The UK Timber Processing Industry An Overview - October 2017 PRIVATE & CONFIDENTIAL NOT FOR CIRCULATION - FIM Services Limited
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PRIVATE & CONFIDENTIAL ‐ NOT FOR CIRCULATION
The UK Timber Processing Industry
An Overview
October 2017
Iggesund Paperboard at Workington is one of two major papermills using UK timber
Page
1. Introduction 2
2. Available Resource 4
3. UK Timber Processing Industry 6
4. The Future 19
Appendices
I Major Timber Processing Investments in full‐scale production
II Major Timber Processing Investments just coming into production
III South Scotland/North England Timber Processing Industry
IV Wales Timber Processing Industry
V North Scotland Timber Processing Industry
The timber processing industry adds £1.4 billion of economic value per annum to the UK economy
1 | Page
1. Introduction
The UK is the world’s third largest market for timber products, importing £5.9 billion per annum.
As the supply of homegrown timber has increased, the UK processing industry has developed and
invested over £1 billion in the last decade to create a world class industry, generating £1.4 billion of
Economic Value Added (EVA) per annum.
UK Net Timber Imports by Value (2015)
Sawnwood £1,267 million
Wood‐based panels £883 million
Other Wood £61 million
Wood pellets £776 million
Pulp & Paper £2,934 million
Source: Forestry Statistics 2016, National Statistics
Over the last decade, investments in UK timber processing amounting to some £750 million have come
into full‐scale production and these investments have driven the current levels of timber demand.
Details are included as Appendix I.
However, a further £500 million of timber processing investments are only just coming into
production. As they come into full‐scale production, we expect further increases in timber demand.
Details are included as Appendix II.
Additional investments are expected and we are already aware of a large project (>£100 million),
which has not yet been publicly announced.
The scale of UK timber demand is such that there remains considerable scope for the domestic
processing to increase production, as timber becomes available. This is illustrated by the market share
of key timber products shown below.
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1. Introduction
Market share of UK timber products
Category Market share
Construction timber 16%
Pallets and packaging 73%
Fencing and outdoor 79%
Other sawn timber 48%
Total Sawn Timber 38%
Chipboard 87%
MDF 76%
OSB 58%
Paper* 50%
*Includes paper made using imported pulp and recycled fibre
This shows that the UK timber processing industry has successfully increased its market share in some
sectors, such as pallets and packaging, fencing, chipboard and MDF, with market shares of over 70%.
In other sectors, such as OSB manufacture, the market share is much lower. However, investments
are already underway to expand UK production of OSB and when these come into full‐scale
production, the UK is likely to be entirely self‐sufficient.
Construction timber is a large and valuable market and the low market share of UK timber offers clear
scope for substantial expansion. The UK industry is making efforts to address this, as illustrated by
the doubling of UK timber used in new house construction since 2008, but a huge opportunity remains.
An analysis of emerging trends and technologies (section 4) shows that future demand for wood looks
set to increase further.
Pontrilas Timber Limited Sawline
3 | Page
2. Available Resource
The total UK forest area is 3.1 million hectares, but almost all of the timber production comes from
the 50% which is stocked with conifers.
2.1 Optimising Utilisation of the Tree
There are markets for all parts of the tree, nothing is wasted. There are seven main markets for the
timber, reducing the risk of dependence on one end product.
2.2 Timber Supply Forecasts
The current UK timber harvest is 11.3 Million tonnes (MT) per annum (2015), of which 95% is
coniferous, with the balance from broadleaved species.
Coniferous timber processing is the mainstay of commercial forestry in the UK. This harvest has
increased by over 30% in the last decade as private sector forests come into production.
Coniferous timber is from conifer trees, such as spruces,
fir and pine.
Sitka spruce grows particularly well on the poorer soils in high
rainfall areas. This land tends to have been used as extensive
grazing and has limited alternative uses.
Sitka spruce is the main conifer species grown in the UK as it
provides the largest volume of timber in the shortest time with
greatest variety of end uses in a rotation of 30 to 45 years.
65% of all coniferous timber produced is used by the sawmilling
industry.
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2. Available Resource
Coniferous timber availability is expected to increase further, peaking at 16.4 MT around 2031, driven
by an increasing supply of private sector timber in Scotland. The timber processing industry is
investing in new capacity to take advantage of the anticipated additional supply.
UK Coniferous timber availability (Million tonnes)
17.0
16.5
16.0
15.5
15.0
14.5
14.0
13.5
13.0
2017–21 2022–26 2027–31 2032–36 2037–41
Source: National Forest Inventory 25 year forecast of softwood timber availability, 2016
2.3 Timber Processor Location
Timber processing mills are generally located so that they have good access to timber resources. In
the most developed forestry areas, such as south Scotland/north England, there are multiple markets
for timber, leading to strong competition. Maps showing locations are included at:
Appendix III South Scotland/North England Timber Processing Industry
Appendix IV Wales Timber Processing Industry
Appendix V North Scotland Timber Processing Industry
James Jones & Sons Ltd: Mosstodloch
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3. UK Timber Processing Industry
9.5 MT of coniferous roundwood was delivered to UK timber processors in 2015:
Coniferous roundwood delivered to UK processors
Sawmilling 65%
Paper 5%
Wood based panels 14%
Wood fuel 17%
Source: Forestry Statistics 2016, National Statistics
Sawmilling accounts for the majority (65%) of coniferous roundwood deliveries, with wood fuel (17%)
and panel products (14%), the next largest users of roundwood.
