Australian timber industry news

US President Donald Trump announced he’s directing his administration to investigate imports of furniture into the United States that will lead to higher tariffs by October. Source: CNN “Within the next 50 days, that Investigation will be completed, and furniture coming from other countries into the United States will be tariffed at a rate yet to be determined,” Trump wrote in a Truth Social post. “This will bring the furniture business back to North Carolina, South Carolina, Michigan, and States all across the Union,” he said. The investigation comes as the Trump administration is mulling higher tariff levels on imported goods such as copper, semiconductors and pharmaceuticals. Already, furniture prices have been increasing over the past few months as Trump hiked tariffs on countries including China and Vietnam, the top two sources of imported furniture. Both countries imported US$12 billion worth of furniture and fixtures last year, according to US Commerce Department data. Furniture and bedding prices, an overarching category the Consumer Price Index tracks, rose 0.4% in June and 0.9% in July after prices had been largely deflationary for the past two and a half years. Other furniture, including office, recreation and patio, saw the biggest spikes since May. Prices were up 1.5% in May, 1.6% in June and 1.5% in July. Like most goods, these categories were seeing prices fall by that much on a monthly basis, if not more, following the unravelling of pandemic nesting trends. Furniture stocks, such as Wayfair, William-Sonoma and Restoration Hardware, all tanked in after-hours trading Friday evening following a big day of gains across the stock market after Federal Reserve Chair Jerome Powell opened up the door to an interest rate cut.

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Finland’s Koskisen Corporation, whose main business is in sawn timber and panels, maintained its position as the strongest performer with remarkable growth, achieving a 24.3% year-on-year increase in revenue to €176.0 million (US$205.5 million). The company’s sawn timber segment was particularly strong, with revenue growing 47.2% to €96.2 million in the first half of 2024. Source: Fastmarkets Koskisen’s sawmill production reached record levels, and the strategic acquisition of Iisveden Metsä’s business in June expanded sawmill capacity by approximately 35%. “The positive development of the sawn timber industry segment continued,” said chief executive officer Jukka Pahta, though acknowledging that current raw materials prices are “not sustainable from the point of view of the profitability of the industry.” Sweden’s SCA demonstrated remarkable resilience with net sales increasing 7% to 10.5 billion Swedish krona (€932 million) and maintaining an impressive EBITDA margin of 34.9% at SEK 3.7 billion. The company’s high degree of self-sufficiency in wood raw materials, energy and logistics proved crucial in maintaining strong profitability against rising input costs. SCA’s wood segment delivered particularly robust performance with net sales increasing 24% to SEK 3.2 billion and EBITDA growing 35% to SEK 546 million, supported by higher selling prices and delivery volumes of 1,092,000 cubic meters (up by 19% year-on-year). The Finnish and Swedish company Stora Enso delivered solid performance with sales increasing approximately 5% and maintaining operational stability despite volatile market conditions. The company reached a major milestone with an agreement to divest approximately 175,000 hectares of forest land (equivalent to 12.4% of total forest holdings in Sweden) for an enterprise value of approximately €900 million. “While market conditions remained challenging, we focused on the areas within our control – enhancing sourcing, operational efficiency, commercial excellence, working capital, and fixed costs,” CEO Hans Sohlström said. The Swedish company Södra faced the most significant challenges among the six Nordic companies, posting an operating loss of SEK 389 million in the second quarter of 2025 compared to a profit of SEK 398 million in the same quarter last year. Net sales declined 4% to SEK 7.2 billion for the quarter, with results severely impacted by exchange rate effects of over SEK 580 million and scheduled maintenance shutdowns costing approximately SEK 240 million. “The second quarter was challenging for Södra. Increased global uncertainty, combined with rapid currency fluctuations and high raw materials prices, has created a triple external effect that puts pressure on our profitability,” President and CEO Lotta Lyrå said. In response, Södra initiated a comprehensive action program to strengthen competitiveness and profitability. Finland’s UPM reported 2025 first-half sales of €5.05 billion (down 3% year-on-year) with comparable EBIT decreasing 20% to €413 million, facing significant adversity from global trade tensions. “Tariff announcements caused uncertainty in global trade, which weakened demand and the US dollar. These had a negative impact, particularly on the pulp and communication paper businesses,” CEO Massimo Reynaudo said. The company’s advanced materials businesses showed greater resilience, though pulp operations were indirectly impacted by escalating trade tensions, particularly affecting Chinese demand. Another Finnish forest major, Metsä Group, struggled with a challenging first half, reporting sales of €3.07 billion (up by 4.5% year-on-year) but seeing comparable operating results decline to €44 million from €57 million. “Higher costs – especially higher wood raw materials prices – weakened the profitability of all business operations,” President and CEO Jussi Vanhanen said. The company has initiated a €300 million cost savings and profit improvement program to address these challenges. The sawn timber divisions across these Nordic companies demonstrated the sector’s resilience despite significant cost pressures, with most achieving volume growth even as margins came under strain. Koskisen led the sector with exceptional sawn timber performance, delivering 197,200 cubic meters (up by 41.4% year-on-year) in the first half of 2025. The company’s new sawmill in Järvelä, southern Finland, continued its ramp-up toward the target of 450,000 cubic meters annual capacity, while the June acquisition of Iisveden Metsä added approximately 140,000 cubic meters of annual spruce sawn timber production. Despite challenging market conditions, Koskisen maintained strong customer relationships and benefited from market-specific product concepts, achieving significant improvements in shift-specific production and operational indicators. Södra’s wood division experienced the most severe challenges, with operating profit collapsing to SEK 3 million from SEK 128 million in the second quarter of 2024. The division was heavily impacted by significantly higher saw log costs, though the company achieved some recovery through higher delivery prices and maintained positive developments in its CLT (cross-laminated timber) business. Despite the weak construction market, Södra’s CLT operations showed increased sales and production, reflecting the growing proportion of timber used in construction applications. SCA’s wood segment delivered robust volume growth with strong operational performance, benefiting from its strategically located sawmills close to forest holdings in Northern Sweden. Across the sector, several consistent patterns have emerged. High raw materials costs continue to pressure margins universally, with multiple companies stating that current wood prices are unsustainable for long-term industry profitability. Companies with integrated value chains demonstrated significantly greater resilience in this challenging environment. Global trade tensions and increasing tariffs have created substantial market uncertainty, while currency volatility – particularly the rapid strengthening of SEK against USD – has severely impacted export-oriented operations. Operational efficiency has become a critical focus area for all companies, with many implementing comprehensive cost reduction and competitiveness programs. Strategic investments made in previous years are beginning to show positive returns, such as UPM’s biochemicals refinery in Leuna, Germany, Stora Enso’s new packaging line in Oulu, Finland, and Koskisen’s new sawmill in Järvelä. However, scheduled maintenance shutdowns have had more significant negative impacts than in previous years, with Södra experiencing approximately SEK 240 million in costs from two major shutdowns. Market conditions vary significantly by segment and region, with construction sector weakness continuing to affect traditional sawn timber demand, while value-added products and export markets provided some offset. The CLT segment showed particular promise, with both Koskisen and Södra reporting positive developments despite overall market challenges. The industry outlook for the remainder of 2025 remains cautiously managed, […]

