International Forest Industries
Ponsse launches a new debarking PONSSE H8HD Euca harvester head for eucalyptus sites. The new powerful harvester head has been designed as a response to our customers’ needs, and it further strengthens Ponsse’s strategy to be the leading global manufacturer of harvester heads.
-The new harvester head has been designed for the PONSSE Bear harvester, but especially it is ideal solution for track-based machines. PONSSE H8HD Euca is an effective tool in forests where the diameter of eucalyptus stems can be up to 50 cm. The geometry of the new harvester head’s debarking knives and feed rollers improves the efficiency of H8HD Euca in debarking and processing both smaller and larger stems. Ponsse’s heavy-duty frame structure means that the new harvester head can withstand the extreme loads of track-based machines, says Janne Loponen, Product Manager, harvester heads.
The PONSSE H8HD Euca harvester head has been optimised to debark trees. Its feed rollers and debarking knives guarantee first-rate debarking results from start to finish. The solid frame and robust tilt frame give the harvester head the durability needed in debarking. Automated functions control saw movements according to the tree diameter and saw bar position and allow trees to be cut quickly.
All Ponsse harvester heads have been designed to withstand even the toughest conditions. They are characterised by a simple and solid structure which enables them to be used in various harvesting applications, ranging from harvesters to track-based solutions. All PONSSE harvester heads are manufactured and designed at the Ponsse factory in Vieremä. The design process is comprehensive and covers, in addition to mechanical parts, the electronic control system, controls and software. The manufacturing process is highly automated to ensure high quality and measuring accuracy. Durable hoses and delimbing knives form an important part of reliability.
See also ponsse.com
We will tell you more about our new product at webinars!
Ponsse arranges webinars to demonstrate its latest product. A product specialist from Ponsse will tell you about PONSSE H8HD Euca harvester head solutions and what make it an effective package at eucalyptus sites.
Webinars will be held in three languages:
English: 15.4. at 5:00-6:00 GMT
Spanish: 15.4. at 12.00-13:00 GMT
Portuguese: 17.4. at 12:00-13:00 GMT
Select a suitable date and time – register here.
More information from your local Ponsse partner https://www.ponsse.com/contacts/
Janne Loponen, product manager, harvester heads, email@example.com, tel. +358 40 502 8018.
Ponsse Plc is a company specialising in the sales, manufacture, servicing and technology of cut-to-length method forest machines and is driven by genuine interest in its customers and their business. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customers’ needs. The company was established by forest machine entrepreneur Einari Vidgrén in 1970, and it has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the NASDAQ OMX Nordic List.
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From January this year, wood processing company Juodeliai UAB started with a new website: www.juodeliaiperka.lt , which is focused only on buying logs.
The purpose of creating a new website is to avoid lumber dealers and have direct access to every forest owner. By avoiding the brokerage fee, they can offer forest owners a better purchase price. Juodeliai UAB prices are public and accessible 24/7. Anyone interested in selling pallet logs can contact them directly, in a convenient way: fill in the form for sale timber, write and consult online or send an email.
As of today, forest owners no longer have to worry about how to deliver packed logs to Juodeliai units, as the company is ready to bring them straight from the forest.
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Despite all disturbances caused by COVID-19 worldwide, the wood processing company UAB Juodeliai continues its operations without significant interruptions.
The majority of administration staff has been working remotely since mid-March; however, three of its production units continue operating and the entire team consistently works.
UAB Juodeliai has implemented a number of procedures in order to minimize the risk of COVID-19 spreading among company employees and from employees to clients.
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Western Forest Products Inc. (“Western”) announced that effective March 23, 2020 it will curtail its manufacturing facilities currently operating in British Columbia, Canada, due to the evolving COVID-19 pandemic and its impact on operating conditions. The planned curtailment is scheduled for up to one-week.
