SCA intends to invest SEK 1,45bn in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken paper mill in Sundsvall. In parallel, SCA is initiating consultations with trade unions and employee representatives to discontinue the production of publication paper at the mill. SCA intends to invest to achieve an annual production volume of 300,000 tonnes of CTMP pulp at Ortviken, using the existing infrastructure. Currently, SCA produces coated and uncoated publication paper on three paper machines at Ortviken paper mill with annual sales of approximately SEK 4bn. Demand for publication paper in Western Europe has declined by approximately 5% per year since 2008.

Demand for imported softwood lumber to the US has fallen by six percent during the first nine months of 2017 as compared to the same period in 2016. In contrast, Chinese import volumes have been up 21% year-over-year. Demand for imported softwood lumber to the US has fallen by six percent during the first nine months of 2017 as compared to the same period in 2016. In contrast, Chinese import volumes have been up 21% year-over-year. The lumber trade in Europe has also picked up in 2017 with the United Kingdom, the Netherlands, Austria, Denmark and Spain having increased imports the most so far in 2017. Countries in the Middle East and North Africa, also known as the MENA countries, have sharply reduced consumption of lumber this year, reports the Wood Resource Quarterly (WRQ). In the first eight months of 2017, Egypt and Algeria (the two biggest lumber consumers in the region) have decreased their imports by 24% and 39% respectively as compared to the first eight months of 2016. Click Read More below for additional information.

Canfor Pulp Products Inc. is announcing temporary NBSK and BCTMP production reductions at Northwood Pulp and Taylor Pulp in response to the significant transportation interruptions being experienced in British Columbia (BC). The Company’s pulp shipments have declined as a result of the recent weather-related transportation disruptions. With pulp mill inventories nearing capacity, the Company’s pulp production will be reduced until such time as the BC transportation network is able to return to more-normal operating conditions. This will result in reduced production achieved through a minimum two-week curtailment of Canfor’s NBSK production at Northwood Pulp and a minimum four-week curtailment of the production of BCTMP at Taylor Pulp. “As a result of the extreme rainfall and flooding that BC has been experiencing in recent weeks, the rail and highway networks have been substantially impacted. Our employees have worked very hard to mitigate the impacts of the supply chain challenges and it has now become critical to reduce production to manage inventory levels and ensure employee safety until the transportation network returns to more normal operations,” said Canfor Pulp’s Chief Executive Officer, Don Kayne.