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PEFC has released a new informative clarification document to help non-EU based PEFC chain of custody certified organisations meet the requirements of the PEFC EUDR Due Diligence System (DDS) Standard (PEFC ST 2002-1:2024). Source: Timberbiz This standard was developed to support PEFC chain of custody certified companies in aligning with the EU Regulation on Deforestation-Free Products (EUDR), which came into force in June 2023 to prevent deforestation and forest degradation. Covering key commodities such as timber, natural rubber, coffee, soy, cocoa, palm oil, cattle, and their derivatives, the EUDR requires that products be deforestation-free and legally produced before entering the EU market. The PEFC EUDR DDS standard differentiates requirements for EU based and non-EU based companies. This informative resource clarifies the PEFC EUDR DDS requirements applicable to non-EU based companies. Some non-EU based businesses may assume the EUDR does not apply to them. In reality, if your products or materials are destined for the EU market – even via distributors or customers – you play a critical role in ensuring compliance. Without proper due diligence in place, your EU buyers may not be able to purchase from you, risking the loss of valuable market access. The PEFC EUDR DDS module standard is designed specifically to help both EU and non-EU based companies meet the regulation’s demands. By using it, non-EU based companies can: Demonstrate the alignment of their products to EUDR requirements for deforestation-free and legal production. Support EU customers in meeting their legal obligations. Safeguard and grow market opportunities in one of the world’s largest trading blocs. The clarification document helps non-EU based companies identify the PEFC EUDR DDS requirements that apply to them, including: Establishing a management system to meet PEFC EUDR DDS requirements. Identifying inputs and declaring outputs with the PEFC-EUDR claim. Collecting key EUDR data such as geolocation of harvest plots and evidence of deforestation free and legal compliance. Conducting risk assessments and applying mitigation measures where needed. Responding to substantiated concerns quickly and effectively. No placement on the market of products that do not meet EUDR or PEFC requirements. For most non-EU based companies, there is no need to submit due diligence statements to the EU’s TRACES system unless they are directly importing into the EU and responsible for customs declarations. The PEFC EUDR DDS integrates with the existing PEFC Chain of Custody standard, making it straightforward to implement. By adopting it, non-EU based companies show leadership in sustainability, commitment to deforestation free, and strengthen relationships with EU buyers, while helping them ensure their products continue to flow into the EU market without disruption. “EUDR compliance starts long before a product reaches Europe. This new publication gives non-EU based companies a clear view of the PEFC EUDR DDS standard requirements applicable to them, helping them keep their place in the EU supply chain through using PEFC scheme” said Marta Martinez Pardo, Standards and Integrity Senior Manager at PEFC International. Download: SIMPLIFYING COMPLIANCE: THE BENEFITS OF THE PEFC EUDR DDS Download: Responsibilities of non-EU based PEFC chain of custody certified organisations in implementing the PEFC EUDR DDS standard (Informative)  

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Agri Investor reported last week that UK company Gresham House is developing an international forestry strategy that could see a large investment in Australia and New Zealand. Source: Timberbiz According to Agri Investor around 40% would be allocated to Australasia as the company aims to expand its global footprint in the timber industry which includes afforestation and carbon projects. This comes off the back of Australia’s Nature Repair Market which is a voluntary national market that enables people to take action to restore and protect the environment. The scheme establishes a marketplace where individuals and organisations can undertake nature repair projects and attract investors. Projects under the Nature Repair Market encourage land management practices that improve biodiversity. These projects could include: planting trees on farmland re-establishing vegetation along waterways protecting and managing existing habitat or native vegetation. The Nature Repair Market allows investors to earn biodiversity credits for these projects.

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The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is celebrating a milestone of 80 years of operations. Source: Timberbiz Recognised for its independent and authoritative analysis that has supported the growth and sustainability of Australia’s agricultural and resource sectors, the bureau first came into being on 21 August 1945. Originally known as the Bureau of Agricultural Economics, one of its first functions was to “investigate the economic prospects of primary industries with particular reference to efficiency factors”. The bureau has been through a series of mergers, most recently with the Bureau of Rural Sciences in 2010, bringing with it the capacity to undertake integrated economic, scientific and social science research. ABARES’s functions have ranged from shaping Australia’s post-war agriculture policies to addressing contemporary challenges like climate change, sustainability and biosecurity issues. ABARES Executive Director Dr Jared Greenville said the bureau had made a significant contribution to decisions on structural reform, trade, and natural resource management. “Since we began, ABARES’ aim has been to provide professionally independent economic analysis and advice on agricultural policies – a mission that has remained at our core,” Dr Greenville said. “A key activity of ABARES has been our farm surveys program, which expanded in 1971 to cover broadacre and dairy industries on an annual basis. “The support of Australian farmers who volunteer their time and provide their data each year has been critical to the success of the farm surveys.”