During this period the company will re-evaluate business and operating conditions to determine when these manufacturing operations will resume. Packaging and shipping of lumber products will continue to meet customer requirements. The ongoing curtailments at the company’s Cowichan Bay and Ladysmith sawmills are expected to continue into the 2Q due to limited log supply and weak market demand.
Western will also take steps to minimize its planned capital expenditures in 2020. The company plans to incur only safety, environmental and committed capital expenditures in the near-term. Going forward discretionary capital will remain on hold until there is greater operational certainty.
Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.
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For the month of April, the company expects to reduce operating capacity by approximately 20% for lumber, 15% for oriented strand board, and 15% to 25% for engineered wood products through a combination of temporary mill curtailments and reduced shift postures.
Weyerhaeuser, one of the world’s largest private owners of timberlands, began operations in 1900. The company owns or controls approximately 11 million acres of timberlands in the U.S. and manages additional timberlands under long-term licenses in Canada.
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The Belarussian wood processing industry will become more competitive following the construction of a new timber sawmill in south Belarus being supported by the European Bank for Reconstruction and Development (EBRD). A new privately-owned sawmill will be constructed by Kaamos Timber on a brownfield site near one of the country’s oldest towns Mozyr.
A 7-year EBRD loan of up to EUR 15 million will finance a production facility, which will annually produce around 250 000 m3 of sawn softwood. It will be exported to existing and new markets.
The Mozyr sawmill, owned by Kaamos Timber, a subsidiary of Estonia-headed Kaamos Group a capital-based company that operates in the area of property development, construction, and sawmill industry, will create around 100 new jobs in Mozyr and help Kaamos Timber to almost double its current annual production capacity in Belarus – 450 000 m3 of sawn softwood.
The EBRD has worked with Kaamos Timber for more than two decades and successfully implemented a similar project in the town of Vitebsk, in northern Belarus.
Since the start of its operations in Belarus in 1992, the EBRD has invested almost EUR 2.7 billion in 119 projects in various sectors of the country’s economy.
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The total area notified for final felling in Sweden for the whole country was 18 501 hectares in February 2020, which is the same level as in 2019. There is, however, a large variation between different parts of the country, reports the Swedish Forest Agency.
In region Northern Sweden the notified area decreased by 50% to 1 800 hectares, which is lower than average (2 640 hectares) for February during the period 2007 – 2020.
In region South of Northern Sweden the notified area increased by 15% to 3 924 hectares compared to the same period 2019, which is close to the average of 4 040 hectares for February during the period 2007 – 2020.
In region Central Sweden the notified area increased by 26% compared to February 2019 to 6 466 hectares. This is significantly above average (3 333 hectares) for the period 2007 – 2020 and the highest note in 14 years.
In region Southern Sweden the notified area was 6 295 hectares, which is approximately the same level as 2019.
The large decrease in notified area for final felling in February this year compared to the same month 2019 in region Northern Sweden is likely due to the unusually large areas notified last year after storm fellings by the storm Jan.
Due to the storm Alfrida it was same situation in region Central Sweden in February 2019 and the high notes of notified areas remains in February 2020 as well.
Metsä Fibre has made the decision to build the world’s most modern sawmill in Rauma, Finland. Construction will begin in the spring of 2020. Production at the sawmill is set to begin during the 3Q 2022. The coronavirus outbreak may have an impact on the schedules.
Ilkka Hämälä, President and CEO of Metsä Group, says: “The pre-engineering of Kemi bioproduct mill has progressed well and we expect to reach the decision-making stage in the autumn of 2020, as the environmental permit process is finalised. In this challenging situation faced by the society, what Finland needs now is investments and faith in the future. We estimate that the role of Finnish suppliers will be significant in implementing these investments.”
The value of the Rauma sawmill investment is approximately Euro 200 million, and the new unit will produce around 750,000 cubic metres of pine sawn timber a year. The new sawmill will be a worldwide forerunner in technology and efficiency. For example, using machine vision and artificial intelligence in different stages of the sawing process is a significant new development. Similar technology is not yet in use anywhere in the sawmill industry.
