SCA Timber in the UK - SCA Forest Products AB

timbernewsA magazine for SCA’s solid wood products customers | www.timber.sca.com22007SCA Timberin the UK• Active collaboration forincreased profitability• SCA is new ownerof Severn Timber

timbernewsStephen Thompstone, Buildbase,responsible for all the branches inthe Northern Division, and Matt Henderson,Manager, Edwards Buildbase, Redditch.Cover photo: Mats WigardtIncreasedinterest in wood6Irish DIY giant withsolid foothold in the UK7Three pillars in the UK8Managerial change atSCA Timber Supply10Timber market in focus10Solid woodprice boom slows11The story of the greenbathing hut12SCA Timber, SCA’s solid woodoperation, covers eight sawmills andseven planing mills. The total annualvolume of solid wood products amountsto 1.7 million cubic metres.Solid wood operations are included inSCA’s Forest Products business area.Development work continues– despite good timesMost timber-centric companies have, for awhile now, enjoyed a period of good economicgrowth, with volume and price trends beingthe principal driving forces. SCA Timber is noexception.In good times, it’s easy to sit back and feel happyand contented. But we’re convinced that it’s justas important to do the right things during boththe good times and the bad. The process of productdevelopment mustn’t stop just because it’s easy tosell standardised products. Customer relationshipsthat have been nurtured over long periods must bemaintained.A considered strategy is essential in order to dothe right things in the right order. In this issue ofTimber News, we’ll be setting out SCA Timber’smarket strategy, our roadmap for the future.The acquisition of Severn Timber, which is alsocovered in this issue, is part of this strategy. We’renow better equipped to tackle the British woodbasedproduct sector. In the past, our involvementin this key market was only as a small-scale supplierto the important professional builders’ merchantsector. We now have the elements in placealso to grow in this segment of the market.Our British operations have undergone somemajor changes. Acquisitions, the implementationof new logistics and distribution solutions, theimplementation of a new management organisationand the introduction of new skills have combinedto put us in the position we’ve been strivingfor. We now have the criteria to be a one-stop,competent supplier to both industry and the builders’merchant sector.In our other principal markets, we’re makingmajor investments in several key industrial segments.At the moment, we’re in the process of settingup a line in Tunadal Sawmill to producecomponents for the French door industry. Lastyear, our initiative to produce defect-free windowcomponents was so well received by the Italian andBritish window industries that we’re now lookingto expand these programmes. We’re also at anadvanced stage in some other major componentprojects targeting the Scandinavian market.At the moment, the sawmill industry is a goodplace to be. But time and tide wait for no man. It’simportant that we keep up the pace of our developmentwork. We’ll continue to acquire companies,develop products and build customerrelationships until we achieve the objectives we setourselves.And then we’ll set new ones.Ulf LarssonPresident, SCA TimberTimberNews SCA Forest Products ABSE-851 88 Sundsvalltel +46 60 19 30 00www.timber.sca.comTimber News is publishedfour times a yearEditor-in-chief Björn LyngfeltProduction FryklundsRepro & printing TryckeribolagetSubscribe to Timber News, pleasecontact ingrid.lofqvist@sca.comUlf Larsson, President, SCA Timber.Photo: Per-Anders Sjöqvisttimbernews | 2

Profitable growth– for both SCA and its customersWith a holding of some 2.5 million hectares in northern Sweden, SCAis the biggest private forest owner in Europe. Forests grow slowly andproduce high quality sawlogs.Photo: Olle HedvallIn the space of a little over 10years, both the solid wood productsmarket and SCA Timberhave undergone a radical transformation.In the case of SCATimber, this transformation hasbeen the result of a number ofstrategic choices and investments.The acquisition of SevernTimber is the latest, but by nomeans the last, step in theimplementation of this strategy.Towards the end of the lastcentury, conditions in thesawmill industry were notthe best. Profitability was low.Raw materials were expensive.Wood was facing stiff competitionon all fronts from materials thatwere cheaper, more flexible andmore modern. Deals were, to alarge extent, being made in a chainin which middlemen were cloudingup customer requirements andthe route from raw material tocustomer was long-winded andexpensive.