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A science-backed approach to bushfire mitigation is the goal of a joint effort between the University of Tasmania and the City of Hobart, as they study how land management techniques can be converted into measurable science that will inform safer, smarter outcomes for people, wildlife and the environment. Source: Timberbiz This collaboration between researchers at the University of Tasmania Fire Centre and the City of Hobart’s Fire and Biodiversity Team assesses the impact of on-ground bushfire mitigation techniques through a series of experiments on the bushland reserve near the University’s Sandy Bay campus. Together, the partners are building a new standard in evidence-based land management. Australian Research Council Laureate Fellow and Professor of Pyrogeography and Fire Science, David Bowman, said the project was the first step in work that he hoped would help to reduce the risk of another 1967 Black Tuesday disaster in Tasmania, or a Los Angeles 2025-style bushfire scenario. “Our city is surrounded by dangerous fuel loads, and, with a changing climate, we need to start adapting fast,” Professor Bowman said. “But we can’t do this without solid scientific data, close collaboration with City of Hobart and convincing evidence for the community that we can have it all – reduced fire risk, healthy biodiversity and amenity.” The initiative builds on nearly a decade of collaboration between the University and the City of Hobart, with this latest phase aiming to measure how fuel loads, native vegetation, and fauna respond to strategic fire management practices. The City of Hobart’s experienced fire practitioners have been directly involved in guiding and mentoring researchers over 11 burns so far within the past year to ensure the experiments accurately reflect real-world methods. The Hobart Lord Mayor, Cr Anna Reynolds, said this work was about transforming how cities like Hobart live with fire. “These works are designed so property owners on the bushland – urban interface can replicate them, giving residents practical, proven approaches to reducing bushfire risk on their own land,” Cr Reynolds said. “We’re combining rigorous science with practical land management to ensure we deliver both safer communities and healthy bushland – improving city safety and empowering our people, while protecting the biodiversity that makes Hobart unique.” CEO of Tasmanian insurance firm RACT, Mark Mugnaioni, was supportive of the research efforts. “RACT congratulates the Fire Centre on the world-leading practical research it is undertaking,” Mr Mugnaioni said. “Research like this provides crucial evidence on how different fuel reduction methods can reduce bushfire risk – knowledge that’s particularly vital for Tasmania given bushfire is our State’s largest risk. “The outcomes of this research will help communities to build resilience and ultimately support affordable insurance outcomes as we continue to experience changing weather patterns,” he said. Professor Bowman said this approach was not just a conversation starter about bushfire risks but was unique and innovative in Australia. “We’re not waiting for another disaster to strike; we’re proactively building a body of knowledge that helps us act smarter now and helps communities across the country to be better prepared for future bushfires,” Professor Bowman said.

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Tariffs on wood products exported from New Zealand to the United Sates remain at 0% as the section 232 Investigation aimed at determining the global effects imports of timber, lumber and their derivative products pose to the US supply chain continues. Source: Timberbiz Although the 0% tariff rate is a welcome relief for wood product exporters, the uncertainty of what may eventuate from the section 232 Investigation is causing nervousness across New Zealand wood processors and manufacturers who export over NZ$370 million of value-added wood product to the United States. Developments over the weekend included President Trump announcing on a Truth Social post that a major new tariff investigation on furniture (including wooden furniture) coming into the United States will be completed within 50 days at a tariff rate to be determined. This was followed by release of the draft EU and US Trade Agreement Framework which promptly ensures that the tariff rate applied to section 232 actions on lumber does not exceed 15%. “These announcements create further uncertainty, with a survey of our main U.S. exporters of wood products to the US highlighting that a tariff rate over 5% or over will have a significant hit on their profitability in the longer-term,” New Zealand Wood Processors and Manufacturers Association (WPMA) Chief Executive, Mark Ross, said. “The US s a growing market for our value-added wood products and with a drop off in NZ domestic demand, profitable export markets are critical to growing our industry. “Having our Trade Minister, Todd McClay, speaking up in support of the NZ wood processing industry on the section 232 Investigation in his recent Washington negotiations with US Trade Representatives, is highly valued by WPMA members and we thank the Minister and his negotiation team for backing our exporters. “The key is to present a united face across industry and government to the US decision makers as to the value of our wood products to the U.S. and that our products are not a threat to their domestic timber manufacturing or supply chain.” With the outcome of this section 232 investigation expected no later than early December, WPMA will continue to engage with our allied U.S. Associations, who are lobbying the US Administration to keep imported timber and lumber products tariff free as a means of levelling recent domestic US.  house price rises and maintaining robust supply chains. New Zealand is known in the US for providing high value and high-quality wood products, most of which is sold into the DIY end user’s market, such as Home Depot, Lowes and Menards. As a small niche supplier of wood products that are needed by the US domestic building market, such as long clear Radiata pine boards, mouldings and primed product, there is a strong argument for keeping New Zealand timber and lumber imports tariff free. With comments from exporters such as customers in the US are already pressurising us to reduce product price, it will be a tough ask to pass any additional tariff costs on should they prevail. “While the section 232 Investigation continues WPMA will do what we can to advocate to keep New Zealand imported timber, lumber and their derivatives into the United Sates tariff free,” Mr Ross said. “But, at the end of the day the US President will be the final tariff rate decision maker, and we know from experience we need to be ready to expect the unexpected.”

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The OneFortyOne photo competition is back, launched in celebration of National Forestry Day. Corporate Affairs Manager Charlene Riley said the competition is designed to inspire young people to get out, explore, and appreciate the forest. Source: Timberbiz “Plantation pine forests are such a familiar part of our landscape,” Ms Riley said. “We often highlight the timber industry for its practical benefits, storing carbon, building homes, fencing farms, and supplying fibre for packaging and potting mix – it can be easy to forget the beauty of the forest itself. “This competition is a chance to slow down and see it through fresh eyes.” To enter the competition, students are asked to share a short reflection on what the forest means to them, along with their photos. “The written reflections we receive each year are very thoughtful. “From imaginative stories about spotting monkeys in the trees, allegedly, to reflections connecting a pine tree to the meaning of life, they’re always interesting.” This year, selected entries will be featured in a calendar, replacing the previous exhibition format. “The calendar will be a way to celebrate the forest and student creativity all year round,” Ms Riley said. Winners will be selected in both primary and secondary school categories and awarded their choice of a new iPad Air, DJI drone, or GoPro. To enter, students should submit a photo and completed entry form to weloveforests@onefortyone.com by Friday, 17 October. For entry forms, terms and conditions, and more information, visit the Community section of the OneFortyOne at www.onefortyone.com/community/photo-competition  