“The next-generation sawmill to be constructed in Rauma is a significant leap forward for the whole industry. The new technology allows for the transition from workstations to control room monitoring and continuous operation. The key elements of the Rauma sawmill’s operating model include employees’ in-depth expertise and multiple skills as well as user maintenance,” says Ismo Nousiainen, CEO of Metsä Fibre. “The demand for high-quality sawn timber will increase globally, especially in the demanding component and woodworking industries.”
The new sawmill will employ around 100 people directly and around 500 people across its direct value chain in Finland. The sawmill’s employment impact during the construction phase is estimated to be roughly 1,500 person-years. The annual use of logs sourced in Finland is estimated to be around 1.5 million cubic metres. Sawn timber produced by the Rauma sawmill will be sold mainly to Europe and Asia.
Metsä Fibre has made an agreement with Veisto on the delivery of the new sawline. This delivery’s degree of Finnish origin is more than 80%. Negotiations with other equipment suppliers are underway. The company has signed an agreement with AFRY on planning the sawmill’s construction phase and with A-Insinöörit on construction management services.
Photo: Ismo Nousiainen, CEO of Metsä Fibre.
Year 2019 was record-breaking for forest machine manufacturer Logset Oy. The turnover was Euro 48 million, compared to Euro 40.1 million in 2018. FY 2019 operating profit landed on Euro 2.5 million, compared to Euro 1.6 million in 2018. The turnover and result were higher than ever.
However, during the first months of 2020 the market situation has clearly weakened. In the beginning of the year it was observed that the demand for forest machines has decreased. In Finland the demand was affected by labour disputes.
The global market suffered from the amounts of force cut timber due to storms in Central Europe and insect damages in North America and Europe. The price of timber had dropped already before the outbreak of the global Corona virus pandemic. The current risks have to do with the world’s economical state and health issues, as well as how the sales will develop.
Logset believes that the growth target for 2020 is still within reach, even when taking in account the disturbance of the market caused by the Corona virus.
Logset Oy is a Finnish forest machine manuf acturer located in Koivulahti, near Vaasa.
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The 6050 carbonator is the first product offering from Tigercat’s new material processing equipment line-up. Unique, cost-effective and eco-friendly, the 6050 carbonator reduces wood debris volume onsite through an environmentally friendly carbon sequestration process with no material pre-processing required.
Logs, limbs, brush, stumps, yard waste, pallets, clean lumber and other clean wood-based debris can be reduced by 90-95%. The remaining carbon-based output – often referred to as biochar – sequesters the captured carbon. Because there is no resulting organic decay, along with the associated release of greenhouse gasses, Tigercat believes that this carbonization process represents the lowest carbon footprint of any competing material reduction method.
For the full news release visit here.
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Enviva and The Longleaf Alliance announced the signing of a five-year partnership to protect and restore longleaf pine forests, one of the most biodiverse ecosystems in North America. Enviva and The Longleaf Alliance will collaboratively implement Enviva’s longleaf forest restoration plan.
Longleaf pine forests are a critical forest ecosystem in the southeastern U.S. They are considered high conservation value forests because of their rarity and biodiversity value. Longleaf forests support some of the highest levels of small-scale species diversity of any forest ecosystem in North America.
Once spreading over 90 million acres, longleaf forests today only cover about 4.7 million acres. The partnership between Enviva and The Longleaf Alliance will support the goals of America’s Longleaf Restoration Initiative, an extensive collaboration to increase acreage of longleaf pine forests to 8 million acres across the southeastern U.S.
The Longleaf Alliance will provide technical expertise to ensure that Enviva’s biomass sourcing in mapped longleaf forests improves forest ecosystem conditions. Because many existing longleaf forests need thinning, and because millions of acres of former longleaf forests were converted to other forest types, appropriate biomass removals are a critical step in the longleaf restoration process.
