Timber customer magazine 2020/2021

2020

2021

METSÄ FIBRE CUSTOMER MAGAZINE

PREMIUM QUALITY SAWING GOOD FOREST MANAGEMENT CARBON-BINDING BUILDINGS

Contents METSÄ FIBRE CUSTOMER MAGAZINE

FOLLOW METSÄ FIBRE ON SOCIAL MEDIA

EDITORIAL Creating sustainable growth through Nordic wood PAGE 4

PORTRAIT OF A PROFESSIONAL Victoria Eklund enjoys working at the Renko sawmill PAGES 54–55

READING MANUAL New magazine, new online content PAGE 5

PRODUCTION SITES Six modern production facilities PAGE 56 WHY NORDIC TIMBER Strong, durable and light- coloured sawn timber PAGE 57

WORLD OF TIMBER Towards fossil-free wrapping for sawn timber PAGES 6–7

MADE OF TIMBER New wood construction based on industrial materials PAGES 8–13

METSÄ FIBRE World-leading producer of pulp, sawn timber and bioproducts PAGES 58–59

THE FUTURE OF WOOD CONSTRUCTION, PAGES 8–13

SUSTAINABLE FOREST MANAGEMENT, PAGES 28–35

VISION CEO Ismo Nousiainen: Aiming for excellence PAGES 38–41

PERSPECTIVE Developing safety is a shared concern PAGE 53

INNOVATIONS AND INVESTMENTS Building the world’s most modern sawmill in Rauma PAGES 16–19

CLOSE-UP OF A CUSTOMER Mocopinus developed into a service provider PAGES 20–21 TIMBER MARKET New opportunities in carbon- binding wood construction PAGES 22–25 CLOSE-UP OF A CUSTOMER R.T.D. Crawford investing in growth PAGES 26–27 SUSTAINABLE FORESTRY Turning softwood into logs is long-term work PAGES 28–35 MEGATRENDS Wood and fibre products can solve many problems PAGES 36–37

CARBON FOOTPRINT Binding carbon long term with sawn timber PAGES 14–15

HOW IT WORKS Reducing transportation costs by optimising shipping PAGES 42–45 HOW WE SERVE YOU E-commerce, quality information and delivery tracking PAGES 46–47

THE NEW RAUMA SAWMILL, PAGES 16–19

CAREFUL PLANNING OF MARINE LOGISTICS, PAGES 42–45

CLOSE-UP OF A CUSTOMER Estonian timber company Barrus is already a significant component producer PAGES 48–51

TIMBER TECH Rauma is bringing machine vision to sawmills PAGE 52

WELCOME

How to read our new customer magazine Timber

We have gathered the latest news, trends and insights about the sawmill industry, and will share them with you on the following pages. The magazine is published once a year for our customers around the world.

SUSTAINABLE GROWTH FROM NORDIC TIMBER

Dear Reader, you hold in your hands the first issue of our new sawn-timber-focused customer magazine, Timber!

During the past year, our customers have been presented with many changes, such as transferring the sawn timber sales and customer service from Metsä Wood to Metsä Fibre’s organisation. We have also refreshed our branding. The Nordic Timber brand has been discontinued, as we wish to focus on the stronger Metsä brand. We have also made the designs of the shipping marks, the sawn timber hoods and wraps more uniform.

Timber magazine is published in four languages: Finnish, Eng- lish, Chinese and French. The magazine contains articles about the sawmill industry, sawmill technology, forest man- agement and our customers. In addition to the printed magazine, the Timber maga- zine is published online. You can find the digital magazines at www.customermagazine. metsafibre.com . We also regularly publish articles on the sawmill industry on Metsä Fibre website at met- safibre.com/en. Subscribe to our quarterly Timber newsletter, and you will stay up to date on sawmill industry news! Send an e-mail with subject “Newsletter order” to metsafibre.marketing@ metsagroup.com

On some pages of this magazine you can see a QR code. When you scan the code with your mobile device, you will be able to read a digital article that will provide you with interesting additional information about the subject.

At the heart of this change is our ambitious purpose – to create sustainable growth for our customers from renewable Nordic wood. Therefore, this new magazine presents a new feel with a selection of interesting stories and a clear layout reflecting our Nordic origins.

This issue covers such themes as new sawing technology, sustainable forest management, our unique services, and of course, our valued customers. There is much to discover in this issue of Timber and we are delighted that you are with us on this journey!

MORE INFO ABOUT QR CODES: WWW.QRCODE.COM

HOW TO READ A QR CODE Once the QR code reader software is installed on your mobile device, you can read QR codes. Launch the QR app on your mobile device. Read the QR code by placing the code in the center of the camera or tablet screen or in the display window so that the code is fully visible. In many QR readers, the code is scanned automatically. If not, select the scan function on the screen. The internet browser of your mobile device will go to the web page according to the information contained in the QR code.

EVA MARTIN Editor-in-chief

PS We would love to hear what you think about our magazine. Feel free to send us feedback: metsafibre.marketing@metsagroup.com. Thank you!

