Future supply of timber and engineered wood products to Australian markets

Transcription

1 Building construction with prefabricated timber and engineered wood Future supply of timber and engineered wood products to Australian markets Frame Australia 2016 Conference and Exhibition Erkki Välikangas

2 Everything that s made with fossil-based materials today can be made from a tree tomorrow From a traditional paper and board producer to a global renewable materials growth company Packaging Solutions Consumer board Bio materials Wood Products Paper 2 23/5/2016

3 Softwood availability in Australia New analysis by the Australian Forest Products Association (AFPA) highlights the growing gap between supply and demand for softwood timber products. This shortfall is estimated to be a gulf of up to 1.8 million cubic metres of softwood timber per year by Plantations in Australia represent more than 80% of wood harvested by the Australian forest products industry. However, investment in new plantations in Australia has come to a standstill. Plantations are vital to downstream industries and many domestic processing plants are not at capacity due to the lack of available timber resource. Source: Australasian Timber Magazine, April /5/2016

4 Softwood availability in Australia Australia s total land mass is 7,682,300km2* Of which 16.2% or 1,247,510km2 is forest area* However, forest industry is dependant on plantation forest, which covers only ca. 20,000km2 or only 1.6% of the forest area Softwood plantations per state, 000ha NSW VIC QLD SA WA 98.5 TAS 75.1 ACT 7.7 NT 2.4 * World Bank data, Source: Australian plantation statistic 2015 update, ABARES, May /5/2016

5 Softwood availability in Australia Total plantation area ca. 2 million ha 50% coniferous 75.4% radiata pine 14.8% southern pine 4.1% maritime pine 4.3% hoop pine 0.6% other 99% of softwood plantations are managed to grow sawlogs Source: Australian plantation statistic 2015 update, ABARES, May /5/2016

6 Softwood availability in Australia Softwood plantations have gradually declined Hardwood plantations have declined sharply since the peak of Source: Australian plantation statistic 2015 update, ABARES, May /5/2016

7 Softwood availability in Australia Source: Australian plantation statistic 2015 update, ABARES, May /5/2016

8 Softwood availability in Australia Significant reduction in number of softwood sawmills since 2000 Average size of the mills has increased Source: Outlook scenarios for Australia s forestry sector: key drivers and opportunities, ABARES April /5/2016

9 Softwood availability in Australia Source: Outlook scenarios for Australia s forestry sector: key drivers and opportunities, ABARES, April /5/2016

10 Sawn softwood Demand development and drivers 140 Global sawn softwood demand 180 Housing starts by region; Europe, USA, Japan and Australia Million m North America Europe MENA Japan China Oceania E 2016F Index (2003 = 100) Europe USA Japan Australia Source: FAO stat Source: Euroconstruct (Dec 2015), NAHB (Dec 2015), HIA (Oct 2015) 10 23/5/2016

11 Coniferous sawn wood regional consumption in 2014 Million m3 World 309 (100%) North America 84 (27%) Western Europe 67 (22%) China 57 (19%) MENA Latin America 19 (6%) 16 (5%) Japan 15 (5%) Eastern Europe 15 (5%) Asia 10 (3%) Central Asia 7 (2%) Oceania 6 (2%) Russia 6 (2%) Caribbean 5 (2%) Sub-Saharan Africa 2 (1%) Domestic Supply Imports Global Consumption Source: FAO stat 11 23/5/2016

12 Coniferous round wood exports 2014, m3 Lithuania Slovenia Belarus Estonia Germany Latvia Slovakia France Australia Poland Ukraine Norway Czech Republic Canada United States of America Russian Federation New Zealand 0 4,000,000 8,000,000 12,000,000 16,000,000 Source: FAO stat 12 23/5/2016

13 Coniferous sawn wood exports 2014, m3 Belgium Brazil Ukraine Czech Republic New Zealand Latvia Chile Romania United States of America Austria Germany Finland Sweden Russian Federation Canada 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Source: FAO stat 13 23/5/2016

14 Sawnwood production and consumption forecast 2030, m3 Distribution of production and consumption among different regions will not change markedly before 2030 Production growth expected to be highest in Russia and Eastern Europe and S-America Consumption is expected to grow mainly in Africa, Asia and the Pacific as well as in Western and Central Asia Above areas will remain dependant on imports Consumption growth in developed countries is expected to be mainly EWP 14 23/5/2016

15 Why engineered wood products? Availability of large diameter logs declining Drive to optimise available fibre for its best enduse Manufacturers aim to maximise yield of targeted products and to minimise fall down grades and waste Requirement to have products with known properties 15 23/5/2016

16 How to achieve those goals? Log X-ray Sonar/ultrasound strength grading Camera grading 16 23/5/2016

17 Glulam Source: UNECE/FAO Forest products Annual Market Review / APA, /5/2016

18 LVL and I-beam production in North America Source: UNECE/FAO Forest products Annual Market Review / APA, /5/2016

19 LVL production in Europe Current LVL manufactures in Europe Metsä Wood, Finland Steico, Czarna Woda, Poland, 80,000m3/a* Pollmeier beech LVL, Creuzburg, Germany, 150, ,000 m³/a** ** BREAKING NEWS ** Stora Enso, Varkaus, Finland AUD 67 million investment Production capacity 100,000m3/a One of the largest billet size in the market, 24m x 2.5m First billet produced 10 th May 2016 *Holzkurier ** Holzkurier /5/2016

20 CLT 90% of CLT production worldwide in Europe, mainly in Austria, Germany and Switzerland; 1 plant in Finland, 2 in Canada, 1 in US New capacity planned in Japan, N-America, Chile Source: UNECE/FAO Forest products Annual Market Review / Institute of Timber Engineering and Wood Technology, Graz University of Technology /5/2016

21 Other engineered wood products KVH Post & beam Heat treated timber, Thermowood, including advanced added oil treatment for enhanced durability Joinery components for window and door industry 21 23/5/2016

22 Broad portfolio of offering CLT (Cross Laminated Timber) Construction beams LVL (Laminated Veneer Lumber) Building Solutions Online Services and e-business Industrial components Classic sawn Pellets Services 22 23/5/2016

23 Thank you! Name: Erkki Välikangas Tel.: nhm9rcfdmvsrvvaqdz&index=2