Plantation harvests on the rise – According to the eighth national inventory of forest resources, the area of national plantation was 69.33 million hectares accounting for 36% of the forest land area in China. The stocking volume of these plantations was 2.483 billion cubic metres, or 17% of China’s forest standing volume.
Between 2009 and 2013 the average annual harvest volume from China’s plantations was 155 million cubic metres. The harvest volume from plantations accounted for 46% of the total harvest, up by 7% on the period of the seventh national inventory.
Source: ITTO MIS Report October
In the 3Q, Acadian Timber Corp. generated net sales of $22.2 million compared to $19.3 million in the prior year period primarily due to a 20% increase in log sales volumes.
Adjusted EBITDA margin increased to 30% from 27% in the prior year period as the benefits of higher log sales volumes and stronger sales of higher and better use (HBU) land in Maine were partially offset by higher operating costs due to longer average haul distances.
Net income for the 3Q totaled $9.7 million, or $0.58 per share, compared to $2.8 million, or $0.17 per share, respectively, for the same period in 2016.
“Demand across Acadian’s sawtimber and hardwood pulpwood markets remained strong during the 3Q”, said Mark Bishop, CEO of Acadian. “While seasonally drier than normal summer weather supported strong 3Q log production, annual harvest levels will continue to reflect our long term sustainable targets.”
During the first nine months of 2017, Acadian’s net sales were $57.9 million, reflecting an improvement over the prior year period of $54.4 million primarily attributed to a 15% increase in log sales volumes from favourable harvest conditions throughout the year, particularly for spruce and fir stands.
Adjusted EBITDA improved to $17.3 million from $15.5 million during this period while the Adjusted EBITDA margin improved to 30% from 28% benefiting from the aforementioned sales volume increase as well as higher HBU land sales in Maine.
For the nine months ended September 30, 2017, net income improved to $18.5 million, or $1.10 per share, representing an increase of $5.5 million over the prior year period primarily due to higher Adjusted EBITDA as described above and favourable foreign exchange revaluation of U.S. dollar denominated long-term debt.
For the nine months ended September 30, 2017, net income improved to $18.5 million, or $1.10 per share, representing an increase of $5.5 million over the prior year period primarily due to higher Adjusted EBITDA as described above and favourable foreign exchange revaluation of U.S. dollar denominated long-term debt.
Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S.
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Komatsu Forest has a new Global After Sales Manager – Bernd Rauser has since the year 2000 been active as Managing Director of Komatsu Forest GmbH. Now new challenges are waiting, that he is eager to face.
Komatsu Forest is in a phase where the company invests in growing within the aftermarket offering. The aim is to continuously improve the business models, and to grow on existing and new markets. Bernd, with his experience and deep knowledge of the forest industry, is now leading this exciting process.
I see it as a very exciting time to get into. Our aftermarket has tremendous potential to grow even more. As a company, we should be at the forefront of our offering, and there are smart technological solutions that we are currently working a lot with. We will continue to focus on that.
Furthermore, Bernd explains that a challenge as a Global After Sales Manager is the overall perspective. There are big differences between various markets and customer needs differ.
There are many pieces that are connected to each other. It’s important that each piece fits in the other to get an excellent overall offer. Our offer ranges from a small spare part screw to training to smart connected machines. It is a huge spread.
Bernd has been working for Komatsu Forest for 18 years, but the forest has always been present for Bernd. His parents were forest owners and he grew up close by the Black Forest (forested mountain range in southwest Germany). And now he sees exciting times for the forest industry:
The demand for wood and paper products is growing. From a sustainability perspective, it will be necessary to grow, and in even more places around the world. There are large forest markets where mechanization also becomes a natural part of the development.
Bernd is now stationed at the head office in Umeå, Sweden, and during the autumn his wife Beate will also move to Umeå.
Jyri Kylä-Kaila (39) has been appointed managing director of Epec Oy, a subsidiary of Ponsse, starting from 1 January 2019. Kylä-Kaila will report to Ponsse Plc’s President and CEO Juho Nummela, and he will be located in Seinäjoki.
Jyri Kylä-Kaila will transfer to his new position from Valmet Automotive where he has worked in various research and development, sales and marketing tasks since 2011. Kylä-Kaila will transfer to Epec Oy from the position of director of electric powertrains at Valmet Automotive. Kylä-Kaila has studied master’s degree in industrial engineering.