“We realised that things had tochange,” says Ulf Larsson, Presidentof SCA Timber. “To make thischange a reality, we were forced toreview, understand and test allaspects of our business, from theraw materials in the forest to ourproduction facilities, our products,our route out to the market andour customers.“Our aim is to become the mostprofitable supplier of solid woodproducts in Europe. It doesn’tToday, Developed Timber accounts for 50% of SCA Timber’s total sales. TheDeveloped Timber concept covers products that are adapted to their particular use,be it industrial components or finished wood products intended for the builders’merchant market.Photo: Per-Anders Sjöquistsound like an objective our customerswould have reason to celebrate,but for us to be profitable, ourcustomers must be profitable.”One of the starting points forthe strategy work was the rawmaterials base. With a holding ofsome 2.5 million hectares innorthern Sweden, SCA is the biggestprivate forest owner in Europe.The forests grow slowly and producehigh quality sawlogs.“We’ve worked through ourentire product programme to discoverthe full potential of the rawmaterials we have,” says Larsson.“Quality is not an absolute concept,it’s about whether a productis fit for purpose.”The Developed Timber conceptwas launched in 1995 and by 2006such products represented 50% ofall SCA Timber sales. These productsare adapted to their particularuse, be it industrial components orfinished wood products intendedfor the builders’ merchant market.Wood that is adapted to meet theneeds of industrial customers includesproducts that are dried toachieve a specific moisture content,selected raw materials thatare produced with a specific levelof quality or components that areready for the next stage of finishing,e.g. glued, defect-free componentsused in window manufacture.83 | timbernews

The right market– geographic concentration for comparative advantagesMain marketsSCA has strong sales organizations, local futherprocessing operations and advanced distributionplatforms.Niche marketsConcentrated product range and mainly own sales.Other marketsFocus on a number of Selected Costumersand buffer for short-term fluctuations insupply and demand.% net sales of SCA TimberDistributionProduction24%11%22%US North Africa JapanThe right market channel49%37%14%Sales viawholesalersIndustry salesSupply Chain Management% net sales of SCA Timber“We want to develop,and the only way we cando that is by workingwith customers who alsowant to develop,” saysUlf Larsson, President ofSCA Timber.WholesalerNegative growthWoodIndustryGrowth 2-3%Growth figures are estimated for the period 2005-2007 and refer to main markets(net growth excl. price development).Builder’sMerchantsDIY andBuilder’sMerchantsGrowth DIY -2%,BM +5%Products for the builders’ merchant market includeplaned products, usually pre-packed and given abarcode and the customer’s branding.The traditional route to market for the sawmillindustry was via middlemen, with products passingthrough the hands of multiple exporters, importersand wholesalers. These middlemen still fulfil animportant role in the marketplace and represent40 % of all SCA Timber’s sales, although this figureis falling.Direct industry sales have increased dramaticallyand now account for approximately 40 % of SCA’ssales activities.“It’s clear that direct contact and direct sales areimportant to the timber industry,” says Larsson. “Formany of our customers, we are now a fully integratedpart of their production process. We supply theirraw material stocks with components and continuallyadapt the flow to fit in with their productionline. The result is a collaborative relationship thatlowers costs and increases the value of the productionchain.”A growing part of SCA’s sales activities involves thebuilders’ merchant sector. Logistics and distributionplay a crucial role here in what is known as ‘SupplyChain Management’. Customers in this sector focuseither on the professional craftsman or builder or onthe direct-to-consumer DIY trade. The latter is experiencingrapid growth, whilst the former is consumingsignificantly greater volumes of wood-basedproducts.“In order to be able to meet the demands of thesecustomer segments, we’ve had to acquire completelynew expertise and new resources,” says Larsson. “Weneed to produce sufficiently large volumes of uniformproducts, perhaps packed according to customerrequirements. We then need to ensure that these productsare distributed in an efficient manner to a largenumber of building materials dealers. What wemanufacture ourselves is supplemented with productsthat have been finished by partners and subcontractors,or by products that we procure fromother manufacturers.