Daily News for December 11, 2024

Today’s Takeaway

FSC and Domtar meet on planned transfer of Asia Pulp and Paper ownership

The Tree Frog Forestry News
December 11, 2024
Category: Today's Takeaway

The Forest Stewardship Council and Domtar have agreed on the process to review the Asia Pulp and Paper ownership change. In related news: Canfor increases its ownership of VIDA; Weyerhaeuser expands ties with Trex; West Fraser cuts its UK energy bill; Corner Brook Pulp and Paper plans Christmas downtime; and more on San Group’s court appointed monitor. Meanwhile: the Bank of Canada cuts interest rates; BC constrains its resource sector, and Alberta strengthens ties with Japan.

In other news: the secrets behind Canada’s tallest timber building; Oregon votes to pay for its 2024 wildfire season; FSC seeks to improve workplace culture; a map of Tasmania’s at-risk native forests; and the UK forest industry’s Goldilocks Moment

Finally, a talk on the history of BC’s seed supply, and Timber!—a new book on how wood helps tackle climate change.

Kelly McCloskey, Tree Frog Editor

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Special Feature

“Seedy Business: A History of Seed Supply in BC”

Forest History Association of BC
December 11, 2024
Category: Special Feature
Region: Canada, Canada West

The BC Forest History Association is thrilled to welcome Don Pigott as our December Speaker Series guest! Don will share his expertise on the evolution of cone collection in British Columbia over the past century. With 50 years of experience, he’ll also highlight some of the seed-related projects that have shaped his career and the field of forestry. No forester is too young, old, inexperienced, or seasoned to learn something from Don!

About the Speaker: Don Pigott’s career spans decades of groundbreaking work in forestry and silviculture. During his 13 years at MacMillan Bloedel, he managed seed supply for reforestation, established seed orchards, and oversaw operational tree improvement programs. In 1982, Don founded Yellow Point Propagation Ltd., a private silviculture company providing comprehensive services, including cone and seed processing, and consulting for forestry projects across North America and Europe. For the past 16 years, Yellow Point Propagation has focused on gene conservation for whitebark pine, limber pine, alpine larch, and numerous other species, further cementing Don’s legacy as a pioneer in forestry innovation. Don’t miss this opportunity to learn from an expert with unparalleled insights into forestry’s past, present, and future.

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Business & Politics

Alberta’s Forest Sector Strengthens Ties with Japan as U.S. Trade Tensions Loom

Alberta Forest Products Association
December 11, 2024
Category: Business & Politics
Region: Canada, Canada West

Amid increasing global demand for sustainable materials and new tariff threats from the U.S., Alberta is taking bold steps to strengthen global trade ties. A recent forestry trade mission to Japan punctuates the province’s commitment to diversifying its export markets by strengthening trade relationships in Japan, Alberta’s second-largest export market for softwood lumber. The first of its kind, this Alberta-led trade mission was headed by Minister Todd Loewen and Deputy Minister Ronda Goulden of the Government of Alberta’s Forestry and Parks ministry. Delegates from Canada Wood and Alberta’s forest industry joined the mission as well. In a high-impact week, the Alberta delegation met with Japanese customers, developers, and builders to discuss pathways to expand wood products trade with Japan and to learn about the unique opportunities and demand for wood construction. 

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Canfor Acquires Additional Shares in Vida AB of Sweden

Canfor Corporation
December 10, 2024
Category: Business & Politics
Region: Canada, Canada West

Vancouver, BC – Canfor Corporation announced that it has acquired 7% of outstanding shares of VIDA AB effective today. The shares were acquired from certain minority shareholders utilizing their option privileges under the February 2019 agreement in which Canfor purchased 70% of VIDA AB, Sweden’s largest privately owned sawmill company. After concluding this transaction, Canfor owns 77% of VIDA AB. [END]

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The San Group’s complicated financial woes concern court-appointed monitor

By Carla Wilson
The Times Colonist
December 10, 2024
Category: Business & Politics
Region: Canada, Canada West

About 500 creditors are prohibited from pursuing money from the San Group of companies until at least Dec. 19. The forestry venture, which consists of nearly 20 related businesses, filed for protection from creditors on Nov. 29. On that date, the monitor received permission to prepare for a sale and investment solicitation process but no details are public. That protection expired on Monday and was renewed by Justice Michael Stephens as the Deloitte Restructuring monitor works to unravel a complex financial picture. …It appears the company has not paid its 2024 property taxes for its huge remanufacturing plant in Port Alberni. …The monitor said the companies’ cash-flow forecast lacks supporting data, and information is not arriving in a timely way. San Group companies experienced a 17% drop in sales in the fiscal year 2023 from fiscal year 2022. This year’s sales are on track to run about 20% below last year.

