Forest Products Industry

Kengo Kuma has designed two festive trees that are bringing joy to visitors of the lobbies of The Tokyo EDITION in Ginza and in Toranomon, Japan, two luxury hotels in Tokyo. Source: Timberbiz Komorebi – sunlight through the leaves and Kigumi – woven woods are eco-friendly trees that were made by stacking small wooden pieces together. Each uses multiple tree species and after they have served their time as Christmas trees, they will by repurposed into furniture. The furniture will be tables designed by Kengo Kuma and crafted by Karimoku, these will be available to buy online via a silent auction. A portion of the proceeds will be donated to the Make-A-Wish foundation in Japan.

As we near the end of 2024, it’s time to reflect on the insightful predictions made by ResourceWise’s CEO, Pete Stewart, and Chief Revenue Officer, Matt Elhardt, for the forest products industry in 2024. Source: Resource Wise In 2023, inventory destocking played a significant role in shaping the sector. Destocking occurred as supply chains normalized in a post-COVID world. About halfway through the year, inventory levels across various segments normalized, with uncoated and coated freesheet supplies reduced to approximately 30-40 days, down significantly from the elevated levels seen during the pandemic. This shift reflected concerted efforts by mills and suppliers to align production with current demand, supported by strategic mill downtime to manage oversupply. Similarly, both softwood and hardwood pulp inventories fell over the year. In the case of hardwood, days of inventory fell from about 60 days to about 40. Since destocking appears as “lower demand” for producers, the result was lower operating rates in many sectors. This was true even in the backdrop of more normalized end demand. As inventories returned to normal, demand began to increase in some sectors, specifically those where supply shuts brought supply into balance. For example, US containerboard producers implemented several price increases in 2024, with additional increases announced as of this writing. Forestry investments in the US South have seen notable activity in 2024, signalling the region’s continued significance in timberland markets. For example, Manulife finalized two major property sales in Alabama as part of a three-property offering. The Clairmont Springs tract, encompassing 33,700 acres, was sold to Southern Pine Plantations for $77.5 million. The Magnolia property, totalling 13,400 acres, was acquired by Weyerhaeuser for $46 million. Other investments included: New Forests expanded its US portfolio with the acquisition of a 90,791-acre forestry estate in Oklahoma from Rayonier, marking its first investment in the US South. New Forests said the acquired asset, located near large sawmills and pulp and paper mills provides a foundation for timber sales. Weyerhaeuser announced it is investing $500 million to build a new facility in south Arkansas. Once completed, the facility will process about 10 million cubic feet of wood products. PotlatchDeltic continues its momentum with the announcement of a $31 million acquisition of 16,000 acres in Arkansas, alongside its pending sale of 34,000 acres in Arkansas and Alabama to Forest Investment Associates for $58 million. Collectively, these transactions highlight the growing scale of forestry activity in the South, attracting both domestic and international investors. Such investments reinforce the region’s reputation as a key hub for forestry operations while underscoring its strategic importance for sustainable timber production and long-term portfolio growth. According to SilvaStat360, total US housing starts from January to October reached 1.35 million, aligning with what was projected earlier in the year. However, 2024 saw mixed trends in housing starts, influenced by economic factors like higher interest rates. The increased rates affected both builders’ strategies and buyers’ purchasing power. While the pace of new construction slowed slightly compared to 2023, a growing focus on energy-efficient homes highlighted shifting buyer preferences. The new home market also expanded as an alternative to the limited supply of existing homes, with builders offering incentives such as mortgage rate buydowns to attract buyers. Despite ongoing challenges like rising costs and zoning restrictions, the demand for sustainable and modern homes remained a key driver in shaping the construction industry in 2024. Investment in bio-economy production at pulp mills is emerging as an increasingly prominent trend in the industry. The change presents a number of opportunities for both producers and the environment. This shift towards bio-economy production is driven by the desire to reduce reliance on non-renewable resources and mitigate the environmental impact of traditional manufacturing processes. By utilizing sustainable and renewable feedstock, pulp producers can not only contribute to a greener future but also tap into new revenue streams to enhance their market competitiveness. Investing in bio-economy production presents economic advantages as well. By leveraging technological advancements and process optimization, pulp producers can improve efficiency, reduce costs, and enhance overall profitability. Furthermore, government incentives and regulations that support sustainable practices further boost the business case for bio-economy investment. In 2024, we saw an uptick in investments in bio-economy production in the industry. For example, Veolia, in partnership with Metsä Fibre, launched a €50 million biorefinery project at the Äänekoski pulp mill in Finland. This facility produces CO2-neutral biomethanol derived from pulp mill byproducts like black liquor. Set to begin operations in 2024, the plant will produce 12,000 tons of biomethanol annually, preventing up to 30,000 tons of CO2 emissions. This approach aligns with global decarbonization goals and could be replicated in about 80% of pulp mills worldwide. Nextgreen Global Bhd is also focusing on advancing innovative solutions to redefine sustainability in manufacturing. A key pillar of this initiative is the fertilizer segment, operated by its wholly owned subsidiary Nextgreen Fertilizer Sdn Bhd (NGF). The firm is also producing liquid fertilizer by transforming black liquor into a cutting-edge liquid fertilizer product. This innovative process, spearheaded by the R&D team, is projected to yield 30,000 TPY of liquid fertilizer. In the US, several pulp mills announced projects related to carbon capture, hoping to take advantage of market demand for lower-carbon products.  For instance, the SLB and Aker Carbon Capture Joint Venture secured a contract from its partner CO2028 Solutions for front-end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the US Gulf Coast. The project aims to remove 800,000 TPY of carbon emissions while also delivering verifiable and affordable carbon dioxide removals (CDRs). As the industry continues to recognize the potential of bio-economy production, it offers an exciting avenue for pulp producers to directly address environmental concerns. Doing so will also unlock new revenue streams, drive innovation, and contribute to a more sustainable future. The changes are especially important as new low-carbon fuel mandates, most notably sustainable aviation fuel, begin implementing in 2025. In 2024, the pulp and paper industry experienced a notable recovery following a challenging […]