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Increased investment in a West Coast business will mean more specialty native timbers like Tasmanian Oak and Sassafras will be brought to the surface of a potential billion-dollar submerged timber global market. Source: The Mercury Tasmanian company Hydrowood, based at Lake Pieman, uses world-leading techniques to recover specialty native timbers submerged decades ago during hydro-electric dam construction. These include sought-after species like Tas oak, celery top pine, blackwood, myrtle, sassafras and Huon pine. Hydrowood works with locally owned and operated sawmills and processors to bring this wood to the water’s surface and turn it into material for furniture, construction and unique projects. The company announced that it had secured “significant investment” from two new backers, including environmentally focused AMB Holdings. This would allow the company to expand operations and is currently in negotiations to access more than 300,000m³ of additional submerged timber in further hydro lakes across Tasmania. The submerged timber market has a value $50b globally. Kelly Gang Timbers general manager Jye Kelly said Hydrowood was helping to support regional sawmill jobs, including his family-owned business that employs 14 locals. “Working with Hydrowood supports regional sawmill jobs” he said. “We’re proud to be part of Hydrowood’s innovative reclaimed timber story.” New Hydrowood CEO Neale Tomlin said the economic and social “ripple effects” are far reaching and that the fresh round of capital investment means more jobs, more timber and more opportunities for Tasmanian makers, builders and processors. “Hydrowood’s supply chain touches every part of the island,” said Mr Tomlin. “From Mole Creek to Zeehan, Deloraine to Tullah, our operation supports contractors, truck drivers, kiln operators, mill workers, maintenance teams and more. “For every direct job we create, we estimate three more indirect jobs are supported through this ecosystem. “This funding allows us to expand harvesting, invest in drying and distribution infrastructure, and meet growing demand from right across Australia. “Importantly, we’ll continue to do this the Tasmanian way — with local sawmills, local contractors, and timber that tells a uniquely Tasmanian story.” This new investment follows Hydrowood’s landmark $2.1 million equity crowdfunding campaign via OnMarket in 2023, which attracted more than 600 investors – the largest at that time in Tasmania’s history.

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The NSW Government is set to announce the formation of the Great Koala National Park on the Mid North Coast of NSW in order to save the koala population. The new park will surely gladden the hearts of activists everywhere and justify the millions of dollars generated by the outrage factory over many years. Source: Tim Lester, AFCA CEO And not a single koala will be saved. The study conducted by NSW National Parks as part of the assessment for the park showed that the koala habitation in the state forest is the same as the national park next door. The regulations, management and controls mean harvesting crews spot and avoid koalas, protect and preserve important trees, enhance forest health and make space for habitat and production trees of the future. Condemning a forest to a future of benign neglect is the worst possible outcome but the most likely one. Consider the case of the Pilliga Forest in north west NSW. In 2005 a productive industry in that area was scaled back to set aside forest for environmental conservation. The population of koalas at the time was 30,000 across 500,000 hectares, at the time the only known population in all of NSW to be increasing. Industry must have been the problem. Today the population of koalas, in an area 187 times the size of Greater Sydney, is 50. Clearly, industry was the problem. Under a conservationist approach management for forest health stopped. We stopped maintaining mixed species and having multiple aged trees. Food for koalas disappeared. We stopped investing in invasive weed and pest control, not because we wanted to but because it is too big a job for too few people over too large an area and that is much too expensive. So it became harder for koalas to move through the forest and they were more likely to be dinner for a fox or cat. But the real kicker is the struggle to effectively control the now inevitable fires that rage through unmanaged scrub. More than two thirds of the Pilliga Forest burnt in 2019-20 and about a quarter this last summer. In part because we had lost the skilled, experienced and capable people and their equipment who knew the bush and were on hand to step in when needed. But industry was the problem! This is not just an issue affecting the forest but it also affects the towns. Places you’ve probably never heard of like Barradine and Gwabegar. Soon to be places like Dorrigo, Bellingen and Bowraville. Because a forestry job is stable and secure, with an earning capacity two and a half times the average of hospitality. With a forestry job you can work hard and earn good money in rural areas, be home with your family every night and available to volunteer in your community. You can’t do that with a job that has you working nights and weekends, or one that is fly-in fly-out for weeks at a time. The new area of park is rumoured to be 176,000 hectares (66 times the size of Greater Sydney, estimated koala population between 12,111 and 14,541) of which 100,000 hectares is already protected for conservation. Industry, the extreme pro-forestry activists that we are, suggested to government that a medium-sized park would deliver the government’s commitment and balance important conservation with sustainable production. But industry with its stable jobs, support for communities, more than a century of real-world forest management experience and 2.5 times multiplier on economic activity, must be the problem. Instead of the win-win that we could have had the state of NSW is going to lose about a third of its native timber production capacity and hundreds of millions of dollars of income. It will lose the ability to produce power poles, timber wharves, high value feature timbers, decking and more. It will export jobs and carbon and sovereign capacity. The uncertainty and reduced activity will affect the rest of the forest products sector at the very time we need more timber and wood fibre of all kinds for sustainability, renewability and climate sensitivity. It will also put more pressure in the international market which is already awash with illegal timber, threatening Sumatran tigers, Congolese gorillas and Amazonian tamarins. And not a single koala will be saved.

