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Sawmill in Maine – Saint John, New Brunswick — Irving Forest Products, which owns and operates wood processing facilities in Maine and New York State, has acquired the Masardis Sawmill in Masardis, Maine. The sale closed January 5, 2025.

Previously owned by Groupe Lebel, the Masardis operation has a long history of producing random-length spruce and fir lumber. It currently employs 80 people and has the capacity to produce 115 million board feet annually.

The sawmill is located within close proximity to Irving’s 1.3 million acres of timberlands in Maine.

“We are excited to grow our lumber production capacity in the state of Maine,” said Jerome Pelletier, VP of Irving Forest Products. “The Masardis mill is well-located to access high-quality timber. It is also serviced by the Maine Northern Railway and benefits from having a team of highly skilled and dedicated employees who have worked together for decades to ensure the success of their operation.”

With the addition of the Masardis operation, J.D. Irving, Limited now operates 10 sawmills as part of its solid wood operations, with a total annual capacity of 1.3 billion board feet.

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Koskisen is launching a comprehensive investment program in the plywood production of its Panel Industry business in Järvelä. The investment program extends until the end of Koskisen’s strategy period, i.e. 2027. The first phase of the investment program will be implemented during 2025 and the total value of the related investments is approximately EUR 12 million.

“In line with our strategy, we are creating sustainable growth and the focus of investments is now shifting strongly to the Panel Industry. In recent years, we have invested heavily in the Sawmill Industry: the total investment value of the new sawmill and related operations, such as the log yard to be put into operation in early 2025, is approximately EUR 75 million,” says Koskisen’s CEO Jukka Pahta .

According to Pahta, the demand outlook for Koskisen’s wood products is stable and will strengthen, driven by the green transition, urbanization, and the development of trade and transportation. Wood products that bind carbon for a long time are a key part of a more sustainable bio-circular economy.

The systematic investment program in the sheet Panel industry will enable volume growth, streamline production, and facilitate related internal logistics. The investments also include automation of production phases.

“The key objective of the investment program is to improve the productivity, quality and yield of plywood production. As a result of the program, the plywood production capacity will increase from the current 65,000 m3 to 85,000 m3. This requires significant development of the machinery and investment in it,” says Tom-Peter Helenius, Director of the Board Industry Business Unit .

The first phase of the investment program focuses on developing the veneer manufacturing processes.

The plywood factory produces customized, high-quality birch plywood products for light and heavy transport vehicles, stamping tools, interior design, fixtures and furniture. The largest customer groups are the automotive, transport, construction and furniture industries.

“The existing production line has been built in stages and currently places restrictions on production development and volume growth. It is great that with the investment program being launched now, we have the opportunity to think about things with new eyes by modernizing the different stages of production and their mutual relationships,” says Helenius.

Koskisen is an international wood processing specialist with over a century of experience. They utilize the valuable wood raw material carefully, down to the last sawdust. They manufacture high-quality and sustainable bio-circular economy products that bind carbon for decades.

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Bruks Siwertell has received an order for a state-of-the-art Bruks Klöckner drum chipper from Bioena, a leading bioenergy company in Colombia. It will reliably deliver consistent quality wood chips and features a custom-designed knife and infeed configuration, supporting Bioena’s commitment to sustainable, high-capacity energy production.

Bioena is at the forefront of the renewable bioenergy industry. Its industrial plant, located in Santa Marta, produces biomass wood pellets from sustainably sourced wood, which play a vital role in the global move away from the use of fossil fuels.

Bruks Siwertell’s pioneering fiber- and wood-processing equipment and bulk handling technology is already playing a pivotal role in supporting renewable energy transitions worldwide.

“For Bioena, the choice was clear,” says Rafael Escamilla, Project Development Engineer, Bruks Siwertell. “Our Bruks Klöckner drum chippers have a proven track record for performance and reliability. With our strong presence in South America, we are excited to support Bioena in this project, and by fast-tracking the delivery, we are demonstrating our commitment to meeting its timeline and operational needs.”