World of timber

TOWARDS FOSSIL-FREE WRAPPINGS FOR SAWN TIMBER One of Metsä Fibre’s sustainable development goals is to switch from using plastic wrappers on sawn timber to fossil-free wrapping materials. “The goal is that by mid-decade, wrappings made from fossil-free raw materials will already be used widely,” says Tuomas Arminen , Development Manager at Metsä Fibre. The wrapping materials of the future may be fibre-based or bioplastics, or combinations of the two. “We have studied possible development paths. As we see it, the wrappings of the future will be fibre-based. In the early stages, plastics made from tall oil, for example, may also be used as wrapping materials,” Arminen says. Developing fossil-free wrapping materials from com- pletely new materials is a daunting task. The wrapping must protect products from dirt, mois- ture and ultraviolet light, and also be able to withstand mechanical stresses, protecting the products from damage during transportation. The wrappings must also have a surface that prevents the bundles of wood from sliding around and allows walking on them also in slippery con- ditions. “It is a big challenge, but we want to be pioneers in fos- sil-free innovations and be able to develop well-function- ing solutions quickly. We are already engaged in collabo- ration with suppliers of packaging materials.” Metsä Group’s sustainable development goals state that all of the group’s mills must be fossil-free by 2030. This goal also applies to products' packaging material just as much as to the products themselves.

POSITIVE CUSTOMER FEEDBACK High-quality products and reliable operations were repeatedly cited as successes in Metsä Fibre’s lat- est customer satisfaction survey, which indicates that customers view Metsä’s high-quality products and reliable operations as our biggest successes. “We received a lot of good feedback. I think that we have been successful in building and devel- oping our services and operations,” says Saku Pänkäläinen , VP for Timber Sales at Metsä Fibre. Metsä’s reliable operations were especially well received: “Our customers know that we do what we promise. We keep our promises, even if the mar- ket changes. In general, the entire Metsä brand has a good reputation.” This year, there was even more feedback than previously, as customers were able to provide their own free-form comments. “Our customers were open about what aspects of our operations they appreciated, but they also gave us feedback on areas that we can develop further.”

SHIPPING CODES INDICATE THE SPECIES AND PROPERTIES OF SAWN TIMBER Metsä has replaced the ship- ping codes stamped on sawn timber with Metsä symbols and a mark showing the quality category of the wood. Sawn timber is classified into various grades based on its technical and visual proper- ties. For spruce sawn timber, the base colour of the logo is green, while it is red for pine sawn timber. The new stamps also tell the customer who manufactured the sawn timber.

WOOD TECHNOLOGY GROUP OPENS DOORS TO THE FUTURE Metsä Group’s wood technology team, part of the research and development operations, is seeking new ways to utilise wood raw material in mechanical forest industry products. Its other roles include monitoring, promoting and coordinating the group’s external research into wood technology. “We want to use our wood raw material as effectively as possible. We also strive to rapidly evaluate innovative technologies and concepts and to utilise them in the actual manufacture of products at Metsä Group,” explains Raili Koponen , Development Manager at Metsä Fibre. The wood technology team has three main focus areas: wood raw material and any changes in its quality or availability; sustainable development and the use of wood in construction; and identifying future skills needs. The team has experts from Metsä Fibre, Metsä Forest and Metsä Wood. “In my opinion, the internal network at Metsä Group is vital. When we have our own knowledge, we can share information, learn from others and make progress with projects faster than we could before. We can also test different solutions ourselves.” The team also maintains an extensive external network, mainly comprising educational institutions and wood technology companies. “We want the operators in our industry to be able to find each other in a way that creates the best possible combined expertise,” Koponen says. One of the current projects, related to the sawmill being built in Rauma, has the working title ‘New Opportunities in Pine’. “The aim of the project is to identify new ways of working and new prod- uct opportunities in pine. Our wood supply and manufacturing processes are optimised so that we can use the most valuable parts of pine in new ways, but we need to find uses for every part of the trunk. The whole picture has to fit together.”

STANDARDISED PRODUCT NAMES

The Metsä brand has become more prominent in all sawn timber products and services. Part of this change involved changing the product names. “We have made our product names clearer and brought all our sawn timber products under the unified Metsä brand. This will also help us serve our customers better,” says Ari Harmaala , Metsä Fibre’s SVP for Sales and Customership.

SAWN TIMBER WRAPPINGS TO MATCH THE NEW BRAND LOOK

The “Nordic Timber” logo previously printed on the protective plastic packaging has been replaced with “Metsä” printed in black, with the elk logo in green and a forest pattern depicting Finnish nature. Packages of sawn timber from Metsä Fibre’s sawmills are most often finished with a hood or wrap that protects them from dust, dirt and water during transportation and intermediate storage.

Tall oil may become a raw material for new wrappings.

Mjøstårnet in Norway was completed in 2019. With 18 storeys, it is the tallest timber building in the world.

