ForesterBlog.com
If you are in the forestry business, you may also be in the fashion business and not know it.
Forest products are often thought of as lumber and paper, and beyond that the list gets thin. Fortress Paper has been betting that the production of rayon, a fabric used to make clothing, will be another successful forest product. They have bought another old mill in Quebec and will change it's production to dissolving pulp in order to make rayon. The process is different than producing pulp for paper, but with some investment it can be done.
Though rayon may not be a huge market now in forestry, it's always great to see another use for wood fibre. Any time another product can be produced from wood fibre, it helps the forest industry and creates a demand for the available timber resource. To see a mill that's been shut down for 6 years have a new life is a great story for the town in Quebec where it's happening.
The rayon market is seeing an increase because cotton crops and production haven't been able to meet all the demand in recent times. Rayon material also has different properties than cotton. It doesn't retain heat as well as cotton does, but this is a good feature to have in warmer climates, which is where many emerging markets in Asia, the Middle East and South America happen to be.
-------
Fortress Paper Ltd. plans to transform yet another old Quebec forest-products mill into a facility that makes pulp used in the production of rayon instead of paper.
The old Domtar mill has been shut for more than six years and is now to get a new lease on life by producing dissolving pulp used in the manufacture of rayon, a product that has been in huge demand especially in Asia.
The project is the second such endeavour by Mr. Wasilenkoff in Quebec, after the transformation two years ago of a mothballed hardwood pulp mill in Thurso to pulp-for-rayon.
To read the full news, click below:
Foretress Paper Rayon Pulp Mill
---------
Tuesday, February 14, 2012
Monday, February 13, 2012
Pulp maker Fibrek bought by Mercer International
ForesterBlog.com
This news caught my eye because Mercer International operates a pulp mill in Castlegar BC, close to where I live. They also have two mills in Germany, and it looks like they are now ready to expand. Fibrek, the company they seek to acquire, has three mills in Quebec, West Virginia and Michigan.
Another interesting aspect of this deal is that there was another competing bid for Fibrek valued at $130 Million. Mercer's offer provides a significant premium at $170 Million. The pulp business to me is a difficult one, it's very capital intensive but this also acts as a barrier to competition. For Mercer to build three new pulp mills would have cost a lot more in time and money than their bid to buy Fibrek, so for them I think it will be a good deal. Especially since they are already very experienced in the pulp market. This deal is also a sign that the future might be good for pulp, since companies in this industry are looking to expand.
Mercer International isn't a household name, but they are important to the Castlegar and Kootenay areas of BC for the mill and forestry jobs they provide or create, and the taxes they pay to local government. To see Mercer in a position to expand and grow is a good sign for the people in these areas.
-----------
Pulp producer Fibrek Inc. says it has struck a friendly $170 million deal to be acquired by Vancouver-based Mercer International Inc.
Mercer Inc. operates in the pulp business and produces market northern bleached softwood kraft, or 'NBSK', pulp for export around the world. The company employs nearly 1,500 people and has a mill in British Columbia's interior, and two in eastern Germany.
Mercer president and chief executive Jimmy Lee welcomed the deal and said it benefits both pulp makers, their customers employees and shareholders.
"The acquisition of Fibrek clearly fits within our strategy of focusing on world-class production assets that produce high quality pulp," Lee said in a release.
"Additionally, the ability of Fibrek's St. Felicien mill to produce and sell surplus renewable energy is in line with our goal of increasing our revenues from energy sales."
To read the full news release, click below:
Mercer International buys Fibrek Inc
------------------
This news caught my eye because Mercer International operates a pulp mill in Castlegar BC, close to where I live. They also have two mills in Germany, and it looks like they are now ready to expand. Fibrek, the company they seek to acquire, has three mills in Quebec, West Virginia and Michigan.
Another interesting aspect of this deal is that there was another competing bid for Fibrek valued at $130 Million. Mercer's offer provides a significant premium at $170 Million. The pulp business to me is a difficult one, it's very capital intensive but this also acts as a barrier to competition. For Mercer to build three new pulp mills would have cost a lot more in time and money than their bid to buy Fibrek, so for them I think it will be a good deal. Especially since they are already very experienced in the pulp market. This deal is also a sign that the future might be good for pulp, since companies in this industry are looking to expand.