Together, Enviva and The Longleaf Alliance will work with stakeholders, landowners, land managers, and others to support longleaf restoration on public and private lands, as well as to monitor, track, and report on progress.
Enviva Holdings, LP is the world’s largest producer of industrial wood pellets, a renewable and sustainable energy source.
Due to the closure of suppliers of critical components, Komatsu Forest will temporarily shut down its production of forest machinery at its factory in Umeå. On March 26, the company agreed with IF Metall on short-term work from 2020-04-13 through 2020-06-21 for employees in production.
“The background is that the Corona pandemic has caused some of our suppliers to shut down their production, forcing us to shut down our production completely for three weeks, after which we intend to gradually increase production. However, our production plan assumes that our suppliers can start up their production according to plan and that restrictions on the spread of infection allow it,” says Jens Bengtsson COO of Komatsu Forest.
Other measures that have been taken are that the company has terminated consultancy contracts and laid off fixed-term employees in production.
The company will continue to operate its services to the extent that restrictions on different markets allow.
“We see that in many places around the world, our customers can still operate. Therefore, we will do what we can to safely service and provide spare parts to our customers. Our workshops and service points will carry out their work based on the restrictions set for reducing the spread of infection,” concludes Bengtsson.
If you have any questions, please contact the Press Officer
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The New Zealand Government will spend NZ$100 million redeploying forestry workers who have been impacted by the COVID-19 pandemic. The forestry industry on the East Coast has been hit hard by the coronavirus because of supply chain disruption in China. Many of the country’s logging crews are unable to work as a result.
Economic Development Minister Phil Twyford, Forestry and Regional Economic Development Minister Shane Jones and Employment Minister Willie Jackson announced the funding last Friday. Twyford said COVID-19 has had a “significant” impact on workers throughout New Zealand, but acknowledged that forestry workers in Gisborne have been the hardest hit.
“Our Government is moving quickly to help people stay in work through a NZ$100 million package which will see workers redeployed into local alternative employment for the next three to six months. Of this funding, NZ$28 million will go to Tairāwhiti [Gisborne] to help redeploy almost 300 workers.
“Forestry was one of the first industries to be seriously impacted by COVID-19 but by keeping the infrastructure and workforce of the sector intact, we hope it will be one of the first to recover,” Twyford said.
Jones said the forestry industry, which is responsible for 6.7 percent of regional GDP, is still recovering from a “slow-down” last winter. “Many small firms used their cash reserves to get them through that and some companies are now struggling to survive.
“However, the future for the forestry sector is extremely bright and we want to ensure it is in a position to recover from the economic impacts of COVID-19 as quickly as possible. By redeploying workers to short-term projects, we can help ensure they are available to go back to the forestry sector once it returns to normal,” Jones said.
Jackson said the package includes training, transport, administration, assurance and other project-related services. Alternative work identified for Tairāwhiti forestry workers includes:
• local roading work, including road maintenance
• hazardous tree removal
• fast-tracked One Billion Trees projects
• conservation activities
• retraining and educational opportunities.
The money will be administered by the Provincial Development Unit, the Mayors’ Forum and Gisborne District Council. Affected workers will be referred via the Ministry of Social Development’s Rapid Response Team and affected businesses.
Covid-19 – In this update from Te Uru Rakau, please find information on essential services, ports and registering as an essential service which will or should have been implemented as New Zealand went into Level 4 Alert for Covid-19 late on Wednesday.
At an industry teleconference on Wednesday, Forestry Minister Shane Jones clarified that the bar for essential services had been set deliberately high by the Government and there would be no stepping back from this in the current environment as this disease continues to spread.
Therefore, unless you are specifically identified as otherwise, you should assume that your businesses will need to shut down and that your key task is working to manage this, and to be supporting your people over the next four weeks so they can remain at home.