READ MORE ABOUT WOOD CONSTRUCTION

Wooden houses are an effective way to combat the climate change, and the popularity of wood construction is expected to increase. New wood construction is based on industrially manufactured materials and large elements, from which houses can be assembled quickly. REACHING NEW HEIGHTS

SILJA EISTO, photos RICARDOFOTO, MARTIN GRINCEVSCHI/UNSPLASH & CLAUDIO SCHWARZ/UNSPLASH

The world’s population is moving to cities at an accel- erating pace. This means that soon, around the world, new homes, business properties, and offices need to be built. This enormous challenge should be resolved with- out increasing greenhouse gas emissions. Construction currently generates around 30 per cent of global carbon dioxide emissions. The solution may lie in wood construction. Wood is a fossil-free alternative. It absorbs carbon throughout its life cycle, and wood structures can store carbon for up to centuries. According to a study published by Yale School of the En- vironment and the Potsdam Institute for Climate Impact Research in January 2020, an annual amount of about 10 to 68 million tonnes of carbon can can be sequestered global- ly by increasing urban wood construction. This would also reduce the carbon dioxide emissions from construction. Matti Mikkola , Managing Director of the Federation of the Finnish Woodworking Industries, says that the interest in wood construction is supported by several megatrends. Urbanisation and the ageing population create pressure to build new homes, especially in the towns and cities. “Climate change is a major factor. Everyone is seeking ways to combat climate change. The benefits of wood con- struction include the fact that even current solutions can be used to to reduce the construction carbon emissions with immediate effect.”

The design of Metropol Parasol in Spain made use of computer modelling.

BRUMUNDDAL, NORWAY: MJØSTÅRNET This wooden high-rise became the world’s largest wooden building upon its completion in March 2019. With 18 storeys, it is 85.4 metres tall. The building houses apartments, a hotel and offices. Wood products from local manufacturers were used in its construction.

COMMON GOAL, DIFFERENT METHODS Wood is by no means a new material in construction. In fact, wood is the world’s most common building material when it comes to vernacular and small-scale construction. The situation is different for wooden high-rises. Al- though there is strong interest in wood construction, its development is highly market-specific. In Sweden, wooden high-rises represent 9–10 per cent of the housing stock, whereas the proportion of wood- en apartment buildings has been high for decades in the North American market. Wood construction is an effec- tive way to prepare for earthquakes. “In the United States, 80 per cent of all multi-storey buildings are made from wood. Not many people know this, because these buildings do not look like wooden buildings; plastic panels and plastering have also been used in them,” says Markku Karjalainen , Professor of Civil Engineering at the University of Tampere. According to Karjalainen, the United States has expertise in low-cost, large-scale construction in particular. In turn, technical construction expertise is at a high level in Cen- tral European countries, such as Austria and Switzerland. The understanding of the environmental competitive- ness and benefits of wood is improving, but few countries have large resources of wood. Researchers at Yale School of the Environment and the Potsdam Institute for Climate Impact Research emphatise that many countries need to invest in sustainable forest management and forest regeneration. The increasing popularity of wood construction will call for a strong flow of exports from countries with the capac- ity to produce sawn timber. Finnish wood raw material comes from sustainably managed forests and is of premium quality. Sawn timber made from Finnish wood is ideal for construction, even for demanding projects. WOOD CONSTRUCTION REQUIRES A NEW WAY OF THINKING The greatest potential for growth in wood construction lies in large-scale construction. Reaching greater popularity calls for new ways of working. Urban wood construction requires the reformation of building technologies, as well as the ability to adapt to op-

SEVILLE, SPAIN: METROPOL PARASOL

Consisting of 3,400 wooden elements, Metropol Parasol is one of the world’s largest wooden constructions. It is 150 metres long and 75 metres wide. This wooden building was opened to the public in 2011. LVL panels were used in its construction, and computer modelling in its design and construction. NATTERS, AUSTRIA: ASI REISEN HEADQUARTERS The headquarters of the ASI Rei- sen travel agency is surrounded by a green curtain of living trees. The environmental footprint of the building is as small as possible. This office building makes use of renewable energy technologies. The purpose of its live facade is to promote local biodiversity.

VIENNA, AUSTRIA: HOHO WIEN

HoHo Wien is one of the world’s largest wooden apartment build- ings. The building is 84 metres high, with 24 storeys. In addition to apartments, the building has offices, a hotel and other facilities. From the ground floor upwards, around 75 per cent of the building is wood.

Matti Mikkola Managing Director of the Federation of the Finnish Woodworking Industries, an organisation promoting compa- nies operating in the Finnish woodworking industry and related sectors in Finland. It is also the trade associa- tion of the Finnish Forest Industries Federation.

ZÜRICH, SWITZERLAND: TAMEDIA OFFICE BUILDING, The headquarters of the Tamedia media company is a seven-storey building in the heart of Zürich. The building’s wooden facade makes it stand out. Wood has also been used inside. The need for heating energy has been reduced in several ways, including structures that prevent cold air from entering the interior. MELBOURNE, AUSTRALIA: FORTÉ Upon its completion in 2012, the ten-storey Forté with its CLT-struc- tures was the world’s highest wooden building. The building contains around 700 tonnes of wood. In addition to apartments, Forté houses business facilities.