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Nature is a formidable therapist. It soothes the soul, refocuses the mind and calms the nervous system. In short, it has the power to support almost every aspect of our physical and mental wellbeing. So, why not go all in? Source: The Spaces photo courtesy Shishi-Iwa House Forest bathing, a mindfulness custom developed in 1980s Japan also known as shinrin-yok, is the ultimate in natural immersion therapy. Once billed as ‘the new spa day’, the practice is now believed to offer a great deal more than simple relaxation. It can be medicinal. Research from the NHS, Harvard Health, the American Psychological Association and even the Mayo Clinic suggests that ensconcing ourselves in nature for as little as 20 minutes can reduce blood pressure, lower stress, improve cardiovascular and metabolic health and lift depression. The healing properties have been widely recognised within the medical profession, as evidenced by the growing trend for ‘green social prescribing’, which sees healthcare professionals refer patients to non-clinical interventions in nature. The good news is you won’t require a prescription. On a basic level, forest bathing is simply access to, and mindful appreciation of, the natural environment, quite literally an exercise in seeing the wood for the trees. But as the trend gains momentum, those who want a more elevated experience have options. Here are five design-led forest bathing retreats, spas and hotels across the globe. Casa de Baños, Mexico This circular bathhouse in 450 mountainous acres west of Mexico City offers the ultimate forest bathing experience. Designed by Robert Hutchinson Architecture and JSa Arquitectura with vertical tongue-and-groove pine siding and southern yellow pine, the 700 sqft structure is more than just a loo with a view. Intrinsically connected to nature, it looks out to the forest from all of its four distinct zones: hot bath, sauna, steam shower and washroom. And a cold plunge pool at the centre opens to the sky. Shishi-Iwa House, Japan It comes as no surprise the country that popularised forest bathing is a pioneer in intuitive natural design. The 34-room Shishi-Iwa House hotel unfurls over three architecturally striking buildings in the small forest town of Karuizawa, less than an hour outside Toyko. The first two were designed by renowned Japanese architect Shigeru Ban in 2018 and 2022 and the third by Ryue Nishizawa in 2023. The gardens feature more than 250 trees — evergreens, cherry blossoms and Japanese maples — and natural materials throughout. Every room has a private balcony overlooking the gardens, forest and mountains, and interiors have been kept purposefully stripped back and simple to allow a deeper focus on the outside world. Wulingshan Eye Stone Spring spa, China The juxtaposition of this industrial-style structure against the cliffs and forest of Wuling Mountain’s Yanshi Village adds to the distinctiveness of Vector Architects’ spa design. Created to look like a ‘piece of hot spring apparatus’, the bathhouse is topped with eight lightwells that resemble chimneys. Surrounded by poplar trees 30 metres high, the prime location is something of a double-edged sword. With the lower levels suffering from a lack of natural light, shower and changing facilities were built at the bottom, benefitting from the natural veil of privacy. Further up is a relaxation room with floor-to-ceiling windows in the thick of the tree canopy. The spa itself is at the top. Treetop Hotel Lovtag, Denmark Nine treetop cabins perched six to eight metres off the ground on Denmark’s Als Odde peninsula have nature at their heart, quite literally. Not only do each of these Sigurd Larsen-designed cabins, part of the famed Lovtag retreat, have unbroken forest views over the treetops from their panoramic windows, they also have tree trunks running through their interiors. Outdoor showers mounted to each façade allow for forest bathing in a very real sense. Arcana, Canada Part forest bathing experience and part optical illusion, this immersive cabin retreat two hours north of Toronto harnesses the power of reflection to blend into the woodland. Snaking along 3,000 feet of waterfront, the 23 steel structures meld into the forest, each designed to facilitate solitude and minimise disruption so no interaction with staff or fellow guests is required. Open year-round, the retreat leans heavily on its location to promote and support a deep connection with nature.

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The 7280E Hybrid Electric Drive Yarder operates with electric drives that exchange power similar to a hybrid car. Sources: Timberbiz, Today in BC This machinery manufacturer has been producing machines for the logging sector for the past 40 years, and now it has developed the first hybrid-electric logging yarder. T-MAR Industries Ltd. has spent the past five years developing the 7280E Hybrid Electric Drive Yarder, which operates with electric drives that exchange power similar to a hybrid car. “It doesn’t have the mechanical powertrain – engine, transmission, gears, clutches and brakes – in it, so it is more fuel efficient, making it more powerful, and much easier to run and maintain,” said Tyson Lambert, vice president at T-MAR. The winch operates using five motors that collectively produce 2,900 horsepower, he said. However, the actual energy consumption is expected to be significantly lower compared with a conventionally powered machine. The use of logging yarders dates back to the 1920s. In the forestry industry, they are regarded as the backbone of logging due to their ability to effortlessly lift logs from British Columbia’s rough terrains. These days, Mr Lambert said, efficiency is important, along with ease of access. With a considerable amount of experience retiring from the industry, it is essential to educate newcomers, and the machinery must be simple to maintain and operate. And T-MAR’s hybrid-electric logging yarder has attracted international attention with industry professionals from the US, New Zealand, Germany, and Chile coming to inspect the machine. There’s a lot of interest in using similar machines in their forestry operations, Mr Lambert said. The machine is set to be deployed at its first logging operation, and the industry will be paying close attention to how it performs.  

