The certification debate continues in Norway: forest owners support Pan European Forest Certification, as do their counterparts in Austria, Finland, France, Germany and Sweden, but the Worldwide Fund for Nature continues to favour the Forest Stewardship Council.
The debate must be resolved as the major timber buyers will soon ask for certification, as their customers will demand certified products. Also, it is an issue that the Nordic timber industry must concentrate on in its promotional campaigns Wood for Good and Nordic First. If the industry wants to promote timber, it cannot present conflicting opinions.
Moelven shares
Five of the Norwegian forest owners’ associations now have a 35% interest in Moelven after buying shares owned by Norske Skog. Norske Skog is concentrating on paper production and even its pulpmill in Tofte has been sold to Södra. Moelven, on the other hand, is very active in the forest products industry and is on the acquisition trail, especially in Sweden. Now that Moelven is much more directly under the control of the forest owners’ association, forest owners believe they are involved more directly in policies about increasing product development and the use of forest products based on the saw logs.
The forest owners need a sawmilling industry, as that industry will increasingly become their main source of income. However, they will have to supply the capital that is needed for investments. To this end, they are involved in creating a ‘think tank’ company with the aim of attracting investments and development in wood based industry. The company aims to create a fund of NKr100m for investments.
On the home market there are clear signs of a slow down in building activity. House prices are no longer rising and investment as a whole is forecast to decline this year. Activity is still slightly higher compared with several years ago, but many younger people have borrowed heavily and, if the market slows significantly, they may be forced to sell their homes to pay off loans.
Most politicians are trying to remain optimistic about the economy – going as far as promising growth and a prosperous future – as a general election is expected to be called in the autumn.
In the retail and wholesale market for building products the large chains are either buying up their smaller counterparts or the small businesses are closing. In addition, a skills shortage means it is difficult to find a carpenter or builder, which could pose a threat to the use of timber products.
Exports
According to the Norwegian timber trade association, total exports of timber last year amounted to 771,441m³, of which 106,035m³ was exported to the UK and 12,145m³ to Ireland.
In the first three months of this year exports were down slightly compared with the same time last year and, as a result, importers are expecting prices to fall. Competition from the Baltics and Russia, in particular, is keen.