Related coverage in Nanaimo News Now: SAN’s finances affect Port Alberni’s budget

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Corner Brook Pulp and Paper schedules temporary Christmas shutdown

By Diane Crocker
The Telegram
December 11, 2024
Category: Business & Politics
Region: Canada, Canada East

NEWFOUNDLAND AND LABRADOR — Corner Brook Pulp and Paper will be temporarily shutting down production over the Christmas holidays. Kruger, the mill’s parent company, told The Telegram that production will stop on Dec. 24 and operations will resume on Jan. 2, 2025. The company said the decision to shut down is proactive and aims to address the current imbalance in the global newsprint market demand. “This will contribute to rebalancing our order book and create a more favorable and sustainable business environment for 2025”. This shutdown will be the second one in just over a year because of market conditions.

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B.C.’s resource boom winds down as $100B in projects near completion

By Nelson Bennett
Business in Vancouver
December 10, 2024
Category: Business & Politics
Region: Canada, US West

With the wind-down of construction activity on [four energy projects] B.C.’s most significant economic driver—the resource sector—is now poised for deceleration. …Don Wright, for Global Public Affairs… [said] one of the growth engines in B.C. over the last decade has been population and real estate. “That does bring money into the economy, but it’s not sustainable. …“If you want to build your economy, it is building high-quality sectors,” he said. “It is investing in resources.” But the resource sector in B.C. is not maximizing its potential. “I think it is broadly attributable to the fact that we have been constraining the resource sector, and we’re not having our exports grow along with the economy,” Wright said.  …Mina Lauden, VP for Canfor [said] “I was in Alberta recently, and they were talking about a two-to-three-month permitting window,” Lauden said. “We have about two to three years.”

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FSC meets with Domtar to discuss implications of transfer of the beneficial ownership of Asia Pulp and Paper

Forest Stewardship Council International
December 6, 2024
Category: Business & Politics
Region: International

Forest Stewardship Council met with representatives of Domtar to discuss the potential implications of the transfer of the beneficial ownership of Asia Pulp and Paper (APP) to Mr. Jackson Wijaya (the current beneficial owner of Domtar) and to agree on the next steps forward in the legal review of the corporate and ownership links between Domtar and APP. …The parties agreed to cooperate on a fast and rigorous process of review to examine the shareholding and ownership relationships, if any, between Domtar and APP because of this planned transfer. This review will be commissioned immediately and concluded after the transfer of beneficial ownership of APP to Jackson Wijaya is complete. The various elements of the agreement will be contained in a MOU. …Both parties agreed to the importance of a high-integrity process of review, which is conducted independently and impartially. 

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West Fraser Cuts Annual Energy Bill Using Medium-Voltage Drive Technology

By Rockwell Automation
PR Newswire
December 10, 2024
Category: Business & Politics
Region: International

MILTON KEYNES, England — Rockwell Automation announced that West Fraser has made significant gains towards stringent carbon-reduction and energy saving targets at its plant in Cowie, Scotland, thanks to its deployment of a complete Intelligent Packaged Power (IPP) solution. The IPP solution is deployed across three of the site’s energy-intensive fan applications. Used for raw material drying, end-product extraction, and material-condition-based rejection, more precise control of all three fans has resulted in West Fraser significantly cutting overall energy consumption. “We are now exactly where we need to be in terms of optimizing the speeds of our large process fans,” said Gordon McArthur, engineering manager at West Fraser’s Cowie plant.”

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Finance & Economics

Bank of Canada cuts key interest rate to 3.25%

By Mike Le Couteur
CTV News
December 11, 2024
Category: Finance & Economics
Region: Canada

Canada’s central bank has cut interest rates for the fifth consecutive time as the country’s economy grows at a slower rate than projected. The 50-basis-point cut comes Canada’s economy grew by one per cent in the third quarter of 2024, and the fourth quarter is looking weaker than projected, according to the Bank of Canada. “Monetary policy no longer needs to be clearly in restrictive territory,” said Bank of Canada governor Tiff Macklem. Macklem noted consumer spending and housing activity both picked up as a result of lower interest rates. Another factor in cutting the interest rate was Canada’s unemployment rate rising to 6.8% in November as the bank says the number of people looking for work has increased faster than the number of jobs. …In making its decision, the bank cited the incoming U.S. administration and the threat of 25% tariffs on Canadian exports to the U.S., adding increased uncertainty and clouding the economic outlook.

