Forest Products Industry

Metsä Group and Qutwo, a Finnish AI and quantum technology company, are launching a collaboration aimed at deepening the use of artificial intelligence at Metsä and bringing next-generation AI into the core processes of the forest industry. Source: Timberbiz Next-generation AI refers to solutions that can take into account a broader range of variables and simultaneously optimise complex systems. “Metsä has been leveraging AI for a long time in its production facilities and wood supply operations. Our partnership with Qutwo takes this to the next level. Together we can address increasingly complex challenges and develop new intelligence to support our business,” said Anni Rasinen, Director, Business AI at Metsä. Qutwo will provide Metsä with its AI and quantum platform, Qutwo OS. The aim is to increase the value derived from wood raw material and strengthen Metsä’s international competitiveness. “The competitiveness of European industry will depend on how quickly it develops next-generation AI. Metsä Group’s commitment to long-term development together with Qutwo creates capabilities that neither could build alone. This allows European companies to be at the forefront of technology rather than follow others,” said Peter Sarlin, Founder and Chairman of Qutwo. The first initiatives focus on improving productivity in mill converting lines and optimising wood procurement. In wood procurement, AI will enable better use of multiple factors at the same time, helping to guide the use of wood more efficiently from forest to mill and increase overall value. “Our goal is to significantly increase the value derived from wood and reduce variable costs between the forest and the mill. Together with Qutwo, we are advancing completely new types of development with considerable potential,” said Juha Jumppanen, EVP, Wood Supply and Forest Services at Metsä. Metsä already uses AI, for example, in predicting forest damage, pricing wood trade and silviculture services, and in valuing forest biodiversity. At the mills, the collaboration focuses particularly on improving productivity in tissue converting lines. Converting is the stage in the production process where the base paper from the paper machine is processed into finished tissue products. AI enables the optimization of the production process, improving efficiency, increasing production capacity, and strengthening Metsä’s competitiveness in the market. Qutwo has rapidly emerged as one of Europe’s most interesting players in AI and quantum computing. The collaboration with Metsä demonstrates how next-generation AI can solve demanding industrial challenges and help build sustainable competitive advantage for European industry in global markets.

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In 1943, as World War II made materials like steel scarcer, the US Navy turned to timber to construct airship hangars at Moffett Federal Airfield, located at what is now NASA Ames Research Centre. Source: Timberbiz The structures were built in just 208 days using Douglas fir, widely assumed to have been harvested from the forests of the Pacific Northwest, and became part of a strategic West Coast hub for blimp operations during the war. In 2014, Planetary Ventures, a subsidiary of Google, entered a long-term lease of the airfield and assumed management of the historic hangars. Though Hangar 3 stood for over 80 years, the structure was compromised by substantial engineering challenges. Ultimately, ongoing efforts to repair and preserve the historic structure could not prevent progressing damage, prompting the difficult decision to remove the now hazardous hangar. A typical demolition would have routed this historic timber to the landfill, but Google’s sustainability and real estate teams saw a different opportunity: salvaging the wood for reuse in modern buildings. Once engineering assessments confirmed Hangar 3 couldn’t be preserved in its original form, the question became how best to remove the structure. Typical demolition wasn’t an option: the wood within the structure had been exposed to a variety of chemicals, creating a high risk of contamination. So, the 1,000-foot-long structure would have to be systematically dismantled. Teams used high-reach excavators to surgically disassemble the hangar, salvaging approximately 119,000 board feet of the most structurally sound Douglas fir boards (roughly 178 tons of material). Some of this salvaged wood wasshipped back up to Spokane, Washington, for evaluation and remanufacturing and is now destined for a Google mass timber office prototype in the Dalles, Oregon. Reclaiming used lumber on such a large scale is often dismissed as unpredictable, labour-intensive and costly. Modern building codes assume builders are using freshly milled lumber, so there’s no easy path to certify reclaimed wood. In the absence of a roadmap, the Hangar 3 project team created their own. They consulted wood scientists, structural engineers and mass timber manufacturers to rigorously test the structural integrity of the salvaged timber. After planing the contaminated outer layers, testing yielded incredible news: the historic Douglas fir still possessed robust, predictable structural strength. In the end, approximately 66,000 board feet of the material successfully met the rigorous requirements for mass timber remanufacturing. The Hangar 3 journey underscores the opportunity presented by deconstruction and reuse. It shows that if we can view our existing physical assets as “material banks” for future uses, then we can minimize the economic and environmental costs of purchasing new materials. The timber salvaged from Hangar 3 is getting a new life in showcase installations across Google campuses in the Bay Area, California, and for mass timber construction at supporting office facilities on Google data centre campuses. You can read more about this, there is a white paper Reclaiming Structural Wood at Scale: From Airship Hangar to Portfolio Reuse at https://sustainability.google/reports/circularity-reclaiming-structural-wood/  