“Construction is always about business. The price must also be competitive for wood construction to be a viable option for construction companies.”

dows. Modular units are box-like structures with facto- ry-installed surface materials, skirting, fixtures, appliances and building technology. This enables large-scale wood construction. “New technologies have made a developmental leap possible and it is now being integrated into urban con- struction,” says Mikkola. Political decisions are also a strong driver of wood con- struction. Regulations to promote the use of wood have been implemented in France, among other countries. Green construction is supported through city and town plans. The major change will happen when the low-carbon approach and the reduction of emissions are included in building regulations. Builders will have to use calculations to show where the raw materials come from, how much energy their manufacture and transport consume and how much emissions they generate. At that point, wood will have the upper hand. "This will promote wood construction immensely and make it more common,” says Karjalainen. According to Mikkola, the wave of wood construction in the public sector has also increased the popularity of wood in residential construction. He says this to be European phenomenon. Over the past ten years, a large number of schools and day-care centres have been built from wood. Concern for indoor air quality has significantly contrib- uted to the wave of public wood construction. “Demand has gradually spread from the public sector. More and more residents are wondering whether they could also live in wooden houses. Consumers’ wishes and decisions are reflected back in public construction.” The future looks bright for wood. Environmental aware- ness is increasing, and interest in the materials used in construction is growing throughout the value chain and in housing solutions. Wood is not only a carbon storage, but also a renewable and genuinely recyclable material that offers tremendous opportunities in both new and renovation construction. •

erations in densely built environments. Mikkola says that processes to use prefabricated products on construction sites have been developed in London, a city known as a forerunner in wooden high-rise construction. This has made construction up to 30–40 per cent faster. “Prefabrication is key here, a shift from construction to installation. Although there are a large number of argu- ments in favour of wood construction that are related to climate change, comfort and architecture, the price will ultimately determine if a concept is a winner.” Karjalainen agrees: “Construction is always about business. The price must also be competitive for wood construction to be a viable option for construction companies.” INDUSTRIAL COMPONENTS CREATE NEW OPPORTUNITIES Engineered wood products – that is, construction com- ponents made from wood – have developed enormous- ly over the past 50 years. These include glulam, which became popular in construction in the 1950s, as well as laminated veneer lumber (LVL), which was introduced in construction in the 70s, and cross-laminated timber (CLT), which was developed for industrial production in the mid-90s. In addition, the window and door industries use finger-jointed timber. New methods enable construction component manu- facturers to break down wood materials down into small parts and reassemble them for the intended purpose of use. This enables equipping the components with the de- sired features while also eliminating vulnerabilities and weaknesses. Glulam, CLT and LVL allow for longer spans in construc- tion. Thanks to their easy jointing techniques, airtightness, frame bracing and minimal deflection, CLT and LVL are also competitive in wooden high-rises. PREFABRICATION ACCELERATES CONSTRUCTION New high-rises are built from elements processed in fac- tories. Large elements are ready walls with doors and win-

JOENSUU, FINLAND: LIGHTHOUSE JOENSUU

Finland’s tallest wooden apart- ment building, nearly 50 metres, houses 117 apartments for stu- dents. The building was completed in 2018, and it won the 2019 Wood Award. According to the jury, this 14-storey wooden high-rise is groundbreaking in terms of the development of tall wood con- struction.

TURKU, FINLAND: LINNANFÄLTTI

This wooden residential area in Turku is a pilot project of a wood construction promotion pro- gramme approved by the Finnish government. It is expected to be completed in the early 2020s. The goal is to build a low, wooden, urban residential area in the vicin- ity of Turku Castle.

Tamedia’s new office building in Zürich.

Markku Karjalainen Professor of Civil Engineering at Tampere University. He is well known as an expert and a trailblazer in wood construction in Finland.

READ MORE ABOUT CARBON STORAGES

A GROWING TREE ABSORBS CARBON When a tree grows by a cubic metre or so, it absorbs around 900 kilos of carbon dioxide. 900 kilos

WOODEN HOUSES STORE CARBON The amount of carbon in one cubic metre of sawn timber is around 200 kilos. Around 4,000 kilos of carbon are seques- tered in a detached wooden house of 100 square metres. 4,000 kilos

Wood products provide significant carbon storage Growing forests remove carbon dioxide from the atmosphere, and sawn timber stores carbon for decades.

MARKKU RIMPILÄINEN, photo LINA JELANSKI/DUOTONE

Carbon sequestration in trees begins with photosynthe- sis. Growing trees use sunlight to produce glucose from water and atmospheric carbon dioxide, and then convert the glucose mainly into cellulose. Trees store the carbon contained in carbon dioxide in their trunks, branches, leaves and roots. When a tree grows by a cubic metre, it absorbs around 900 kilos of carbon dioxide. Carbon is absorbed most ef- fectively by trees in their prime growing phase – in Finland when trees are 20 to 60 years old. As a tree gets older, growth slows and it cannot absorb carbon like before. A forest is as a whole a huge store of carbon. The car- bon storage of an old forest is many times that of a young forest. The largest amount of carbon is stored in in the organic matter contained in the forest soil. FOREST MANAGEMENT ACCELERATES FOREST GROWTH In 2019, forest growth in Finland was 107 million cubic metres. A total of 71 million cubic metres of wood was harvested – markedly less than the annual growth. Forest growth in Finland has accelerated over the last 50 years. In the 1980s, the average growth per hectare was 2.4 cubic metres. The growth rate has since doubled and is now 4.8 cubic metres per hectare. The fastest for- est growth rate has been recorded for the Päijät-Häme region in southern Finland, at around eight cubic metres per hectare. The acceleration is partly due to global warming, but mostly due to good forest management. When brush- wood is cleared and young forests are thinned, the re- maining trees grow more quickly. For example, in initial thinning 60 cubic metres of wood are felled per hectare. The volume is around 100 cubic metres in the second thinning and around 250

