Transcript Slide 1

Presentation to Forestry Engineering Group
‘The State of The Industry’
John Kissock
Penrith
23/10/2007
Objective
• Try to summarise my experience of the
Industry over 33 years involvement by
looking at;
– Developments and Strategies specific to JJSL
– Developments which have impacted on the
wider industry
– Areas where we could all do better!!
August 1974
• Enthusiastic Aberdeen Graduate Trainee joins
JJSL
• Richard Nixon/Watergate
• Bay City Rollers in the charts with ‘Shang a Lang’
• JJSL T/O - £4m
• JJSL Production – 45,000m3
• UK Production represents 12% of total sawn
timber consumption
GB Housing Starts & UK Sawn Softwood Imports + GB
Production, 1970-2006
400
12,000
10,000
300
200
6,000
150
100
50
4,000
GB Housing Starts
Sawn Softwood
0
2,000
0
000s m3
8,000
250
19
71
19
73
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
Housing Starts 000s
350
Softwood Consumption (Rest of the World)
140,000
1.200
120,000
1.000
0.800
3
Volume ( 000's)m
100,000
80,000
0.600
60,000
0.400
40,000
0.200
20,000
( ,000m3 ) Volume 2002
( ,000m3 ) Volume 2003
Per Capita Consumption ( m3 ) 2003
re
ec
e
G
La
tv
ia
m
Be
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m
ar
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D
or
wa
y
N
lan
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n
eth
er
N
Sp
ai
ia
us
tr
A
Sw
ed
en
an
d
Fi
nl
Ru
ss
ia
Ita
ly
Fr
an
ce
K
U
U
Ca
na
da
G
er
m
an
y
0.000
SA
0
3
Softwood Exporters to the UK ('000 m )
3,000
140.00
120.00
2,500
100.00
80.00
60.00
1,500
40.00
1,000
20.00
0.00
500
-20.00
0
-40.00
Sweden
Latvia
Finland
Russia*
Actual 2002
Estonia
Lithuania
Actual 2003
Ireland
Germany
% change
03/02
Canada
Norway
All Others
% Change '03 / '02
Volume ('000m3)
2,000
2002
2003
Sw
n
e
e
nd
s
m
ar
k
he
rla
De
n
Gr
ee
c
ly
iu
m
ay
Ita
Be
lg
No
rw
in
UK
tv
ia
Sp
a
La
Fr
an
c
a
nd
Au
str
i
Fi
nl
a
an
y
ed
e
Ge
rm
Ne
t
da
Ru
ss
ia
Ca
na
US
A
Volume Production ( ,000's m3 )
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
20
06
20
05
20
04
20
03
20
02
20
01
20
00
19
95
19
90
19
85
19
80
19
75
19
70
Production 000s m3
UK Sawn Softwood Production
3,000
2,500
2,000
1,500
1,000
500
0
Long Term Trend in UK Softwood Availability
Average Annual Standing Volume
(million m3 overbark)
18
16
14
12
10
8
6
4
2
0
1999
2004
2009
2014
2019
2024
2029
2034
2039
2044
2049
2054
2059
2064
Key Developments JJSL
• Controlled Reorganisation and
Diversification of the Business over 30
Years
• The Change to North European Processing
Technology
• Investment in People
• Added Value Investments
• Investment in EWP Business
•Solid wood panel
distribution
• Sawmilling
• Harvesting
• Timber Systems
Division
• Pallet Manufacture
and repair business
• Partner in wood product
manufacturing business
• Equity shareholder in
forestry business
• Joint Venture in lumber
business : Canada/USA
• Investments in telecoms
business : Italy
•JJI-Joists:
•Carcassing:
•Fencing:
•Palletwood:
•Pallets:
5M Lineal Metres
125,000m3
80,000m3
130,000m3
2.5M pallets
•Utility poles:
•Railway sleepers:
•Consumer lumber:
125,000 poles
2M
Major
supplier to
Home Depot
Group Capex 1984-2008 (£000’s)
Lockerbie,
Kirriemuir, Forres,
Aboyne
Forres &
Unit Pallets
Lockerbie
Lockerbie
Forres
&
Aboyne
Mosstodloch
#2
(es
t)
20
08
20
06
20
04
20
02
20
00
19
98
19
96
19
92
19
90
19
88
19
94
Mosstodloch
#1
Aboyne
Dumfries
19
86
19
84
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
SAWMILLS : Sawn Timber Production
Kirriemuir
12,000m3
Aboyne
74,000m3
Kinnoir
15,500m3
Mosstodloch
87,500m3
Dumfries
60,000m3
Lockerbie
95,000m3
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
Total Sawmill Production (m³)
350
300
m³ 250
200
150
100
50
0
Sales Volume by Market Segment
160000
140000
120000
Vol m3
100000
80000
60000
40000
20000
0
1970
1980
Mining / Railways
1990
Packaging / Pallets
2000
2004
Fencing
2006
Construction
2007 Est
Investment in People
•
•
•
•
Significant process of change to be managed
Production Systems/Technology
Sales/Markets
All done initially with the same people both in the
mills and at management level
• Management originally largely from a forestry
education background. More recently a stronger
engineering focus introduced.
