UPM announced on Tuesday that it has entered into an agreement to sell 100% of the share in its Austrian subsidiary, UPM Kymmene-Austria GmbH, to the HEINZEL GROUP, a leading pulp, packaging, and paper producer and trader in Central and Eastern Europe. The parties have agreed not to disclose the value of the deal.
News in international markets
Sanctions on Russia for Its Invasion of Ukraine Set to Negatively Impact Australia’s Construction Industry
With supplies of key laminated veneered lumber (LVL) and engineered wood products (EWPs) imported from Russia and Belarus, which accounted for 40-50% of these construction products, no longer available due to sanctions, Australia’s tight timber markets are now facing a severe shortfall of products.
Russia’s Invasion of Ukraine Has Timber Prices and Shortages Impacting EU and UK Wood Projects
Russia’s invasion of Ukraine and the sanctions applied by the EU and UK on Russia for that action have European architects and designers struggling to source wood for their projects. In 2021, Russia, Belarus, and Ukraine provided nearly a quarter of the worldwide lumber trade and 53% of the EU’s timber imports.
Sweden’s Setra Now Offering Cross-Laminated Timber Frames With Moisture Protection
Lesprom Network is reportingthat Setra, one of Sweden’s largest wood industry companies, is the first company in Sweden to offer a new moisture protection for frames made from cross-laminated timber. The moisture protection, Wetguard200SA, is manufactured by Siga Cover AG, a Swiss company, and is applied to surfaces such as floor structures.
Malaysia and Vietnam Timber and Timber-Based Industries Sign Memorandum of Cooperation
A Memorandum of Cooperation (MoC) was signed today between the timber and timber-based industries in Malaysia and Vietnam. The MoC is intended to help to further develop the timber trades in both countries. The MoC is in line with the Asean Summit agreement of 2000 where the Initiative for Asean Integration was launched.
Wood Engineering Technology Reports Construction of Their Second Production Line Is Advancing
Originally announced in June of 2021, work to build the second production line at the state-of-the-art Wood Engineering Technology at Matawhero, New Zealand is advancing. “The building to house all the production equipment is 40 percent complete, and we are starting the installation of the plant equipment over the coming few weeks.”
UK Residential Homebuilding Being Impacted by Inflation and Declining Consumer Confidence
In May, the UK experienced the slowest rise in residential homebuilding in the past two years, the result of declining consumer confidence and skyrocketing inflation. The construction purchasing managers’ index, compiled by CIPS and S&P Global, found that housebuilding activity fell to a figure of 50.7 in May, from 53.8 in April.
New South Wales Announces Renewal of All North Coast Wood Supply Agreements, Extending Native Forest Logging Until 2028
Australia’s New South Wales Agriculture Minister Dugland Saunders has announced that all North Coast Wood Supply Agreements that were to expire next year have been renewed and extended until 2028. The renewal, Mr. Saunders says, was done to provide “certainty” for the industry to “invest in their businesses.”
U.S. Wood Pellet Exports Decline Month-Over-Month but Remain Above Year-Over-Year Totals in April 2022
According to data released on Wednesday by United States Department of Agriculture’s Foreign Agricultural Service, the U.S. exported 659,071 metric tons of wood pellets in April, down from 801,396.9 metric tons of wood pellets in March but up year-over-year from the 635,463.4 metric tons exported in April of 2021.
Sanctions and Ports Closed to Russian Vessels Starting to Take Their Toll on Russian Lumber Markets
EU and other countries’ sanctions against Russia for the invasion of Ukraine, coupled with rising transportation tariffs and a stronger Russian Ruble, has led to a steady decline lumber exports and made the production of lumber in Russia’s Northwest a losing proposition. Exports to Europe, the main market for sawmills in the Northwest, will end on July 9.