Teemu Raitis, Epec’s current managing director, will leave the company on 30 November 2018. Petri Härkönen, Ponsse Plc’s CFO, will be the acting managing director of Epec Oy during December 2018.
Epec Oy is Ponsse Group’s subsidiary located in Seinäjoki, Finland. It designs and manufactures control systems for mobile work machines, electronics and software for demanding conditions. Epec Oy was founded in 1978, and it has been the manufacturer of PONSSE information system products since 2004.
Juho Nummela, President and CEO, Ponsse Plc, tel. +358 400 495 690
NASDAQ OMX Helsinki Ltd
Photo: Jyri Kylä-Kaila (39) has been appointed managing director of Epec Oy.
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Rayonier Inc. reported 3Q 2018 net income of $23.4 million, or $0.18 per share, on revenues of $200.9 million. This compares to net income of $24.7 million, or $0.19 per share, on revenues of $184.4 million in the prior year quarter.
3Q 2018 operating income was $46.4 million versus $39.3 million in the prior year period. 3Q 2018 Adjusted EBITDA was $83.3 million versus $69.3 million in the prior year period.
“Following a very strong first half of the year, we are pleased to report 3Q results above expectations, largely driven by a timberland sale in New Zealand,” said David Nunes, President and CEO. “Southern Timber results reflect 2% lower harvest volumes and a 3% increase in pine pulpwood stumpage prices relative to the prior year quarter, as wet weather conditions hindered harvest efforts but positively impacted pulpwood pricing.
Overall, weighted-average stumpage prices in Southern Timber decreased 1% due to the geographic mix of sawtimber harvest volumes and the impact of tariffs on China export volume. Pacific Northwest Timber results improved versus the prior year quarter driven by 23% higher harvest volumes as well as higher delivered sawtimber and pulpwood prices, partially offset by higher cut and haul costs.”
Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand.
Sappi North America appoints Alexander “Sandy” Taft as director of sustainability. Taft will work cross-functionally within Sappi’s North American operations to drive sustainability strategy and execution. Taft will also work with counterparts in Sappi’s European and South African offices to ensure consistency with global sustainability goals.
Taft joins Sappi from National Grid, a U.K.-headquartered energy delivery company, where he was most recently the Director of Environmental and Sustainability Policy for its U.S. subsidiary. He brings a strong background in U.S. energy and environmental policy, as well as a collaborative approach to global policy development.
Taft will also join the Two Sides North America Board of Directors as a member this fall. Two Sides is a non-profit, global initiative by companies from the graphic communications industry including forestry, pulp and paper, among others.
Sappi North America, Inc., a leading producer and supplier of diversified paper, packaging products and dissolving wood pulp.
View Sappi North America here.
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“We believe in renewable energy and want to give our customers the opportunity to take advantage of our renewable electricity,” said Henric Dernegård, Energy Coordinator at Södra.
Renewable energy is produced in Södra’s pulp mills using raw material from the forests owned by Södra’s members. Since 2010, Södra has been self-sufficient in terms of electricity production and sells any surplus on the open electricity market. Södra is now certified according to the European Energy Certificate System (EECS). This is a standard for cross-border trade in GoO certificates.
Södra’s European customers have shown an interest in GoO-label electricity. In May, the mill at Mönsterås was classified according to the EECS, and since then, the mill has produced 190 GWh in bio-based GoO-label electricity. This corresponds to the heating requirements of around 7,600 houses.
“Many of our European customers are electricity-intensive and already purchase renewable products from us in the form of paper pulp. They can now purchase renewable GoOs from us as well, which is an added value that we think strengthens our business,” commented Dernegård.
A GoO certificate corresponds to one MWh and is an electronic label showing where and how the electricity is produced. In Södra’s case, this electricity is bio-based, but it can also be sun, wind or water-based, for example.
For more technical information, please contact:
Henric Dernegård, Energy Coordinator, Södra
Tel: +46 (0)470-152 63
For more market information, please contact:
Magnus Reitersjö, Director Treasury and Credits, Södra
Tel: +46 (0)470-891 34
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Metsä Wood’s new birch plywood mill inaugurated in Pärnu, Estonia. The investment in the birch plywood mill in Pärnu is worth Euro 55 million. Once the mill is operating at full capacity, it will employ around 200 people.
