit, as all trunks, with the exception of thrift trees and valuable natural sites, are felled.

“We want to increase the use of frame pricing and free up interruptions so that we can optimize the value added of the frame in all end-product market situations,” says Jumppanen.

“Rigid frame pricing was piloted in the autumn of 2020, and received very good feedback from forest owners. Everyone involved was ready to sell their next thinning stock with a new pricing method. ”

The rigid frame price will be introduced in June in Metsä Group’s supply districts in Lohja, Oulu, Jyväskylä and Joensuu. It will expand to the entire country by the end of the year.

Additional information:
J uha Jumppanen, Director, Timber Trade and Forest Services, Metsä Group, tel. +358 50 384 4808
Krista Kimmo, Communications Manager, Metsä Group, tel. +358 50 526 4911

Metsä Group’s wood procurement and forest services
 
www.metsaforest.com

Metsä Group’s wood procurement and forest services are responsible for the services provided to Metsä Group’s parent company, Metsäliitto Cooperative, and their development. Metsäliitto Cooperative has about 100,000 forest owners, who own a total of about half of Finland’s private forests. They  provide  owner members with all the necessary forest management services for sustainable forestry and increasing the value of forest assets.

They source all the wood used by Metsä Group from sustainably managed forests in the Baltic Sea region, most of it from owner members in Finland. They also supply a significant amount of energy wood, bark and sawdust for further processing.

In 2020, turnover was EUR 1.8 billion employing about 840 people.

The steepness frame price means that the price received by the forest owner from the wood is determined by the average severity of the trees to be removed.

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BSW acquires Bayram Timber Ltd

International Forest Industries - Fri, 04/06/2021 - 12:40

Established over 20 years ago, Bayram is a market leading timber processor and manufacturer, and a key supplier into the UK caravan, leisure home and garden sectors. Operating from a 17 acre site in Melton, East Yorkshire, the business has annual sales of £30 million and employs over 160 people.
The acquisition of Bayram will strengthen BSW’s value-added processing capabilities and further broaden BSW’s product offering and service to customers.

Following the acquisition, BSW plans to undertake a significant capital investment program in the Melton site to increase capacity and broaden the capabilities of the business.

Geoff Goodwin, Chairman of Bayram, said: “We are proud of what we have achieved at Bayram over the last 20 years and delighted to be selling the business to such a good home in BSW.

“Bayram has a strong position within the caravan and timber market, and by being a valued supplier into BSW for many years, we feel this acquisition is hugely positive for our employees, customers and the whole supply chain”.

Tony Hackney, CEO of BSW, added: “We are very pleased to be strengthening our position in the value-added timber market by acquiring Bayram. The opportunity to enhance our supply chain and additionally widen our product offering is exciting.

“This represents another major milestone in the growth of BSW and provides our customers with a more robust and broader range of products. We are looking forward to drawing on the expertise and knowledge of Geoff, Chris Husband and the whole team at Bayram. I would also like to thank the Endless LLP team for their support in acquiring Bayram.”

Bayram will be integrated with BSW Timber Solutions Ltd and will continue to operate from the existing site in Melton. Bayram processes 120,000m³ of machined and further refined timber annually, with the support of 160 colleagues. Bayram supplies bespoke components for many markets including garden, caravan manufacturers; timber merchants; and decking and cladding retailers.

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AFRY acquires MosaicMill Oy in Finland

International Forest Industries - Fri, 04/06/2021 - 11:41

AFRY has acquired MosaicMill Oy, a leading, Finland-based company that applies drone and satellite image data for forest inventory services. Through this acquisition, AFRY takes a significant step to become the global leader in Smart Forestry digital services and solutions.

”We warmly welcome MosaicMill as part of AFRY. Their competence and technology for accurate inventory data will play a key role as we develop our full offering of Smart Forestry digital services and solutions for the global market,” says Saara Söderberg, VP of Bioindustry Management Consulting, AFRY.

MosaicMill’s technology enables forestry planning without traditional field work. With digitally collected, accurate data, owners can make well-informed and timely decisions for sustainable forest asset management.

“MosaicMill has developed drone based tree-wise inventory method since 2017. The solution enables fully digital work flow and forms a good basis for precision forestry applications,” said Ismo Hippi, Managing Director of MosaicMill. “We are excited to join forces with AFRY to continue to grow the business and expand AFRY Smart Forestry service offering.”

Today AFRY has also announced the acquisition of Simosol Oy, a Finland-based forestry technology company specialising in advanced simulation and optimisation for forestry. AFRY’s new, unique and exciting combined portfolio of technologies will create basis for precision forestry, by combining accurate tree-level inventory to other data sources and using proven simulation and optimization platform.

Together with MosaicMill and Simosol’s competence and technologies, AFRY can provide clients with a global Smart Forestry centre of excellence and be the forerunner for unique digital solutions and services for sustainable forest management.