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A new study, led by researchers at the University of Missouri, has uncovered how poplar trees can naturally adjust a key part of their wood chemistry based on changes in their environment. Source: Timberbiz This discovery, the result of a collaboration with scientists at Oak Ridge National Laboratory and the University of Georgia, could help create better biofuels and other sustainable products. Lignin is an abundant natural substance found in almost every plant containing stems, roots and leaves. It helps plants stay upright, move water and protect themselves from temperature changes and other environmental factors. “Lignin acts as both a glue and an armor it holds everything together while also protecting the plant from outside stressors,” Jaime Barros-Rios, an assistant professor of plant molecular biology, said. “Understanding how plants make lignin could help us improve its conversion into high-value biomaterials and improve the competitiveness of U.S. biorefineries.” Poplars are already being used in the paper and pulp industry. Now, they’re being explored as a source of bioenergy; fuels, plastics and other bioproducts made from plants instead of oil. Poplar trees are also useful for scientific research because their genome has been fully mapped. This additional knowledge allowed Barros-Rios, his team at Mizzou’s College of Agriculture, Food and Natural Resources and external collaborators to discover that the chemical makeup of lignin changes based on a tree’s latitude, or how far north or south it’s located from the equator. The researchers examined 430 wood samples from Populus trichocarpa, a poplar tree species that grows primarily in western North America from northern California to British Columbia in Canada. The trees growing in warmer climates produced lignin with a higher ratio of syringyl-to-guaiacyl (S/G) two key chemical building blocks called monomers, compared with those from colder climates. “This S/G ratio represents the proportion between the two most abundant monomers in lignin,” Weiwei Zhu, a postdoctoral researcher in the Barros-Rios lab and lead author of the study, said. “These monomers have slightly different chemical structures, impacting the properties of the wood and directly influencing how easily lignin can be broken down and processed making it easier to create biofuels and a wide variety of everyday products.” In addition to the genetic study, the research team used 3D computer modelling to better understand their findings. “We identified a mutation in an important cell wall enzyme in poplar trees called laccase, which was found to control the S/G ratio in this natural population,” Rachel Weber, a senior biochemistry student at Mizzou who built the model, said. “So, I was able to utilize a protein structural modelling software called ColabFold to pinpoint the exact location of this mutation within the laccase protein.” To the team’s surprise, the mutation didn’t show up within the active centre of the protein suggesting that the deposition of lignin in natural settings may be regulated by still uncharacterized signaling pathways, Ms Weber said. “This points to a more complex regulation than we initially thought and gives us new clues about how trees adapt and protect themselves,” she said. “This knowledge will help us develop additional hypotheses about how this protein functions and interacts with the plant’s surrounding environment.” In another unexpected discovery, the team found trace levels of a rare form of lignin — called C-lignin in poplar trees. Previously, C-lignin was only known to be present in the seeds of a few plants, such as vanilla and cacti. Because C-lignin is simpler and more uniform than regular lignin, it’s easier to break down and process into usable plant material for bioplastics, biofuels and other renewable products. “This type of lignin could help us turn plant biomass into valuable commodity chemicals more efficiently,” Barros-Rios said. Looking ahead, Mizzou’s team is now working to genetically engineer poplar trees and soybeans so that they can contain more C-lignin making the biomass of these plants easier to process into next-generation biorefineries. The study, “Factors underlying a latitudinal gradient in S/G lignin monomer radio in natural poplar variants,” was published in the journal Proceedings of the National Academy of Sciences. Co-authors are Yen On Chan and Ganesh Panzade at the MU Institute for Data Science and Informatics; Trupti Joshi at the Christopher S. Bond Life Sciences Center and Mizzou’s Department of Biomedical Informatics, Biostatistics and Medical Epidemiology; Jin Zhang, Mengjun Shu, Connor Cooper, Russell Davidson, Jerry Parks, Gerald Tuskan and Wellington Muchero at Oak Ridge National Laboratory; Richard Dixon at the University of North Texas and Pradeep Kumar Prabhakar and Beeanna Urbanowicz at the University of Georgia.

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Biofuel technology that promises to help reduce the marine shipping industry’s carbon footprint is a step closer, with the launch of a company set up to lead its commercialisation. Source: Timberbiz Start-up venture Biowave, launched in Wellington in August, will focus on attracting private investors to help commercialise the technology, which converts wood into biofuel that can be used as a drop-in replacement for fossil-based marine heavy fuel oil. Developed by the Bioeconomy Science Institute, this innovation produces a biofuel that blends with existing marine fuel oil, aimed to use existing portside and on-board infrastructure and to meet the existing marine fuel specifications. Biowave is a spin-out company from the Bioeconomy Science Institute, with two staff – Integrated Bioenergy portfolio leader Dr Paul Bennett and innovation manager Amanda Davies as its co-founders. Dr Bennett says the biofuel technology is a promising solution to reducing the shipping industry’s carbon footprint. “With the global shipping sector responsible for around three percent of annual CO2 emissions, the need for sustainable alternatives has never been more urgent,” he said. “We are committed to driving down biofuel costs and accelerating clean energy innovations for the maritime sector. Major exporters are increasingly concerned about the carbon emissions linked to their products, with market access becoming a real risk. The technology has the potential to make a substantial contribution to the maritime industry’s decarbonisation goals.” Shipping is an essential component of global trade, moving 80% of the world’s goods. For New Zealand, 99% of international trade depends on maritime routes, with shipping enabling nearly 45% of the country’s gross domestic profit. “As demand for shipping increases, the sector’s carbon footprint is on track to rise, potentially accounting for up to 13% of global emissions in the coming decades if no action is taken,” Dr Bennett said. Fuel testing of a 20% Biowave blend has excited industry partners and could represent a product suitable for entry in the marine fuel market. Scale-up production and engine testing will be required to confirm market acceptance. “The maritime industry is actively seeking solutions, and we’ve seen significant interest in Biowave from key stakeholders across the supply chain, including shipping companies, energy providers, ports and product exporters,” Ms Davies said. “This technology offers a cost-competitive, sustainable solution for New Zealand’s economy and could be scaled globally. With strong market validation and a clear path to market, Biowave is set to make a lasting impact on New Zealand’s economy and the maritime industry to meet 2050 climate commitments.” The Scion Group’s leadership in this space is reinforced by its participation in the KiwiNet Commercialisation Partner Network, which aims to drive the commercial success of research innovations in New Zealand.  

