{"id":10959,"date":"2023-09-22T11:14:12","date_gmt":"2023-09-22T01:14:12","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=10959"},"modified":"2024-10-21T20:27:43","modified_gmt":"2024-10-21T10:27:43","slug":"global-forest-industry-cuts-volumes-eyes-high-value-products","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/global-forest-industry-cuts-volumes-eyes-high-value-products\/","title":{"rendered":"Global Forest Industry Cut Volumes, Eyes High-Value Products"},"content":{"rendered":"\n<p>Global forest markets are rapidly transitioning, with industry shifting from &#8216;high volume to high value&#8217; production.<\/p>\n\n\n\n<p>On Monday, Wood Central reported that Canfor ended months of speculation by announcing&nbsp;<a target=\"_blank\" href=\"https:\/\/www.thestar.com\/business\/canfor-to-build-new-manufacturing-facility-after-closure-of-houston-b-c-sawmill\/article_deb88b11-fe61-589b-913b-19c1dd384ec5.html\" rel=\"noreferrer noopener\">its investment in a state-of-the-art sawmill&nbsp;<\/a>that produces high-value products to withstand market downturns.<\/p>\n\n\n\n<p>Significantly, Wood Central understands that the new mill will produce about two-thirds of what the previous mill made \u2014 and will be flexible enough to manufacture different wood products based on market demands.<\/p>\n\n\n\n<p>The push to flexible production comes amid a crash in the global pulp and paper markets,&nbsp;<a href=\"https:\/\/woodcentral.com.au\/canfor-west-fraser-timber-post-losses-amid-weak-pulp-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">leading the world&#8217;s largest forest companies to write off significant financial losses.<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-1024x768.jpg\" alt=\"Canadian MP Taylor Bachrach toured the decommissioned Houston plant with Kevin Horsnell, Senior Vice President of Canfor Operations in Canada (Photo Credit: Supplied by Twitter in 2020)\" class=\"wp-image-10701\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-1024x768.jpg 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-600x450.jpg 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-300x225.jpg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-768x576.jpg 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-1536x1152.jpg 1536w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-696x522.jpg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-1068x801.jpg 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-1920x1440.jpg 1920w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-560x420.jpg 560w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-80x60.jpg 80w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-265x198.jpg 265w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central-1320x990.jpg 1320w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/09\/Canadian-MP-Taylor-Bachrach-toured-the-decommissioned-Houston-facility-with-Kevin-Horsnell-Senior-Vice-President-of-Canfor-Operations-in-Canada-Wood-Central.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Canadian MP Taylor Bachrach toured the decommissioned Canfor Houston plant with Kevin Horsnell, Senior Vice President of Canfor Operations in Canada. As revealed on Monday, Canfor is investing in a new plant focusing on lower-volume, higher-volume manufactured products. (Photo Credit: Supplied by Twitter in 2020)<\/figcaption><\/figure>\n\n\n\n<p>It provides integrated forest companies with the greatest opportunity to de-risk investment&nbsp;<a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/timber-build-of-the-future-ai-robots-4d-printing-in-action\/\" rel=\"noreferrer noopener\">using AI and automation to improve economies of scale.<\/a><\/p>\n\n\n\n<p>With demand for timber expected to quadruple by 2050, governments are now looking to retrofit &#8216;legacy&#8217; sawmills to produce higher-value wood products.<\/p>\n\n\n\n<p>Speaking at a Resources Minister breakfast yesterday, British Columbia&#8217;s Resources Minister, Bruce Ralston, said of the importance of supporting small and medium-sized manufacturers in the transition.<\/p>\n\n\n\n<p>In February 2023, the province unveiled its CA $180m<a target=\"_blank\" href=\"https:\/\/www2.gov.bc.ca\/gov\/content\/employment-business\/economic-development\/support-organizations-community-partners\/rural-economic-development\/manufacturing-jobs-fund\" rel=\"noreferrer noopener\">&nbsp;&#8220;BC Manufacturing Jobs Fund,&#8221;&nbsp;<\/a>which helps &#8220;manufacturing companies modernise, innovate, and grow by funding capital projects in all regions.&#8221;<\/p>\n\n\n\n<p>Under the program, &#8220;there is a strong focus on helping the forestry sector retrofit and develop new, sustainable value-added business lines that reduce dependency on old-growth logging and make innovative use of biomaterials,&#8221; Minister Ralston said.<\/p>\n\n\n\n<p>Meanwhile, in New Zealand, the Government unveiled its &#8216;<a target=\"_blank\" href=\"https:\/\/www.mpi.govt.nz\/forestry\/forest-industry-and-workforce\/forestry-and-wood-processing-industry-transformation-plan\/\" rel=\"noreferrer noopener\">Forestry and Wood Processing Industry Transformation&#8217;<\/a>&nbsp;policy last year \u2013 which has allocated NZ $57 million for industry capacity building.<\/p>\n\n\n\n<p>Like in Canada, the NZ plan aims to create a higher value and resilient forestry and wood processing sector to underpin our low emissions future.<\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/ojis-kinleith-mill-could-produce-mass-timber-after-nz-upgrade\/\" rel=\"noreferrer noopener\">Last month<\/a>, NZ Forestry Minister Peeni Henare announced that it would partly support the upgrade of the Oji Fibre Solutions Kinleith Mill under the new policy.<\/p>\n\n\n\n<p>The upgrade, which includes the development of a &#8216;Bio Hub&#8217; and the construction of a new mass-timber manufacturing facility, will support 200 additional jobs, generate more than NZ $566 million in GDP and reduce emissions by 65,000 tonnes of CO2.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"748\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-1024x748.jpg\" alt=\"Wood Beca was commisseioned to assess the technical feasibility of a Bio Hub at the Kinleith Mill in New Zealand. (Photo Credit: Wood Beca)\" class=\"wp-image-9526\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-1024x748.jpg 1024w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-600x439.jpg 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-300x219.jpg 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-768x561.jpg 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-696x509.jpg 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-1068x781.jpg 1068w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central-575x420.jpg 575w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/08\/Oji_Fibre_Solutions_Kinleith_Bio_Hub-Wood-Central.