2018 International Forest Industries IFI April May 2018 Digital | Page 16

LUMBER PROCESSING NEWS OneFortyOne Plantations to halt sawlog exports OneFortyOne Plantations (OFO) has announced that as a result of strong domestic demand and the continued outperformance across the building industry, it has advised customers that there will be no sawlog exported from its estate for the next financial year. OFO’s CEO, Linda Sewell said: “The volume of sawlog we export has been steadily in decline in recent times due to high demand from our domestic customers. Whilst demand remains strong, we will further support the local industry by retaining the logs onshore.” This announcement comes as the domestic timber industry continues to experience its strongest performance in 15 years, and follows OFO’s previously announced decisions in 2017 to cease exporting large saw logs and to formally withdraw from the Korean export market. As the local industry processors have made significant investments in their mills and operating technology over the past five years, the Company has found its customers are seeking more fibre than ever before. “We have been meeting the rising domestic demand where we could do so sustainably. Our focus is to support the current capacity of the domestic industry and not compromise the longterm sustainability of our forests by expanding beyond its means”. The Company has confirmed that it will continue to export surplus pulplogs produced from critical forest thinning programs that are needed to ensure healthy forests. Whilst domestic demand is currently strong, the Company does not preclude exporting sawlogs in the future, if market conditions change. OFO’s focus on the domestic industry has seen the company increase the number of local customers, and increase the volume supplied to those customers by more than 45% over the past five years. Tolko invests in new USNR edger line with BioVision Tolko is investing in a new BioVision Edger line for its sawmill at Armstrong, BC. The new line will comprise an unscrambler, Maximizer positioning infeed with dual fetchers, 4-saw edger, and close-coupled picker tailer. The optimizer is a BioVision system utilizing data from the new transverse scanner fitted with BioLuma 2900LV vision sensors. Also included is a MillTrak™ lumber flow control system comprising two sensors mounted above the unscrambler. BioVision’s edger grade evaluation adds overall value through re-manufacture or rip, based on the final grade of the wood. For example, a #3 appearance due to knots can be edged to #3 wane with confidence, to maximize recovery. Likewise a low grade 2x8 may be worth more as two 2x4s, one being a higher grade. Columbia Forest Products to expand its plywood mill in North Eastern Ontario Ontario is supporting Columbia Forest Products to expand its plywood mill in Hearst and Rutherglen, helping to create and maintain almost 350 jobs and boost economic growth. With support from Ontario’s Jobs and Prosperity Fund, the company will be able to grow its business and increase efficiency by modernizing its infrastructure and purchasing new equipment to maximize production capacity, increase competitiveness and expand into new markets, while ensuring resources are managed sustainably. Ontario’s plan to create fairness and opportunity during this period of rapid economic change includes a higher minimum wage and better working conditions, free tuition for hundreds of thousands of students, easier access to affordable child care, and free prescription drugs for everyone under 25 through the biggest expansion of medicare in a generation. U.S. log exports to China jumped 24.7% in February U.S. log exports increased 15.5% YoY to 1.15 million m3 in February 2018, the exports value exceeded $238.2 million (+27.4%), according to the USDA. U.S. log exports to China, the largest consumer of U.S. log, have jumped 24.7% to 544.3 thousand m3 and 33.1% by value ($126.0 million). The exports to second- largest consumer Canada have declined 2.3% to 305.2 thousand 14 International Forest Industries | APRIL / MAY 2018 m3, and exports to Japan have increased 13.5% to 171.4 thousand m3. The average price of U.S. log in February 2018 was $207 per m3, increase 10.3% from the same period last year. The average price of log exports to China was $231 per m3 (+6.7%), to Canada was $98 (-2.9%), and to Japan was $266 (+21.6%).