Forest Products Industry

UPM has signed a definitive agreement to form a graphic paper Joint Venture with Sappi, and the parties have secured financing arrangements that will provide a robust financial standing for the Joint Venture. A non-binding letter of intent (LOI) on the transaction was signed on December 4, 2025. The planned Joint Venture will include the entire UPM Communication Papers business and Sappi’s graphic paper business in Europe. The Joint Venture will be owned 50/50 by UPM and Sappi. It will operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries. “The definitive agreement is an important milestone in creating the planned Joint Venture that we see as a necessary step to secure long-term commitment and supply continuity for graphic paper customers in Europe and strengthen the resilience of the entire European graphic paper industry,” said Massimo Reynaudo, President and CEO of UPM. Following this milestone, the parties will start planning to ensure operational readiness of the Joint Venture from day one. Until the closing of the intended Joint Venture according to the satisfaction of all legal and regulatory requirements, UPM Communication Papers and Sappi’s European graphic paper business will continue to operate as separate and independent companies. The Joint Venture is expected to create annual synergies estimated at about €100 million through asset and logistics optimizations, product portfolio rationalization, sourcing efficiency improvements and operational efficiencies. The establishment of the Joint Venture is intended to create a sustainable standalone business that ultimately will provide divestment flexibility for all shareholders. Three years after closing, with the Joint Venture expected to have completed the integration and realized the synergies, either shareholder may initiate a divestment of their shareholdings.

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In the UNESCO Spreewald Biosphere Reserve in Germany, a log corduroy road is currently being constructed using round timber to enable low-impact access to a wetland area. A Komatsu 951XC harvester equipped with an S172 head is being used for the project. Source: Timberbiz The timber road will provide the foundation for future forestry operations. The Spreewald region in Brandenburg, Germany, is one of Europe’s most distinctive natural landscapes. The region is characterized by a widely branched network of natural and man-made waterways as well as permanently wet, partly marshy soils. As a UNESCO Biosphere Reserve, the Spreewald places special demands on forestry operations, as the sensitive site conditions and the low load-bearing capacity of the soils make the use of conventional machinery considerably more difficult. Against this backdrop, a special forestry operation is currently being carried out: in a wetland area, a Komatsu 951XC harvester combined with an S172 head is building a road made of roundwood, known as a corduroy road. The planned road will be approximately 800 metres long and will serve as a stable foundation for further access to the area. The main challenge lies in the ground conditions. The subsoil is soft and unstable, which means machines cannot be used without preparatory measures. Building the corduroy road makes it possible to create the necessary infrastructure for the subsequent work steps. The aim is to enable adapted management of the area in the future. Timber harvesting will be carried out manually with chainsaws. A cable yarding system is planned for transporting the timber. At the end of the cable line, the felled trees will be processed by a harvester. A forwarder will then handle the onward transport of the logs from the stand. The construction of the corduroy road is therefore the first and decisive step in enabling a structured and soil-friendly operation in this challenging environment. This application demonstrates how practical solutions can be developed through the targeted use of modern forestry technology, even under extreme site conditions. This junction has been designed so that work can be carried out in parallel: On one side, the harvester processes the stems, while on the other side the cable yarder is positioned. The cable yarder handles timber extraction from the protected area of the biosphere reserve, where the use of machinery is not possible.