cubic metres per hectare in the final felling. In the con- tinuous cover model, around 75 cubic metres of wood per hectare are harvested regularly. THE CARBON REMAINS IN SAWN TIMBER A log’s most valuable part is the section suitable for saw- mills. In Finland, it is around 40 per cent of the annual felling volume. In order to have a cubic meter of sawn timber, you must first have about two cubic meters of raw wood material. The sturdy parts of a trunk are used for sawn timber. The chips generated during sawing are used to produce pulp, and sawdust and bark are used to produce bioenergy. The carbon sequestered in a tree remains in the sawn timber. The amount of carbon in one cubic metre of sawn timber is around 200 kilos. Each house built of wood is a small store of carbon. A detached house of 100 square metres can sequester around 4,000 kilos of carbon. WOOD REPLACES FOSSIL RAW MATERIALS Wood products have the unique ability to store carbon. The longer buildings are in use, the longer the carbon stays out of the atmosphere. The use of wood reduces carbon emissions from fossil fuels and fossil-based products. This phenomenon is known as the substitution effect. Sawn timber has a high substitution effect. Metsä Group aims to increase the amount of carbon sequestered in its products by 30 per cent by 2030. This goal can be achieved by producing wood products with long lifespans, such as sawn timber and engineered wood products. The sawmill built in Rauma will sig- nificantly increase the manufacture of wood products. •

Riikka Joukio Metsä Group's SVP of Climate and Circular Economy, was the expert consulted for this text. Sources: Natural Resources Institute Finland (Luke), The Finnish Timber Council, Metsä Group.

The Rauma sawmill is being built in connection with an existing pulp mill, close to the export port.

Artificial intelligence, machine vision and new operating models make the Rauma sawmill the world’s fastest and most efficient. The Rauma sawmill focuses on demanding customer products, in which high quality is even more important than usual. EFFICIENCY AND QUALITY FROM RAUMA SAWMILL

MARKKU RIMPILÄINEN, photos ELMERI ELO & TOMI GLAD

The world’s most modern sawmill is being built in Rauma. “We are creating a new, state-of-the art sawmill by using the latest technological solutions available. The Rauma sawmill is a significant developmental leap for the entire industry,” says Project Director Harri Haapaniemi . Artificial intelligence and machine vision are used more extensively than in any other sawmill before, and all phases of the process have been automated, from log sorting to packaging and loading the finished products. Another new feature is the continuous process. The saw- mill will run 24 hours a day, every day of the year. Thanks to the new technology, the sawmill’s performance will reach an entirely new level in all process phases. The saw line will run at a speed of more than 200 metres per minute, which is around three times more than ordinary sawmills achieve. The efficient logistics of the sawmill will also run smoothly, because the finished products will be transported from the sawmill to the harbour without in- termediate storage. The distance from the sawmill to the Port of Rauma is just three kilometres. HIGH QUALITY FOR DEMANDING USE New technology and the employees’ expertise will ensure a high level of quality in demanding end-use applications. “Quality and its consistency will be the Rauma sawmill’s key competitive factors, and quality will be emphasised across all operations,” says Haapaniemi. This will be based on high-quality wood raw material. The sawmill will produce 750,000 cubic metres of pine sawn timber per year.

“The Rauma sawmill’s products will be particularly suit- able for end-use applications that require strength. Our target sectors are the component industry and the wood- working industry, such as the furniture manufacturing sector. We believe that demand for high-quality sawn timber products will grow. That’s our focus.” QUICK AND PRECISE MEASUREMENTS The most significant new technological features at the Rauma sawmill are the extensive use of artificial intelli- gence and the overall efficiency of the project. “Measurement and process monitoring will be be even faster and more accurate than before. The measuring de- vices are, in themselves, smart devices,” says Mikko Pel- tomäki , who is responsible for the technical concept and implementation of the sawmill. “We use the Timber FOX quality index for assessing the consistency of product quality. The index provides cus- tomers with more comprehensive information about the quality characteristics of sawn timber. They can then use them to further improve their own production process efficiency.”

Laser-based devices measure the shape of the log, while an X-ray machine ensures the internal quality of the log. Based on the measurement data, the logs will be sorted in accordance with the planned product selection and production. To achieve high sawing speeds, preliminary blades are used in preparation for the actual sawing phase. Machine vision and smart control ensure that the saw line runs smoothly. Operators control and monitor the sawing process from the control room with the help of cameras and measuring devices. After sawing, automatic devices using machine vision identify any bad pieces on the moving line and remove them from the process. “At the new sawmill, bad pieces will be eliminated using automation and machine vision. This will enable all opera- tions to be run from a central control room,” says Peltomäki. Sticker piles of 20 to 30 cubic metres will be prepared mechanically for drying. All transfers in the drying unit will also be made automatically, steered by the production system. In grade sorting, the sticker pile will be unloaded, and the pieces sorted and graded. Then the products will be packaged. An identifier will be attached to each package. Finally, the packages will be grouped and transferred auto- matically to the vehicle that will take them to the harbour. ONE CONTROL ROOM FOR THE WHOLE SAWMILL The overall steering of the production process will happen from the central control room. During each shift, ten op- erators at a time will work in the control room in teams of two or three. Each team is responsible for a specific phase of the process. The tasks to be performed during a shift range from con- trol room work to user maintenance and field rounds for quality assurance purposes, says Liisa-Maija Perävainio , Mill Manager at the Rauma sawmill. “The new working methods require the ability to manage and carry out a diverse range of tasks. Cooperation skills and the ability to take responsibility and make decisions are particularly important.”