“In 2003, we acquired the British distributor BCLin order to become a better supplier, primarily to theBritish DIY market. By acquiring Severn Timber,we’ve increased our ability to supply the buildersmerchant market segment.”Despite the fact that SCA Timber is one of the 10biggest solid wood product manufacturers in Europe,the company’s production represents only 2% oftotal wood product consumption in Europe.“We must concentrate on markets where the productswe manufacture command a high value,” continuesLarsson. “Logistics account for a significantproportion of our costs, so by gathering larger volumesfor specific markets we can identify better andtimbernews | 4

cheaper logistics solutions.”Scandinavia, France and the UKincl. Ireland are SCA’s main markets,making up 58% of total sales.SCA Timber provides a wide rangeof products and services on thesemarkets, as well as storage andadvanced distribution. In thesemain markets, SCA Timber focuseson many different segments.In addition to these main markets,SCA Timber is also active ina number of niche markets. Theseare equally as important as themain markets, the difference beingthat SCA specialises in just a fewsegments. It may involve supplyingbuilding materials to companies inthe eastern USA, providing componentsto the Italian window andother appearance timber industriesor products for house constructionin Japan. These niche marketsaccount for 24% of SCA Timber’sturnover.Other markets account for 15%of sales. Although selected customersare given priority in respectof sales in these markets, they doconstitute a valuable complementthat equalises fluctuations in demandand production volumes.“We need customers that canmake us profitable and enable usto do the same in return,” saysLarsson. “As we evolve from conductingdeals via middlemen tocollaborating on an increasinglycloser and deeper level with ourcustomers, it’s important for bothourselves and our customers thatwe make the right choices. Wewant to develop, and the only waywe can do that is by workingwith customers who also want todevelop.“We want to work with successfulcustomers, customers whoare profitable, who are growingand have a high level of expertise.They must also have a continualneed for the products and expertisewe can provide. One of the criteriafor this is that they purchaseproducts that are profitable forSCA Timber. Above all, we prioritisecustomers who want to activelycollaborate with us in orderto lower common costs.”SCA buys British wood finishing companySCA Timber has bought Britishcompany Severn Timber. SevernTimber turns sawn solid woodproducts into planed and treatedproducts at its base in Welshpooland is a major supplier ofsolid wood products to the Britishbuilders’ merchant sector.“This is an important acquisitionfor SCA Timber,” saysUlf Larsson, President of SCATimber.The UK is one of SCA Timber’spriority markets. The acquisitionfits in well with SCATimber’s strategy of increasing itsproportion of finished products byreaching building materials retailersthat focus on the ‘professional’market (construction companies,carpenters and craftsmen).“We now occupy a strong positionas a leading supplier to the BritishDIY market. In addition, theacquisition has also strengthenedour position as a supplier to theprofessional builders’ merchantsector as this is Severn Timber’smain focus,” says Anders Ek, SCATimber’s Marketing Director.SCA and Severn Timber have collaboratedon a number of occasionsover the years, focusing on thefinishing, distribution and sale ofsolid wood products.“Severn Timber affords SCA adirect channel for finished solidwood products, from the forest tothe builders’ merchant,” says AlunGape, President of Severn TimberProducts.Gape started Severn Timber in1983 and continues to run the businessfollowing its acquisition bySCA.Severn Timber has three modernplaning lines with a total capacityof around 60,000 m 3 planed woodproducts and the ability to treatapproximately 10,000 m 3 . SevernTimber has a turnover of around£11 million and employs a staff of50. As a result of the deal, SCATimber now has 150 employees inthe UK.Misan LindqvistAnders Ek, SCA Timber’s Marketing Director and Alun Gape,President of Severn Timber, are pleased with the deal.Photo: Jan Svedjebrant5 | timbernews