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Europe is experiencing rising demand for affordable housing, while the construction sector faces longer timelines, labour shortages and growing carbon requirements. Traditional building methods are struggling to keep pace, and scalable solutions that reduce environmental impact are urgently needed. Source: Timberbiz Modular timber construction offers a promising pathway, yet few examples exist at a scale that demonstrates true repeatability.  Xylino brings that vision into practice. Located in Almere, the Netherlands, this five-storey residential complex shows how an industrialised timber system can accelerate building delivery while significantly reducing environmental impact. The project takes its name from the Greek word for wood and represents the first large-scale modular housing development in the Netherlands built entirely from Laminated Veneer Lumber (LVL). Completed in early 2026 by property developer De Alliantie Ontwikkeling BV, the building provides 103 homes, including mid-market rental units, social housing apartments, and ground-level residences, supported by a semi-underground parking structure and a shared car-free courtyard. The building is assembled from 436 prefabricated wooden modules manufactured by geWOONhout. Each module is delivered to the construction site with integrated technical systems. Built entirely from LVL, the structural system consists of four corner columns and integrated floor and roof elements. The interlocking assembly creates a strong and precise structure without the need for a concrete core. Installation on site follows a sprint-based approach rather than a traditional linear schedule. Construction teams place eight to twelve modules per day, which corresponds to three to four complete apartments. A full residential block can be assembled in approximately four weeks. Digital design plays a key role in making the system scalable. By using a design platform, every component has a digital twin containing dimensions, specifications and end-of-life instructions. Each module includes a QR code linking to this data, supporting precise fabrication today and reuse or recycling in the future. The approach creates consistency in manufacturing while still allowing flexibility in layout and housing typologies. While cross-laminated timber (CLT) is common in timber construction, geWOONhout selected Kerto LVL as the main structural material to their concept. Kerto LVL products are manufactured by gluing together 3 mm thick veneers either all in the same direction or with 20 % laid crosswise, depending on the intended use of the product. Kerto LVL offers a high strength-to-weight ratio through, making it up to 50% more material-efficient than alternative mass timber products with similar performance. The high stiffness and dimensional precision of LVL ensure consistency in modular fabrication, where millimetre accuracy determines installation speed and overall quality. Different Kerto LVL products were selected for different applications in the structure. Kerto LVL S-beams measuring 5.2 metres serve as floor and roof beams, while shorter beams of 2.9 metres are used as studs and rim boards. The floor surfaces are constructed from 5.05-metre Kerto LVL Q-panels, and the load-bearing stability walls with a length of 3.3 meters are built from reglued 100-mm Kerto LVL Q-panels. CNC machining ensures tolerances within 0.5 millimetres, provides pre-cut service openings, and minimizes material waste. Kerto LVL is listed in Category 1 of the Dutch National Environmental Database (Nationale Milieudatabase, NMD). This verified environmental data supports transparent lifecycle assessments and simplifies compliance with Dutch regulations for sustainable building materials. Performance requirements for acoustic comfort and fire safety were key considerations. The entire load-bearing structure is wrapped with fire protection materials to meet regulatory standards for multi-storey housing. To achieve acoustic performance, additional mass was added to floors using olivine aggregate, a mineral that also captures CO₂. Acoustic decouplers between modules prevent sound transmission, and the full system has been tested to confirm compliance with residential performance thresholds. In addition, the construction is protected to R120, providing 120 minutes of resistance to structural failure, as required for new buildings exceeding 13 metres in height. Environmental considerations extend throughout the lifecycle. Lighter foundations reduced transportation emissions, smaller on-site cranes and PEFC-certified wood sourcing contribute to a significantly lower carbon footprint compared with conventional building methods. Modules are designed for disassembly, reuse and material recovery, supported by the integrated digital system. Operations on site are carried out with solar power, and the completed buildings include solar panels, high-performance insulation and rainwater harvesting. Low-carbon concrete is used only where necessary, such as in the semi-underground parking facility. Industrialised timber construction is advancing rapidly in the Netherlands and Belgium.

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Building approvals ticked down by 3.4% in April, including a 0.9% decline for detached houses and a 7.2% decline for multi-units, according to Australian Bureau of Statistics released yesterday. Source: Timberiz The ABS released its monthly building approvals data for April 2026 for detached houses and multi-units covering all states and territories. HIA Senior Economist Tom Devitt said the decline in April did not upset the positive underlying trend, with approvals in the three months to April still 12.1% higher than the same quarter a year earlier, including +9.3% for houses and +16.0% for multi-units. “The data continues to reflect the good momentum in Australian home building heading into 2026, supported by elevated population growth, low unemployment and last year’s rate cutting cycle,” he said. “The value of alterations and additions approved in the latest three months was also 14.0% greater than the same quarter a year earlier. This reflects the underlying demand for housing in Australia pitted against land constraints, which is pushing more households into the renovations segment.” Mr Devitt said “recent headwinds” surrounding rising interest rates, Budget announcements and international turmoil were likely to have a more noticeable impact on the data in the second half of the year. “Interest rates were already on the way up in response to higher-than-expected inflation in the second half of last year,” he said. “Elevated population growth and government spending have kept both inflation and interest rates higher than they otherwise would be, even as households and private sector businesses remain constrained. “Recent Budget changes will add to market uncertainty and disrupt the momentum that was evident in early this year. “These issues magnify the importance of the role of governments to reduce the cost of delivering a new home to market. “Australia is not expected to build enough homes to meet current and future demands,” Mr Devitt said. “Taxes and regulations on home building need to be reduced and skills shortages addressed, if Australia is to meet its housing targets. “Budget measures to deliver ‘enabling’ infrastructure like transport and utilities will support home building over the medium-to-long term.” In seasonally adjusted terms, Queensland saw the largest increase in new home approvals in the three months to April 2026, compared to the same quarter a year earlier, up by 24.4%. This was followed by Victoria (+13.5%), New South Wales and Western Australia (+9.0%), and Tasmania (+8.0%), while South Australia saw a 1.4% decline. In original terms, the Australian Capital Territory saw a decline of 12.2%, followed by the Northern Territory (-3.3%).