For Metsä Wood, the Pärnu mill is a strategically important investment in birch plywood speciality products. The most important applications for birch plywood include construction and transport industry, which are increasing globally as a result of enhanced urbanisation.
“Metsä Wood has been implementing its industrial efficiency strategy for five years, to great effect. The inauguration of the birch plywood mill in Pärnu is the culmination of the company’s Euro 100 million investment programme, which improves production excellence and competitiveness in the market. Today, we are witnessing another new beginning for Metsä Group’s strong growth,” said President and CEO Ilkka Hämälä.
The annual production capacity of the Pärnu birch plywood mill is 50,000 cubic metres. This increases Metsä Wood’s total net production capacity by around 30,000 cubic metres.
The birch plywood mill in Pärnu uses birch veneers as a raw material. The veneers are produced in Äänekoski in central Finland. The wood is acquired from Finland, mainly from the forests of Metsä Group’s owner-members. The veneer mill at Äänekoski and the birch plywood mill in Pärnu constitute a mill complex, in which the two parts must work seamlessly together. The Pärnu mill is expected to reach its full capacity during 2019.
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Resolute Forest Products Inc. reported net income for the quarter ended June 30, 2018, of $72 million, or $0.77 per diluted share, compared to a net loss of $74 million, or $0.82 per share, in the same period in 2017. Sales were $976 million in the quarter, an increase of $118 million from the year-ago period.
Excluding special items, the company reported net income of $66 million, or $0.71 per share, compared to a net loss, excluding special items, of $3 million, or $0.03per share, in the 2Q 2017.
“Overall positive price momentum and improved operational performance led to record profitability this quarter. Our strong financial results allowed repayment of $105 million of debt during the quarter, significantly improving our balance sheet and leverage,” said Yves Laflamme, president and CEO. “We are also very pleased that the countervailing duty order on supercalendered paper has recently been revoked, resulting in a $60 million refund of duty deposits over the coming months.”
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries.
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In September 2018 Brazilian exports of wood-based products (except pulp and paper) increased 8.4% in value compared to September 2017, from $248.3 million to $269.1 million, reports ITTO.
The value of pine sawnwood exports increased 20% between September 2017 ($41.9 million) and September 2018 ($50.4 million) and the volume of exports increased 17% over the same period (202,500 cubic metres to 237,700 cubic metres).
Tropical sawnwood exports also increased rising 31% year-on-year from 42,500 cubic metres in September 2017 to 55,700 cubic metres in September 2018. In terms of value, exports increased 21% from $19.5 million to $23.5 million over the same period.
September pine plywood exports increased 31% in value year-on-year from $48.7 million to $63.6 million. Export volumes also increased, rising 13% over the same period, from 165,900 cubic metres to 188,200 cubic metres.
In contrast, tropical plywood exports declined 28% in volume, from 16,300 cubic metres ($6.3 million) in September 2017 to 11,700 cubic metres ($5.5 million) in September 2018.
Brazil’s wooden furniture exports continue to do well and in September 2018 totalled $44 million compared to $40 million in September 2017 a 10% rise.
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Boise Cascade Company has completed the sale of its northeast Oregon lumber mills in Pilot Rock and La Grande and the particleboard operations in Island City to Woodgrain Millwork. The sale officially closed on November 2, 2018.
Boise Cascade is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products.
JoeScan gave visitors a glimpse at the future of sawmill scanning during TP&EE in Portland, Oregon. The 3D laser scanning leaders brought a pair of interactive demos to their booth, showcasing a variety of innovations exclusive to their latest JS-50 prototype devices.
By leveraging sixteen years of sawmill industry engineering, as well as the latest advances in hardware technology, JoeScan has built their best 3D scanner yet. The new JS-50 scan heads bring twice the speed, resolution, and data density, all in a package ¼ the size and weight of earlier models
Performance benefits were demonstrated on a log supported by two flights that visitors pushed through a towering scan arch. The on-screen visualization laid bare the improvement in data density. Visitors also commented on how the dual camera design produced data around the flights that would be missed by single camera scanners.
The second demo offered a hands-on test of the JS-50’s new dovetail snap-mount and single cable connector. Untrained visitors were able to remove and replace scan heads in less than ten seconds with this intuitive new system.
