BSW Timber‘s multi-million pound investment plans for its facilities in England, Scotland and Wales are a direct response to growing demand for added-value end products.
As chief executive Paul Barham told TTJ: “The market is very much driving investment in secondary processing, including kilning, treatment and planing.”
Since announcing in January that it was proposing to invest £15m over three years at its Newbridge-on-Wye facility in Powys, Britain’s largest sawmiller has also confirmed substantial expenditure plans for its two facilities in western Scotland. And in early October, BSW Timber revealed that it would be spending £750,000 on the installation of an in-line planing facility and dedicated packaging line at its Cargo mill near Carlisle. The package also includes sophisticated extraction systems, an integral tool room and state-of-the-art knife grinding equipment.
The Cargo project is due for completion by January and will enable BSW to treble production capacity of its specialised and added-value timber products. These include the company’s recently-launched Easi-Edge machined, kiln-dried and strength-graded construction timber which is available in standard lengths and dimensions. According to the company, Easi-Edge reflects a demand shift – particularly noticeable in the construction industry – away from rough-sawn timber towards a smoother and easier to handle product.
Changing market
Marketing manager Bryan Crennell said: “The market for sawn timber is changing: we are facing increased demand for a more specialised end product. There is a huge demand for Easi-Edge – especially from builders merchants and the construction industry in general.”
Current investment plans satisfy two imperatives. “The keys for us are value and improving the resilience of the business,” said Mr Barham.
Profitability in the British timber industry had traditionally been unpredictable thanks to a host of factors, including the volume of timber imports, demand in other markets, exchange rate fluctuations and energy costs. The company was responding by “continuously improving our cost efficiencies and our productivity”, but also by looking to add value to the basic product range. Volume production was of interest only if it led to enhanced profitability, said Mr Barham.
This focus on adding value to the product range is typified by BSW Timber’s investment drive at the Newbridge-on-Wye plant in Wales. Around £3.5m is to be spent on a new timber preservation plant, state-of-the-art kiln drying chambers and, as in Carlisle, an in-line planing facility. In September, Powys County Council granted planning permission for a £1m-plus investment in the buildings and infrastructure required to pave the way for the kilning and treatment capacity, which is due to come on stream by May next year. The £500,000 Waco planing facility from Sweden has already been commissioned.
A boost to capacity forms part of the overall three-year redevelopment blueprint for the Welsh facility where key products currently include kiln-dried timber for the housebuilding market and treated timber for fencing and other outdoor uses. Noting that the sawmill produces 106,000m3 of sawn timber, the company said: “Future development plans, on target to be completed by early 2008, include increased on-site capacity, more new technology and upgraded log-handling facilities – which could create a further 20 jobs.”
Scottish investment
In the summer BSW announced it was investing around £3m into its sawmills at Fort William and Boat of Garten. At the former, around £1.5m is being invested in new production line technology designed to integrate grading, in-line planing and low pressure treatment facilities. A further £400,000 has been split between an improved boiler facility to enhance efficiency and environmental performance and a general upgrade of the mill’s infrastructure.
At Boat of Garten, which produces 45,000m3 of sawn timber, investment focuses on three areas. Overall, £500,000 has been spent on a new de-barking machine and state-of-the-art scanning technology while £400,000 has been channelled into improving on-site mobility. A further £300,000 has been invested in health and safety-related improvements, such as machine and distance guarding and new pedestrian walkways.