In related coverage: Bank of Canada’s interest rate cuts have reframed the mortgage shock story

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US housing market playing catch-up after slow decade

By Antonio Gallotta
RISI Fastmarkets
December 10, 2024
Category: Finance & Economics
Region: United States

The US housing market in 2024 has softened under the weight of high mortgage rates and economic uncertainty. …In terms of construction activity, single-family housing starts have shown modest growth, running at an annualized rate of 1 million units for the August-October period, 4.5% above last year’s pace. Conversely, multifamily starts have trended lower, down 15% from a year ago. Looking ahead, falling mortgage rates and improving builder confidence signal a potential upturn. However, the interplay of affordability and supply expansion, particularly for middle-income buyers, will be pivotal. …Federal policy changes will influence bond markets and mortgage rates, indirectly shaping the housing landscape. Builders remain cautiously optimistic. …These developments will be closely watched for their impact on housing—and, by extension, pallet demand, as framing lumber prices are a key leading indicator for low-grade lumber.

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Wood, Paper & Green Building

Project profile: Uncovering the secrets behind University of Toronto’s Academic Wood Tower

By Don Procter
Daily Commercial News
December 10, 2024
Category: Wood, Paper & Green Building
Region: Canada, Canada East

At 77 metres high, the University of Toronto’s 14-floor Academic Wood Tower (AWT) will be the tallest mass timber building in Canada when its classroom doors open in 2026. The tower is novel not just because it is a timber hybrid structure, but also because it is being constructed atop the Goldring Centre for High Performance Sports, a busy facility at the University of Toronto’s main campus. The timber is required “to do a lot of things mass timber really doesn’t like to do,” said Ryan Mitchell of MJMA Architecture and Design, which is in joint venture with Patkau Architects on the project. …Another hurdle overcome was with the foundations which were designed for a steel structure, not a heavy mass timber one, when the sports facility was constructed a decade ago below the now rising wood tower, he told a packed room at the Metro Toronto Convention Centre.

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High rises made out of wood? What matters in whether ‘mass timber’ buildings are sustainable

By Brent Sohngen, Ohio State University
The Conversation
December 11, 2024
Category: Wood, Paper & Green Building
Region: United States

A material that’s been around since people built shelters – wood – is increasingly being proposed for low- and mid-rise buildings. Companies behind these “mass timber” projects say that wood is a lower-carbon alternative to steel or concrete and brings other benefits, such as faster construction time and lower cost than concrete and steel. Advocates say the wood materials, made of compressed layers of wood with glue, offer good fire safety as well. As an economist who studies forestry and natural resources, I took an interest in this building trend when I heard that a local bar on campus was going to be replaced by a 13-story building made out of wood. I see any increase in the use of wood in buildings as positive for reducing the substantial carbon footprint of buildings. But it is critical to consider where wood is sourced and whether forests are managed sustainably.

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Trex and Weyerhaeuser make westward partnership push

The HBS Dealer
December 10, 2024
Category: Wood, Paper & Green Building
Region: United States, US West

Trex Company is joining forces with Weyerhaeuser to expand Trex’s presence across the Southwest region. This collaboration aims to enhance access to the brand’s decking and railing products for customers in California, Nevada, Arizona and New Mexico. Weyerhaeuser will now stock the complete range of Trex decking and railing products at strategically located distribution hubs … [and] will exclusively offer Trex decking and railing solutions in these regions. According to Trex, this collaboration aligns with the company’s strategic focus on expanding its market share in the residential railing segment. …Trex aims to double its share of the $3.3 billion residential railing market over the next five years… Ross Theilen, vice president of distribution at Weyerhaeuser, stated, “Trex is a leader in the industry, and their products align with our commitment to providing innovative, sustainable building materials. We’re thrilled to bring Trex’s premium offerings to our customers in California, Nevada, Arizona and New Mexico.”

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Timber! How wood can save the world from climate breakdown.

By Paul Brannen, Director Public Affairs CEIBois, EOS & TimberDevUK
Waterstones
December 11, 2024
Category: Wood, Paper & Green Building
Region: International

Timber! should be read by all those in planning, housing policy, construction and agriculture, and many more besides.  The carbon emissions generated by concrete and steel construction are well-known. Why then are we not using more carbon-friendly building materials? In a passionate and compelling argument Paul Brannen advocates the use of timber in buildings wherever possible. His controversial and counterintuitive argument is clear: planting trees is not enough to reduce carbon, we also have to chop them down and use more wood in our buildings and cities. This is the first book to take timber from the margins to the mainstream, from the forests to the cities. The book tackles head-on questions about sustainability, safety, the biodiversity of commercial forests and the pressures on land use. The case for timber as a construction material is persuasively made – the creation of new engineered timbers with the structural strength of steel and concrete enable us for the first time to build wooden skyscrapers – and draws on the latest developments in engineering and material science. 

