World News | 9
Leading log trader DIVERUS looks to expands its presence in Germany
DIVERUS, one of the leading trading companies for logs on the German market, has strengthened its position in Germany by founding its own national company headed by Olaf Klinkert, country manager of DIVERUS GmbH. Lithuania-based timber export and import company DIVERUS has been one of the leading round timber trading companies on the German market since 2019, in areas heavily affected by the bark beetle in North Rhine- Westphalia, Lower Saxony, Saxony-Anhalt, Hesse and Thuringia. The Lithuanian company has exported the largest volumes of logs from
these regions to Asia, mainly to China. However, both the global and European timber industry, which is now facing an imbalance, were first affected by the pandemic and then by Russia’s war against Ukraine. Although the German market seems to be shrinking this year, the main players in Germany are still sticking to relatively high prices for logs. In China, on the other hand, prices have fallen significantly over the past six months.
“The latest data indicate a sharp decline in wood demand in the Chinese construction sector in the last 10 weeks (April-May 2023),” said
German sawmilling sector warns of impacts from construction downturn
A massive drop in German construction sector activity is impacting the German sawmilling sector, industry executives have warned. The German Sawmill and Timber Industry Association’s (DeSH) online conference for press and its members on June 27 shared the results of its member survey on the current and future situation. It said the decline in the construction industry posed major challenges for the sector, with a large proportion of companies already having to make significant adjustments to their production activities and not expecting the economic situation to recover in the coming months. The association is calling for broad measures to stimulate the economy and “preventive calamity management”.
“The massive drop in the construction industry is already having a noticeable impact on the upstream and downstream sectors,” said DeSH president Jörn Kimmich. “As a manufacturer of wood products for the domestic and foreign construction industry, the German sawmill and timber industry is directly affected by this development.”
Mr Kimmich said the weak foreign markets meant exports would hardly be able to serve as an outlet in the current year. “As a result, 60% of respondents report a weak order situation in Germany, while the figure for foreign countries is 40%.” He predicted further production adjustments and companies expect the economic situation to become more acute in the coming months.
□ Stora Enso is to cut 1,150 employees and close a number of its productions units, including Näpi sawmill in Estonia.
Donatas Jucius, DIVERUS founder.
Meanwhile, Germany experienced a shortage of roundwood in Q2, 2023 as most of the spruce forests in the hardest-hit areas have been cleared in recent years. An infestation by the bark beetle has already been observed in other countries such as Italy and Austria. According to Tomas Jucius, log partner at DIVERUS, western European countries affected by the bark beetle will make great efforts to remove the damaged wood from the forest as much as possible, therefore a decrease in log prices is to be expected as the market is likely
to have a surplus of logs will be recorded.
DIVERUS GmbH is now looking for purchasing managers in various German regions, buyers for “standing forest” and a rail logistics manager.
“Given our experience in the German market, we are determined to strengthen the interests of forest owners by building our own fleet of logging trucks and starting to buy steep forests from private forest owners, organise tree felling and be able to be able to deliver the wood to our customers with our own transports in the future,” said Mr Jucius.
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www.ttjonline.com | July/August 2023 | TTJ
World News
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