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Trees in China that were planted as part of huge reforestation projects appear to grow faster than those in natural forests, a new study finds. This is possibly because the reforestation trees are responding more strongly to the rising atmospheric carbon dioxide, scientists say. Source: LiveScience China is quickly turning green. The country has planted 66 billion trees since 1978, with plans for 34 billion more by the middle of this century, as part of its “Great Green Wall” to slow the spread of the Gobi and Taklamakan deserts. These new forests absorb large amounts of CO2, but it is unclear exactly how they differ from natural ones, study first author Yuhang Luo, a landscape ecologist at Peking University in Shenzhen, China, told Live Science. Luo and his colleagues set out to study how differences between natural and planted forests, including species diversity, tree density and age, might affect how the forests respond to rising CO2 and climate change. “Planted forests are widely used in climate mitigation strategies, but most global ecosystem models do not distinguish between forest types or represent age-related dynamics adequately,” Luo said. “So, we felt it was important to clarify how these factors interact — not just for scientific understanding, but also for improving the models and assumptions that underpin real-world forest policy and carbon accounting.” Planted forests are those purposefully created by humans, such as those in the Great Green Wall. Natural forests, on the other hand, grow without human intervention. The researchers used satellite data to track leaf area index, a measure of canopy density and a key driver of carbon uptake, to determine how fast the different forest types grew, and found a striking difference: Planted forests increased their leaf area 66% faster than natural ones. Most of that difference was due to planted forests being, on average, much younger than the natural ones, and young trees grow faster than old ones. But even when comparing forests of similar age and growing conditions, the planted ones still grew 4.6% faster, and the difference was even more pronounced in mixed and evergreen forests. This is largely due to how planted forests are managed. They tend to feature fast-growing species like eucalyptus and poplar and are often actively managed, with people removing competing vegetation and even fertilizing them. These interventions reduce competition for light, water, and nutrients, amplifying the fertilization effect of rising atmospheric CO2. This discrepancy peaks in planted forests when trees are around 30 to 40 years old and then declines noticeably after age 40. In contrast, natural forests grow more slowly but steadily, so have an advantage over the long term. “Planted forests can be a powerful short-term tool for carbon uptake, but this advantage is temporary,” Luo said. “For long-term carbon storage and resilience, natural forests remain irreplaceable.” Kevin Dsouza, who worked on reforestation models during his postdoctoral research at the University of Waterloo and was not involved in the new study, said the results make intuitive sense, as the sprawling leaves of young, fast-growing trees could lead to increased carbon take-up. But he is not sure that leaf area is the best measurement for tracking growth and carbon sequestration. “It’s not a bad proxy, but it doesn’t give you the full picture,” he said. “The canopy is just the top of the tree, and the carbon is stored in all sorts of different places like wood, bark, roots and soil.” Another study of Chinese forests found that natural forests actually accumulate more carbon above ground than planted ones in their early years, Dsouza pointed out, so these results should be considered carefully alongside other factors. Luo said the findings show that most global climate models are missing something when it comes to understanding how various forest types play a role in carbon sequestration and climate change. “Land use management works in more subtle and specific ways than we had assumed,” he said. “It is not just about planting more trees. It is also about when you plant them, what species you choose, and how you manage them over time.” Luo hopes these findings will help guide reforestation efforts, to ensure we get the most benefit from planting new forests to help mitigate the effects of climate change. “Our work offers a more practical guide for forest-based climate action: when to plant, what to plant, how long the benefits last, and what current models are getting wrong. We hope that helps people make better decisions,” he said.  