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Forestry

Texada Island forestry Forest Practices Board audit finds mixed results

BC Forest Practices Board
December 10, 2024
Category: Forestry
Region: Canada

VICTORIA – The Forest Practices Board encourages new forest licence holders to understand the risks and obligations associated with acquiring a new licence, following a forestry audit on Texada Island. The board conducted a compliance audit of all the activities carried out by 1175401 B.C. Ltd. between June 1, 2021, and June 2, 2023. The audit determined the licensee generally complied with the requirements in this period. However, auditors found several instances of significant non-compliance relating to operational planning, road maintenance and fish habitat. “This audit is an example of what can happen when a forest licence is acquired without a full understanding of the obligations that come with it,” said Keith Atkinson, chair, Forest Practices Board. “If a licensee is unaware of the scope of their responsibility, their forestry operations can put resources like local wildlife habitats, visual quality or streams at risk.”

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Forest Stewardship Council Launches Initiative to Improve Workplace Culture in North America’s Forestry

Forest Stewardship Council
December 10, 2024
Category: Forestry
Region: Canada, United States

Through a partnership with FSC Canada, FSC US, FSC International and the Free to Grow in Forestry Movement, we pleased to announce an initiative on improving workplace culture in North America’s forestry sector. In alignment with the FSC Strategic Framework on Diversity and Gender (2022-26), and furthering the foundational efforts of the Free to Grow in Forestry Movement,  the co-leadership of FSC Canada, FSC US and FSC International, a North American Council comprised of FSC economic, Indigenous, environment and social chambers, and the International Forest Students Association (IFSA), are now working collaboratively to lead the sector toward strengthening their workplace culture for the betterment of all people. The FSC Strategic Framework on diversity and gender calls for a “paradigm shift” in workplace culture that can only be achieved by the joint efforts and contributions of all members of society. With that in mind, FSC has established an Inclusion Council for its North American membership. 

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A push to save the remaining 37 hectares of Puntledge Forest

By Raynee Novak
Comox Valley Record
December 11, 2024
Category: Forestry
Region: Canada, Canada West

Along the BC Hydro property, just along the Puntledge River and below Comox Lake lies an area of Puntledge Forest that does not have protection to its timber rights. …Only 100 years ago, the forested area was all industrial, serving the coal mines of the area. …Comox Valley Land Trust is looking to save this area by fundraising $500,000 from public donations, which are now matched and tripled by generous donors… The CVLT is in the final stages of raising that money to buy the remaining 37 hectares of forest.  This area of the forest is owned separately through a Timber Reservation that is registered to the land title. The 37 hectares of land is owned by Manulife Investment Management and the hope is to raise most of the needed $1.9 million price tag through government grants and charitable foundations. Only the outstanding $500,000 is needed through public donors in the local community.

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Westwind Forest Stewardship Wins Forest Stewardship Council North American Leadership Award

Forest Stewardship Council Canada
December 9, 2024
Category: Forestry
Region: Canada, Canada East

Westwind Forest Stewardship Inc. won a prestigious North America-wide Leadership Award from the Forest Stewardship Council (FSC) for its commitment to responsible forest management, advocacy and conservation leadership in the French-Severn Forest, near Parry Sound, Ontario, Canada. “In 2002, we were the first forest company in Ontario with publicly managed Crown lands to earn FSC certification. Since then, our dedication to environmental stewardship, responsible management, and building strong relationships with our entire community including Indigenous groups is unwavering,” shared Westwind Board Chair Rob Keen (RFP). At almost 1.3 million acres, the French-Severn forest rests on the Canadian Shield stretching from Algonquin Park to Georgian Bay, and from the Severn River north to the French River. Sugar maple and white wine dominate the landscape which is also home to the greatest number of turtle and snake species in the Ontario, each with habitat protection requirements found in the FSC standard.

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Oregon lawmakers to vote on funds to pay off debts for historic 2024 wildfire season

By Dianne Lugo and Zach Urness
The Register-Guard
December 11, 2024
Category: Forestry
Region: United States, US West

Oregon lawmakers meeting in a special session Thursday will vote on spending $218 million in general funds to pay off bills for the estimated $350 million in firefighting costs during the historic 2024 wildfire season that burned more than 1.9 million acres. The money would allow the state to process the remaining payments to vendors and allow the Department of Forestry and the State Fire Marshal to continue program operations through the end of the two-year budget cycle on June 30. “We have a responsibility to pay our bills to the brave individuals who helped protect our homes and property during this terrible wildfire season,” Senate President Rob Wagner, D-Lake Oswego, said in a statement. “A narrow special session focused on this common goal is the best path forward.”