“We’re a typical ‘one-stop-shop’. The branch has everything you need to build a house or landscape a garden,” says MattHenderson, Branch Manager at Edwards Buildbase in Redditch.British building customersshow increased interest in woodThe Grafton Group sells building materials underseveral different brands to both DIYers and professionalbuilders in the UK and Ireland. The Britishchain Buildbase alone has more than 150 branches.“A large proportion of all the solid wood productswe sell are supplied by SCA,” says StephenThompstone, Divisional Director of Buildbase’sNorthern Division.At Buildbase in Redditch, justoutside Birmingham in theMidlands region of England,Fence posts were sold here during the early 20th century.Today, the building is home to one of Britain’s Buildbasebranches.there is an old sign that remindsvisitors of the store’s origins. In1911, J. Thomas Edwards starteda small business in the town, sellingfence posts to local farmers.Over the years, Edwards openedmore branches throughout theMidlands.During the 1990s, this smallfamily-owned company was subsumedinto the Grafton Groupunder the name Edwards Buildbase.“We’re your typical ‘one-stopshop’”,explains Matt Henderson,Branch Manager and boss of 25Buildbase employees. “WheneverBuildbase makes an acquisition,the original name and local profileof the business is retained.”Matt Henderson’s branch haseverything you need to build ahouse or landscape a garden, fromnails, saws and hammers to toilets,bricks and solid wood products.Local building contractors cometo Edwards Buildbase in Redditchto load their vans with buildingmaterials. However, the branchalso attracts private individualswho are undertaking woodworkingprojects, offering them homedelivery of their purchases.“We offer a good level of serviceto all sorts of customers,”explains Matt as he takes us on aguided tour of the fully-stockedpremises.A lot has happened in the yearssince J. Thomas Edwards openedthe doors of his shop. At that time,the shop mostly sold fence postsand barbed wire. Now it sellseverything for building and renovationprojects, with the exceptionof glass.Approximately a quarter of theproducts on the branch shelvesand in the warehouse are FSC-certifiedsolid wood products. In asmall service mill, a planed bandsaw and spindle moulder are usedto produce short runs of customisedcomponents ordered by customers.“Many timber merchants aredecommissioning out their oldequipment, but we’ve decided tokeep hold of ours,” says Matt. “It’sa valued service.”However, an increasingly largeproportion of solid wood prod-timbernews | 6

ucts, such as carpentry timber andcomponents, sold in Redditch aremade from developed timber. Aprime example of this is the completedoor frames that are suppliedin shrink wrapped packaging fromSCA Timber in Stoke-on-Trent.“Interest in timber is increasingall the time,” says Matt. “DIY programmeson TV and an increasedawareness of the environmentmean that wood has taken greatstrides towards replacing othermaterials.This is not unique to Buildbasein Redditch. The same trend isemerging in all Buildbase branchesthroughout the UK.”Stephen Thompstone, who isresponsible for all the company’sbranches in the Northern Division,from Oxford in the south to theShetland Isles in the north, saysthat timber based products makeup approximately 20 % of Buildbase’ssales.“We’re seeing a steady increasein both our total turnover and theproportion of solid wood products,”he says.SCA has been one of the biggestsuppliers of solid wood productsto Buildbase for many years. Thecollaborative relationship beganwhen Buildbase approached Welshpool-basedSevern Timber Productsto supply planed solid woodproducts.As SCA and STP became closer,the collaborative relationshipJohn Buffel (left), SCA Timber UK,visiting Paul Smith, Branch Managerat Selco in Stirchley.between SCA and Buildbase alsobegan to develop. Today, around90 % of all finished wood sold inBuildbase branches comes fromSCA.“Our customers demand a widerange of FSC-labelled high qualitytimber,” explains Stephen. “Andwe value maintaining long-termrelationships with our suppliers.”Text & photographs: Mats WigardtIrish DIY giantwith solid foothold in the UKThe Grafton Group is the market leader in theIrish DIY and builders’ merchant sector. In theUK, the company is enjoying steady growth, andis now one of the biggest players in the Britishbuilders’ merchants market.In 1902, William Thomas Chadwick founded abusiness under the name Chadwicks (Dublin)Limited. The aim was to supply cement to Irishbuilding contractors.Shortly after the end of the Second World War,William Chadwick died and the company was takenover