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Traceability was one of the strongest themes to emerge from the sold-out Threads of Tomorrow Summit in Auckland, New Zealand in June, highlighting the growing importance of transparent supply chains and credible verification of material origins and impacts. Source: Timberbiz FSC Australia and New Zealand joined industry leaders across the fashion and textiles sector at the event. The event brought together more than 220 people from across New Zealand’s fibre, textile and fashion value chain, from growers and farmers through to manufacturers, brands and retailers, for a day of discussion about where the industry is heading and what it will take to get there. Presented by Fashion & Textiles New Zealand, an FSC promotional licence holder, the summit was structured around three themes: Place, Possibility and Momentum. The morning began with a look at the current state of New Zealand’s fashion and textile sector, before shifting to discussions around design, storytelling, circularity and supply chain integrity. The final session focused on what comes next for the industry, including building business resilience, improving transparency and traceability, and finding new value in waste streams and by-products. As part of the Summit’s Innovation Hub, FSC showcased products from promotional licence holders and certificate holders, including Kazzi Kovers, Step One, Wattle Accessories, Sandos and Merry People. The display highlighted the many innovative ways forest-based materials are already being used across the sector and provided an opportunity to discuss responsible sourcing, certification and supply chain transparency with attendees. Trademarks and Partnerships Manager of FSC ANZ, Jennifer Nicita, said it was energising to connect with such passionate and driven voices from across the industry, all working towards a shared vision. “These collaborations reinforce the shift towards a more transparent and traceable industry, and a positive future for responsible fashion,” she said. FSC ANZ exhibited alongside other industry leaders in this space, including Wool Impact, Trust Trace, Inter-Weave and Wool Yarns, which brought a strong mix of perspectives across fibres, materials and traceability solutions.

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Forest & Wood Products Australia (FWPA) Chief Executive Officer Andrew Leighton has concluded his tenure with the organisation following his decision to take on a new position as Chief Executive Officer of OneFortyOne Plantations. Source: Timberbiz To ensure continuity of leadership and operations, the FWPA board has appointed Craig Taylor as Acting Chief Executive Officer, effective from 1 July 2026, until a permanent CEO is appointed. Under Mr Leighton’s leadership, FWPA has strengthened its strategic focus, aligned investment priorities with member needs, and progressed key initiatives to support industry growth, market development and long-term research impact. He has played a key role in shaping a more integrated, industry-led approach to engagement, ensuring FWPA delivers clear, coordinated outcomes across research, marketing and stakeholder engagement. “It has been a privilege to work alongside such a committed team and an industry that is deeply invested in its future. I’m proud of what we’ve achieved together to strengthen collaboration, sharpen our focus and position FWPA to deliver meaningful outcomes for members,” Mr Leighton said. “I leave knowing the organisation is well placed, with a clear direction and strong foundations to continue building impact for the industry.” FWPA wishes to thank Andrew for his leadership and contribution to the organisation and the broader industry during his time as CEO. “Andrew’s achievements while he has been CEO are significant but most importantly, he moved the culture of the organisation towards one of service to the industry, our levy payers and members. The Board wishes him every success at OneFortyOne Plantations,” FWPA Chair Craig Taylor thanked Andrew said. The board’s search for FWPA’s next CEO is progressing, with applications now closed. The recruitment process is being managed by a subcommittee of the board with assistance from Pacific Search Partners. FWPA remains focused on delivering value to members and industry stakeholders and looks forward to updating stakeholders on the appointment process in due course.

