SOUTHERN HEMISPHERE FORESTRY

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March 2000 Headlines


SOUTHERN HEMISPHERE JOURNAL

Annual Survey of Afforestation in the Southern Hemisphere

The future expansion of Southern Hemisphere forests hangs in the balance as companies size up the profitability of new afforestation. Although the area of forest planting continues to be at relatively high levels, there are changing taking place with the likely outcome being a dip in the wood availability in some countries. Supplies of roundwood will continue to expand greatly - doubling in some cases in the first decades of the century. We have devoted 11 of the Journal’s 16 pages to this very important issue.

Country Focus:

Chile:

  • Louisiana-Pacific Building anew OSB plant
  • Arauco appealing a ruling blocking its new pulp plant
  • US-owned Trillium plans to harvest native hardwood from Tierra del Fuego
  • German company Wenig launches a new high tech unit for making mouldings and costs sections
  • Board-maker, Masisa S.A., remains positive after a touch year.

New Zealand:

  • Carter Holt Harvey secures a strong position in Australia through the US$200 million purchase of CSR Timber assets.
  • The sale of Fletcher Challenge Forests is on the cards, with US and Asian firms interested parties.
  • Chinese Government company, Citic, has raised concerns about an agreement for log supplies.
  • The Government and forest industry welcomed the lifting of an injunction in US courts threatening the exports of solid wood products.
  • A new Global forestry gene research company has been formed.
  • Fletcher Challenge Paper sales takes continued (since concluded with a sale to a Norwegian firm).

Australia:

  • CSR has quit the timber business, diving MDF, sawmilling and timber treatment plants for US$252 million.
  • Auspine profits have surged on a domestic building upturn.
  • Amcor has merged its two Australasian packaging units as profits increase.
  • A South Australian group is planning a US$30 million straw pulp mill.

South Africa:

  • Two key State forests passed over in the last round are to go back on the market.
  • Pulp and paper group Sappi reported imported results as markets strengthened.
  • Flood devastated a wide area of Southern Africa.

Markets

We provide in-depth details from our markets survey. An overall firmer tone was reported in most markets, apart from specific lower note in the US, with the Southern Hemisphere Pine Price Index firmer.

 

Positive mood marks millennium kick-off

The start of the new millennium has seen solid wood manufacturers in the Southern Hemisphere return to more settled and positive markets in most cases. The impact of the Asian economic crisis overhung the sector, however, with slimmer margins and increased competition.

Our annual Survey of Southern Hemisphere Solidwood Manufacturing provides an update of sawmilling in Chile, New Zealand, Australia, South Africa and Argentina along with details of new developments at leading companies in the Southern Hemisphere.

We devote 14 pages of our 16 page edition to the issue.

Country Focus

South America

  • Argentine board-maker Faplac has commission a new US$100 million plant at Zarate.
  • Chilean pulp and paper and timber giant Celulosa Arauco y Constitución opened an extension to its pulp plant at Misiones in Argentina.
  • Cascada Chile’s Oriented Strand Board (OSB) project is on hold as a result of depressed world markets.
  • Board-maker Masisa posted a positive result of 1999 despite the crisis that hit Latin America last year.

New Zealand:

  • Nelson Pine Industries is building a US$30 million laminated lumber veneer (LVL) plant in 2001.
  • Carter Holt Harvey has posted a 226 per cent earnings improvement, helped by the US$1.23 billion sale of its investment in COPEC of Chile.
  • Fletcher Challenge Ltd continues to talk with interested parties over the sale of its Forests division.

Australia:

  • Australia’s timber plantation area continue to expand, according to a report from the National Plantation Inventory.
  • NSW State Forests and the Tokyo Electric Power Company have signed a US$80 million agreement to plant forests over 10 years.
  • Boral Timber, Forestry Tasmania and Japanese investors have signed a venture agreement to create a hardwood estate.
  • Auspine reports a 161 per cent increase in group profits for the six months to December 1999.

South Africa:

  • Sappi has sold its Novobord operation to the Portuguese-owned Sonae South Africa.
  • Sappi has reported excellent results for the quarter to December 1999.
  • The fresh round of State forest sales is expected soon.

Markets

Winter looks set to dampen the markets’ summer frolics. Reports from most countries suggest a less positive tone among sawmillers. The Southern Hemisphere Pine Price Index being down on the previous quarter.

 

Southern Hemisphere Forestry

Postal Address: P.O Box 6215,
Whakarewarewa - Rotorua - 3220 - New Zealand.

Street Address: 5 High Street,
Rotorua - 3201 - New Zealand.

Phone: ++64 7 349 4107 - Fax:++64 7 349 4157
Mobile:025 927 158 .

Email : southem@wave.co.nz