by the founder’s two sons. In 1965, new ownerstook over and it became a listed company.In the mid-1980s, the company’s remit expandedfrom that of cement manufacturer to builders’ merchant.During this period, the first DIY superstorein Ireland was opened.In 1988, the company changed its name to theGrafton Group and made its first acquisition in theUK.This kick-started a particularly expansive periodfor the Grafton Group, with the company makinga number of acquisitions in both the UK and Ireland.In the late 1990s, the Grafton Group beganmaking serious inroads into the British DIY/builders’merchant market.In 1998, Grafton became the first Irish companyto acquire a British listed company, British Dredging,whose 17 outlets were to form the basis for theBuildbase chain.In 2004, Grafton made its 100th company acquisition,averaging one a month since 1998.Today, the Grafton Group is active within the plumbers’merchant and builders’ merchant sectors, aswell as the growing DIY market. Operating underbrands including Chadwickd, Buildbase, HeitonBuckley, Jackson, Selco, Plumbase, Euromix, Woodiesand Atlantic Home Care, the company hasmore than 500 branches and factories employingsome 11,000 people. SCA provides a large proportionof the solid wood products sold in the GraftonGroup’s various DIY and builders’ merchant branches.Last year, the company enjoyed a turnover ofapproximately £2 billion. The company’s ExecutiveChairman is Michael Chadwick. To find out moreabout the company, visit: www.graftonplc.comEdwards Buildbase in Redditch has its own small timber service mill – a facilitygreatly appreciated by customers.Mats Wigardt7 | timbernews

Three pillars in the UKWith three complementary businesses, SCA Timber has agood platform from which to supply the British solid woodproducts market.The wholesaler in Hull, the distribution centre and woodfinishing operation in Stoke-on-Trent and the recentlyacquired wood finishing company Severn Timber in Welshpoolprovide a good mix for future efforts in the UK market.Wholesaler in HullSCA Timber Supply’s terminal depot and wholesale operationis strategically located in the port city of Hull, a leadingport for overseas trade, particularly in respect of sawnsolid wood products.Every two weeks, vessels from SCA Timber’s sawmills arrive atthe King George Dock. The ships are loaded with high qualitywood-based products made from raw materials originating in thepine and spruce forests of northern Sweden.The terminal in Hull receives 215,000 cubic metres of sawnsolid wood products every year, and has a total storage capacityof 25,000 square metres, 15,000 of which are under cover. Solidwood products are stored here before being transported to customersin the timber industry and builders’ merchant sector, as wellas to our own operations in Stoke-on-Trent and Welshpool.Industrial customers, such as those in the window and doorindustries, are visited by SCA Timber Supply’s local sales representativeson a regular basis. This closeness promotes healthycollaboration and establishes a dialogue on the development ofoperations based on a ‘win-win’ relationship for both parties. Ouraim is to get closer to high volume customers in the finishing chain,in order to allow us, in a cost effective manner, to offer productsthat have been adapted to customers’ manufacturing processes.Deliveries from SCA Timber’s sawmills in northern Sweden arrive at theKing George Dock in Hull.Photo: Ingrid LöfqvistDistribution centre in Stoke-on-TrentThe geographical location of SCA Timber’s distributioncentre, SCA Timber Supply, in Stoke-on-Trent has manyadvantages.Stoke lies at the heart of the populous Midlands region ofthe UK, with a substantial proportion of the English populationliving within a 100 km radius. Many of the company’scustomers are active in both the DIY trade and the builders’merchant sector. These customers rely on having a solid woodproducts supplier that can offer an holistic solution and providea skilfully crafted range of products, as well as warehousing anddistribution options.SCA Timber Supply’s ‘supply chain’ concept* has been developedprimarily for the DIY market and is based on weekly deliveriesto almost 1,000 DIY superstores throughout the UK.Orders are placed via EDI (Electronic Data Interchange), automatedprocedures that simplify trade between customer andsupplier. Products in stock are packed and given barcodes. Inorder to be as complete a supplier of wood-based products aspossible, we complement our own product range with productsfrom other manufacturers.One part of SCA Timber Supply handles the delivery of consumerproducts to DIY stores. These products include melaminecoatedchipboard, edge glued panels, PAR planed solid woodtimbernews | 8