Using a power-over-ethernet architecture cuts the number of cables needed in half. For instance a large system would go from 48 cables down to just 24. This cable uses a single industry-standard RJ45 ethernet plug, making for extremely tidy junction boxes. It also removes the need for a dedicated power supply, reduces cable management complexity, and dramatically improves troubleshooting time.
“Our inspiration for the snap mount was the repeatability of picatinny rail systems used by the military for rifle optics,” says mechanical engineer Vadim Kovalev. “We wanted to create something that was very easy to use, and that would allow for heads to be swapped without recalibration.”
But perhaps the most visually stunning feature of the new JoeScan is its size and shape. The JS-50 comes in at a slender 19 inches by 3 inches by 1½ inches and sports a sleek, bow-like style. This makes it significantly easier to handle and install than earlier models. The smaller package also opens it up to applications without much room for scanning hardware.
Overall the JS-50’s new features proved to be very popular with show attendees. Both sawmill operators and optimization experts agreed that the new model will raise the bar JoeScan has already set for simplicity and reliability in sawmill scanning.
“We are pleased with the positive response the JS-50 is generating,” said Jason Farmer, JoeScan’s vice president of engineering. “But we aren’t surprised. We’ve built a compelling technology roadmap, focused exclusively on the sawmill industry, and the JS-50 is our first step down that path. It is an exciting time to be scanning with JoeScan.”
These prototype units impressed, and the final commercial version of the JS-50 will be available for purchase in early 2019.
At JoeScan’s TP&EE booth, a group of sawmill industry leaders gathered to toast Galloway Lumber, the winner of the Longest Running JoeScan contest. This announcement ended the months long search for the longest continually operating JoeScan 3D laser scanner.
With champagne and beer glasses held high, marketing manager Brad Michael and JoeScan founder and president Joey Nelson gave a short speech to the crowd packed around their booth.
During the ceremony, Nelson identified the winning scan head. “This is really special because it’s the very first JoeScan ever installed. It’s still running great, almost sixteen years later.”
The winning scanner first went to work on the bucking line at Galloway’s British Columbia sawmill in February of 2003, or just over 5700 days ago. “If this isn’t a testament to our ‘Made for Sawmills’ motto, I don’t know what is,” Michael added.
Although there was only one winner in the contest, JoeScan was quick to acknowledge all of the sawmills and systems integrators that have worked with them over the years. “From our oldest partners to our newest friends, you’re the reason we’re here today,” Michael said. “Here’s to sixteen more years of successful sawmill scanning!”
For additional information about this topic or assistance with media files, please contact Brad Michael at +1.360.993.0069 x7007 or email at email@example.com.
Photo: Golden toast announcing the winner
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Waratah Forestry Equipment is celebrating 45 years of innovation and serving customers in the forestry industry.
The company pioneered mechanized harvesting with first-class products paired with unparalleled customer support.
Established in Tokoroa, New Zealand in 1973, the company transitioned to meet local loggers’ heavy-duty delimbing needs creating a delimber-feller-buncher featuring a four-roller fixed head. Following that innovation, a red grapple processor for the Canadian markets marked the beginnings of the 600 Series and solidified its place as the original red head in the industry.
Today, Waratah heads are found in all logging applications from felling on steep slopes, to cut-to-length hardwood harvesting at the stump, to processing on a landing or debarking on endless plantations.
“We’re dedicated to serving loggers across the globe,” said Heather Robinson, general manager of worldwide distribution, Waratah. “As an industry leader and the manufacturer of the original red head, we’re in a unique position to offer customers experience, expertise and innovation. We’re excited to celebrate the past 45 years and look forward to the next 45.”
Since its inception, Waratah, which has factories in New Zealand and Finland, has grown to support a global market.
“Waratah is based on quality, innovation and many years of experience,” said John Alemann, general manager, Waratah, New Zealand. “With 45 years under our belts, we are able innovate better and use our expertise to push the envelope.”
Waratah has continued to innovate by finding new ways to increase productivity and provide customer solutions including reliability and durability. For example, the Waratah HTH622C 4×4 and HTH624C 4×4 help minimize waste and maximize profits as powerful four-wheel drive heads that offer multi-stemming, independent log shuffling, 360-degree rotation and more.