Please find below the list of essential services within the forestry and wood processing sector:
Essential services within the forestry sector
• Oji’s pulp and paper mill (Kinleith)
• Oji’s stand-alone Tasman chemical plant, for the purposes of producing chlorine for water treatment;
• Secondary wood processes for the purpose of producing shipping pallets, packing cases and other packaging requirements for supporting food, beverage and pharmaceutical supply only;
• Chip and pellet production for supply of essential domestic and industrial heating (such as for hospitals and food processors) using existing raw fibre stock;
• Norske Skog for nine days to produce sufficient newsprint for newspapers for four weeks;
• Dispatch operators within the supply chain ensuring the supply of existing stock materials to these producers. This includes dispatching existing stock from sawmills;
• Nurseries will be able to carry out maintenance to on capital stock and plants to keep them alive. They will not be able to open for business as usual.
• Sawmills and all other producers of wood products including but not limited to Particleboard, plywood, MDF and LVL
• All secondary processors of wood products except those explicitly listed above.
• Logging harvesters
• These should be shut down by now.
Registering as an essential service
• Registering does not make your business an essential service. You should only register if you meet the strict lists and criteria listed above or on the website.
• If you register and you are not an essential service, you will be breach of the Alert Level 4 protocols. The Government will take such breaches seriously.
• If you are an essential service you must go online and fill out the appropriate forms, and adhere to all safety protocols.
• Te Uru Rākau had asked the Government mid-week to consider allowing operators to apply for an extension time to shut down processing plants where this is necessary to avoid damaging equipment (e.g. when it takes time to safely shut down boilers).
• If you are in this position you should have contacted Julie Collins or Jason Wilson Jason.firstname.lastname@example.org.
Reviewing essential services list every seven days
• Te Uru Rakau have committed to reviewing the list of essential services every seven days.
• However, please remember the bar for essential services is extremely high. While there may be some tweaks, there are unlikely to be significant changes to the list of essential services.
• People and their safety will be the priority in all decision making.
• After midnight on Wednesday there should be no logging trucks, taking inventory to ports.
• The use of essential workers to move essential goods and provide essential services is paramount and must be prioritised above all other goods and services at the Port. Only in the following circumstances can non-essential goods at a port be transported:
1. if essential workers are already located at the port for the purpose of dealing with essential goods; and
2. if the movement of non-essential goods at the Port does not impact on:
2.1 the movement of essential goods or
2.2 the delivery of essential services at the Port; or
3. if the movement of non-essential goods are required to create space for essential goods and the movement of essential goods within the port and across the supply chain.
See Transport Sector Essential Services You will need to work with your individual Port operators to establish what that means for the port/ports you operate out of.
Your priority needs to be helping keep people safe
• Te Uru Rakau have stressed while there are essential services within the wood processing industry, they expect strict safety procedures to be followed. Contact with people should be limited where possible. Social distancing between workers should be used. You can find all of the restrictions and safety requirements at Covid19.govt.nz
• Any non-essential personnel should be working from home or simply staying home.
Source: Te Uru Rakau
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The government of France is set to require that all new public buildings must be made at least 50% from wood or other sustainable materials from 2022 as it pushes for sustainable urban development.
The local government in Paris had already pledged a greater use of natural materials such as wood, straw and hemp, and any buildings higher than eight storeys built for the 2024 Paris Olympics must be made entirely of timber.
“If it is possible for the Olympics, it should be possible for ordinary buildings,” said Julien Denormandie, minister for cities and housing, on 5 February. “I am imposing on all public bodies that manage development to construct their buildings with material that is at least 50% wood or other bio-sourced material.”
The minister also called for the creation of 100 urban farms, with the first 30 to be selected by this summer. “As a father, I prefer that what is on my children’s plates come from the local area, rather than being imported on a plane,” he said.
Finally, he announced the objective of low-carbon cities that can adapt to heat waves and floods. This will involve the building of 90 “eco-neighbourhoods”, to be organised by the a new body called “France Ville Durable”, chaired by Patrice Vergriete, mayor of Dunkirk.