All future operators will complete an 18-month training programme, which also includes training provided by the suppliers of equipment for the sawmill. “The equipment suppliers’ contribution makes the train- ing programme very special. They have the latest knowl- edge of state-of-the-art technology which is not available anywhere else.” WORK PROGRESSING ON SCHEDULE Construction work at the Rauma sawmill has progressed as planned. Excavation work and earthworks were com- pleted in summer 2020. The actual construction phase began in August. The construction work is progressing at a good speed. “The first pieces of equipment will be installed during the first half of 2021. By summer 2022, the buildings and production lines, as well as the process, will have reached a point where we can start test runs for the entire plant,” Haapaniemi explains. The first operators at the sawmill will start their work during the equipment installation phase. STRONG COMMITMENT TO SAWMILL BUSINESS OPERATIONS In its strategy, Metsä Fibre is strongly committed to the continuous and systematic development of the sawmill and pulp industries in the long term. The Rauma sawmill will be located next to the exist- ing pulp mill. Together they will form a highly efficient industrial integrated mill that uses wood raw material efficiently. The sawmill will use the log section of a trunk as a raw material for sawn timber. The chips, bark and sawdust generated during sawing will be conveyed to the pulp mill. The chips will be used as a raw material for pulp, and the bark and sawdust will be used to produce bioenergy. The pulp mill will provide the sawmill with all the energy it needs. In the future, this solution will enable both the Rauma sawmill and pulp mill to operate without using any fossil fuels. In addition, the sawmill will be compact, because it will not require a separate power plant and the related storage. •

RAUMA SAWMILL EQUIPMENT SUPPLIERS • Sawline: Veisto Oy • Log sorting and the sawmill’s feed and bark pro- cessing equipment: Nordautomation Oy • Green sorting lines and sticking and stacking lines: Renholmen AB • Grade sorting and packaging equipment: C.Gunnarssons Verkstads AB • Drying unit equipment: Heinolan sahakoneet Oy • Sorting cameras: FinScan Oy • Debarkers: Valon Kone Oy • By-product conveyors, a new screening concept and automatic loading equipment: Raumaster Oy • Measuring devices and camera systems: Finnos Oy • Control room system: Roima Intelligence Oy • Conveyors for organising and creating loads of sawn timber packages, and an automatic loading system for vehicles: Raumaster Paper Oy • Production control system: Pinja Oy

• Earthworks: LM Suomiset Oy • Construction: Skanska Oy

“The Rauma sawmill’s products will be particularly suitable for end-use applications that require strength. We believe that demand for high-quality sawn timber products will grow. That is our focus.”

The first pillars were raised in October 2020.

LIVE WEB CAMS FROM THE RAUMA SAWMILL CONSTRUCTION SITE:

FROM A WOOD CONVERTER TO A SERVICE PROVIDER

A traditional manufacturer of interior panelling has transformed into an operator that develops and implements trendy timber façade solutions and wants to serve its customers in cooperation with timber producers.

TAPIO NURMINEN, photo MOCOPINUS

LED panels can also be connected to Mocopinus’ Pinumont façade elements.

Metsä Fibre’s long-term customer Mocopinus, established in 1865 in Ulm, Germany, has in the recent years made radical changes in terms of development. The company has evolved from a wood converter to a service provider. Mocopinus is shifting continuously, and to an increasing degree, from the production of goods sold by metre in construction goods stores, to providing comprehensive solutions to end customers. “Of course we still supply goods to industry stores. They sell our products used in both interiors and façades and external cladding,” says Guido Schüler , Mocopinus’s de- partment head in charge of sourcing. “Even so, we are also communicating directly with the end customers – architects and developers – even more than before. We understand the fact that we are a service provider. While we cannot fulfil all the wishes coming our way, we want to be a partner that develops flexible solutions suitable for our customers’ projects,” he adds. TIMBER MARKETPLACE HELPS IN COMMUNICATIONS Metsä Fibre is a key supplier of the company employing 300 people. “Our focus is increasingly on the production of services. Our partners also play a major role in achieving this goal. What we expect from our suppliers is flexibility, punctu- ality and precision,” says Schüler. He says that flexible and innovative solutions to custom- ers’ problems only come about when the daily contacts between the manufacturer and supplier work well.