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The NZ Government has supported the establishment of a Bio Hub at the Kinleith Mill in New Zealand. (Photo Credit: Wood Beca)<\/figcaption><\/figure>\n\n\n\n<p>According to the Government, it will create a sustainable pathway for investment and develop a regional bioeconomy cluster that supports the growing demand for products derived from wood fibre.<\/p>\n\n\n\n<p>NZ Minister Heenare said, at the time, &#8220;The government wants to see more logs processed onshore, help move our forestry sector from volume to value, lift our economic performance and resilience and create high-wage jobs in our regions.&#8221;&nbsp;<\/p>\n\n\n\n<p>Likewise, Australia is also looking to maximise timber utilisation and improve product value.<\/p>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/woodcentral.com.au\/108m-grants-drive-innovation-in-australian-forest-products\/\" rel=\"noreferrer noopener\">In April 2023,<\/a>&nbsp;Agriculture Minister Murray Watt awarded AU $108 million to 34 different Australian forest product companies as part of the&nbsp;<a target=\"_blank\" href=\"https:\/\/www.communitygrants.gov.au\/grants\/2021-6106\" rel=\"noreferrer noopener\">Accelerate Adoption of Wood Processing Innovation Program.<\/a><\/p>\n\n\n\n<p>According to Minister Watt, &#8220;the grants are about creating more long-term jobs in the forestry sector.&#8221;<\/p>\n\n\n\n<p>According to Joel Fitzgibbon, the grants allow processors and manufacturers &#8220;to pivot and make the most of the opportunities emerging from the national and global boom in demand for sustainably sourced timber and wood fibre products.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"862\" height=\"485\" src=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb.webp\" alt=\"In October 2023, NeXTimber by Timberlink will add to Australia and NZ supply of cross laminated timber plants. According to a new report the Australia and NZ market for CLT is expected to reach 800,000 cubic metres in 2026 (Photo credit: Timberlink)\" class=\"wp-image-7821\" srcset=\"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb.webp 862w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb-600x338.webp 600w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb-300x169.webp 300w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb-768x432.webp 768w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb-696x392.webp 696w, https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/06\/In-October-2023_-NeXTimber-by-Timberlink-will-add-to-Australia-and-NZ-supply-of-cross-laminated-timb-746x420.webp 746w\" sizes=\"auto, (max-width: 862px) 100vw, 862px\" \/><figcaption class=\"wp-element-caption\">In October 2023, NeXTimber by Timberlink will add to Australia and NZ&#8217;s supply of cross-laminated timber plants &#8211; it is the latest integrated forest company to target high-value forest products. (Photo credit: Timberlink)<\/figcaption><\/figure>\n\n\n\n<p>For Dr Anthony Hoete, the challenge is to improve domestic capacity and invest in onshore manufacturing.&nbsp;<\/p>\n\n\n\n<p>He said small advanced economies like Singapore and Sweden &#8220;invest ten times more than New Zealand in innovation to overcome the barriers of size and distance.&#8221;<\/p>\n\n\n\n<p>Dr H\u014dete&#8217;s design and research have played a key role in advancing New Zealand and M\u0101ori architecture worldwide.&nbsp;<\/p>\n\n\n\n<p>According to Dr H\u014dete, Aotearoa, New Zealand, enjoys one of the world&#8217;s most extensive and productive man-forests but falls short in adding value to the resource.<\/p>\n\n\n\n<p>&#8220;These days, the problem isn&#8217;t that we have a shortage of logs, Dr H\u014dete says. &#8220;It&#8217;s that we&#8217;re not turning them into lumber.&#8221;<\/p>\n\n\n\n<p>&#8220;Lumber is a log with the added value from primary processing, while logs are a raw product with no added value.&#8221;<\/p>\n\n\n\n<p>Instead, Dr H\u014dete supports investment in the onshore production of mass timber products, which could provide a much-needed solution to the housing crisis.<\/p>\n\n\n\n<p>&#8220;Housing doesn&#8217;t need to be a smorgasbord of materiality as it currently often is,&#8221; he said. &#8220;It could be timber-centric instead.&#8221;<\/p>\n\n\n\n<p>&#8220;We could build not with &#8216;sticks&#8217; (stud work) but with solid timber panels fabricated off-site using digital computer numerically controlled (CNC) techniques,&#8221; he said.<\/p>\n\n\n\n<p>&#8220;Processing more timber onshore will impact the housing supply while creating jobs to support regional communities and would reinforce our commitment to a net-zero carbon future.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global forest markets are rapidly transitioning, with industry shifting from &#8216;high volume to high value&#8217; production. On Monday, Wood Central reported that Canfor ended months of speculation by announcing&nbsp;its investment in a state-of-the-art sawmill&nbsp;that produces high-value products to withstand market downturns. Significantly, Wood Central understands that the new mill will produce about two-thirds of what [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":10961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[37,32,46,39,114],"tags":[],"ppma_author":[70],"class_list":{"0":"post-10959","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-building-and-construction","8":"category-global-news","9":"category-industry","10":"category-mass-timber","11":"category-new-zealand"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=10959"}],"version-history":[{"count":4,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10959\/revisions"}],"predecessor-version":[{"id":15911,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/10959\/revisions\/15911"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/10961"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=10959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=10959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=10959"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=10959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}