TimberRiteTM H-16, Waratah’s measuring and control system, is another recent innovation. This system provides unique versatility with configurable settings for improved head performance, productivity and measuring accuracy.
In addition to the TimberRiteTM H-16 system, Waratah developed WaratahMateTM – a phone app that works with TimberRite to wirelessly share the machine’s production data in real-time. Developed exclusively for Waratah customers, the new app makes it faster and more reliable to send measuring system data back to the company.
“We’ve got a huge legacy in this business,” said Alemann. “We are looking forward to developing and providing opportunities that will keep our customers ahead of the competition.”
For more information about Waratah, please visit Waratah.com or contact Sarah Larson at firstname.lastname@example.org.
Waratah Forestry Equipment, headquartered in Rotorua, New Zealand, has served the global forestry industry for 45 years, manufacturing harvesting, processing and heads as well as harvester and forwarder cranes in its state-of-the-art facilities in New Zealand and Finland. The company’s extensive support and parts distribution network, rigorous global application testing, advanced manufacturing systems and sophisticated quality measures delivers customers with durable and reliable forestry equipment that is Built to Work. For more information, visit here.
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It comes as no-shocker to everybody that our planet is in serious danger right now. Not only have we human beings polluted the green lands and surroundings, but have also put the wildlife in huge danger as well. Because of our deeds, even the flora and fauna are now suffering global warming and so many species are now on the verge of extinction. We even take pride in killing animals for their skin, teeth, claws, and bones and leave them to die and rot until the earth takes them in. As a species, we human beings are developing at a very impressive pace and are making our lives easier every day. But we fail to understand the repercussions that are falling upon the innocent beings that have nothing to do with any of it but still have to suffer.Main issues:
If the present situation continues to thrive, life on earth is bound to get difficult mainly because of overpopulation by human beings, the unbalanced ecosystem, and mismanagement of needs. Forests and Wildlife help to keep a balance in the biosphere and are important to human species in various ways such as pollination, exchange of gases, food, and controlling climate.
Many iconic species such as Elephants, rhinoceros, cheetahs are declining at very high speed due to hunting and poaching. Trading and illegal business of animals have led to the loss of many species which is a major loss to biodiversity as a whole. There are many forest areas such as African and Asian forests where Elephants are killed by local farmers to prevent them from entering their farms and eating away the vegetation. This situation could be avoided by using certain measures and planning land use efficiently. Animals in many regions of the world have started to lose immunity in their bodies are growing prone to diseases.Management techniques:
There are many government and private organizations which have taken the issue seriously and have been working to improve the situation as much as possible. Such organizations follow various techniques and methods that could be used by us so that wildlife and forests could be rescued.
The organizations usually work according to the area they are in. The basic technique is to study the loss that the region has suffered and how has the human population been involved in the loss. The locals could be involved in tourism and illegal uses of those animals like tourism and entertainment. Raising importance for the wildlife and forests in the minds of the local people through various techniques is a part of the program.General awareness:
Public awareness and education can work wonders in such cases as only we human beings can help the situation and save thousands of animals who are prone to losing their lives because of our selfish needs. Awareness related to management, planning, and illegal uses is compulsory almost everywhere to make sure these organizations are being heard. Laws against animal hunting and trade are also made stricter to keep human involvement as scarce as possible and keep flora and fauna safe.
Holtec supplied log yard to Piveteau Bois in Saint Florence. The log yard is designed for processing 500,000 cubic metres logs per year.
Short logs and long logs are loaded, butt-reduced, debarked, measured, cut and sorted in parallel. The start-up is closed to finishing.
Piveteau Bois is one of the three largest saw mills in France with a cutting capacity of about 800,000 solid cubic metres and a pellets production of about 200,000 tons per year at three sites.
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São Paulo, October 05, 2018 – Based on a diagnosis, Fibria structured the management of forest digitization initiatives in the Smart Forest Project. Led by the Forestry area, a data collection, communication, analysis and publishing supply architecture was created, in which all actions of new technologies are centralized in the Smart Forest Project.
