by Web Editor | Dec 7, 2015 | News
Increasing housing starts and higher consumer spending will drive anticipated operating income growth for the global paper and forest products industry of 1%-3% in 2016, underpinning the current stable outlook for the sector for the next 12 months, says Moody’s Investors Service in a report published today. However, the outlook for the Printing and Writing Paper segment is negative as digital alternatives continue to curb paper demand.
“Our outlook for the global paper and forest products sector over the next year remains within our stable range as increasing home construction and economic growth drive wood product, packaging and market pulp earnings growth in the low single digits in 2016,” says Ed Sustar, a Moody’s Vice President — Senior Credit Officer and author of the report.
The outlook for the Paper Packaging and Tissue segment will be stable with operating earnings forecast to grow by 0%-4% on the back of increased (1) packaging demand, driven by modest economic uptick and stable food consumption; and (2) tissue demand, driven by population growth and improving hygiene standards.
Expected improvements to US housing starts will likely prop up end-market demand for timber, lumber, oriented strand board and engineered wood products in 2016, which will in turn support the stable outlook for the Wood Products/Timberland segment. However, lower Chinese infrastructure spending is pressuring North American log and lumber exports. Operating earnings in this sector are expected to grow by between 0%-4% in 2016.
Operating earnings growth for 2016 in the 1%-3% range will support the Market Pulp segment’s stable outlook. Prices across most grades (hardwood, softwood, dissolving pulp) will remain flat or decrease as capacity increases outpace demand. As additional pulp capacity comes on-line, inventory management across the fragmented global pulp industry will remain critical to balancing supply and demand.
From Moody’s: https://www.moodys.com/research/Moodys-Stable-2016-outlook-for-global-paper-and-forest-products–PR_340351
by Web Editor | Nov 4, 2015 | News
Grand Rapids, MI-based Universal Forest Products, manufacturer of wood and wood-alternative products, pressure-treated lumber, and engineered wood products, opened a new manufacturing plant in Magna, UT this year.
General Manager Jon Christiansen told Deseret News that the new facility is expected to hire approximately 30 workers over the next three to five years.
Universal, founded in 1955, has subsidiaries that supply wood, wood composite and other products to the retail, construction and industrial markets.
Earlier this year the company purchased the assets of Idaho-based Rapid Wood Mfg., and it also has acquired a majority interest in the Brisbane, Australia-based Integra Packaging Proprietary, which manufactures packaging and wood specialty packaging products.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/universal-forest-products-opens-utah-plant-adds-30-new-jobs?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Nov 2, 2015 | News
From: Panel World Staff
Jackson Morrill, president of Composite Panel Association, updated the executive committee’s recommendations on “policy positions” with regard to energy/biomass issues that impact wood fiber supply during the September Fall Meeting in Banff, Alberta.
CPA opposes government policies that distort the market for woody biomass raw material, Morrill noted, adding that market forces should determine all uses of wood and wood residuals for renewable energy; policies that have the direct effect of diverting biomass supply to subsidized energy should be avoided; and governments that choose to initiate policies intended to increase demand for biomass energy production should couple them with policies that increase the available long-term supply of wood to meet future demand of composite wood panels as well as new and growing markets for energy and other uses.
Morrill said CPA will stay silent on the carbon neutrality of wood-to-energy, noting however that forest derived biomass should be treated as carbon neutral where there is a sustainable growing forest; within carbon accounting frameworks, the composite panel industry’s use of wood residuals to make long-lived products should be treated as a higher value use than energy recovery; the composite panel industry’s use of wood residuals is an important alternate use that should be considered when determining the scope of “qualified biomass” under the U.S. EPA Clean Power Plan.
Morrill said CPA will advocate that composite wood products be recognized for their carbon sequestration benefits; that public policies should recognize that sustainably managed forests and forest products sequester and store carbon and reduce CO2; the use of biomass in creating long-lived products that serve as carbon sinks should be formally recognized in any carbon calculations that might be referenced in a future carbon economy.
by Web Editor | Oct 5, 2015 | News
Oak Hill Veneer Inc. will invest almost $2 million to expand its operations in Troy, PA. When completed, the spliced hardwood veneer manufacturer said it expects to add 73 full-time jobs over the next three years, more than double its current size of 62 employees.
Plans call for the construction of a 15,000-square-foot building and adding a new line of veneer splicing equipment. In addition, the company said it will lease a nearby 35,000-square-foot building where it will install a new line of manufacturing equipment to produce veneer board. News of the expansion was announced Sept. 30.
Oak Hill Veneer is one of 18 companies owned by Spanish wood products firm Grupo Losan. Founded in 2008, Oak Hill Veneer specializes in cutting and splicing various thicknesses of veneer in a variety of species, including oak, cherry, maple and walnut, in accordance with Forest Stewardship Council (FSC) certification requisites, according to the corporate website.
“Oak Hill Veneer, Inc. is very excited about our upcoming expansion project,” said Amy Jackson, project coordinator. “This project has been months in the making and we are finally able to make an idea a reality. The state’s assistance will be used towards the purchase of the new equipment and to help with the construction of the new building at the Oak Hill Veneer Inc. site. These upcoming projects will create many jobs and bring more business to the community.”
The company received assistance from the Pennsylvania Department of Community and Economic Development that includes $146,000 in Job Creation Tax Credits and a $225,000 Pennsylvania First Program grant. The project also was coordinated by the Governor’s Action Team in collaboration with the Office of International Business Development and the Northern Tier Regional Planning & Development Commission.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/oak-hill-veneer-plans-2-million-expansion?ss=wood,wood,wood_of_the_month,wood,pricing_supply,wood,components_sourcing,wood,panel_supply,wood,wood_veneer,wood,lumber_quotes_charts
by Web Editor | Sep 30, 2015 | News
The British Columbia provincial government says it is investing $2.2 million in the Wood First program to promote the use of B.C. wood both locally and internationally, and help advance innovative wood-building systems and value-added wood products.
The funding is being awarded to six industry trade associations and institutions with proven records in research, development and marketing of wood products and skills training to carry out Wood First activities. They include:
• BC Wood Specialties Group – $558,910
• Canadian Wood Council – $770,109
• University of British Columbia – Centre for Advanced Wood Processing – $359,166
• University of British Columbia – Centre for Interactive Research on Sustainability – $65,000
• FPInnovations – $428,928
• Design Build Research Institute – $51,762
Funding from the Province will be supplemented with additional funds provided by industry.
Wood First is focused on advancing the use of wood in B.C. Since the program was launched in 2009, wood use in the mid-rise and non-residential construction sectors is increasing and recognition of wood as a preferred building material continues to grow. A recent survey of B.C. engineers, architects and builders confirmed that 40% are increasing the use of structural wood and 77% believe B.C. is well positioned to export its products and knowledge.
From Woodworking Network: https://www.woodworkingnetwork.com/news/canadian-news/british-columbia-invests-22-million-promote-wood-buildings-products?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
