Revenue from timber sales climbed to UAH 30.4 billion ($736 million), up UAH 6.7 billion year-on-year, while tax payments hit a record UAH 16.1 billion ($390 million) — up UAH 6.8 billion on 2024. Industry profitability reached 22.8 per cent, up 12.3 percentage points, with average monthly wages clearing UAH 30,000 — roughly $727 — after rising UAH 6,000 year-on-year.

Post-2020 reforms have driven the turnaround. Before those changes — when resources were greater and conditions far less punishing — the industry earned just UAH 0.2 billion, nearly 35 times less than today’s result. “This is the best proof that the reforms we implemented have proven effective,” Smal said.

Yuriy Bolokhovets, director general of Forests of Ukraine, said less money was disappearing off the books. Moving 97 per cent of procurement onto the Prozorro transparency platform saved more than UAH 700 million alone.

“Before the reforms, profits were lost. Today, financial flows work in the interests of the state and the industry,” Bolokhovets said.

“Increased profits mean record budget contributions, forest fire protection, support for the armed forces, and investment in technical modernisation.”

It comes amid ongoing uncertainty over Ukraine’s timber export position, with European markets closely watching supply flows as the war continues to constrain accessible forestry areas across the country’s east and north.

Boulton raised the prospect that EU anti-dumping measures on Chinese hardwood plywood had redirected volumes toward the UK — and that some of the increase could mask sanctioned Russian product. “We would urge our members and the wider industry to use all caution and take advantage of TDUK due diligence and responsible sourcing policy resources to make sure the timbers they purchase comply with all relevant EU and UK regulations,” he said.

Hardwood plywood imports rose 7.1 per cent. Total plywood volumes climbed 10.1 per cent to 1.32 million cubic metres — driven by stronger shipments from China, Malaysia and Brazil.

The broader picture was much weaker.

Demand has remained subdued for four consecutive years, and softwood — which accounts for around 61 per cent of all UK timber imports — fell four per cent to 5.55 million cubic metres. Sweden, Germany and the Irish Republic all shipped less. Latvia and Finland picked up some of the slack. Average softwood prices still rose, reaching £289 per cubic metre against £256 in 2024.

Hardwood came in at 431,000 cubic metres. Tropical species were down 9.7 per cent. Mixed hardwoods moved the other way, rising ten per cent to 115,000 cubic metres, with Cameroon holding its position as the dominant source of tropical supply. Particleboard had a strong year, climbing 10.1 per cent to 637,000 cubic metres. MDF did not — volumes dropped 23 per cent to 544,000 cubic metres. Engineered wood was similarly split. Laminated veneer lumber and I-beams both grew solidly, while cross-laminated timber fell 23.6 per cent.

Boulton said the headline figure obscured a more complicated picture: “Much of the reduction in overall volume was driven by lower softwood and MDF imports, while several other product categories recorded strong growth during the year.”

The housing and construction sectors remain the key variable. Forecasters expect softwood volumes to recover around 3.7 per cent in 2026 — but that recovery depends on confidence returning to a market that has been flat for the better part of four years.

That is according to Dr Daniel Roberts, the lead of theCommonwealth Scientific and Industrial Research Organisation’s Energy Technologies Research Program, who will speak at this month’s Renewable Fuels Summit.

Liquid fuels account for more than half of all final energy Australians consume and 30 per cent of national emissions: “There are really two drivers,” Roberts said. “One is emissions reduction. The other is fuel security. These have motivated alternative fuels research and energy independence ambitions for a long time.”

And whilst electric vehicles dominate the public conversation, Dr Roberts said the harder problem lies in aviation, international shipping, and diesel engines powering remote mine sites and farms. These are sectors where electrification, as he put it, “is unlikely to be able to do the heavy lifting.”

Why forest residues are now worth their weight in fuel!

That’s why CSIRO is now focused on biogenic fuels — converting biomass and organic waste into liquid fuel — a pathway Dr Roberts believes will deliver commercial results ahead of synthetic alternatives. Forestry residues, plantation waste, agricultural by-products and urban waste streams are all in scope. “It’s about recognising the value in our waste streams,” Dr Roberts said. “We have the opportunity domestically to build on existing technologies and make something really useful out of waste.”

The scale required is not small. Dr Roberts described facilities processing thousands of tonnes of feedstock daily, power-station-sized plants backed by hundreds of megawatts of electrolysers and industrial-grade carbon capture. “The first time you do something, it’s always harder and more expensive. But that’s how you learn and improve,” he said.

