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Market review and growth factors

Read the whole article of Hannu Kivelä: Review of the forest industry and CTL method

Forest industry review

In 2007, the profitability of the wood product industry improved and the building sector in Europe reached an all time record. However, the building sector continued to slow in North America and its rate also slowed down in Europe towards the end of the year. The pulp and fine paper market, in turn, developed favourably throughout the year. All in all, the profitability of the paper and pulp industry improved despite the fact that price trends were unfavourable, due to the oversupply of magazine paper. The prices of magazine paper, too, have increased slightly at the beginning of this year. Forest industry raw material prices rose considerably in 2007, though the cost trend is expected to calm down in 2008. Timber costs, too, rose markedly throughout the year. Although the year 2007 was all in all still difficult for the forest industry, the demand for cut-to-length forest machines rose considerably, worldwide. Read more

The Cut-to-length methods increasing

Interest in and demand for harvesting with cut-to-length forest machines increased considerably in 2007 and the growth still continues strongly. The increasing demand is attributable to several reasons. North America and Europe make up 80 per cent of the world’s forest machine markets. Particularly
in Europe, the felling volumes have increased and fellings have become mechanised. Both of these trends increase the demand for cut-to-length forest machines. The Russian forest sector is growing fast, and the increased wood prices are targeting investments at effective cut-to-length machines. Read more