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.
News in international markets
binderholz Group GmbH Solid Wood Plant II Preparing to Start Production in Late 2022
binderholz Group GmbH, a leading European company offering solid wood products and innovative building solutions, announced in August 2021 that it had commenced construction on binderholz solid wood panel plant II, which is set to be located in St. Georgen bei Salzburg, Austria.
Brazilian Exports of Wood-Based Products Increased 22.2% Year-Over-Year in April 2022
According to the International Tropical Timber Organization, Brazilian exports of wood-based products (except pulp and paper) in April 2022 increased 22% in value compared to April 2021, from US$380.5 million to US$465.3 million. Pine sawnwood exports increased 29% in value, growing from US$59.7 million in April 2021 to US$77.2 million in April 2022.
Federal Judge Issues Permanent Injunction Against Plywood Imported From Brazil With PFS-TECO Grade Stamp
On Tuesday, a lawsuit to stop the importation and sale of substandard structural plywood from Brazil ended with Federal Judge Roy Altman issuing a permanent injunction barring a long-time certifier from operations in Brazil. The injunction requires the revocation of all PS 1 certificates issued by PFS-TECO to over a dozen Brazilian mills producing structural plywood for the U.S.
Australia Considering the Construction of Two of the World’s Tallest Timber Towers
The world’s tallest timber tower has been pitched for Perth, tipping out tech giant Atlassian’s approved Sydney timber hybrid tower. Grange Development recently filed plans for a $350-million, 50-story timber-hybrid residential tower of 245 apartments. At almost 183 meters, the development would be the tallest timber building in the world.
Japan’s Mitsui and Nomura Enter Into an Agreement to Purchase Australia’s New Forests
On Friday, New Forests announced that Japan’s Mitsui and Nomura had entered into an agreement to purchase 100% of all the shares of New Forest. Mitsui and Nomura will provide capital to support New Forests’ strategic growth initiatives and the global expansion of its investment platform.
Allied Timbers Zimbabwe Preparing to Commission Its New $12 Million Sawmill Facility
Zimbabwe’s largest timber producer, Allied Timbers Zimbabwe (ATZ), is preparing to commission its new $12 million (USD) sawmill at the Cashel Estate, located in the eastern highlands. ATZ seeks to become self-sufficient in terms of its planting, harvesting, and sawmilling, which will in turn will boost the company’s revenue inflow.
Japanese Government to Offer Financial Aid to Companies Switching From Imported to Domestic Lumber
Following the Japanese’s governments ban of lumber imports from Russia, as part of Tokyo’s economic sanctions for Russia’s invasion of Ukraine, Japan’s Forestry Agency announced plans today (5-17-22) to offer financial aid to companies switching their lumber consumption from foreign to domestic sources.
Parkside Group’s Greenbushes Timber Mill Closes Earlier Than Anticipated
Parkside Group, a Queensland-based, sawmilling and timber manufacturing, announced on Wednesday, May 11, 2022, that it was ceasing operations at its Greenbushes timber mill located in Western Australia’s (WA) South West Region. The mill’s last day of operation was scheduled for just 2-days after the announcement was made.
New Zealand’s Timber Export Trade Potentially Disrupted by Russia’s Invasion of Ukraine
Amid sanctions, Russia is looking to expand its export of timber to non-sanctioning countries. Two of those non-sanctioning countries, China and Vietnam, are currently significant volume purchasers of New Zealand timber.