CSIRO is already active in the field, having participated in a world-first Australia-India trial that demonstrated, at scale, the partial replacement of coal with agricultural waste in steelmaking. It is also working with the Heavy Industry Low-Carbon Transition Cooperative Research Centre to de-risk biomass gasification pathways and cut natural gas dependence across heavy industry.

And on the commercial side, CSIRO is an active partner in the AFWI Fibre to Fuels project, which will see HAMR partner with a dozen or more partners in the forest value chain to demonstrate that plantation residues in Tasmania, Western Australia and the Green Triangle in Victoria’s timber towns can be turned into low-carbon liquid fuels.

Dr Roberts said the industry’s appetite had shifted markedly over the past five years, with net-zero commitments and geopolitical concerns about fuel supply pushing boardrooms to act. The sticking point remains policy certainty — large-scale infrastructure requires confidence that demand will be there for the life of the asset. “Companies considering 30-year infrastructure investments need certainty that customers will be there,” he said.

It comes as the federal government last year committed $1.1 billion to accelerate Australia’s low-carbon liquid fuels sector — a package the Low Carbon Fuels Alliance of Australia and New Zealand, which represents more than 300 stakeholders from feedstock producers to project developers, described as a turning point for sovereign fuel supply.

• To learn why the global timber trade is now tied up in Iranian conflict, click here for Wood Central’s special feature on the Strait of Hormuz last week.

Wood Central understands the deal is expected to fetch more than $100 million, with Gresham House, the UK asset manager with close to AU$7 billion in forestry and natural capital assets, making a play for the 22,000-hectare beef, dairy and cropping property 140 kilometres north-east of Launceston.

And its plans go far beyond milk and beef, with large-scale pine plantations, carbon projects, biodiversity credits and income from Australia’s Nature Repair Market all in the mix.

However, not everyone in the state’s north-east is welcoming the change.

“You can’t eat pine trees, that’s a big one,” according to St Helens beef farmer and former Liberal MP John Tucker, who spoke to ABC Rural Tasmania over the weekend. “I think it’s got a lot of potential for livestock farming out in that area. A lot more potential in my opinion than trees.”

Meanwhile, Rhys Beattie, the mayor of the Dorset Council, said that whilst the council is not opposed to forest-based industries, it is calling on both federal and state governments to carefully consider the implications of large-scale agricultural land conversions: “The preservation of productive agricultural land is vital to the sustainability and prosperity of our community.”

At the same time, TasFarmers president Ian Sauer has taken the matter to Canberra, meeting Federal Agriculture Minister Julie Collins to clarify what financial assistance, if any, is being directed toward tree planting in the north-east.

Gresham House’s track record.

Wood Central understands that the firm has managed forestry assets for more than 4 decades and is the world’s 7th-largest forestry investment manager. In December, it closed the first tranche of its Sustainable International Forestry Strategy Platform at €250 million — anchored by Worcestershire Pension Fund and Australian superannuation fund NGS Super — the first time an Australian super fund has partnered with the UK forest giant. The strategy targets allocating 40 per cent to Australia and New Zealand, with the balance split between Europe and other afforestation investments.

NGS Super chief investment officer Ben Squires said sustainable forestry aligns with the fund’s objectives to achieve stable, risk-adjusted returns while contributing to global climate and biodiversity goals.

It comes as Tasmania’s farmland commands the highest median price per hectare in the country, with investor appetite increasingly driven by carbon, biodiversity and renewable energy income alongside productive agricultural land. Rushy Lagoon is already earmarked for the ACEN Australia-managed North East Wind project — 210 turbines across Rushy Lagoon and Waterhouse — which was declared a project of state significance in 2022.

Sale agent Jarrod Ryan of RMS Advisory has declined to confirm details, saying only there is “nothing to report at this stage.” Gresham House was contacted for comment on the Rushy Lagoon bid specifically.

• To learn more about Gresham House’s timber strategy, click here for Wood Central’s special feature.

That is according to Steve Walker, Principal of Terrafolia Advisory, who spoke exclusively to Wood Central after visiting a series of LVL manufacturing clusters in Linyi, Suqian and Guigang last week. And the production pivot, he says, is only part of the story. “What stands out most,” Walker said, “is the ability to produce high-quality structural products using young plantation logs.”

Part of that competitive edge is feedstock flexibility.

