Greenlam Industries, Asia’s largest laminate manufacturing company, announced today (12-13-21) that is planning on investing Rs 959 crore over the next 2–3 years to set up a third laminate plant. It will also venture into the plywood and particleboard business. The company says the expansion will help move the company from being a decorative surfacing manufacturer to a leading player in the wood panel industry.
News in international markets
lida Group Holdings Buys Majority Stake in Russian Forest Products
Iida Group Holdings (IGH), a leading Japanese real estate development firm, announced on Wednesday (12-8-21) that it has received Russian Government approval and is buying a majority stake (75%) in Russian Forest Products for nearly $530 million. IGH says the acquisition will provide the company with access to one of the world’s largest forests, spanning roughly four million hectares in the Russian Far East.
New Zealand Log Export Volume and Prices Continue to Decline
New Zealand’s forestry industry continues deal with significant declines in the demand for export logs. China remains New Zealand’s largest customer for logs. Chinese construction companies, several with copious amounts of debt, are teetering on failure, without government intervention. As a result, the expectation for construction activity in China in 2022, is approximately 20% or more below 2021 levels.
New Zealand Forestry Operators Dealing With Fallout From “Perfect Storm”
China is New Zealand’s largest overseas market for logs. Currently, China accounts for 70-90% of all log exports. Earlier this year, log prices were at near record high levels in New Zealand. In November, the price of logs had sunk to lows not seen since late 2015. The lower prices have resulted in a significantly reduced number of logs heading to ports.
Holmen Wood Products Investing SEK 400 Million in Upgrades to Iggesund Sawmill
Holmen has announced they are investing 400 million SEK in their Iggesund Sawmill. The investment will increase production at the sawmill by 20% and will enable the mill to switch from lower grade joinery spruce to construction timber in both spruce and pine. This will increase the value added and improve the market mix by increasing the share sold to Scandinavian builders’ merchants.
Timberlink Announces New Brand Name for their CLT and GLT Product Lines: NeXTimber
NeXTimber by Timberlink is the new brand name for Timberlink Australia’s forthcoming engineered wood building solution products. NeXTimber by Timberlink will manufacture cross-laminated timber (CLT) and glue-laminated timber (GLT) products, providing an Australian-made renewable and carbon-positive timber building solution for commercial, residential, and public projects.
Dongwha Enterprises Celebrates Opening of New Laminated Flooring and Medium-Density Fiberboard Facility in Vietnam
Dongwha Enterprises, Korea’s top wood materials manufacturer, held an opening ceremony for its Dongwha, Vietnam unit’s new laminated flooring and medium-density fiberboard (MDF) facility located in Thai Nguyen (near Hanoi) on December 2, 2021. The factory is located on a 500,000 square meter site and was built with a total investment of 180 billion won ($152.6 million).
Russian Government Announces Increases in Export Duties for Lumber Starting on January 2, 2022
The Russian government has announced an increase in export duties for lumber with a moisture content of greater than 22% and a thickness and width of more than 10 cm. From January 2 through December 31, 2022, the export duty for softwood lumber will be set at 200 euros per cubic meter.
Egger Wood Products Announces $50 Million Investment in Their Davidson County, NC Facility
Egger Wood Products, an Austrian-based manufacturer of wood-based materials, announced on Thursday (12-2-21) that it intends to invest $50 million in additional equipment for its Davidson County, North Carolina facility. Eggers has 20 plants worldwide, but the plant located in Linwood, NC is its first North American facility.
Södra Wood Announces Temporary Production Adjustment in December
Södra Wood will be making a temporary adjustment of production to achieve a balance between production and customer needs. In December, sawn timber production will be reduced by 60,000 m³. In a statement prepared to accompany the production adjustment, Peter Jhaveri, President of the Södra Wood said, “Production will be adjusted to achieve a balance between production and customer needs.”