“We have worked on and developed our cooperation with Metsä Fibre for years now. In this respect, our Finnish partner provides us with Timber Marketplace, which we view as a pioneering tool in the industry,” says Schüler. This online tool from Metsä Fibre is an integral part of Mocopinus’s day-to-day business. “We also work continuously together to expand the functionalities of the service so that it would serve as an even better communication tool,” adds Schüler. QUALITY IS IMPROVED TOGETHER Traditionally, the quality criteria for a timber producer and its customers converting wood are put to the test twice during the production process. When the goods arrive, the customer inspects their quality. Afterwards, it confirms that it has been able to make high-quality products out of the supplied goods. “Meeting strict quality standards and maintaining quali- ty require daily communication with suppliers. This takes place on a personal level, and it is a key part of our close cooperation,” says Schüler. A CONVERTER OF NORDIC SPRUCE Guido Schüler has 15 years of experience in making pur- chases at Mocopinus. “We aim for long-standing cooperation relations whose frameworks are defined in three-month supply agree- ments. The necessary adjustments – which allow us to confirm the shared quality criteria and ensure that the

now. Wood construction accounts for approximately 25 per cent of all construction. The share is growing at a slow but steady rate. “Most of our products end up in façades and exterior cladding. This sector is growing even faster than other sectors of wood construction,” says Schüler. He stresses that Mocopinus benefits from the fact that in the Central European markets wood is used increasingly in the structures of buildings. This also makes wood as a façade material more accepted. “I envision a very bright future for wood, and especially the products we make. It is more a question of expanding the qualitative, rather than the quantitative, side of the business into new areas,” says Schüler. •

customer’s wishes are met – are taken care of during daily communication,” says Schüler. Mocopinus processes a little over 200,000 cubic metres of softwood every year. Roughly 75 per cent of that is Nordic spruce. In contrast to Central European forests, Nordic spruce grows in forests that are not too dense. The lowest branch- es of softwood growing in thick forests are not as healthy as those of northern softwood. “Central European timber is good for structural ele- ments, whereas the raw material from Northern Europe is ideal for our products, which are mainly used in façades,” says Schüler. According to him, Nordic wood has a good reputation in terms of environmental friendliness and sustainability. Mocopinus has used only FSC- or PEFC-certified wood since 2012. This is another reason why Metsä Fibre is the right supplier of timber for Mocopinus. Mocopinus’s primary market areas are located in Germa- ny, France, Switzerland and Austria. It also exports some products to Spain and Portugal. WOOD CONSTRUCTION IS GROWING The construction industry in German speaking Europe has enjoyed good business conditions for quite some time

MOCOPINUS Produces timber panelling particularly for façades and exterior cladding, but also for interior surfaces • Established in 1865 • 300 employees in Germany • Turnover 100 million euros in 2020 • Processes more than 200,000 cubic metres of sawn timber a year www.mocopinus.com

The sawn timber market is expected to decrease by around 30 million cubic metres in 2020

MARKET LOOKING FOR NEW GROWTH

SAWN TIMBER

TIMBER

MILLION m 3

BN EUR

400

–8,8%

ASIA NORTH AMERICA EUROPE

350

314

–11,2%

286

300

100

250

200

Demand for sawn timber has already increased in China. Wood-based construction, which stores carbon, offers new growth opportunities across the globe.

103

150

100

HEIDI HAMMARSTEN

111

The market situation for sawn timber was relatively posi- tive before the COVID-19 pandemic. The market had grown at a steady pace for many years. In 2019, all key markets grew by a few per cent. The construction industry was on the upswing, and the use of wood was becoming more common. “Before the pandemic, we were expecting market growth to slow slightly globally and in almost every market area,” says Antti Koskinen , Senior Consultant at AFRY. Early in 2020, the COVID-19 pandemic brought the sawn timber market to a halt at the same rate as the virus spread. The rapid decrease in demand was driven primarily by the slowdown in the construction industry, which is the most significant user of sawn timber. “The construction sector reacted strongly to the down- turn in the economy, even more so than the GDP. When the economy struggles, construction struggles even more.” Sampsa Auvinen , President of the European Organisa- tion of the Sawmill Industry (EOS), says there is a differ- ence between Spain, Italy, Great Britain and France, which have been hit the hardest, and the other European coun- tries, where the construction industry has fared better. “Even countries in the latter group may have to face challenging times in the future. It is also likely that the less-affected countries turn inward and target their pro- duction more at the domestic market,” Auvinen says. However, the cloud has a silver lining, albeit thin: “While the amount of industrial construction decreased, the num- ber of renovation and household construction projects increased. There was even a shortage of sawn timber in some places during the summer,” says Auvinen.

BACK TO GROWTH IN 2021? We are still far away from sustainable growth.

2019

2020e

2019

2020e

“We will see minor growth in 2021, and the growth rate will accelerate in 2022. In terms of volumes, it may be possible for the market to reach the 2019 level in 2024. However, forecasting is difficult. Even the COVID-19 fore- casts keep changing,” says Koskinen. “We have predicted that the impact of the COVID-19 will not be as dramatic in Asia as it is in North America and Europe. Asia is likely to resume growth earlier, with 2021 being a year of clearly noticeable growth.” The first signs of emerging growth appeared in August and September 2020. The Chinese economy began to recover. Furniture man- ufacturers and the wood products industry increased their production, which was also reflected in the increased im- ports of sawn timber. According to Global Wood Info, China increased its imports of softwood sawn timber by 42 per cent in the second quarter of 2020 compared with the previous year. The import volume was 7.1 million cubic metres. According to customs statistics, exports of Finnish and Swedish sawn timber to China increased by 8.4 per cent during the first half of 2020, and exports to other Asian countries increased by 5.6 per cent. Exports to Germany increased by 6.0 per cent, while total exports of Finnish and Swedish sawn timber to Europe decreased by 6.0 per cent. Sawn timber prices continued to increase in the United States, and European producers increased their transat- lantic exports.