In 2016, it was announced that the city of Bordeaux would acquire France’s first timber towers. The Hyperion towers (pictured), will be 50m and 57m in height. They are being developed by Bordeaux Euratlantique, a public body involved in modernising the city. The project is due to be completed later this year.
Photo: Image: A rendering of Bordeaux’s Hyperion project (Jean-Paul Viguier & Associés)
The 57m high timber construction Hyperion building in Bordeaux
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Deakin University has announced it will pioneer an Australian first Hydrogen Transition Centre to help fuel cleaner, low emissions trucks in Victoria. The centre to be established at Deakin’s Warrnambool campus in the state’s southwest, will partner with industry on the AU$20 million research and industry testing site according to Deakin Vice-Chancellor Professor Iain Martin.
“Freight trucking continues to grow here and overseas, and trucks are driving further, with heavier loads; all big challenges. The centre confirms Deakin’s commitment to the Warrnambool campus and the broader region, and when the HyceL@Warrnambool project is fully established it will create up to 200 full-time jobs,” he said. With AU$2 million in Federal Government research funding allocated to it, the Hydrogen Transition Centre will develop hydrogen fuel cells to work in tandem with electric vehicle technologies as part of the fast growing multi-billion-dollar hydrogen market.
“The Federal Government investment will see our researchers’ partner with Australia’s leading truck manufacturer, Kenworth, as well as with industry leaders in hydrogen fuel-cells, electric vehicles and gas distribution,” said Martin. It is understood PACCAR is poised to partner on HyceL@Warrnambool in which fuel-cells can create electricity from hydrogen and oxygen with water vapour the predominant emission.
An electric truck, using this technology, can create power while driving, to dispense with the frequent stops currently required of battery charging infrastructure. “If successful, the enhanced technologies could be used by Kenworth trucks made here in Australia, as well as those made internationally by Kenworth’s parent company PACCAR – a US Fortune 500 company. The technologies can also be applied to other heavy vehicles, such as buses, including those operated by Warrnambool Bus Lines,” Martin said.
According to Deakin the Hydrogen Transition Centre will put Victoria’s southwest at the heart of Australia’s work in hydrogen fuel-cell innovation and position the region well, to cash-in as new markets for hydrogen technologies emerge in the international push for cleaner transport. The global fuel-cell market is predicted to be worth more than AU$71 billion.
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Russia has surpassed Canada to become the world’s largest exporter of softwood lumber, and was on track to ship almost 32 million m3 of lumber in 2019 (23% of globally traded lumber in 2019), reports the Wood Resource Quarterly in its latest issue.
Global trade of softwood lumber slowed in the 3Q/19 but was still on pace to be higher than in 2018. Russia, Belarus, Germany and Finland have boosted their lumber sales the most this year, reports the WRQ. An excerpt from the newly released market report Wood Resource Quarterly reads.
Global Softwood Lumber Trade
- Russia has surpassed Canada to become the world’s largest exporter of softwood lumber, and was on track to ship almost 32 million m3 of lumber in 2019 (23% of globally traded lumber this year). Despite slowing economies in North America, Europe and Asia, lumber imports to these markets were higher in 2019 than in 2018.
- Volume traded during the first nine months of 2019 represented the second lowest y-o-y increase for the period in eight years, according to the WRQ. Of the world’s ten leading exporting countries, Russia, Belarus, Germany and Finland have boosted their lumber sales the most this year.
Lumber Market – North America
- Lumber production has fallen in both the US and Canada in 2019 because of disappointingly low activity in the US housing market and meagre demand for North American lumber in overseas markets. From January to September in 2019, lumber exports from Canada were down 5% y-o-y, while US shipments fell as much as 23%.
- All the major lumber-producing companies in British Columbia have taken downtime this fall, causing production to plummet 19% in 2019.