“Planted forests are the starting point in Fibria’s production chain. Wood provides the raw material for producing pulp, electricity and, increasingly, the inputs required for the development of new products and applications. We started this diagnosis back in 2015 and took the Industry 4.0 concept to the forest. These are day-to-day technologies applied to the field that improve the availability of data for decision making, while also increasing productivity, security and employee development,” says Caio Zanardo, Chief Forestry Officer of Fibria.
The implementation of new technologies will be on four fronts: planting, harvest, wood logistics and systematic data analysis. More than 50 projects have already been implemented and several of them have already produced results.
“There are some global mega trends that have a high probability of impacting the forest environment. Demographic changes (urbanization), climate change, scarcity of resources and energy efficiency, which can be mitigated or optimized by using new technologies, either in managing forestry assets (land, forest and machinery), or in managing inputs or behavioral management (people, safety and productivity),” says Luiz Eduardo Sabbado, manager of forestry operations development at Fibria.
Trucks with Telemetry
In the last five years, the Forestry Logistics area has reduced accidents with lost time injuries by 43% and accidents with and without lost time injuries by 60%. The main reasons for this reduction are driver training and the use of precision technology to monitor operations. In 2016, 100% of the fleet had telemetry. To improve traffic at the mill, Fibria created an automated truck entry system at the Três Lagoas (MS) unit. Similar to an automated toll system, the New Log Track technology ensures that the unit receives and tracks a timber truck every three minutes, without traffic lines or jams.
Fire surveillance video towers
Fibria has over one million hectares of forests across seven states in Brazil, which include planted forests and environmental conservation areas (native forests). Fire is always a risk threatening the forests, people and biodiversity. To reduce response times to fire alarms, towers equipped with video cameras were installed to detect fire outbreaks. By 2017, 50 towers had been installed at the Três Lagoas (MS) and Aracruz (ES) units, with range of up to 20 km. Fibria adopts a forest fire prevention policy that places tremendous emphasis on raising awareness among neighbors, partners, contractors and participants in our social programs.
However, prevention does not ward off all risks. Fibria has trained fire response teams in its plantation areas, which depend on early alerts to be able to control outbreaks still in their early stages. The cameras on towers are a valuable tool for this. In 2017, the total area affected by forest fires declined by 46% in relation to 2016. Compared to 2015, the reduction was 94%.
The world’s first automated eucalyptus seedling nursery is located at the Três Lagoas Unit. It spans an area of 48,000 square meters, with annual production capacity of 43 million eucalyptus seedlings. Operating like a “seedling factory”, the nursery has 24 robots to select, plant, diagnose the seedlings and even automatically ship them for transport, all based on artificial intelligence. The technology was imported from the Netherlands, where it is already used for the automated planting of flower seedlings. This model will enable Fibria to achieve a three-fold increase in productivity compared to a traditional nursery.
The quality of seedlings produced by the automated process is better than those produced by the traditional process, with production cost being approximately 25% lower. Moreover, the automated nursery incorporates sustainability concepts in its operation: the containers in which the seedlings are planted are made from biodegradable paper and not plastic, which results in reduced waste, less water consumption and lower environmental impact.
It is an innovative technology for the measurement of areas, terrain and trees for inventory. It surveys the forest by capturing data through a laser sensor, which are then analyzed by specialized software. This project, started in 2011 at the São Paulo Forestry unit to improve the precision in measuring areas and terrain characteristics, was essential for implementing mechanized harvesting in areas with inclination of up to 33º, with data of embedded terrain, through digitized maps for greater safety in harvesting machinery. Fibria reduced the cost of monitoring and updating areas by 12%, and also implemented many modernization projects, which resulted in a 1.2% increase in its planted area.
The world leader in eucalyptus pulp production, Fibria strives to meet, in a sustainable manner, the growing global demand for products from planted forests. With annual pulp production capacity of 7.25 million tons, the company has industrial units in Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), as well as in Eunápolis (Bahia), where it operates Veracel in a joint venture with Stora Enso. The company has 1,092,000 hectares of forests, which include 656,000 hectares of planted forests, 374,000 hectares earmarked for environmental preservation and conservation, and 61,000 hectares destined for other uses. The pulp produced by Fibria is exported to more than 35 countries and is the raw material for educational, health, hygiene and cleaning products. Learn more at www.fibria.com.br
More information | FleishmanHillard
Ence Energía, S.L.U. has signed an agreement with Iberdrola Renovables de Castilla La Mancha, S.A.U. for the acquisition of its 90% stake in Puertollano solar thermal plant, for an amount that could reach up to Euro 145.8 million. The agreement is subject to IDAE, owner of the remaining 10% of the plant, not exercising its right of first refusal.