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As the emphasis and debate on prefabrication of buildings and building components rages – especially for dwellings – the data demonstrates imports are unlikely to be a significant element of prefabricated building supply, over the longer term. That is good news for those focussed on improving Australia’s capacity to prefabricate buildings, especially dwellings. At least one variable – import competition – is likely to remain relatively small, albeit imports continue to grow. Source: IndustryEdge However, the reality remains, many of the key components of prefabrication and other aspects of the much-needed revolution in modern methods of construction (MMC), are more likely to be imported than supplied locally. This is especially the case for the main engineered wood products (EWPs), imports of which continue to grow, against a backdrop of local manufacturing failing to keep case with demand. Developing reliability and confidence in MMC – including prefabrication of dwellings and dwelling elements – is critical to achieving investment, at scale. Though it is not the only ingredient, one requirement is deepening material input supply chains, including for critical EWPs. The aim needs to be co-location and integration of key manufacturing activities, alongside fabrication activities. Australia’s imports of prefabricated buildings increased 5.8% in 2024-25, rising to a record AUD278.5 million. While import growth has been solid in recent years, imports are negligible compared to the annual value of building in Australia. Prefabricated timber building imports have grown faster since 2019 (averaging growth of 34.2% per annum) than the growth in total prefabricated building imports (averaging growth of 13.5% per annum). Despite the stronger growth, prefabricated timber building imports accounted for just 8.8% of total imports of prefabricated buildings, measured by value. Unsurprisingly, China accounted for 43.0% of total timber prefabricated building imports in 2024-25, however, its share of total prefabricated building imports for the year was 67.8%. In FY25, imports of timber-based prefabricated buildings were valued at AUDCif24.4 million. That was a record. But was only marginally higher than the value recorded in FY23. Since FY19, timber prefabricated building imports have increased an average 34.2% per annum, coming from a very low base. Imports of Prefabricated Buildings by Main Type: FY19 – FY25 (AUDCifM & %) The total value of imported prefabricated buildings was AUDCif278.5 million in FY25, meaning timber imports were just 8.8% of the total.Total prefabricated building imports have continued to rise, increasing an average 12.4% per annum since FY19. That is solid, but compared to the domestic construction sector, is quite minor. In FY25, Australia received prefabricated timber building imports from 17 countries, but just a few dominated the trade. China dominates supply, accounting for 43% of the value of imports in FY25. Of interest is that European producers hold down the next three places. The data provides no details, but IndustryEdge suspects there will be real differences in the types of buildings being imported from China and from Europe. Imports of Prefabricated Timber Buildings by Country: FY19 – FY25 (AUDCifM) The steady growth in prefabricated building imports tells a small story for Australia, but there is a larger element to this data. One observation the data invites is that there are significant logistical challenges to importing buildings, even when they are ‘flat-packed’. For an island nation, sea-bound imports of buildings remains more challenging than in other countries, where land import options exist. For more information visit: www.industryedge.com.au

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The Murray Region Forestry Hub has received funding from Forest and Wood Products Australia and the Department of Agriculture, Fisheries and Forestry for a critical research project aimed at tackling one of Australia’s most costly and invasive weeds. Source: Timberbiz The project, “Novel and Targeted Biological Control of Blackberry Invasions in Forest and Tree Plantations” will be led by Dr Rae Kwong in collaboration with the University of Melbourne and the University of the Sunshine Coast. The research will focus on blackberry genomic mapping, a vital step toward the development of an effective and targeted biological control. Blackberry is a Weed of National Significance, causing millions of dollars in lost productivity and management costs annually. The MRFH has been instrumental in preparing the advice to government which led to multi-organisation collaboration supporting research to deliver long-term, landscape-scale solutions for forestry, plantations, and the wider community. This announcement follows the Agriculture, Fisheries and Forestry Minister Julie Collins’ recent statement highlighting the government’s commitment to innovation in forestry, including $8.6 million over three years to expand and strengthen the work of Australia’s Regional Forestry Hubs under A Better Plan for Forestry and Forest Products. “This funding represents a significant step forward in our fight against Blackberry,” Dean Anderson, Chair of the Murray Region Forestry Hub, said. “The genomic mapping research led by Dr Kwong will provide the foundations for developing a targeted biological control that can be deployed across landscapes for long-term impact. “It’s a prime example of how the Hubs can connect industry needs with innovative science,” he said. Carlie Porteous, Hub Manager of the Murray Region Forestry Hub, said the approval of this funding highlighted the power of collaboration between research institutions, government, industry, and the Hubs to tackle persistent challenges. “We’re proud to have played a key role in bringing together the right people and expertise to make this project a reality,” she said.

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SFM has appointed Scarlet Roxby as its new Carbon Project Coordinator, further strengthening the company’s commitment to delivering high-integrity nature-based climate solutions across Tasmania and beyond. Source: Timberbiz Ms Roxby, from Western Australia, joins SFM’s brings a strong technical background in carbon project management, spatial analysis, and financial modelling, developed through her work leading a portfolio of ACCU Scheme projects for the Carbon Farming Foundation. Her experience spans regulatory compliance, stakeholder engagement, and the integration of GIS and FullCAM modelling to drive both environmental and economic outcomes. “I’m excited to join a business that’s at the forefront of sustainable forestry and land management,” Ms Roxby said. “SFM’s work across plantation forestry, environmental restoration and carbon abatement is deeply aligned with my values. I’m passionate about applying data-driven strategies to deliver positive impacts for landowners, communities and the climate.” Currently undertaking a Graduate Certificate in Forestry as a recipient of the Forestry Australia Scholarship, Ms Roxby is also an active contributor to Australia’s regenerative agriculture and carbon farming networks. SFM Managing Director, Andrew Morgan, welcomed the appointment. “Scarlet brings a unique blend of technical skill, strategic thinking and a deep personal commitment to sustainability. She will play a critical role in helping us grow our carbon project pipeline while ensuring best-practice outcomes for our clients and the environment,” Mr Morgan said. Ms Roxby’s role will support carbon project development across SFM and its projects, including ActivAcre, with a focus on feasibility analysis, methodology selection, and ensuring compliance under the evolving national policy framework.

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OneFortyOne has wrapped up its annual planting season, establishing another generation of forests throughout the Green Triangle. Source: Timberbiz Despite a dry few months, millions of healthy seedlings were dispatched from the OneFortyOne Glencoe Nursery to forest growers across the region, including OneFortyOne’s own estate and a range of other forestry operations. Nursery manager Craig Torney said thanks to a new shed and infrastructure improvements, most operations are now undercover, reducing the impact of weather and creating a more comfortable working environment for the nursery team. “The nursery was buzzing during what was another busy season,” Mr Torney said. “It was great to see our upgraded facility in full operation.” The nursery supplies seedlings not only for OneFortyOne’s forests but also for a range of forest growers across the Green Triangle. The OneFortyOne estate team works together closely to coordinate the complex delivery program, ensuring each planting crew receives the right trees at the right time. “We know what trees need to go where and to which planting crew at what time,” Mr Torney said. “This good management means the program is spread out over eight or nine weeks, rather than being compressed into a shorter, more intense period.” “Combined with our upgraded systems, it made the season far less hectic, and we’ve definitely seen and heard that feedback from our nursery team.” OneFortyOne Estate Manager Marcel Griffiths said the planting program covered 1,826 hectares, supported by three dedicated planting crews working tirelessly over 51 workdays. “The Nursery and silviculture teams delivered an outstanding performance this season,” Mr Griffiths said. “Their coordination and professionalism ensured the program ran smoothly and efficiently.” With planting complete, focus now shifts to ensuring these seedlings establish well and grow into healthy, productive forests.