Packed and barcoded products are loaded, under cover, at SCA Timber Supply’s distribution facility in Stoke-on-Trent.Photo: Ingrid Löfqvistproducts, mouldings, garden timber and kitchen worktops.One product that is in increasing demand at the momentis specially-adapted chipboard used for loft conversions.The other part of SCA Timber Supply’s distribution operationprovides builders’ merchants with standardised products,primarily for professional use in the construction andjoinery industries. The centre in Stoke is currently undergoinga programme of development work in order tobecome an even better supplier to this market segment.Shorter delivery times and a more bespoke product rangesare important elements of this.The Stoke operation also runs a complementary woodfinishing facility with a planing mill and packaging line.Most of the products finished are door frame components,which are packed in accordance with customer requirementsand marked with a barcode. The capacity of thepacking line is around 600 sets per hour. The facility alsocarries out service planing of PAR and mouldings.The distribution centre and warehouse has a capacityof 250,000 square metres under cover. In addition, it canalso accommodate the loading of four trucks at the sametime. A further 200,000 square metres of storage is availableoutdoors.*The Supply Chain Management (SCM) concept replacesthe traditional buyer and seller roles with a supplier andcustomer structure in which, for example, a defined productrange is automatically delivered to a number of saleslocations based on agreed stock levels.Wood finishing companySevern TimberWelshpool-based Severn Timber is the third element in SCATimber’s focus on the British market.Severn Timber Products finishes approximately 70,000 cubicmetres of sawn solid wood products, turning them into planedand impregnated products, primarily for the builders’ merchantsector. The company’s facilities have benefited from a recent programmeof investment, which has seen the introduction of threemodern planing lines. The product range on offer comprisesplaned solid wood products (spruce and pine), mouldings andwooden flooring.SCA Timber has been the principal supplier of sawn solidwood products to Severn Timber for many years and has alsocollaborated on a number of issues concerning the finishing, distributionand sale of solid wood products. As a supplier, SCA hasbeen praised for its awareness of environmental issues, which hasbeen made manifest in its use of FSC-certified forest in NorthernSweden which it manages responsibly, with checks at all stagesfrom sapling to product.Severn Timber finishes sawn solid wood products, turning them intoplaned and treated products at its facility in Welshpool in Wales.Photo: Jan Svedjebrant9 | timbernewsTexts: Ingrid Löfqvist

Managerial change at SCA Timber SupplyAlthough he has no previous professionalexperience of the timber industry, NeilEmsley, the new Operations Director atSCA Timber Supply in Stoke-on-Trent,has always been interested in the environmentand products made from naturalmaterials.I’ve always had an appreciation for productsmade from natural materials, particularlywood. SCA impressed me with itscommitment to the environment, using itsown FSC-certified forest as a raw materialsbase and maintaining control over the entiresupply chain. Such an approach is veryimportant to the timber industry,” saysEmsley.He took up his post as Operations Directorfor SCA Timber Supply at the beginningof February 2007, assuming responsibilityfor production, warehousing, procurementand logistics. He joined SCA from Findel Plc,where he managed their customer servicesdepartment. Prior to that, he had been Headof Procurement at Adidas.“Here at SCA Timber Supply I can reallyput my previous experience from sales, warehousing,production planning and logisticsto good use. We’ve got several interestingdevelopment projects bubbling away, includinga review of our warehousing and transportoperations, the aim of which is tofurther improve the service we provide tothe builders’ merchant sector,” says Emsley.Ingrid LöfqvistNeil Emsley, Operations Director at SCATimber Supply.Timber market in focusAt the beginning of May, SCA Timberheld a seminar in Birmingham to whichUK customers and collaboration partnerswere invited.Lars-Göran Olsson, a market analystfrom the Swedish Forest IndustriesFederation, was on hand. He gave anoverview of developments in the solid woodproducts market over the past few years.