- Prices for softwood lumber were quite stable during the summer and fall in three of the four major lumber-producing regions of North America. Only in the US Northwest, where log supply has been tight and demand for lumber along the US west coast has stayed healthy, did lumber prices move up from their lower prices early in the year.
Lumber markets – China
- China imported 15% more softwood lumber in the first nine months of 2019 than during the same period in 2018. Importation has trended upward for over five years.
- Russia supplied 60% of the import volume to China in the 3Q/19, a slight decline from the 3Q/18. Imports from Canada rose 18% y-o-y and import volumes more than doubled from a few smaller suppliers this past year, including Germany, Ukraine and Belarus. Lumber import prices have fallen for three consecutive quarters to average $174/m3 in the 3Q/19, the lowest level since 2016.
Source: Wood Resources International, www.WoodPrices.com
New Zealand log exporters are bracing themselves for supply chain problems in China due to the outbreak of coronavirus. Some forest owners are already reducing their harvesting rate. Regrettably this will have an immediate effect on harvesting crew employment.
The New Zealand Forest Owners Association says that the extended Lunar New Year public holiday makes it difficult to know what is going to happen when sawmills in China restart. Association President Peter Weir says he understands that log ships continue to be unloaded, but he says we need to wait to determine what the offtake volume of logs might be after the traditional New Year break. There is industry concern that if the virus were to infect more people in coastal towns and cities then access to Chinese ports could be restricted with little warning.
China is by far the largest and most important market for New Zealand’s export logs and by value New Zealand earns half its export income from China. The coronavirus outbreak comes on top of new supplies of softwood into China, due to the salvage of insect and windstorm damaged spruce forests in Central and Eastern Europe. Warmer winters and longer summers have led to very high rates of spruce beetle infestation with large areas of forests being clear-felled and salvage logs railed and shipped to China.
In the coming year, exports of bushfire damaged pine logs from Australia also have the potential to increase the softwood supply to China. Peter Weir says, “We know from our embassy in Beijing that the Chinese central government authorities are doing an excellent job of both trying to protect people from the spread of coronavirus and at the same time ensuring economic activity is sustained. But nobody knows how long and widespread the coronavirus outbreak will be and what effect that will have on any medium-term trade.”
“We are most concerned about the effect on the harvesting workforce in many regions of New Zealand which depend on log exports. Forest owner capacity and circumstances vary hugely. Those owners who supply domestic sawmills will be largely unaffected, but the domestic market can only take less than half the current annual harvest and not all log grades.”
“Stockpiling logs is not a good option, because the logs deteriorate, especially at this time of the year, and unrestrained supply from here is a market threat. I should say that it is possible that the disruption will turn out to be brief, as it was in mid-2019. It is entirely possible that the Chinese timber processing and construction industry will return to normal and the inventory stored at ports will diminish over the next few months as it normally does.”
“In the meantime, we hope that our valued sawmilling industry customers, often small family businesses, in and around port cities in China, are not impacted by the virus. Peter Weir says the industry leadership is closely working with MPI and Te Uru Rākau, supported by the New Zealand embassy in Beijing on the rapidly evolving situation.
The CEO for the Forest Industry Contractors Association, Prue Younger is confirming that contractors being told to halt felling trees has come as a complete surprise. “The industry is reeling a bit as you would expect,” Prue Younger says. “Although market prices were on their way down again, the coronavirus impact has made this a very complex situation. It’s important that we’ll be working with forest owners daily and ascertain the extent of this fallout and how long our crews might expect to be out of work.”
“There are risks for everyone in this scenario and like all primary industries the ripples may be extensive.”
Source: FOA, FICA
“It is a difficult time and no one knows how this is going to play out. At this stage we are trying to gather facts. China is trying to keep trade open and as far as we are aware are still unloading ships. However, inventories are at the high end of what is normal at China ports so what happens next depends on whether the Chinese sawmills come back on line after the end of the extended New Year. We are seeing some but not all companies taking a precautionary approach to try to avoid an excessive build-up of inventory in China and the subsequent downside impact on log prices”.