Mercer International isn't a household name, but they are important to the Castlegar and Kootenay areas of BC for the mill and forestry jobs they provide or create, and the taxes they pay to local government. To see Mercer in a position to expand and grow is a good sign for the people in these areas.
-----------
Pulp producer Fibrek Inc. says it has struck a friendly $170 million deal to be acquired by Vancouver-based Mercer International Inc.
Mercer Inc. operates in the pulp business and produces market northern bleached softwood kraft, or 'NBSK', pulp for export around the world. The company employs nearly 1,500 people and has a mill in British Columbia's interior, and two in eastern Germany.
Mercer president and chief executive Jimmy Lee welcomed the deal and said it benefits both pulp makers, their customers employees and shareholders.
"The acquisition of Fibrek clearly fits within our strategy of focusing on world-class production assets that produce high quality pulp," Lee said in a release.
"Additionally, the ability of Fibrek's St. Felicien mill to produce and sell surplus renewable energy is in line with our goal of increasing our revenues from energy sales."
To read the full news release, click below:
Mercer International buys Fibrek Inc
------------------
Sunday, February 12, 2012
China-Canada Green Building Design Center
ForesterBlog.com
Prime Minister Stephen Harper recently untook a trade mission to China. Part of the mission involved forest products and lumber. China is one of Canada's most important customers for wood products, and according to the release below Canada is now the largest supplier of lumber to China.
Initiatives like the China Canada Green Building Design Center highlight wood frame construction, which still isn't widely used in China. If the use of wood in construction continues to grow in China, Canadian lumber mills should benefit along with the jobs they bring. The bottom of the release has some interesting stats on exports to China for 2009, 2010 and 2011. I wonder what kind of year 2012 will be?
-----
PMO press release:
Langfang, China
Feb 9, 2012
Prime Minister Stephen Harper today visited the China-Canada Green Building Design Center – one of China’s largest wood frame buildings – to highlight Canada’s achievement as China’s largest supplier of lumber. “Our Government is committed to helping the Canadian forestry industry to diversify and succeed in priority markets around the world. With Canadian lumber exports to China at a record high, our efforts are paying off, creating jobs and economic opportunities for Canadians,” said Prime Minister Harper. “The China-Canada Green Building Design Center is just one of the ways Canada is promoting its world class environmentally-friendly wood frame technologies and materials in this rapidly growing market.”
The Government of Canada and the Province of British Columbia, in partnership with Canadian lumber suppliers, are working with several countries to further promote Canadian wood frame technology by developing building codes, training designers and builders to use wood and educating institutions on the benefits of building with wood.
Thanks to their versatility and environmental benefits, wood frame construction, such as that used for the Green Building Design Center, has become more prominent throughout China and has led to a major boost in Chinese demand for Canadian wood and wood frame technology. As a result, 18 Canadian mills have reopened or dedicated part of their production to servicing the Chinese market.
The China-Canada Green Building Design Center is a 2,500 square-meter facility which features environmentally friendly, seismically stable, and energy efficient Canadian wood frame technologies and materials.
Canadian wood exports to China grew to $835 million in 2010, up 119 percent from 2009. During the first eleven months of 2011, wood products were Canada's third largest export to China, totalling $1.36 billion and expected to exceed $1.5 billion in 2011.
------
Prime Minister Stephen Harper recently untook a trade mission to China. Part of the mission involved forest products and lumber. China is one of Canada's most important customers for wood products, and according to the release below Canada is now the largest supplier of lumber to China.
Initiatives like the China Canada Green Building Design Center highlight wood frame construction, which still isn't widely used in China. If the use of wood in construction continues to grow in China, Canadian lumber mills should benefit along with the jobs they bring. The bottom of the release has some interesting stats on exports to China for 2009, 2010 and 2011. I wonder what kind of year 2012 will be?