”With high-quality inventory data and a world-class simulation and optimisation platform, AFRY will be able to serve major players in the market and integrate with forest management systems of all kinds, whilst strengthening our own offering for the whole forest management value chain,” continues Saara Söderberg.​

MosaicMill’s net sales in 2020 were SEK 4 million. The company will be consolidated into AFRY from June 2021.

For more information, please contact:

Saara Söderberg
Vice President, Bioindustry Management Consulting, AFRY
Tel. +358 40 5336658
saara.soderberg@afry.com

AFRY is a European leader in engineering, design, and advisory services, with a global reach. We accelerate the transition towards a sustainable society.

We are 16,000 devoted experts in infrastructure, industry, energy and digitalisation, creating sustainable solutions for generations to come.

Making Future

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Eacom’s Elk Lake Sawmill To Get New Continuous Dry Kiln

International Forest Industries - Wed, 02/06/2021 - 13:54

EACOM Timber Corporation recently announced an investment of $8.9M to equip its Elk Lake sawmill with a new, state-of-the art continuous dry kiln (CDK). Expected to be fully operational by early fall, the CDK will allow for continuous drying of lumber, reducing production bottlenecks and energy consumption. This will be the second such installation for EACOM, the first having been installed in 2017 at its Timmins sawmill.

“This significant investment in Elk Lake is a testament not only to EACOM’s commitment to technological innovation and being best-in-class, but also to our long-term vision for this region. Built over 50 years ago, this mill has thrived alongside the community thanks to sustainable forestry practices, and now, with this latest addition, we are confident it will be an important partner for many more years to come,” EACOM President and CEO Kevin Edgson.

In addition to being more energy efficient, the new system will eliminate the use of both diesel fuel and propane which are currently being used as part of the energy mix for heating the buildings on-site and two kilns. Going forward, all building heat and the new CDK will be exclusively powered by direct fired natural gas, a much cleaner energy source.

“The pandemic and subsequent demand for our essential products highlighted the need to fast track some of these investments and maximize our production capacity. We are proud that the fiber we harvest sustainably around Elk Lake is turned into homes for families across North America, as well as paper, cardboard, sanitary masks, and is even used in medication,” explains Mr. Edgson.

The Elk Lake sawmill is an economic driver for the town and surrounding area, supporting over 140 workers directly, a further 210 jobs in woodlands operations, and hundreds more via vendors, contractors and transporters. Since 2016, EACOM has invested nearly $100M across its 9 facilities to maintain and upgrade equipment.

About EACOM Timber Corporation

EACOM Timber Corporation is a major Eastern Canadian wood products company. Operations include the manufacturing, marketing, and distribution of lumber and wood-based value-added products, and the management of forest resources. EACOM owns seven sawmills, a remanufacturing facility, and an engineered I-joist plant with over 1,200 employees. The Company is committed to investing in strong assets, including healthy forests, advanced technology, and talented people.

 

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Eacom Announces The Installation Of A Continuous Dry Kiln At Its Matagami Sawmill

International Forest Industries - Wed, 02/06/2021 - 13:28

EACOM Timber Corporation recently announced an investment of $7.7M to equip its Matagami sawmill with a new state-of-the-art continuous kiln (CDK). The kiln, which is expected to be fully operational by October 2021, will allow lumber to be dried 24 hours a day, without interruption, directly at the facility.

“The City of Matagami is thrilled with this significant investment for the future of the sawmill and our city. It is a strong gesture that shows that we are all in this for the long haul and demonstrates the spirit of sustainable partnership that has developed between us and EACOM Timber Corporation over the years. The development of renewable resources is essential for the communities of our region and they must be able to benefit in the long term, and as a priority, from stable fiber supplies so that today’s wonderful announcement is the first of many.” – Mr. René Dubé, Mayor of the City of Matagami.

The Matagami sawmill is an economic driver for the city and surrounding region, supporting more than 80 workers directly, another 240 jobs in forestry operations and hundreds more through vendors, contractors and transporters.

“The critical nature of our products has been highlighted over the past year and we have made the strategic choice to accelerate some of these investments and maximize our production capacity. We are proud to contribute to the construction of homes for families across North America, as well as the production of paper, cardboard, sanitary masks, and even medicines with the fiber we sustainably harvest around Matagami.” – Kevin Edgson, President and CEO of EACOM.

In addition to being more energy efficient, the CDK will allow more control over the process locally and maximize the quality of the fiber produced at the mill. The addition of overall drying capacity will allow EACOM to increase its total yield of forest products.

About EACOM Timber Corporation

EACOM Timber Corporation is a major Eastern Canadian wood products company. Operations include the manufacturing, marketing, and distribution of lumber and wood-based value-added products, and the management of forest resources. EACOM owns seven sawmills, a remanufacturing facility, and an engineered I-joist plant with over 1,200 employees. The Company is committed to investing in strong assets, including healthy forests, advanced technology, and talented people.

