2017 International Forest Industries Magazines May 2017 SHOW Special | Page 30

LUMBER PROCESSING NEWS New record high for globally traded wood chips Global trade of wood chips has seen spectacular development the past 15 years with a steady increase of about four percent annually (volumes year-over-year were up 11 of the past 14 years), according to the Wood Resource Quarterly (WRQ). In 2016, an estimated 35.6 million tons were shipped, predominantly to pulp mills in China and Japan, which can be compared to only 21 million tons 15 years ago. While trade of hardwood chips reached a record high in 2016, shipments of softwood chips have levelled out the past few years with 2016 volumes being slightly lower than the ten-year average. Japan and China are by far the two dominant consumers of globally traded wood chips. Their dominance is particularly accentuated for hardwood chips, where they imported 84 percent of the world’s total imports in 2016, up from 75 percent in 2007. China has surpassed Japan as the largest importer of chips in the world, and with expansion of pulp capacity on the horizon in China, it is likely that the country will be the number one destination for wood chips for many years to come. The major sources of hardwood chips for the two dominant importers include (in ranking order in the 4Q/16); Vietnam, Australia, Chile and South Africa. The biggest change on the supply side the past three years has been the sharp increases in hardwood chip shipments from Australia, South Africa, Brazil and Chile, while exports have fallen from Indonesia, Uruguay and Thailand. About 30% of global chip trade occurs outside of the Pacific Rim with Finland, Sweden and Turkey being the major destinations. The Finnish forest industry has long been reliant on both logs and wood chips from neighbouring Russia and the Baltic States. In 2016, Finland imported almost 1.7 million tons of chips to its country’s pulp industry, of which a majority was softwood chips from Russia. Current import volumes are down about 25% from five years ago, partly because of increased availability of domestic chips and higher usage of pulplogs. Holmen to acquire Rörvik Timber’s sawmill Holmen has signed an agreement to acquire Linghem Sawmill from its present owner, Rörvik Timber. The sawmill has a new saw line with capacity to produce 75,000 cubic metres per year. Logs more slender than those sawn at the Group’s Braviken Sawmill, 40 km B15 ll 025, Stand No. Visit us! LIGNA: Ha : Booth #1549 po Ex Equipment & ry ne hi ac M ts Forest Produc SIMPLE RELIABLE 5-YEAR WARRANTY COVERAGE MADE FOR SAWMILLS 3-D LASER SCANNING +1.360.993.0069 joescan.com/stability 26 International Forest Industries | APRIL / MAY 2017 from Linghem, are used as raw material. The purchase price is SEK 48 million ($5.5 million), as the company says in the press release received by Lesprom Network. A planing mill is also included the sawmill, which employs 28 people. The takeover has been planned to take place on 28 April. Ongoing measures are being taken at Holmen’s two existing sawmills to refine the business. At Braviken Sawmill, two types of wood are now being sawn, distribution has been streamlined and the degree of added value is being increased through the construction of a wood treatment plant. At Iggesund Sawmill, investments in the plant have increased capacity by 15% over the past year. Furthermore, opportunities to establish production of solid wood wall modules (cross laminated timber) are being investigated as a result of the greater interest in wood construction. Canfor Southern Pine’s president is elected to AWC’s board President of Canfor Southern Pine Fred Stimpson has been elected to the American Wood Council (AWC) board to complete the two-year term of Aubra Anthony who recently retired from Anthony Forest Products. Stimpson joined Canfor in 2013 and was appointed president in 2015. “AWC is pleased to have Fred join our board,” AWC President and CEO Robert Glowinski said. “Fred is well known by many in the industry, having been involved for over 30 years. The AWC Board of Directors will benefit from his Fred Stimpson, Canfor Southern Pine’s president depth of experience on wood products gained from his time at Canfor as well as at both Scotch Gulf Lumber and Gulf Lumber Company before that.