-----
PMO press release:
Langfang, China
Feb 9, 2012
Prime Minister Stephen Harper today visited the China-Canada Green Building Design Center – one of China’s largest wood frame buildings – to highlight Canada’s achievement as China’s largest supplier of lumber. “Our Government is committed to helping the Canadian forestry industry to diversify and succeed in priority markets around the world. With Canadian lumber exports to China at a record high, our efforts are paying off, creating jobs and economic opportunities for Canadians,” said Prime Minister Harper. “The China-Canada Green Building Design Center is just one of the ways Canada is promoting its world class environmentally-friendly wood frame technologies and materials in this rapidly growing market.”
The Government of Canada and the Province of British Columbia, in partnership with Canadian lumber suppliers, are working with several countries to further promote Canadian wood frame technology by developing building codes, training designers and builders to use wood and educating institutions on the benefits of building with wood.
Thanks to their versatility and environmental benefits, wood frame construction, such as that used for the Green Building Design Center, has become more prominent throughout China and has led to a major boost in Chinese demand for Canadian wood and wood frame technology. As a result, 18 Canadian mills have reopened or dedicated part of their production to servicing the Chinese market.
The China-Canada Green Building Design Center is a 2,500 square-meter facility which features environmentally friendly, seismically stable, and energy efficient Canadian wood frame technologies and materials.
Canadian wood exports to China grew to $835 million in 2010, up 119 percent from 2009. During the first eleven months of 2011, wood products were Canada's third largest export to China, totalling $1.36 billion and expected to exceed $1.5 billion in 2011.
------
Saturday, January 28, 2012
What Caused the Burns Lake Sawmill Explosion?
ForesterBlog.com
I was on the road last weekend when I heard about the explosion at the Burns Lake sawmill that killed two people and injured 19 more. It was surprising because you don't often hear about explosions at sawmills, and most mills have good safety practices that try to minimize the number of accidents.
The destruction of this mill will also have a big effect on the employment situation in the area. Small towns with lumber mills are usually heavily reliant on the jobs the mills provide. I've heard that the rebuilding of the mill isn't certain due to the reduced timber supply in the area from mountain pine beetle attack. Even if they do decide to rebuild, it would take about a year and a half to construct. In the meantime, workers dependent on this mill have to switch employers or possibly leave town to find work, which is hard on family life. The question of rebuilding the mill will have to involve the owners, government and employees working together to create a viable operation.
There is still speculation on what caused the explostion, but the most popular theory seems to be a build up of sawdust in the air that was somehow ignited. The wood that was being processed by the mill was dry, dead pine, and many people have commented on how high the dust levels were in weeks leading up to the accident. It was actually pointed out as a safety hazard for inhalation. If a build up of sawdust was the cause, similar mills should take note and ensure dust particles don't reach such dangerous levels.
For recent information on the Burns Lake sawmill accident, visit:
http://www.theglobeandmail.com/news/national/british-columbia/destroyed-burns-lake-sawmill-warned-of-unsafe-levels-of-sawdust-in-december/article2314866/
-----
-----
I was on the road last weekend when I heard about the explosion at the Burns Lake sawmill that killed two people and injured 19 more. It was surprising because you don't often hear about explosions at sawmills, and most mills have good safety practices that try to minimize the number of accidents.
The destruction of this mill will also have a big effect on the employment situation in the area. Small towns with lumber mills are usually heavily reliant on the jobs the mills provide. I've heard that the rebuilding of the mill isn't certain due to the reduced timber supply in the area from mountain pine beetle attack. Even if they do decide to rebuild, it would take about a year and a half to construct. In the meantime, workers dependent on this mill have to switch employers or possibly leave town to find work, which is hard on family life. The question of rebuilding the mill will have to involve the owners, government and employees working together to create a viable operation.
There is still speculation on what caused the explostion, but the most popular theory seems to be a build up of sawdust in the air that was somehow ignited. The wood that was being processed by the mill was dry, dead pine, and many people have commented on how high the dust levels were in weeks leading up to the accident. It was actually pointed out as a safety hazard for inhalation. If a build up of sawdust was the cause, similar mills should take note and ensure dust particles don't reach such dangerous levels.
For recent information on the Burns Lake sawmill accident, visit:
http://www.theglobeandmail.com/news/national/british-columbia/destroyed-burns-lake-sawmill-warned-of-unsafe-levels-of-sawdust-in-december/article2314866/
-----
-----
Wednesday, January 4, 2012
Lumber Sales to China Slowing?