• EWP Business introduced a different age structure
and knowledge base
Investment in People
• Originally much of the training was ‘in house’
• Now looking externally – greater credibility both
with our employees and regulators
• ‘Investors in People’ on newly established sites
• Institute of Leadership and Management Stage
2&3
• Specific H&S and Environmental training
• MBA/Specific Business Management for Senior
Managers
Benefits
• Employees better able to cope with
demands of today’s working environment
• Enhanced opportunity for internal
promotion e.g. Aboyne, Kirriemuir, Forres
• Introduces an attitude of continuous
improvement both on a business and
personal level
Lockerbie Processing Facility
Kilns , Timber Treatment ,Grading , Planing , Dispatch
KD C16 J-Joists
produced with
planed
and arrised edges
for ease of
use and handling.
James Jones & Sons Ltd
Timber Systems Division
Forres
JJI Production Plant 2007
JJI-Joist Line 2
JJI Production Plant 2007
Finger Jointing Line
JJI Production 2000-2007
5500000
4500000
3500000
2500000
1500000
500000
-500000
2000 2001 2002 2003 2004 2005 2006 2007
(est)
Evolution of UK I-Joist Market
JJ-IntelliRoof™
Off Site Construction
Solutions
Over the past 2-3 Years we have developed a fully
insulated panelised roofing system - JJIntelliroof™
Unusable space
Warm, decked
loft space
Cold Zones
Fully insulated
envelope
Dangerous working
environment
Requires bracing, decking, insulating,
felting etc. onsite
Past – Attic Truss
Fully floored prior to
erection for safety
Wind and water tight in one day
Future – JJ-IntelliRoof™
•Binder-Jones Ltd has been formally created on 6th August 2007.
•International JV with Binder Holz Group, Austria, one of Europe’s largest
sawmill groups and leading engineered wood manufacturer.
•Initially BBS panels will be imported from Binder’s state-of-the-art
manufacturing facility in Austria.
•Trials have been conducted on JJSL material and independently tested by
TimberSolve.
•Long term objective is to create a manufacturing facility in Scotland utilising
British timber processed in JJSL sawmills. This will be subject to:
•Market acceptance
•Quality assessment
•Volume availability
•Environmental legislation and criteria
What is “Massive Wall”?
•“Massive Wall” or “Solid Wall” panels are multilayered, made
completely of wood. The layers are either glued, dowelled or nailed
into solid panels.
•The panels are solid pre-fabricated elements made of wood which
have the following characteristics:
•insulate heat
•simultaneously carry loads
•fireproof
•positive acoustic effects
•Structures constructed with these panels create zero carbon
buildings, massively reducing carbon footprints.
•They are manufactured, and processed, off site under factory
conditions and can be erected extremely fast and efficiently.
•There are significant environmental benefits across the entire
manufacturing and build programme and the system ideally lends
itself to:
•Social housing
•Commercial developments
•Self build market
•Environmentally conscious builders and developers.
Industry Strategic Developments
• Machine Stress Grading
• Long Term Contracts
• Centre for Timber Engineering/SIRT
Programme, Napier University/Engagement
Forest Research Team on Wood Quality
• Wood for Good/Wood for Gold
• Scottish Forest Industries Cluster
Machine Stress Grading
• Ensured Sitka Spruce entered the construction
market on the basis of an objective strength test
• British/European Standards ensure fitness for
purpose
• Not subject to geographic preferences - performs
as it says on the label
• Do not believe in national branding but very much
support Company branding of generic product
What Next in Timber Grading?