Twitter @EACOMTimberCo

For interviews or additional information:  Biliana Necheva Senior Advisor, Public Relations  514.867.7245                                                                        

Biliana.Necheva@EACOM.ca

 

 

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Interfor Continues to Grow with Acquisition of Four US Sawmills from Georgia-Pacific

International Forest Industries - Wed, 02/06/2021 - 12:56

INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announced last week that it has reached an agreement with Georgia-Pacific Wood Products LLC and GP Wood Products LLC (collectively “Georgia-Pacific”) to acquire four of its sawmill operations located in Bay Springs, MS, Fayette, AL, DeQuincy, LA and Philomath, OR (collectively the “Sawmill Operations”). The total purchase price of US$375 MM, which includes working capital, will be funded entirely from cash on hand.

The Sawmill Operations are highly complementary to Interfor’s existing platforms in the US South and the US Northwest, and the acquisition will support accelerated growth and enhance the Company’s position to benefit from robust market conditions. The acquisition will be immediately accretive to Interfor’s earnings and is expected to provide attractive returns in both the near-term and over the long-term.

“This acquisition enhances Interfor’s growth-focused strategy as a pure-play lumber producer, and provides significant economies of scale given the complementary geographic fit with our existing US operations” said Ian Fillinger, President and Chief Executive Officer. “We’re excited to acquire these high-quality assets as part of our balanced approach to capital allocation to drive shareholder value.”

The Sawmill Operations have a combined annual lumber production capacity of 720 million board feet. The Bay Springs, Fayette and Philomath sawmills are currently operating on a full-shifting basis. The DeQuincy sawmill, which was idled in May 2020 during the COVID-19 pandemic, has an annual capacity of 200 million board feet. Interfor is currently evaluating its strategy and options for the site, including re-start plans.

On a pro-forma basis, Interfor’s total annual lumber production capacity will increase to 3.9 billion board feet, of which 3.0 billion board feet or 77% will be US-based and not subject to softwood lumber duties. Interfor’s US South production capacity will grow by 500 million board feet, or 29%, to 2.2 billion, while production capacity in the US Northwest will grow by 220 million, or 40%, to 770 million board feet. Following the transaction, 57% of Interfor’s production capacity will be in the US South, 20% will be in the US Northwest and the remaining 23% will be in British Columbia.

The Sawmill Operations, excluding the DeQuincy sawmill, generated US$53 million of EBITDA1 in the first quarter of 2021, reflecting an EBITDA1 margin of US$508 or $643 per thousand board feet. This compares favorably with Interfor’s EBITDA margin of $589 per thousand board feet for the same period.

Following the completion of this transaction Interfor will continue to have significant financial flexibility to consider additional value-creating capital deployment options. As of April 30, 2021 Interfor was in a net cash position of approximately $380 million. Proforma this acquisition and the special dividend announced on May 12, 2021, Interfor’s Net Debt to Invested Capital ratio as of April 30, 2021 would increase to 13%. Similarly, proforma liquidity as of April 30, 2021 would be approximately $500 million, before consideration of significant additional borrowing capacity available under existing credit limits and continued strong near-term operating cash flows.

The completion of the acquisition is subject to customary conditions and regulatory approvals for a transaction of this kind and is expected to close in the third quarter of 2021.

ABOUT INTERFOR

Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.2 billion board feet and offers a diverse line of lumber products to customers around the world. For more information about Interfor, visit our website.

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Brazil’s Atlantic rainforest is one of world’s most diverse ecosystems with a high number of endemic species.

International Forest Industries - Tue, 01/06/2021 - 11:56

The results of Brazilian plantation companies and other actors’ long-term work in the Atlantic rainforest restoration has been highlighted in the WWF, Birdlife and Wildlife Conservation Society report on forest restoration published in May 2021.

The study points to the Atlantic Forest in Brazil as one of the success stories for regeneration, where an estimated 4.2 million hectares – an area roughly the size of the Netherlands – has regrown since 2000. Read the full study here.

Veracel, Stora Enso’s 50/50 joint operation in the Bahía state of Eastern Brazil, consisting of a pulp mill and eucalyptus tree plantations, has been restoring rainforest since 1994. When Veracel started operations in 1991, less than 7% of the original Atlantic rainforest was left in the region following extensive logging and clearing for cattle ranching between the 1950s and 1980s. Veracel’s eucalypts plantations have been established on degraded pasture lands in the Atlantic rainforest biome. Approximately half of Veracel’s 213 000 hectares of land are dedicated to rainforest conservation and restoration. Veracel has restored in total, 7 200 hectares of the Atlantic rainforest – between 1994 and the end of 2020.

Since the plantations were established, Veracel has worked systematically to protect and restore local biodiversity. Veracel’s contribution to the conservation of natural Atlantic rainforest and its rich biodiversity has been recognised by both the Brazilian authorities and international stakeholders.

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by Dr. Radut