“We have witnessed the fastest developmentin the price of sawn timber in Swedensince the 1970s,” he stated, citing a numberLars-Göran Olsson, a market analyst from the SwedishForest Industries Federation.of explanations, includingreduced felling in Canada asthe result of log shortages inthe east, turbulence in theRussian timber market,increased demand in Europeand increased interest in biofuels.Anders Ek, SCA Timber’sMarketing Director, said thatdemand for sawn solid woodproducts in Europe continuesto be very high. In fact, demand is sohigh that, in the long term, timber stocksmay be insufficient to meet demand,particularly in the construction sector.He predicts that, starting in the secondhalf of 2008, the USA will make a comebackas an important export market forEuropean wood producers and thatcustomers and suppliers will becomeincreasingly close.Rob Simpson, MD of SCA TimberSupply, summed up SCA’s presence inthe British market by stating that, afterScandinavia, the UK was the company’ssecond most important market. Lastyear, the market took delivery of260,000 m3 timber, equivalent to 15 %Rob Simpson, MD of SCA Timber Supply.of the total volume produced by SCA’ssawmills.“Following the acquisition of SevernTimber Products of Welshpool, we’veincreased our ability to make furtherinroads into the builders’ merchant andDIY market,” he said.Stephen Thompstone of Buildbasesummed up his feelings about the seminar:“It was valuable to get all the informationin one place. It gave me and my colleaguesthe opportunity to focus on ourown roles in the changes that are nowunderway in the timber market.”Mats WigardtPhoto: Prestige Photographytimbernews | 10

SCA invests in Tunadal sawmillSCA is investing 40 million SEK in a new progressive kilnat Tunadal sawmill. The new kiln will have a capacity ofmore than 100,000 cubic metres and will allow the sawmillto increase production and further processing.In February SCA decided to invest in seven new chamberkilns at Tunadal sawmill, an investment now in progress.“With the new progressive kiln, we will have state of theart kilns for the sawmill’s full capacity, ” says Jerry Larsson,sawmill manager. “A modern drying plant is crucial for producingcustomer-specific and further processed products. Thisis another step in the process of developing Tunadal into aspruce sawmill matching the most competitive mills in Europe.”The Tunadal sawmill is supplied with heat from the Korstawaste-based heat plant, owned by the Community of Sundsvall,which has drastically reduced the sawmill’s electricityconsumption. The district heating network in Sundsvall is inits turned supplied with spare heat from SCA’s Ortviken papermill.In 2006 the Tunadal sawmill produced 330,000 cubicmetres of solid wood products and had a workforce of 155.…and in JämtlamellSCA is also investing seven million SEK in the Jämtlamellsawmill in Stugun in northern Sweden. The drying kilnswill be modernised and upgraded. The investment will increasethe sawmill’s production capacity and its capacity to producecustomer-specific products.“We have seen a very positive development since SCAbecame a part-owner last spring,” says Lars-Olof Alm, sawmillmanager in Stugun. “The conditions for a continued positivedevelopment are greatly improved by SCA’s confidence in lettingus carry through investments.”Since SCA acquired a minority share in Jämtlamell AB in2006, SCA has already invested six million SEK in the sawmill,which have allowed for increased production. Jämtlamell hada positive productivity development last year. It’s sales andprofitability also improved.The Jämtlamell sawmill in Stugun produced 140,000 cubicmetres of solid-wood products 2006 and has a workforce of85.Solid wood price boom slowsIn the past 12 months, wood hasbeen a scarce commodity. High consumptionin many of our marketsand difficulties in producing sufficientvolumes have contributed tothis situation. However, the picturechanged during the spring.The high prices, coupled with theeffects of two damaging spring storms,resulted in the production of a significantamount of sawlogs, substantiallyincreasing production levels,particularly in Central Europe. Consequently,prices have slowed. In thecase of Central European solid woodproducts, prices have fallen somewhatfrom the peak levels reached duringthe winter.Consumption in our European marketsis generally good. The Swedish market iscurrently stronger than it has been inmany years, with the building sector exhibitingdouble-digit