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Norvik Appoint New CEO
16th September 2009
Continental Wood Products' parent company Norvik Timber Industries has appointed Sampsa Auvinen as its Group CEO. Sampsa has worked in the timber trade in different positions in Finland, Russia and the UK for 15 years. Sampsa is joining Norvik Timber Industries from Pöyry Forest Industry Consulting where he was heading the Wood Product consulting in Russia.
Sampsa is married and has 3 children.
UK Softwood Market at the crossroads
28th August 2009
Following a dramatic drop in prices, in the 2nd half of 2008, prices of Softwood from the major exporting countries (Sweden, Finland, The Baltic States, and Germany) prices in the 1st half of 2009 have risen strongly, as producers cut back production, and stopped logging in order to match supply volumes to a much reduced demand from recession hit economies.
Initially buyers accepted these increases as they had reduced their own stocks to very low levels and needed to replenish them. This gave a false impression that demand for softwood products had actually increased, whereas underlying demand was still very poor.
In order to further reduce production many Scandinavian sawmills took extended holidays. Now they are back, and forecasting further shortages and demanding even higher prices, particularly as the Swedish Kroner has dropped by 6% against Sterling since July. The other producing countries are equally bullish. However sales in the UK have been poor in August and there is no sign that demand in the next 4 months are going to be any better.
Shortages were forecast for the 3rd quarter, but these have not materialized, stocks in the UK are adequate, and quite well balanced, so there is no rush to place volume for 4th quarter shipment.
This is the crossroads! If buyers from the UK remain cautious, and orders at the mills dwindle, will the sawmill owners remain firm in their pricing, or will they discount their prices in the hope of securing more volume. Most large softwood stockist's lost serious money in 2nd half 2008, and 1st quarter 2009, as they were caught with large inventories, as prices dipped by 20%, they do not want to get caught again.
It would be a brave man, who seriously increased stock levels with this scenario, softwood prices are close to their historic highs, it remains to be seen whether they go on to exceed these levels and enter uncharted waters. Past experience tends to favour the opinion that the market may be near its peak, as higher prices always attract supply from alternative sources, and suddenly logs will be found to increase production.
Phill Major
CWP buys a ship
14th February 2008
As one of the largest shippers of timber to the UK, CWP has always chartered vessels to carry its products from the supplying countries to it's port at Creeksea, but now we have finally taken the plunge and purchased our first Ship.
The vessel has been re-named MV Mosvik, and was built in 1987. It is registered to ice class 1b (E2), has a deadweight tonnage of 2700 metric tonnes, and can carry approximately 4200 m3 of packaged timber.
It is intended to trade the vessel in Northern Europe carrying CWP, and other Norvik Group cargoes. It further strengthens the Groups intention to control the end to end logistics of its operation from sawmill to customer.
Norvik Group acquire Jarl Timber
Negotiations have been completed between the Norvik Group A/S, Reykjavik Iceland and Jarl-Timber Broakulla, Sweden for the acquisition of Jarl Timber by the Norvik Group.
Jon-Helgi Gudmundsson, President and CEO of the Norvik Group Ltd is very pleased that the negotiations with the directors of Jarl-Timber have been completed in a mutually satisfactory way.