The agreed price amounts to Euro 139.5 million, excluding a cash balance of Euro 41.5 million. Additionally, the agreement defines an earn-out up to Euro 6.3 million.
With this transaction, Ence takes its first step towards diversification to other renewable technologies, which allows the Company to obtain similar profitability to that of its biomass generation plants. This acquisition will provide Encewith a stable annual EBITDA of Euro 18 million before synergies.
The solar thermal plant in Puertollano is adjacent to the new 46 MW biomass plant that Ence is building in the same location, in the former Elcogas site. This is an example of a successful transition from a fossil fuel generation model to renewable energy while keeping rural industrial employment, thanks to the use of surrounding agroforestry biomass as fuel.
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The market uncertainty being caused by the China-U.S. trade dispute is now one of the most important topics to watch, even amid myriad changing developments and issues that continue to impact market dynamics worldwide. The first volley was made by the U.S., and then (on August 23) China retaliated with a 25% import tariff on U.S. SYP logs.
Following that, on September 17, the U.S. announced 10% tariffs on $200 billion worth of Chinese imports (effective September 24). The next day (September 18), China announced 5%–10% tariffs on $60 billion of U.S. goods (also effective September 24). Most of the timber and wood products exported from the U.S. to China are included on the list of items affected.
Southern yellow pine log shipments from the U.S. South had been slowing before the implementation of the 25% tariff, impacted by China Customs’ decision in April to increase phytosanitary inspections and begin full enforcement of documentation requirements on incoming log shipments; as a result, the July trade data revealed a drop in SYP log exports of 25% from April. In addition, the CFR price of SYP logs being offered by U.S. suppliers has seen large declines in the last several months versus other species.
While the U.S. represented only a modest share of China’s total log and lumber imports in H1/2018 (13% of softwood logs, 2% of softwood lumber, 7% of hardwood logs, and 21% of hardwood lumber), fully 54% of U.S. log exports and 38% of lumber exports went to China in 2017. Clearly, the U.S. export industry relies heavily on the China market.
China’s predominant wood products exports to all markets are wood furniture and seating products (63%), followed by plywood (14%). Of China’s timber and wood products exports to the U.S. in 2017, US$12.9 billion (35.7% of the total) went to the U.S., led by wood furniture and seating (US$9.28 billion). Overall, the U.S. represented 41% of China’s wood furniture export value last year.
There is little doubt that both countries will be impaired by this tariff war, with both ultimately losing competitiveness in each other’s markets.
Source: Russ Taylor, Managing Director, FEA Holdings – Canada Inc
Rotorua-based timber products company Red Stag is about to embark on several building projects to showcase the potential of timber as a construction material in large-scale building projects. Red Stag is New Zealand’s largest saw miller, employing 300 people with annual turnover of NZ$220 million.
The building projects come ahead of plans to build a NZ$35 million Cross-Laminated-Timber plant near its Whakarewarewa plant at Rotorua to be operating in 2019 and producing laminated panels up to 16.5m in length and 4.9m wide.
The first project will be five-level apartments at Clearwater Resort on the northern outskirts of Christchurch using cross laminated timber, and other panel products. The Ministry of Primary Industry through its Primary Growth Partnership is covering about 8 per cent of the NZ$20m Clearwater project.
After completion of the Clearwater project there will be two in Auckland – a retail and office complex, and a hotel. The Government was already building three-story timber structures in Auckland as part of Housing New Zealand projects, managing director of Red Stag wood solutions, Jason Cordes, said.
Red Stag is also planning to expand its truss and frame operation located in Hamilton Airport’s industrial park which produces frames and trusses, floor cassettes and wall panels – designs which bring floor and wall construction together in components to speed up construction.
Cordes, said the New Zealand industry was on the verge of providing large scale laminated timber construction. The opportunities offered in large-scale timber construction had already been demonstrated overseas, he said.
“In Christchurch we will showcase good architecture, good engineering and the best in acoustic properties and fire-resistance. We will make the whole process transparent so everyone can see how it is done and how economically viable timber can be.”