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It has been widely reported that Carter Holt Harvey (CHH) may shut its Eves Valley sawmill near Nelson, New Zealand with that closure 142 jobs may be lost. This would be devastating for the town and other towns nearby. This plan is not confirmed, and sources have said that it would be under review until early September. Source: Timberbiz If it goes ahead CHH resources would be consolidated at its Kawerau plant in the Bay of Plenty, in the North Island. It was reported that rumours have been circulating around the future shutdown of the Eves Valley mill, but locals were hopeful that it would not eventuate. Winding down the plant would take around two months and finish before Christmas. More than just the mill workers would be affected by the closure as there are always associated businesses involved such as transport. South Island Minister James Meager told RNZ he hoped other companies might be interested in processing trees that toppled in the region’s flood emergencies. “It’s come at a really bad time for Nelson-Tasman because there’s a lot of windfall timber there that needs to be processed. I understand probably around about 3500 hectares, possibly 6000 hectares of timber, that needs to be processed and pulled off the land,” Mr Meager told RNZ. Nelson Mayor Nick Smith and Tasman Mayor Tim King were told of the proposal this week shortly after staff at the mill were told. The Eves Valley mill was the largest in the South Island and produced timber framing for the building industry. CHH was approached by numerous publications but there has been no response so far.

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It’s that time of year when the lambs start appearing, the days start stretching out and you get a sense of hope that summer is around the corner and things will begin to dry out. Depending on which part of the country you’re in you’ll have a different view of how kind winter has been, but the general consensus is wet, really wet, and, if you’re in Nelson, windy as well. We have been reasonably fortunate over the winter in terms of log prices with spot numbers above historical levels for this time of year. Export prices are still well under where we’d like them to be, but they haven’t been as bad as previous years. This is primarily due to lower NZ supply volumes into China and more stability in shipping and foreign exchange rates. August at wharf gate (AWG) prices have been released at around the $122/JAS level (A grade 3.9m) for Southern North Island ports which is the highest August spot price since 2018. Log uplift from Chinese ports has increased from 50,000m3 per day in early July to a shade under 60,000m3 per day currently. Inventory levels dropped around 190,000m3 in July and total softwood inventory now sits below the magic 3 million m3 mark and is expected to continue to recede as the Chinese construction seasons kicks off and NZ supply remains static. The widely reported windthrow in the Nelson Tasman region is very unlikely to result in any notable export supply increase as both infrastructure and port berthage provide a Hulk Hogan level of choke hold on throughput. General expectation is that in-market sales prices will continue to rise against lower inventory levels and traders will look to lock down vessels to take advantage of the historical price increase in Q4. The effect of the log futures market is yet to be fully understood as it is only in its infancy. Approximately 115,000m3 was delivered against futures contracts in July, which was the first month of delivery, and buyer participation in this sale method is expected to increase over time. The domestic market isn’t looking so rosy with poor demand and increasing inventories of framing timber around the country. NZ building consents dropped by 6.4% month-on-month in June indicating a significant shift in sentiment which will have a flow-on to actual construction numbers later in 2025. All eyes will be on the OCR announcement on the 20th with commentators expecting a reduction of around 25 basis points and many expecting it to finally land at 2.5%. While a further cut is likely to inject some confidence into the sector, it may be a reasonable timeframe before it converts into hammers and toolbelts. The resulting softness has seen two sawmills in the SNI reduce log prices for both framing and pruned grades, which is the first price drop in a number of years. Energy has reared its head again recently with Ballance Agri the latest company to feel the effects of gas shortages, threatening to shut it’s Kapuni plant due to rising gas prices. Previously contracted prices of sub $10/gigajoule are now in the realm of $50/gigajoule as large users such as Ballance compete with gentailers for a dwindling resource. The likelihood of securing longer term future gas supply are very unlikely, especially with the Greens and their economic masterminds stating again in parliament that they would reinstate the ban on oil and gas exploration if they were to regain the reins. Not a great way to attract foreign exploration investment. To put some perspective around the gas issue, NZ uses around 150 petajoules (PJ) of gas each year (150 million gigajoules). Of this, around 35% is used for industrial process heat in plants such as Ballance, 29% in electricity generation, 26% in factories as feedstock and 10% by households, schools, hospitals etc. It is estimated that NZ has around 948PJ left in existing gas reserves which, at the current run rate, is around 6 years supply. One would think ‘what to do’? Replace it with coal? Nooo, those aforementioned economic masterminds wouldn’t like that. What about Imported Liquified Natural Gas? Nope – that’s just retarded as we’re just transferring the perceived environmental issues offshore and, we would need 8% of the world tanker fleet to keep up. Solar? It doesn’t work at night. Wind? Only if it’s windy. Hydro? Only if it rains. What about wood? Great idea. NZ currently harvests around 30 million tonnes per year. Of this, around 25% is in the lower grade export logs (KI and KIS grades), pulp and waste wood. The calorific value of radiata is around 9 gigajoules per tonne in wet form (straight off the stump) which gives 67.5PJ of potentially available nationwide supply. Using those numbers, cigarette packet calculations would suggest we could replace around 50% of NZ’s current gas demand with a domestic wood-based solution at less than $20/gigajoule. Obviously is not just as simple as shovelling woodchips into an existing gas boiler and there will need to be significant capital investment to make it work, but it is a solution that we have growing all around us, from one end of the country to the other. It doesn’t require wind or sun to operate, nothing has to be imported, and we’re not beholden or exposed to foreign countries and policy (it’s not like the world is becoming more stable). There’s also the added benefit that we are utilizing more of our fibre onshore and we can give our export customers a better grade of log that is more suited to their requirements. So, now that we’ve solved that problem, let’s look forward to spring with upward pressure on export prices and lashings of mint sauce on our lamb racks. Marcus Musson, Forest360 Director.

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