According to Walker, the mills draw on a wide species mix — domestic pine (Pinus massoniana), planted eucalyptus, New Zealand radiata and European spruce — with end customers specifying wood blends, quality grades and certification requirements before a board is cut. As a result, manufacturers can produce LVL on demand, at scale, to any dimensions worldwide.

It comes after Wood Central revealed that Chinese LVL arriving at Australian ports has surged 63 per cent in the ten months to October 2025, with new ABS data recording more than 205,000 cubic metres traded in that period alone. For Walker, the use of younger fibre, purpose-built infrastructure, and on-spec production means China can land product at costs that locals can only dream of.

For global forest asset managers, Walker says this represents a real opportunity.

The implication, he says, is simple: rotation length, fibre specification and market strategy are now directly linked. “Investors who focus on productivity optimisation and value creation, and who align forest resources with the growing demand for engineered wood, will be well positioned for the next phase of the industry,” Walker said. “The future of forestry will belong to portfolios that understand how fibre, manufacturing and markets are changing together.”

It comes as Walker last month set out the detailed case for how Australia’s plantation estate could be better deployed to meet exactly this kind of demand. His paper, A National Pathway for High-Productivity Forestry and Renewable Carbon Supply, published by the Rozette Institute, argues that Australia could double its plantation output without planting a single additional tree — through smarter rotation management, fibre alignment and productivity optimisation across existing estates.

Three product categories are under examination. Canadian softwood lumber faces review under antidumping order A-122-857 and countervailing duty order C-122-858 for all of calendar year 2025. Chinese certain hardwood plywood products — under antidumping order A-570-051 — and Chinese wooden bedroom furniture under order A-570-890 are included for the same period.

Commerce said it may limit the number of companies examined, selecting respondents through U.S. import data or quantity-and-value questionnaires. The data will be placed on the record within 5 days of the initiation notice, with respondent selection to follow within 35 days. For wooden bedroom furniture, quantity-and-value responses are due within 21 days; separate-rate certifications within 14 days.

The duty burden on Canadian exporters has risen sharply. Combined antidumping and countervailing rates climbed from 14.40 per cent under the fifth administrative review to 35.19 per cent under the sixth, and U.S. producers show no sign of backing off. Andrew Miller, chairman of the U.S. Lumber Coalition, said the duties target practices “designed by Canada to maintain an artificially inflated US market share for Canadian products and force US companies to curtail production, thereby killing US jobs.”

The Chinese furniture picture was equally difficult in 2025. The U.S. remains China’s largest wood furniture export market, absorbing 27 per cent of total shipments — but volumes fell 7.1 per cent to 129.4 million pieces, export value dropped 20 per cent to US$5.6 billion, and average unit prices declined 14 per cent to $43 per piece.

Automated Architecture, or AUAR, makes portable micro-factories that produce the full wooden framing of a house — walls, floors and roofs — in 24 hours. Co-founder Mollie Claypool told CNN the system produces timber panels more quickly, more cheaply, and more precisely than a conventional framing crew, freeing carpenters to focus on construction rather than component manufacturing.

It’s a claim the building and construction supply chain wants to stress-test — but the underlying model is sound.

Architects send building plans to AUAR’s AI-powered software, the Master Builder, which calculates how many panels are needed and exactly how much timber a developer needs to purchase.

The micro-factory — which fits inside a standard shipping container — is dispatched directly to the building site with an operator, who uses a robotic arm to measure, cut, and nail timber into panels, leaving precise openings for windows, doors, wiring, and plumbing. Contractors fit the panels by hand.

One micro-factory, Claypool says, can produce the framing for a typical house in about a day — a process she says would take a conventional timber-framing crew four weeks. On cost, AUAR claims its service runs 30% cheaper than a standard framing crew and up to 15% cheaper than ordering prefabricated panels from a large off-site factory and transporting them to the site.

The system can build parts for buildings up to seven storeys high.

AUAR can also respond to timber’s natural variations. It accounts for knots, bends, and warps — calculating the most efficient cutting pattern from available stock to reduce waste. “The precision of the finished panels produces a tighter building envelope,” Claypool adds, “lowering heat loss and improving the energy efficiency of the finished home.”

AUAR currently operates three micro-factories across the US and EU, with five more scheduled for delivery this year. So far, it has raised £7.7 million, with 600,000 square metres of panels in production — enough to build hundreds of homes. But Claypool’s ambition is to grow that to 1,000 micro-factories on sites by 2030, producing 200,000 homes every year.