Bruks Siwertell is able to offer unique equipment configurations depending on the needs of its customers. For Bioena, the horizontal-fed Bruks Klöckner drum chipper has a customized knife configuration to produce specifically sized wood chips, and its first two infeed rollers, closest to the drum, are segmented, enabling efficient and powerful material flows into the chipper. It also has a tailored infeed belt conveyor, while Hardox steel components, including the rotor, rotor hood, chip mantle, and chip pockets, enhance the chipper’s durability and performance.

“This partnership not only underscores Bruks Siwertell’s expertise in wood-processing technology but also celebrates our mutual commitment to environmental stewardship,” adds Escamilla. “Together, Bruks Siwertell and Bioena are proving that innovative solutions are able to drive meaningful change in renewable energy.”

Engineered to process whole eucalyptus logs at 50t/h, the new Bruks drum chipper will enable Bioena to expand its production capacity and keep pace with its growth and sustainability goals. The unit is planned for delivery from Germany in the first quarter of 2025.

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US President-elect Donald Trump has threatened to impose a 25% tariff on imported goods from Canada and Mexico if the countries don’t curb the flow of illicit drugs and illegal migrants into the United States. Source: Timberbiz If he follows through with that threat, it could have economic consequences for the US lumber supply chain, according to Rajan Parajuli, an associate professor of forest economics and policy at NC State University. Canada is one of the world’s largest producers and exporters of softwood lumber. In 2023, the US imported 28.1 million cubic metres of softwood lumber from Canada, primarily for residential and commercial construction. Trump’s proposed tariff would require US companies to pay a 25% tax to the US government when importing Canadian softwood lumber products, with the goal of encouraging those companies to invest in domestic production instead. US companies would likely attempt to recoup tariff-related losses by raising the price of Canadian softwood lumber, which would potentially impact the housing market by making building materials more expensive. “Tariffs unequivocally work towards pushing domestic lumber prices higher. When that happens, it usually adds up to higher costs for consumers,” Mr Parajuli said. When domestic lumber prices rise, US companies benefit from increased profits as US consumers have to pay more money for imported lumber, at least as long as demand for building materials and other lumber products remains steady. Mr Parajuli highlighted the 2006 US – Canada Softwood Lumber Agreement as an example of how tariffs can impact the supply chain. The agreement essentially allowed Canadian provinces to charge an export tax on softwood lumber purchased by US companies. Under the agreement, which was active until 2015, US lumber producers gained US$1.6 billion and US consumers lost US$2.3 billion as softwood lumber imports from Canada declined by 7.78% in the months when export taxes took effect. “US consumers not only paid producers’ gains, but also the losses that resulted from the export taxes,” Mr Parajuli said. Similar to the 2006 US – Canada Softwood Lumber Agreement, President-elect Trump’s proposed tariff would likely lead to a slight decline in softwood lumber imports from Canada because of increased prices domestically. US companies could increase softwood lumber imports from other trade partners, such as Germany and Sweden, to continue meeting domestic demand. Both countries have been exporting increasing amounts of lumber to the US in recent years. In the long term, the US would need to work with Canada to negotiate a new softwood lumber agreement, according to Parajuli. Germany, Sweden and other trade partners simply don’t have the inventory or capacity to displace Canada in lumber exports. Compared to the 28.1 million cubic meters of softwood lumber that Canada exported to the US in 2023, for example, Germany and Sweden only exported a combined 3.49 million cubic meters of softwood lumber to the US during the same period. “Up to 30% of softwood lumber consumed in the US each year comes from Canada. A small portion of the total market share is captured by other countries,” Mr Parajuli said. Mr Parajuli added that the US also lacks the capacity to meet domestic demand. While the US has plenty of land to harvest for softwood lumber, the forestry sector has struggled with workforce challenges in recent years. At the same time, Interfor and other companies have closed numerous sawmills across the southern US due to a combination of supply chain issues and weak demand caused by high interest rates. Mr Parajuli said the US lumber and the overall wood product markets may remain volatile given the uncertainty in trade and market policies under the Trump administration. “In an era where technological advancements are rapidly evolving, especially in the logging sector, the US should invest in upgrading the forest products supply chain,” Mr Parajuli said. “Sustainable markets are key to growing and conserving our forests.”