Finland’s Government granted Metsähallitus permission to sell four parcels of land in the municipalities of Muhos and Kajaani to Google for future expansions of its cloud and data centre infrastructure in Finland. Source: Timberbiz The total value of the transaction is more than EUR 27 million, with the combined areas covering approximately 1400 hectares. The areas have mostly been in commercial forestry use. Google has been operating data centres in Finland since 2011, creating several thousands of direct and indirect jobs during construction. The Google data centre campus in Hamina employs approximately 400 people full-time. The impact of the potential expansion on employment is estimated to be significant, both directly and indirectly. The growing economic activity is anticipated to have a positive effect on other services offered locally as well as the housing market. “I’m very pleased about the announcement of Google. This deal forms a foundation for any potential future investments and sends a clear message that Finland is an attractive and safe country for investments. The goal of the reforms introduced by the Government is for Finland to become an even more sought-after destination for investments and the hard work is taking us closer to that target,” Finland’s Prime Minister Petteri Orpo said. One of the business activities of Metsähallitus is the commercial utilisation of state assets assigned to it. For this purpose, Metsähallitus sells and rents land and water areas. However, land sales of this size do not take place very often in Finland. Metsähallitus is a state-owned enterprise that produces environmental services for a diverse customer base, ranging from private individuals to major companies. It manages and protects state-owned land and water areas and reconciles the different goals of owners, customers, and other stakeholders. “For more than a decade, Finland has been home for our Google data centre in Hamina, and we’re dedicated to supporting the country’s growing digital ambitions. Even before a final investment decision is made for the development of the sites in Kajaani and Muhos, we are working in close consultation with local and national stakeholders on a plan that supports the long-term health of the community’s economy and natural resources. This is the first step in a long process,” said Antti Järvinen, Country Director Google Finland. Google will make a decision on the use of the land areas based on the framework conditions of the land use planning and permit processes. “Metsähallitus promotes green growth by providing sites for green transition projects. This requires balancing economic, environmental, and social sustainability perspectives, as well as extensive cooperation with various stakeholders. “The land sale for Google’s potential da-ta center investment is an excellent example of how state-owned areas can be used as en-gines for green growth, while creating jobs and positive regional impacts. We warmly wel-come Google to expand its operations in Finland and look forward to further collaboration in developing these areas,” said Juha S Niemelä, Director General of Metsähallitus.

A recent Spring Clean Weekend has seen enthusiastic participation from the community, resulting in the proper disposal of numerous items, including tyres, mattresses, and couches. OneFortyOne, in collaboration with the City of Mount Gambier, sponsored the community-driven event, held on 23 and 24 November. Source: Timberbiz Environmental Manager Belinda Williamson expressed her gratitude for the community’s support. “The Spring Clean Weekend was a fantastic trial initiative to try and address the persistent issue of illegal dumping in our forests,” Ms Williamson said. “The community’s response was incredible, and we managed to collect a significant amount of waste, hopefully diverting some of this rubbish from ending up in our forests.” Over two days, the Waste Transfer Station on Eucalypt Drive was bustling with activity as residents took advantage of the opportunity to dispose of items such as car and 4WD tyres, mattresses, armchairs, and lounges sponsored by OneFortyOne. “The final tallies are in and over the weekend we collected 433 mattresses, 147 couches, 240 armchairs and around 2000 tyres,” Ms Williamson said. ReUse Market & Waste Transfer Station Coordinator Rebecca Clark said the Spring Clean initiative was a tremendous success benefiting community members who took part. “Our dedicated Waste Transfer Station team and the OneFortyOne Team worked together tirelessly to ensure everything ran smoothly,” Ms Clark said. The Waste Transfer Station team played a pivotal role in managing and organising traffic management and the waste material. “Together they made the disposal process efficient, organised, and accessible for all evident in their ability to serve 550 cars,” Ms Clark said. Ms Williamson emphasised the importance of community involvement. “This event was a testament to what we can achieve when we come together as a community to do the right thing. “While this is just a start, it is a positive step towards reducing illegal dumping and protecting our beautiful forests for everyone. “We’re looking forward to measuring the real success of the event, and tracking any changes in the amount of rubbish dumped in the forests surrounding Mount Gambier over the coming months.”