Wood Central understands the company is in active discussions with several new US partners as part of what it describes as a growth phase, following its 2024 partnership with construction investment firm Rival Holdings. That makes sense, given 94 per cent of single-family homes built in 2024 were timber-framed, and Goldman Sachs has identified the country’s housing shortfall — estimated at between 1.5 and 5.5 million homes — as the root of its affordability crisis.

None of this is happening in a vacuum. As Wood Central reported in December, Europe’s most advanced robotic prefab plants are already showing what zero-labour panel production looks like at scale — floor and wall assemblies delivered flat-pack to site with, as Timber Development Association CEO Andrew Dunn put it after touring those facilities, “not a single Allen key in sight.”

The question is whether those models can be adapted to local conditions, supply chains and building standards — and how quickly.

That urgency is reflected in where research dollars are flowing. Australian Forest & Wood Innovations (AFWI) — a $200 million research and development fund backed by $100 million in federal funding by the Australian government — has already committed to projects targeting exactly this gap, including the Automated Design for Prefabrication in Timber Construction and The Precinct, a large-scale centre to process wood fibre into frames, trusses, wall panels and flooring at manufacturing scale.

Back in the UK, David Philp — chair of the Chartered Institute of Building’s digital and innovation advisory panel, and not involved with AUAR — told CNN the window for treating this technology as optional had closed.

“These innovations were an opportunity a few years ago, but now they’re a necessity. They’re not a nice-to-have anymore — they’re key to any construction business model.”

But the remaining barriers are not technical, he said. It’s cultural — particularly in England, where just 9% of homes built in 2019 were timber-framed, compared to 92% in Scotland. “The technology and standards are there — the real barrier is culture. We’ve got deeply ingrained traditional ways of working, so the challenge now is people and change, not tools and processes.”

AUAR is not alone. London-based Facit Technologies produces on-site micro-factories for wooden components, while US-based Cuby Technologies uses modular production units that combine to handle various construction elements. What distinguishes AUAR’s portable, container-delivered model is its flexibility — particularly relevant for regional and remote sites where logistics costs make centralised prefabrication plants impractical.

As for the broader picture, Claypool isn’t shy about what’s at stake. “Good homes are not just a construction problem,” she told CNN. “It’s a social problem. When homes are scarce, and we’re slow to build them, everything else suffers.”

• To learn why the UK’s largest contractors are looking to modern methods of construction – like prefabrication using mass timber parts – to meet the country’s target of 300,000 new dwellings each year, click here for Wood Central’s special feature from August 2025.

Slated to open later this year, the $1.45 billion, 39-storey ‘plyscraper’ will eventually contain more than 30,000 cubic metres of timber — shipped by European giants Stora Enso and Wiehag — across 21 storeys of the tower, with seven four-storey’ timber habitats’ sandwiched between steel-and-concrete mega floor plates above a seven-storey concrete podium.

And the glass panels going up are anything but conventional.

Spanish BIPV manufacturer Onyx Solar — working through Australian building products supplier Metz — is installing 1,794 crystalline silicon solar louvres across the tower’s active facade as part of a bespoke 247 kWp system. Speaking to PV Magazine Australia earlier this month, Onyx Solar revealed that each unit carries 28 mono-crystalline cells in a 4+4 mm glass configuration and produces 138 Wp at peak output. “The louvres also form a self-shading system that cuts direct solar heat gain internally,” Onya Solar said, turning the tower’s skin into a “vertical power source.”

Designed by BVN and New York-based SHoP, each ‘habitat’ comprises four floors of timbered space stacked inside a steel exoskeleton, eliminating the need for internal columns. “The timber floors are connected to the concrete floors via drag straps,” said Tim Allen, timber structural lead for TTW, who spoke at Timber Construct — Australia’s only timber construction conference — in late 2024. “Why build a 39-storey building partly out of timber?” Allen said. “Because it comes down to using the right timber for the right application.”

Whilst in October last year, Peter Morley, the Dexus project director overseeing the build, said the team had “broken the back on the most technical, structural phase of the project,” with the hybrid timber approach allowing the developers “to bring the building up quicker and get the façade on quicker than a more traditional build.”