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A Southland council in New Zealand is looking to bolster its response to wilding conifers has warned new funding will only go so far. Source: The Press This week, the Government announced a NZ$79 million nationwide boost to tackle the uncontrolled spread of rogue trees which are plaguing the country. Environment Southland biosecurity team leader plants Jolie Hazley spoke positively about that funding at a Wednesday committee meeting but said it was “not going to solve all of Southland’s issues”. Hazley explained already-funded areas appeared to be the priority with a possibility of some new spots being added. “I’m not expecting that any new Southland sites will be picked up but I will definitely be advocating for that.” Mid Dome, Flagstaff and Takitimu all stood a chance, Hazley said, but Lake Te Anau up to Kingston would go unfunded and continue to face spread unless landowners stepped in. In response to questions from councillor Maurice Rodway, Hazley confirmed the council currently spent NZ$50,000 on wilding control which went towards the Mid Dome Wilding Trees Charitable Trust. Rodway said the council needed to find more funding within the organisation to tackle areas not funded by the national scheme, while councillor Eric Roy questioned why the council still permitted Douglas fir planting when technology was available for sterile seed sources. Hazley responded that current GE rules did not allow for sterile trees to come into New Zealand. A report for the council meeting warned a status quo approach to wilding conifers would lead to about NZ$1.4 billion in lost benefits over 50 years, according to a consultancy. The report said the region’s response had mainly focused on contorta and dwarf mountain pine, but Douglas fir had emerged as a major threat. Multiple reasons were cited for that such as extensive plantations in the 1990s and early 2000s, continued planting at the present time, and an ability to spread more than 20km. A series of next steps were approved at the meeting including direction for staff to work with other agencies in response to the threat. According to MPI, a quarter of the country would be covered in wilding conifers within 30 years if the trees were left to spread.

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From key governance decisions to updates shaping the future of responsible forest management, this year’s Annual General Meeting brought Forest Stewardship Council ANZ members together for a day of connection, discussion, and shared purpose. Source: Timberbiz The event welcomed members from across Australia and New Zealand to reflect on progress and look ahead to the work still to come. Three special resolutions relating to constitutional amendments were passed by members. The amendments introduced formal definitions for Australian and New Zealand members, updated membership arrangements by establishing National and International membership classes and associated eligibility requirements and amended board composition provisions to support Australian and New Zealand representation across the three chambers. In practice, this reflects Australian members’ support for proposed cross-Tasman governance arrangements. However, the final decision regarding New Zealand governance remains contingent on a vote by New Zealand-based members. This year’s AGM marked both a returning and a new appointment to the FSC ANZ Board. Nicky Moffat was re-appointed to the board in the Environmental Chamber while Patrick Anderson was appointed director. Mr Anderson has been involved with FSC since its founding, representing Greenpeace International at the organisation’s inaugural meeting in 1994, and brings more than three decades of experience in forest governance, human rights and environmental advocacy. Rachael Cavanagh concluded her tenure on the board earlier this year. With strong participation, the day highlighted several important developments for FSC in the region. Members heard updates on the revision of the Australian Forest Stewardship Standard, which is now in its second and final round of public consultation. The meeting reflected on a year of engagement, including FSC Forest Walk events held across Australia and New Zealand, which brought stakeholders together to see responsible forest management in practice. The continued growth of FSC’s promotional licence holder program was another highlight, with leading businesses across Australia helping promote FSC-certified products and strengthen awareness of responsible forestry. The program continued with presentations from Rayne van den Berg, Founder of Value Australia, who outlined progress and next steps from the Global Forestry Natural Capital Project; Michelle Wong, Deputy Regional Director, FSC Asia Pacific, who provided an update on FSC Trace; and Tolita Davis-Angeles, who spoke to the First Nations Committee’s work and future direction. Grounded in collaboration and member participation, the AGM once again reinforced the importance of member engagement in shaping the direction of FSC ANZ.  

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