growth. Other strongmarkets include Norway, Denmark, theNetherlands and the UK. The Germanand French markets continue to operateat a high level, although they are showingsigns of slowing down.The major overseas markets of theUSA and Japan are experiencing a substantialbuilding sector decline. Thenumber of new builds in the USA hasreduced by approximately 25 % comparedto the same time last year, whilst theJapanese market has slowed down by7 %.However, my perception of wood as abuilding material remains unchanged. Inrecent years, wood has strengthened itsposition. Although we have seen unusuallysteep price rises during the past year,the price of many alternative raw materialshas risen even more. Put simply, thereis a distinct lack of raw materials in theglobal economy. The reason for this is thestrong growth experienced by the majorAsian economies, particularly those ofChina and India.However, production rates during thespring have become a problem. I estimatethat production in Germany and Austriahas increased by 15 % as the result of thelarge amount of available sawlogs and theunusually mild winter weather.Production is also increasing in Scandinavia,albeit at a more modest rate.Production increased by 5 % duringthe period January-April, split equallybetween pine and spruce.Sawmill order books are looking healthy.The Swedish sawmills are reportingvery strong sales on their domesticmarket. However, orders from exportmarkets are down on the same time lastyear, mainly from the USA, but also fromJapan.Stocks in the Scandinavian sawmillswere low at the end of April, but areseeing signs of an increase in Finland. Incontrast, stock levels in the Central Europeansawmills are very high. At the sametime, SCA Timber’s stock level is currentlyas low as it ever has been, with 8 % ofproduction being stockpiled.The Scandinavian pine stock has fallenby 11 % compared to the same period lastyear. Spruce stocks have fallen by 15 %.Anders Ek, Marketing Director11 | timbernews

The story of the green bathing hutOnce upon a time, the sounds of laughter and talkingcould be heard coming from the small, gingerbreadstylework hut out on Revsundssjön. It was a placewhere the head forester would relax with his guests,going swimming in the lake or playing skittles. Now,this little idyll is facing an uncertain future.In the late 19th and early 20thcenturies, the village of Stavre onthe shore of Revsundssjön innorthern Sweden was an importantcentre for the forestry industry. Itwas home to the administrativeoffices of many of the major forestcompanies, and when forestrybegan to be mechanised, SCAopened a forestry school in the villageto train fellers and drivers.In around 1880, Skönviks AB,which became part of SCA in1929, built a bathing hut out onRevsundssjön.Built on wooden stilts anchoredto stone piers at the bottom of thelake, the bathing hut was designedto be used by the leading officialsof the area, with the head foresterheading the queue. Their families,local wholesalers and visitingguests were also welcome to enjoythe facilities.A long wooden bridge linkedthe bathing hut to the shore. Thebridge was used to play skittles –an early predecessor to ten-pinbowling. Inside the hut, a hatch leddown to a wooden bath, wellhidden from prying eyes, that wasfilled with lake water. The verandawas situated on the second floor.For a few years during the 1940s,the hut was used as a ski workshopby carpenter Jean Melander.You could come and buy custommadeskis or get your old oneswaxed and recurved.It’s been several years since anyonehas used the hut, and the presentowner lives in Stockholm.Over the years, the effects of iceand waves have taken their toll onthe bridge, and it’s been a long timesince anyone actually used the hutto bathe in. Today, the entire structureof the hut has a perceptiblelean, the paint is flaking off and itis only accessible by boat.But the old bathing hut is set tosurvive a few years more. Karl-Erik Rodling, a former strawberrygrower and current resident ofStavre, who has himself replaced anumber of the stilts on which thehut is built, believes that a lick ofpaint and new roofing felt wouldgo a long way.Mats WigardtThe bathing hut in Revsundssjön was built during the latter part of the 19th century.On the black and white photo, taken sometime around 1885, you can see the longbridge that is now just a distant memory.Photo: Mats WigardtAfter a day experiencing nature and developing a sense of adventure, the Sami banquet wasa taste of heaven.Katarina Rimpi (right) gave a talkabout her own ethnic group, theSami.