36 | Sector Focus: Tropical Timber
SUMMARY
■Interholco has been developing added value engineered product capability
■Phase one of a capital investment programme to develop IFO’s facilities at Ouesso is under way
■The Republic of Congo log export ban has impacted business
■Demand for scantlings is increasing INTO THE FUTURE INTERHOLCO
The leading tropical hardwood supplier acknowledges market challenges, but is building for exciting times ahead. Mike Jeffree reports
It’s been a busy time at Interholco and it’s about to get busier. Against the backdrop of a tighter, more competitive market, the Swiss-based international tropical timber supplier has had to contend with the log export ban in the Republic of Congo, where its subsidiary IFO has its mill and manufacturing plant and manages 1.1 million ha of forest. The company has also been continuing to develop added value engineered product capability, including in lesser-known timber species, with efforts given added impetus by the block on log exports.
Already renowned for an unwavering stance on sustainability, it has additionally achieved further environmental validation of its operations.
Now it is entering phase one of a major capital investment programme to develop IFO’s facilities at Ouesso and further future proof the wider business. The work will run through most of next year. “Sometimes it’s felt like we’ve been running around like headless chickens! But we’re on track and entering an exciting period,” said vice-president production and sales Christophe Janssen.
He acknowledged that trade has become more challenging. “Last year the market was very good – our order books were full 12 months ahead,” he said. “But, with the Ukraine crisis and resulting inflation and high interest rates, consumers have lost confidence and we’ve been affected in many markets. The US
remains busy, and we’re still selling well in certain EU markets, notably Belgium and the Netherlands. But elsewhere in Europe it’s more difficult due to economic pressures, particularly in the property sector. In France for instance, mortgage approvals are reported down 40-50% this year, and they’re lower in Germany too.” The UK market has also been challenging. “It has the same economic issues as the rest of Europe, but with Brexit making business even more complicated,” said Mr Janssen. He added that, while it’s not a key market for Interholco, China has remained quiet since the relaxation of Covid restrictions. “The Middle East has been less busy too, despite the price of oil, and there’s been a big slowdown in the Vietnamese market,” he said. The Republic of Congo log export ban, implemented in January, has also, of course, impacted business.
Above: Species used by Interholco include sapelli, kosipo and bosse TTJ | November/December 2023 |
www.ttjonline.com
“Losing that part of our turnover means we have to reorganise and become more focused on value added production,” said Mr Janssen. “Making it more challenging was that the government allowed little time to adapt.” Despite the wider market climate, however, Interholco has not curtailed production. The company also now sees glimmers of economic light. “We’re seeing inflation coming down and interest rates stabilising in an increasing number of countries and there’s a feeling markets are getting used to or factoring in the Ukraine situation,” said Mr Janssen. “Interholco is also adapting successfully. We’re focusing more on kiln-dried lumber where there’s less competition and better
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