SOUTHERN HEMISPHERE FORESTRY
May '99 Headlines
||SAWMILLING SURVEY: Companies
slim down but stay in the race
The May edition of the Southern Hemisphere Forest Industry Journal features the annual
Survey of the Sawmilling Sector
Southern Hemisphere sawmilling has returned from a nightmare year with margins slimmer and
After the shock of Asian economic downturn, milling companies adapted to tighter markets
and increased but is still running hard to keep up with the competition.
Summaries are provided of country-by-country performance and details are provided of
- Kiwi millers fight back from Asian shock
- Key changes in Australian sawmilling
- Economic troubles dog South African sawmilling
- Chilean millers hope signs are right for an upswing
- Argentine milling companies upgrading
We focus on Uruguay, the small South American country which has been the centre of much
interest internationally. As well as providing background on the country, we focus
particularly on the solid wood manufacturing sector.
- The Government has set the ball rolling on the sale of a huge plantation forest
- The Governments controversial pay-for-rain scheme may be scuttled by changes
following the general election.
- Sappi Forests has become the first South African forestry company to gain ISO 14001
- Weyerhaeuser of the US has taken another step forward in its fibre bank strategy with
the purchase of mills and resource belonging to Australian company, CSR Ltd.
- BP has entered into an agreement with the Western Australian government agency, CALM, to
explore the feasibility of tree plantations for carbon sequestration.
- Paper-maker Amcor hopes a new machine launched at Maryvale will help combat imported
- The future role of New Zealands Fletcher Challenge Ltd in Chile is unclear, as the
company restructures its investments, including exiting a forest-owning company and taking
full control of a paper company.
- Masisa, one of South Americas largest panel and board-makers, has been hit by
lower construction activity but is hoping for more positive market news in the current
- International Paper, owner of New Zealands Carter Holt Harvey, has debuted in its
own right in Chile, with the purchase of a local packaging company.
- A performance programme is aimed at helping Carter Holt Harvey overcome the financial
impacts of tougher economic times in key markets.
- Rayonier NZ, an offshoot of the US-based Rayonier Inc., has forged an alliance with a
Maori tribal trust to manage a forest.
- The Rotorua District Council has launched a forestry access database it hopes will help
attract overseas companies wanting to invest in the region.
The market news is much more positive than it has been for almost a year, with
responses to our survey signaling that prices are being pushed up. Margins remain narrow,
||SOUTHERN HEMISPHERE PINE PRICE INDEX
The Southern Hemisphere Pine Price Index is the average of all prices for pine lumber
across the main forestry countries of the South. Available to subscribers.