ForesterBlog.com
I meant to post about this in December, but it was just too busy and I had to spend a little time finding the right article.
The Globe and Mail reported in December that BC lumber sales to China were slowing down as late as October. If you read the article carefully, it appears that shipments are still near all time highs, they are just not growing as much as they have been year over year. The main reason for this is that China's real estate market has been slowing, and lumber inventories are high. According to the article, things may improve in the spring, but it will depend on how China's economy is doing.
The US is still a major customer of BC lumber, and the forecast is that lumber shipments may keep improving over the next three years.
In a nutshell, while there may not be a lot of growth happening in lumber shipments, China is still taking a lot more lumber than they used to and the US is still the biggest customer.
According to Statistics Canada data compiled by BC Stats, October was the sixth-biggest sales month for B.C. foresters in China but, at $89-million, the figure was only 8 per cent higher than a year ago. While shipments remain near an all-time peak, growth may not re-emerge until spring.
Wood Markets International, a Vancouver industry consultant, predicted on Wednesday that U.S. lumber demand and prices would “rise slowly” in 2012, gain “momentum” in 2013, and that “price surges” would start in 2014, propelled by strong demand as the U.S. and China chase tight supply.
Click below to read the full article, there are many interesting details in it:
Lumber sales to China
----
I meant to post about this in December, but it was just too busy and I had to spend a little time finding the right article.
The Globe and Mail reported in December that BC lumber sales to China were slowing down as late as October. If you read the article carefully, it appears that shipments are still near all time highs, they are just not growing as much as they have been year over year. The main reason for this is that China's real estate market has been slowing, and lumber inventories are high. According to the article, things may improve in the spring, but it will depend on how China's economy is doing.
The US is still a major customer of BC lumber, and the forecast is that lumber shipments may keep improving over the next three years.
In a nutshell, while there may not be a lot of growth happening in lumber shipments, China is still taking a lot more lumber than they used to and the US is still the biggest customer.
According to Statistics Canada data compiled by BC Stats, October was the sixth-biggest sales month for B.C. foresters in China but, at $89-million, the figure was only 8 per cent higher than a year ago. While shipments remain near an all-time peak, growth may not re-emerge until spring.
Wood Markets International, a Vancouver industry consultant, predicted on Wednesday that U.S. lumber demand and prices would “rise slowly” in 2012, gain “momentum” in 2013, and that “price surges” would start in 2014, propelled by strong demand as the U.S. and China chase tight supply.
Click below to read the full article, there are many interesting details in it:
Lumber sales to China
----
Wednesday, December 14, 2011
Canada's Rarely Seen Animal
ForesterBlog.com
I usually pick up a Saturday Globe and Mail newspaper, because the weekend is the only time I have a chance to sit down and read one. I like to check the Sports and Business sections and catch up on the week that passed.
Last weekend, I noticed there was an article titled 'Canada's Most Elusive Creature'. The title piqued my curiousity, so I flipped ahead and saw that it was an article on the wolverine. Working in forestry, you sometimes hear people talking about wolverine's, but you rarely meet anyone who has seen one. If they have seen one, it was usually running off the road or into the woods and they didn't get a good look at it.
The article gives a good history of the wolverine, how it's population was greatly reduced, and hope that it may be recovering.
Some of the interesting quotes in the article were:
Ecologist Jason Fisher has spent the past six years studying wolverines in the Alberta foothills. When I ask him the extent of the wolverines' current range in Canada, he hesitates: “The honest answer is, I don't think anyone really knows for sure.”
it was the widespread introduction of predator poisons across North America during the 1960s and '70s that turned the animal's greatest strength – its supreme ability to locate scraps of meat scattered about a landscape – into a ruinous liability. In a few short years, wolverines were extirpated from the Lower 48, and savagely beaten back across Canada.
The deeper truth is that wolverines are difficult to find, and even harder to observe. They are blessed with the endurance of a marathoner, the speed of sprinter and the mountain-climbing ability of a goat. Chasing a wolverine through the wilderness is like pursuing the Terminator.
“They may just be the toughest animal in the world,” Douglas H. Chadwick says in his book The Wolverine Way. “When you weigh 15 kg and can back a full grown grizzly off a kill, that is just plain badass.”