“That’s because we’re jumping up five levels every time, and while we’re going up, we’re coming back and infilling with the timber within each of those five-storey zones,” Morley said. Atlassian Central is co-owned by Dexus and Atlassian, with Built and Japanese construction giant Obayashi appointed as builders, confirming the building remains “on schedule” for a 2026 opening, with the tech giant expected to take over five of the seven habitats in late 2028 following a full fit-out.

At street level, crews are also well advanced on a new pedestrian connection from Railway Colonnade Drive to the Devonshire Street Tunnel entrance — the heritage passage running beneath Central Station between Lee Street and Devonshire Street — which will, for the first time, allow pedestrians to access the tunnel directly from the colonnade as part of Central’s broader Third Square redevelopment.

Operating out of HAMR Energy’s Portland Renewable Fuels facility — backed by the Australian Government’s $1.1 billion Cleaner Fuels Program — the company is looking to produce up to 300,000 tonnes of low-carbon methanol produced from the Green Triangle alone. Whilst a second plant, Australia’s first methanol-to-jet facility, will go further: 135 million litres of SAF per year from an $800 million plant announced earlier this week.

Forestry residues are not waste.

Speaking about the recent announcements, Timber Towns Victoria President Cr Karen Stephens said the projects demonstrate the value of forest products (including residues) to the local economy: “Forestry residues are not waste — they are a valuable resource that can be turned into low-carbon fuels for use in aviation and shipping, creating jobs and new income streams for regional Victoria.”

Meanwhile, OneFortyOne’s Director of Corporate Strategy, Nick Chan, recently called the project “a defining moment for plantation forestry in Australia,” pointing to the Green Triangle’s year-round operations, established logistics, and sheer scale as the natural feedstock advantage.

Australia has almost no domestic SAF production.

That gap is the opportunity. And with federal funding already flowing and aviation partners already committed, the Green Triangle doesn’t need to wait for someone else to build the market — it just needs Victoria to recognise what’s already here.

“Our communities have always understood the value of the plantation estate,” Stephens said. “This investment is proof that the forestry sector has a strong and diversified future – and we call on the Victorian Government to recognise the strategic importance of the Green Triangle and ensure regional communities capture the full economic benefit of Australia’s emerging renewable fuels sector.”

• To learn more about the ‘Fibre to Fuels’ project, click here for Wood Central’s special feature last month. And to learn more about the opportunities for Victoria’s timber towns, click here for Timber Towns Victoria’s media statement.

That is according to Ukraine’s Foreign Intelligence Service, which has formally declared the crisis systemic — a finding backed by the Moscow Times, which reported timber harvesting fell 13 per cent in 2024 compared to pre-war levels, with lumber production down 11 per cent and plywood output collapsing 23 per cent. The cause, analysts say, is structural. Not cyclical.

Before the war, Russia accounted for roughly 22 per cent of the global softwood lumber trade. Western companies exited en masse, equipment imports stopped, and FSC and PEFC stripped Russian timber of its sustainability certifications. Export revenue collapsed from $12.5 billion in 2021 to $9.8 billion.

China is now the last major market standing — and even that is slipping.

Last year, Fastmarkets reporter Sanjoy Narayan told the 2025 International Softwood Conference that Chinese volumes fell by 10 per cent year-on-year in the first half of 2025, as market prices remained depressed. And as bad as the market is right now, it’s not the biggest problem. That distinction belongs to the machines.

An estimated 90 per cent of imported harvesters and forwarders currently operating in Russia will cease to function by 2028, according to the intelligence assessment. Sanctions cut off access to the Western manufacturers — John Deere, Ponsse, and Komatsu Forest — that serviced the bulk of Russia’s professional logging fleet, and domestic machine builders cannot fill the gap, with the shortfall estimated at several thousand units over the next two to three years.

Today, Wood Central revealed that, rather than prop up the industry, the Kremlin is planning to raise rental rates on forest plots by between 40-50 per cent — a move the intelligence service warns will “further reduce the attractiveness of the forestry sector for investors and workers.” Compounding that are potential restrictions on bank account withdrawals inside Russia — a measure that would trap workers and capital inside a sector already haemorrhaging both.

Speaking before a Federation Council committee, Deputy Industry and Trade Minister Mikhail Yurin acknowledged the sector had entered a “downward trend,” flagging a worst-case drop of 20 to 30 per cent in output in 2026, with further declines possible into 2027 “if geopolitical conditions deteriorate further.”

• To learn more about the impact of Russia’s sanctions on the global supply chains for forest products, click here for Wood Central’s special feature.