- The situation is very fluid but has the potential to become very serious. More time and information will be needed before we know.
- The port inventory level in China is very high (5-6 million m3) and growing as supply exceeds demand.
- The impact of the Coronavirus is coming on top of market disruption caused by the significant increase in supply of wood (larch) from Europe as a result of the beetle infestation. Supply and demand have also been affected by the Chinese New Year being extended (9 February).
- The Chinese ports are currently open despite some rumours to the contrary. Ship crews are being quarantined while they work. The Chinese government has an obvious interest in keeping the port trade functioning and that extends well beyond forestry.
- Some parties have already taken action. All forest owners are prepared to cut back production at some point. Some have already reached that point. Others are monitoring but still trading and with contingency plans. PFP has advised they will not be accepting any more wood. This has affected Gisborne and Southland ports in particular. On the back of this a number of corporate members have ceased harvesting in the Gisborne region immediately. This adds to the cutback already taken by smaller and medium sized players and means the reduction in supply will be significant.
- The domestic market will also be impacted. Reduction in export logs will also mean a reduction in domestic logs. Furthermore, the export market for processed product, particularly pulp, may compound the issue.
- The end of the extended Chinese New Year period (Sunday, 9 February) may provide some greater clarity as workers officially return to work. Further virus spread and/or on-going travel restrictions are likely to mean that not all businesses will be operating as normal.
- Industry leadership is closely working with MPI and Te Uru Rākau, supported by the New Zealand embassy in Beijing on the rapidly evolving situation.
Source: Forest Owners Association
As recovery gets underway for the Tumbarumba region, NSW, the Hyne Timber Mill is back up and running, despatching truckloads of timber, thanks to the many volunteers and emergency services who protected it throughout the bushfire crisis. A number of team members from Queensland have been deployed to Tumbarumba to assist with the Mill’s recommencement and enable impacted team members more time to recover personally where required.
Employing approximately 230 people directly, the Mill is part of a circular economy worth AU$2 billion every year to the South West Slopes region and supporting almost 5000 jobs in total. Hyne Timber CEO, Jon Kleinschmidt said Hyne Timber’s Tumbarumba Mill is categorised as critical infrastructure and was protected accordingly by qualified strike teams.”
“Last week, I had the opportunity to meet with the Fire and Rescue strike team to understand the reassuring fire prevention measures and readiness they had in place. I also met with many Rural Fire Service volunteers and emergency services, many of whom are our own team members, who continued to fight bushfires, put in containment lines and help the broader community.” Mr Kleinschmidt said.
Today, the town is busy rebuilding and Hyne Timber remains focused on supporting the community through the long-term operations at the Mill. “Once small volumes of existing log yard stocks have been processed, we will be prioritising the processing of salvaged burnt log which we have done before. Once we remove the burnt bark, the structural grade timber is the same quality our customers value and we appreciate their ongoing support.”
Hyne Timber, Visy Pulp and Paper and AKD Softwoods are the three largest employers within the region’s industry, collectively employing over 750 people directly across Tumbarumba and Tumut. Collectively, and with the support of the Softwood Working Group, the companies are engaging constructively with all levels of Government.”
“We have welcomed preliminary meetings with the NSW Deputy Premier, the Hon. John Barilaro who has also been appointed the Minister for Disaster Recovery. I look forward to continued dialogue and support from all levels of Government to secure ongoing log supply and longer distance freight support, amongst other challenges, for the industry moving forward.
“As with support for individuals and wildlife, Government support for the industry and associated economy will be critical as part of the ongoing recovery efforts.” Mr Kleinschmidt concluded. Hyne Timber thanks all those who supported team members, the community and the mill, including the emergency services, volunteers, staff and many others.
Source: Hyne Timber
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