Changes in softwood sawn timber demand by region

SOFTWOOD SAWN TIMBER, ALL GRADES

MILLION m 3

150

130

110

OCEANIA RUSSIA LATIN AMERICA MIDDLE EAST AND NORTH AFRICA

ASIA EUROPE NORTH AMERICA

0 2019

2020

2021

2022

2023

2024

2025

2026

2027

Antti Koskinen Senior Consultant at AFRY. AFRY is an international consulting company created when the Swedish ÅF acquired the Finnish Pöyry in February 2019.

European spruce bark beetle. It has caused severe damage for the forests of Central Europe. Because of this, damaged spruce forests in particular have been felled hastily. “Storm and insect damage in Central Europe caused market disturbances last year, and the prices of low-quality sawn timber decreased considerably, especially in North Africa,” says Matti Valonen , Forest Economist at Pellervo Economic Research PTT. According to Auvinen, the volumes of insect damage in Central Europe are immense, and are expected to continue at the current level. Despite the oversupply of low-quality wood, there will be a shortage of sawn timber. Auvinen believes that the insect damage situation will affect the production structure of the entire sawmill in- dustry long term. When the raw material pool decreases, production will also decline. “Central European sawmills are currently very com- petitive in terms of prices. In the long run, however, the winners will be the areas with no insect damage, such as central and northern Sweden, the Baltic countries and Finland,” Auvinen predicts. According to Koskinen, the sawmill industry around the world has been modernised in recent years, and modern capacity has also been established in Eastern Europe and Russia. Koskinen sees Metsä Fibre’s new sawmill invest- ment in Rauma as a response to this competitive situation.

Exports of Nordic sawn timber to China and the 12-month average

THE CHINESE MARKET HAS DOUBLED In addition to the COVID-19 pandemic, two major long- term trends are affecting the sawn timber market: growth in China and climate change. The Chinese sawn timber market has doubled in ten years or so. Thanks to China, Asia’s share of the world market will soon be equal to that of North America or Europe, including Russia. China is a major export market for sawn timber, espe- cially for Russia. Higher-quality sawn timber is exported from European countries, such as Finland, to be used as a raw material in the furniture industry in particular. “China’s furniture exports have been severely affected by the COVID-19 pandemic,” says Anna Ni , Senior Advisor at the Shanghai office of Business Finland. “Now that China cannot rely on the development of ex- ports, they are trying to accelerate domestic consumption and start infrastructure construction projects,” says Ni. “It’s very difficult to say how long it will take to recover from the COVID-19 pandemic. This also depends on the trade agreement situation,” Ni points out. INSECT DAMAGE IS AFFECTING THE MARKET The effects of climate change are reflected in the sawn timber market in two ways. Increased insect damage has had the most acute impact. One of the main culprits is the

MILLION m 3

350

300

12-MONTH AVERAGE DEMAND

250

200

150

100

0 2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

“Finland has had something of an investment backlog in the sawmill industry, but now we will have new modern sawing capacity,” says Koskinen. A BOOST FOR WOOD FROM GREEN GROWTH IN THE EU? The increasing popularity of wood-based construction has been discussed for a long time. Climate change is acceler- ating the shift from talk to actual changes. Auvinen also sees signs of this in the EU’s green growth and recovery programmes. He points out that wood is the only renew- able and carbon-neutral raw material in the construction industry. Cross laminated timber (CLT) capacity has in- creased, and wood-based construction is trendy. “In construction, it is essential to consider emissions over the entire life cycle, from the production of building materials to the usage phase of the building and beyond. Increasing the use of sawn timber products is a significant opportunity to reduce emissions,” says Auvinen. Koskinen points out that CLT still plays a minor role in the sawn timber market in terms of size, but its role is more significant in terms of product value. “This is undoubtedly a growing market, particularly in Central Europe. CLT has a somewhat established position,

especially in countries where wood-based construction is popular in the first place. There has also been some hype in North America, where investments have been made and are being planned,” says Koskinen. Sustainability originally emerged as a theme in the sawn timber market through certification of the wood's origin. In other words, because of climate change, attention has also been drawn to the role of wood raw material, as well as the energy efficiency of production. “The emphasis is on sustainability, especially in Europe. The certification and origin of wood must be appropriately managed,” says Koskinen. “Responsibility and sustainable development are also emerging trends in China,” says Anna Ni. “Sustainability is important to the younger generation in particular. They have a better understanding of the im- portance of sustainability.” According to Ni, wood-based construction is increasing in China as well, but not as rapidly as other construction. There are some obstacles to growth, such like fire preven- tion standard and land property. “Wood-based construction has potential, but its mate- rialisation will take years, if not decades.” •

Global sawn timber demand by region (2019)

ASIA MIDDLE EAST AND NORTH AFRICA LATIN AMERICA RUSSIA OCEANIA EUROPE NORTH AMERICA

GLOBAL DEMAND TOTALLY 340 MILLION M 3

THE GROWTH OF TOTAL GLOBAL DEMAND 7.6 MILLION M 3

12%

100

27%

30%

23%

49%

28%

Matti Valonen Forest economist at Pellervo Economic Research PTT. PTT is an independent app- lied economics research institute and a registered non-profit organization.

Sampsa Auvinen President of the European Organisation of Sawmill Industries (EOS).

Anna Ni Serves as an expert at the Shanghai office of Business Finland in China.

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