Summary
• The Forrestar brand is being replaced with Lumin.
• Four UK distributors have been signed up to sell the plywood products.
• The eucalyptus grandis reaches maturity within 15 years.
• The Uruguay mill is targeting a 300,000m³ production capacity.

The eucalyptus grandis tree in South America can grow 50m high and have a trunk diameter of 30cm at just 12-15 years old.

These are just some of the impressive statistics which enthuse Weyerhaeuser’s commercial director John Guerin as the company ratchets up its plywood sales drive.

The company has been making plantation pine and eucalyptus plywood in Uruguay since 2006 under the Forrestar brand, a name familiar in the UK since 2007.

Now it is launching a new brand for the product – Lumin – which, according to the dictionary, can mean either light or the cavity bonded by a plant cell wall.

Long-term strategy

The rebrand defines the launch of a long-term sustainable strategy for Weyerhaeuser which commits to developing products from sustainable sources with a guaranteed supply.

“The Forrestar brand we had in place worked quite well,” said Mr Guerin, “but we wanted to develop a brand which basically incorporated our sustainability values. Forrestar did not really do that.

“Lumin is an overall brand for our business and as we expand we will look at further plywood products and possibly lumber and bioenergy.

“We are trying to reposition our panel and plywood business in terms of environmental and performance criteria. We wanted a brand that gives confidence in our plywood products.”

More than US$100m has been invested in the Uruguayan plywood mill, located in Tacuarembó, and plantations. The first plantations were established in 1996 and many trees are now reaching maturity.

The mill, which Weyerhaeuser assumed 100% control of in 2007, has had a listed capacity of 130,000m³ but recent investment has enabled the company to treble that figure, though the global recession had held back actual expansion of production.

“Over the next 12 months our production will be increased significantly,” added Mr Guerin.

The product range has been expanded to encompass a full portfolio of 12-22mm products in 14 grades, aimed at sectors ranging from transport to toys.

At the top end is a 100% eucalyptus appearance grade Tropical Replacement Panel (TRP), which Weyerhaeuser says compares favourably with BB/CC tropical hardwood product from Indonesia and Malaysia. Other eucalyptus face panels include TR, Overlay, CCX PTS, CDX and Furn-I-Frame, while pine face panels include BC, CCX PTS and CDX.

TRP is manufactured in 12mm, 15mm and 18mm thicknesses and has already been shipped to various countries in Europe, including the UK, and is apparently getting good quality feedback. The product is available with TECO and CE 2+ certification and meets E1 emissions standards.

“Aesthetics are important and the pink/red colour is very similar to meranti or mahogany, which the market tends to like very much,” said Mr Guerin.

“We have done a lot of market research in Europe and in most cases there is not the supply available [of tropical hardwood plywood] to meet demand, especially of sustainably-sourced and environmentally-certified products. We see ourselves positioning as an alternative.

“It’s not necessarily about taking market share off tropical panels, although that will probably happen. The UK is a very important market and it’s about ticking the right boxes. You can get onto the Olympics site with certification.”

Certification

Mr Guerin highlighted Lumin’s FSC and PEFC certification, adding that because it was plantation wood “we could supply this panel for ever”.

“All our customers are saying that certification is a key because they see supplies from tropical countries reducing.”

Mr Guerin did not want to reveal exact volume, but said a good proportion was arriving in the UK. Pricewise, it is designed to be competitive with Far Eastern tropical hardwood plywood.

UK companies that will distribute the product are James Latham, Altripan UK, Montague L Meyer and Caledonian Plywood. “We may take on further distributors as we go forward,” added Mr Guerin.

He said the wood fibre source was the principal reason for Weyerhaeuser investing in South America. The company owns and manages 150,000ha of forestland in Uruguay, with a target to achieve 200,000ha by 2018.

Ray Risco, vice-president, Weyerhaeuser international operations, said the soils and climate were capable of supporting superior tree growth, the Uruguay government offered support and incentives for forestry projects and foreign investments, and the population had an adequate skills base.