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Forestry Australia has raised concerns following the Australian Government’s approval of the Improved Native Forest Management in Multiple-use Public Native Forests Method, warning that the method creates risks that could undermine confidence in Australia’s carbon market. Source: Timberbiz The method was approved by Assistant Minister for Climate Change and Energy Josh Wilson and will help fund the New South Wales Great Koala National, by stopping native timber harvesting in multiple-use public native forests. Forestry Australia President Dr Michelle Freeman said the organisation is very supportive of high-integrity carbon crediting for native forests, but that the method as approved had significant problems. “Forestry Australia strongly supports the development of high-integrity carbon methods for native forests. Our concern is that this method, as approved, falls short in a number of areas, including additionality, leakage and low ability to generate carbon outcomes.” At a time when media reports are highlighting that native hardwood previously sourced from Victoria is now being supplied from Tasmania, it is deeply concerning that the method will substantially underestimate the real leakage that occurs when harvesting stops. “If approved methods fail to fully account for leakage, or do not properly distinguish between genuine carbon abatement and policy-driven land-use change, such as in the case of the Great Koala National Park, then confidence in the ACCU Scheme is put at risk. Carbon markets must be grounded in science, transparency and integrity.” Forestry Australia also has concerns regarding the future stewardship of these forests. “Although the method allows for broader management activities in principle, the relevant provisions are so restrictive that they would, in effect, largely prevent active forest management for fire risk mitigation, forest health and long-term resilience. Despite the name, the method does not represent genuine improved native forest management.” Healthy, resilient and actively managed forests play an important role in storing carbon, reducing emissions and supporting biodiversity, cultural, social and economic outcomes. Improved outcomes could come from a range of evidence-based activities rather than from ceasing a single activity, Dr Freeman said. “Healthy forests require active management. Improved outcomes can come from restoration, ecological thinning, cultural burning, fuel management, assisted regeneration, more selective silviculture and other evidence-based interventions. Australia needs a carbon method that supports active, adaptive and science-based forest management across all tenures, not a one-off mechanism focused on stopping one activity in a very small part of the native forest estate.” Forestry Australia strongly supports investment in native forest management and the development of credible carbon methods that recognise the climate value of healthy, resilient forests, and has called for the risks in the approved method to be transparently addressed so that the ACCU Scheme can maintain the confidence of the market and the community.

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The Federal Government’s new carbon credits method for ‘protecting’ native forests will allow fossil fuel companies to greenwash their climate pollution and expand coal and gas production, according to The Australia Institute. Source: Timberbiz A new carbon accounting method, proposed to fund the creation of the Great Koala National Park in NSW, pits forest and biodiversity protection against acting on climate change, when those objectives are inseparable. “The science doesn’t say that it is okay for us to approve new gas and coal mines, as long as we save some trees at the same time. However, under this Great Koala National Park offsets scheme, that is exactly what is being proposed,” said Dr Richard Denniss, co-CEO of The Australia Institute. The Australia Institute says its research has shown that: Half of Australians (48%) agree that so-called carbon offsets are greenwash. Three in five Australians (62%) agree that so-called carbon offsets help polluters look like they are reducing emissions even when they aren’t. Three in five Australians (61%) say that stopping new gas and coal projects is an effective way to reduce emissions.   “It is simply climate denial to pretend that saving a forest can ‘offset’ the harm of approving a new gas or coal mine and expanding fossil fuel pollution,” Dr Denniss said. “Australia institute research has shown there is no shortage of offsets boondoggles in Australia, but there is a shortage of the bravery required to confront the fossil fuel industry and their friends in the carbon offset industry. “It is obscene to suggest that the only way we can save native forests is to allow the fossil fuel industry to use those forests to greenwash their growing emissions.” The Australia Institute says it provides intellectual and policy leadership and conducts research that drives the public debate and secures policy outcomes that make Australia better. The institutes motto is research that matters.

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