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Maps reveal parts of protected Tasmanian native forest that could be open to logging, environmentalists say

By Adam Morton
The Guardian
December 11, 2024
Category: Forestry
Region: International

Environmentalists have released what they say are the first maps of nearly 40,000 hectares of protected Tasmanian native forests that the state government plans to open to logging in what critics have described as “political point scoring”. They suggest significant parts of the state’s north-east around the Ben Lomond national park and near the town of Scottsdale could be made available to the forestry industry if the Liberal government wins support for the changes in parliament. A smaller area of forest could be opened up in the north-west between Smithton and Wynyard. The premier, Jeremy Rockliff, announced in February that a re-elected Liberal government would allow logging in 27 areas that have been protected since a “peace deal” was struck between the timber industry, conservation groups and unions in 2012 in an effort to end the decades-long conflict known as the “Tasmanian forest wars”.

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Forestry industry faces a “Goldilocks Moment” as sector aligns with UK Government policy goals

Wood & Panel Europe
December 10, 2024
Category: Forestry
Region: International

The UK forestry and wood industry is experiencing a pivotal moment, described as a “Goldilocks moment” where conditions are “just right” to align industry aspirations with government policies, as highlighted during Confor’s annual Westminster conference. Stuart Goodall, CEO of Confor, expressed optimism about the industry’s potential to deliver on economic, environmental, and social priorities for the UK Government. … He voiced hope that the Labour Government would continue the positive trajectory established by Conservative ministers, particularly through initiatives such as the Timber in Construction Roadmap and the National Wood Strategy for England. … Mary Creagh MP, whose ministerial brief includes forestry, reiterated her commitment to expanding productive conifer planting and increasing the use of home-grown wood in construction. During her address, she praised the previous government’s efforts, noting that tree planting in England had scaled up to 4,500 hectares in 2023-24 as part of a broader UK total of just over 20,000 hectares—a generational high.

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Södra rolls outs AI system for operator support during harvesting

Sodra
December 11, 2024
Category: Forestry
Region: International

SWEDEN — Södra and Nordic Forestry Automation (NFA) have signed a letter of intent to roll out operator support for thinning carried out under Södra’s supervision. The system will also be able to collect data for each individual tree for future planning and analysis. Roll out and installations are scheduled to start in the second half of 2025. …“More innovation is needed in forestry and NFA shows clearly that new technologies can make a difference and be valuable for forest estates. A major advantage is the breadth of the innovation. It gives us thinning support, while the data collected can form the basis for future planning and decisions. This is a good example of Södra joining forces to add value for forest estates,” said Magnus Petersson at Södra.

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WoodTECH 2025 – is back & better than ever

Innovatek
December 11, 2024
Category: Forestry
Region: International

WoodTECH is returning in March 2025! WoodTECH 2025 is the Australasia’s premier event for wood processing and manufacturers, and has been run by FIEA for over 25 years. The last in-person event, WoodTECH 2019, drew a record attendance. Since then, many new technologies have been installed and upgraded in mills across Australia and throughout New Zealand. Networking meeting in-person is now more important than ever, and we’ve got a great lineup of technology specialist speakers from around the world coming downunder – just for this event. Bring your team and find out where everyone is headed with improving competitiveness in sawmilling. It’s independent. It’s run by this region’s leading forestry technology events company, the Forest Industry Engineering Association (FIEA). The WoodTECH 2025 series will run in both New Zealand and Australia in March next year.

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Forest Fires

Greece faced 9,500 forest fires this year, says minister

Reuters
December 10, 2024
Category: Forest Fires
Region: International

ATHENS – About 9,500 forest fires, including one on the outskirts of Athens, consumed nearly 44,500 hectares of land this year, Greece’s hottest and driest on record, official said on Tuesday. Wildfires are common in the eastern Mediterranean country, but hotter, drier and windier weather that scientists link to the effects of fossil fuel-driven climate change has increased their frequency and intensity. The number of wildfires was up 7.5% this year, compared to the annual average of the previous 20 years, but the destroyed land was 14% less due to immediate response of the authorities, said Civil Protection Minister Vassilis Kikilias. …One-third of the forest fires broke out before or after the end of the fire season, which is generally form May to October, he said. “This is something that we will also face in the next coming years,” he added in a speech at an event focused on evaluating the fire season.

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