• Collaborative Work with Forest Research
• Quality Assessment using a combination of
hand held tools for standing trees and logs
• Predictive Tools to help control cost at the
sawmill
• Potential for X Ray systems for log grading
in the sawmill
Tree and Log Assessment
Dynamic MOE predicted from
measurements of stress wave velocity
made on standing trees and logs
Source: SIRT (John Moore)
(Photos courtesy of Alexis Achim)
Measurement of MOEd on Boards
HM-200 testing of sawn
timber
16
Static MOE (kN/mm²)
14
12
10
8
6
4
4
6
8
10
12
Dynamic MOE (kN/mm²)
Source: SIRT (John Moore)
14
16
Measurement of MOEd on Small Clears
14
Static MOE (kN/mm²)
12
10
8
6
4
4
6
8
10
Dynamic MOE (kN/mm²)
Source: SIRT (John Moore)
12
14
Long Term Contracts
•
•
•
•
•
•
•
Have been in place for 8/9 years
Benefits to both parties
Security of supply
Reduced transaction costs
Supply tailored to market requirements
Sharing of market intelligence
More responsive and supportive of market
development opportunities
% Of Total Volume Sold by Dimension for The Periods
1996, 1999, 2004
35.00%
30.00%
25.00%
20.00%
1
15.00%
3
2
10.00%
5.00%
0.00%
47 x 50
47 x 75
47 x 100
47 x 125
47 x 150
1996
47 x 175
47 x 200
1999
47 x 225
2004
75 x 150
75 x 175
75 x 200
75 x 225
% Of Total Volume Sold by Length for The Periods
1996, 1999, 2004
35.00%
30.00%
25.00%
20.00%
1
15.00%
3
2
10.00%
5.00%
0.00%
2.4
2.7
3.0
3.3
3.6
3.9
1996
4.2
1999
4.5
4.8
2004
5.1
5.4
5.7
6.0
Centre for Timber Engineering
• Established 5 years ago with support from
SE/Industry/Napier University
• Primary role – Education both on campus
and through distance learning programmes
• Linked to I.W.Sc. training programmes
• SIRT
• Research aimed at market development
Wood For Good/Wood For Gold
•
•
•
•
•
Original Budget £3M (now £1M)
Main Contribution Scandinavian
Proportion from FC/UK Producers Group
Generic Promotion – CPD/Carbon Issues
Project Based Funding – Simplifying Timber
Specification/Timber Frame Housing/Wood
Windows/Pallets and Packaging/2012 Olympics
• Aimed at Growing per Capita Consumption from
0.16m3 to somewhere near the European average
of 0.25m3 in the long term
Scottish Forest Industries Cluster
• An important opportunity for the Industry
• On the map with the economic development
agency
• The concept is extended over a number of
industries. Other industries are developing their
own strategies for support from S.E.
• Industry needs to drive the process
• Without support and drive the money available
may well be dispersed to other areas
Negative Issues for the Industry
• Fashions in Forestry – Non Thin, Lodgepole Pine,
Fertilisation for Growth etc.
• Construction Industry wedded to tradition in both
technique and cost terms – the need to embrace
whole life costs rather than initial build costs
• Advent of Supermarket Buying Techniques
• Inability to create a unified voice for the Industry
• Industry reluctance to support development
through funding
Conclusions
• The last 30 years have been an exciting time to be in this
Industry
• We have moved from being raw material driven to being
market responsive by embracing new technology aimed
at producing competitive ‘fit for purpose’ products
• However the products are still competing in commodity
markets
• The challenge now lies in providing construction
solutions rather than raw products
• We need to see more productive woodland established to
ensure sustained supply after peak production is reached
Conclusions
• Added value is still restricted to basic
processes, treatment, grading, planing etc
• Timber Frame is largely a ‘no go’ area
• For UK Timber processes such as Finger
Jointing, Laminating are too expensive for
the realisable value of the product
Conclusions
• Certification/Embodied Energy/LCA’s all
support the use of timber
• Government Policies on Zero Carbon
• Advent of Renewable Energy is important
but needs to be managed in relation to
existing industry
• The Industry needs to continue to develop
and adapt to changing circumstances
CO2 emissions in manufacture
Kg's of CO2 / sq.m. building area
12
10
8
Kg's
6
4
2
0
Glulam
Wood
PVC-U
Steel - remelted
Source: SFIFed : 2003
Concrete
2007
• Still Enthusiastic but somewhat older and greyer
graduate trainee steps down as MD of JJSL
• Minority SNP Government comes to Holyrood
• Change of Prime Minister
• JJSL Production - 350,000m3
• JJSL T/O – £85m
• UK Production represents 29% of total sawn
timber consumption
Those Were The Days?
Timber Imports 000s cubic metres (the bulk of which was sawn softwood)
Year 1851
Imports
1861
2,600
1871
3,900
1881
5,900
1891
8,300
Source: History of the Timber Trade Federation, 1892-1992
1901
9,400
1911
13,400
1913
13,700
16,400