Luckily for you, the article is now posted online and you can read it all yourself.
To read the full article, click here:
http://www.theglobeandmail.com/life/travel/news-and-trends/bruce-kirkby/have-you-seen-canadas-most-elusive-creature/article2266069/singlepage/
-----
I usually pick up a Saturday Globe and Mail newspaper, because the weekend is the only time I have a chance to sit down and read one. I like to check the Sports and Business sections and catch up on the week that passed.
Last weekend, I noticed there was an article titled 'Canada's Most Elusive Creature'. The title piqued my curiousity, so I flipped ahead and saw that it was an article on the wolverine. Working in forestry, you sometimes hear people talking about wolverine's, but you rarely meet anyone who has seen one. If they have seen one, it was usually running off the road or into the woods and they didn't get a good look at it.
The article gives a good history of the wolverine, how it's population was greatly reduced, and hope that it may be recovering.
Some of the interesting quotes in the article were:
Ecologist Jason Fisher has spent the past six years studying wolverines in the Alberta foothills. When I ask him the extent of the wolverines' current range in Canada, he hesitates: “The honest answer is, I don't think anyone really knows for sure.”
it was the widespread introduction of predator poisons across North America during the 1960s and '70s that turned the animal's greatest strength – its supreme ability to locate scraps of meat scattered about a landscape – into a ruinous liability. In a few short years, wolverines were extirpated from the Lower 48, and savagely beaten back across Canada.
The deeper truth is that wolverines are difficult to find, and even harder to observe. They are blessed with the endurance of a marathoner, the speed of sprinter and the mountain-climbing ability of a goat. Chasing a wolverine through the wilderness is like pursuing the Terminator.
“They may just be the toughest animal in the world,” Douglas H. Chadwick says in his book The Wolverine Way. “When you weigh 15 kg and can back a full grown grizzly off a kill, that is just plain badass.”
Luckily for you, the article is now posted online and you can read it all yourself.
To read the full article, click here:
http://www.theglobeandmail.com/life/travel/news-and-trends/bruce-kirkby/have-you-seen-canadas-most-elusive-creature/article2266069/singlepage/
-----
Monday, November 28, 2011
West Fraser Timber Company Plans Two Biomass Powered Plants in BC
ForesterBlog.com
This might be something we start seeing more of in BC - established forest companies building biomass/bioenergy plants. The technology is approaching the point where forest material that would otherwise go unused, or be burned into the atmosphere, can be harnessed and used to create a cleaner energy. The energy can be used to run adjacent building or mills, or possibly be sold back into the grid for general use. Material that could be used would be pieces of wood that are too small or too poor quality for lumber or other forest products. This will be a good trend to watch.
West Fraser Timber Company is mulling identical, biomass-powered generation plants at two of its subsidiaries in British Columbia. The plants are being planned in response to BC Hydro's (Nelson, British Columbia) "Bioenergy Call to Power" program to acquire and provide cost-effective, clean, renewable energy.
For details, view the entire article by subscribing to Industrial Info's Premium Industry News at http://www.industrialinfo.com/showAbstract.jsp?newsitemID=191380&refer=marketwire, or browse other breaking industrial news stories at www.industrialinfo.com.
-----
This might be something we start seeing more of in BC - established forest companies building biomass/bioenergy plants. The technology is approaching the point where forest material that would otherwise go unused, or be burned into the atmosphere, can be harnessed and used to create a cleaner energy. The energy can be used to run adjacent building or mills, or possibly be sold back into the grid for general use. Material that could be used would be pieces of wood that are too small or too poor quality for lumber or other forest products. This will be a good trend to watch.
West Fraser Timber Company is mulling identical, biomass-powered generation plants at two of its subsidiaries in British Columbia. The plants are being planned in response to BC Hydro's (Nelson, British Columbia) "Bioenergy Call to Power" program to acquire and provide cost-effective, clean, renewable energy.
For details, view the entire article by subscribing to Industrial Info's Premium Industry News at http://www.industrialinfo.com/showAbstract.jsp?newsitemID=191380&refer=marketwire, or browse other breaking industrial news stories at www.industrialinfo.com.
-----
Subscribe to:
Posts (Atom)