3.1 Coniferous Sawn Timber
Some 6.2 MT of homegrown sawlogs are delivered to UK sawmills annually.
Sawlogs are made from the lower part of the main stem of the tree. They must be relatively straight,
with few knots and low taper, so are normally the highest value product. In the UK sawlogs are
normally cut in a range of standard sizes from around 2.5 metres to 4.8 metres lengths or longer, with
a typical minimum diameter of 14 centimetres.
Sawlogs are sawn into a range of products, such as construction timber, square fencing, pallets and
decking. Modern mills use advanced technology to optimise yield and different types of product are
cut from different parts of the log. For example, construction timber normally comes from the centre
of the log and pallet boards from the edges.
Coniferous sawn timber products by category
Construction timber 26%
Fencing 38%
Pallets/packaging 30%
Other 6%
Source: Forestry Statistics 2016, National Statistics
6 | Page
3. UK Timber Processing Industry
Typically around 55% of each sawlog is converted into sawn timber, with the balance comprising
coproducts, such as bark, off‐cuts and sawdust. These products are used elsewhere in the timber
processing industry, such as in paper mills, panel product mills or for energy generation.
Although 162 sawmills process coniferous sawlogs, the 12 largest account for 60% of total
consumption.
The two largest companies, BSW and James Jones & Sons Ltd both own multiple large sawmills and
supply customers throughout the UK.
Glennon Brothers operate two major sawmills in Scotland and the next largest companies operate
single sawmills, such as Balcas, Munro Timber, Pontrilas and Cordiners. Such companies tend to have
more regionally based supply chains.
BSW at Fort William is one of the UK’s largest and most modern sawmills opened in 2016
The smallest mills often operate in a particular niche, supplying products to order or specialising in
cutting a particular grade of timber.
The diverse structure adds resilience and dynamism to the sector, with continued competition
between mills with different markets and business strategies.
An interesting feature of UK sawmilling companies is that they remain largely family businesses and
this includes the largest companies, with James Jones & Sons Ltd (1838), BSW (1848) and Glennons
(1913) all over 100 years old.
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3. UK Timber Processing Industry
PontrilasTimber Ltd sawmill: Herefordshire
James Jones & Sons Ltd: Lockerbie Sawmill
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3. UK Timber Processing Industry
The UK sawmilling industry has consistently increased production, by 1 million m3 (40%) since 2008.
UK sawn timber production Million m3
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Timber Utilisation Statistics 2015 for Forestry Commission, timbertrends
Source: Forestry Statistics 2016, National Statistics
As a result, the overall market share has increased from 26% to 35% over the last decade or so.
Market share of UK sawn‐timber % 2002 to 2015
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Timber Utilisation Statistics 2015 for Forestry Commission, timbertrends
Source: Forestry Statistics 2016, National Statistics
The most rapid increase in market share occurred in 2008, when economic activity collapsed following
the financial crash. The UK industry maintained production levels even as overall demand fell. As
economic activity, and particularly construction recovered, the UK sawmilling industry responded by
increasing production allowing it to broadly maintain market share.
The UK sawmilling industry has been very successful at penetrating the fencing and pallet markets,
where it now has a market share of over 70%. However, it has just a 16% share of the construction
timber market, which is the largest and most valuable market for sawn timber.
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Market share of UK sawn timber by category (2014)
UK sawn timber consumption '000m3
Category Imports UK production Total % market share
Construction 4,977 973 5,950 16%
Pallets and packaging 419 1,122 1,541 73%
Fencing and outdoor 341 1,289 1,630 79%
Other 192 175 367 48%
Total 5,929 3,559 9,488 38%
Source: Timber Utilisation Statistics 2015 for Forestry Commission, timbertrends
Given that construction accounts for 63% of all sawn timber consumption in the UK, there is still
considerable scope for increasing the market penetration of homegrown timber. Currently, the main
suppliers of imported sawn wood are Sweden (45%), Latvia (16%) and Finland (14%).
UK sawmills, such as the Balcas mill, Enniskillen, Ireland (below) have increased production by 40% since 2008
A positive factor in the use of wood is the increasing use of timber frame construction methods
discussed in more detail in section 4.2. Houses built using this method require over twice as much
timber as traditional construction.
10 | Page3. UK Timber Processing Industry
How much timber does it take to build a house?
Traditional build 5.5 tonnes
Timber Frame 13.5 tonnes
For a typical two‐storey three bedroom house with an internal floor area of 150m2.
Source: http://www.benfieldatt.uk/articles/how‐much‐does‐the‐timber‐frame‐for‐a‐house‐weigh/
Traditional builders have relied on imported timber for most of their supply and have sometimes been
resistant to change. For example, Scandinavian timber is available as a ‘special construction’ C24
grade and many timber frame designs are based on this. Faster grown UK timber is graded to C16
‘general construction’ standard, so larger dimension components are required to compensate for its
reduced strength.
However, considerable progress has been made, particularly in new housing, where the volume of UK
sawn timber used has more than doubled since 2008.
UK coniferous sawn timber used in new housing '000 m3
160
140
120
100
80
60
40
20
0
2008 2009 2010 2011 2012 2013 2014
Source: Timber Utilisation Statistics 2015 for Forestry Commission, timbertrends
Complex technology is needed to maximise value yield as different parts of the log are suitable for different purposes. The
core is used for construction and the sideboards for fencing and pallets
11 | Page3. UK Timber Processing Industry
3.2 Paper
0.4 MT of homegrown pulpwood is delivered to UK papermills annually.
In the UK, pulpwood is made exclusively from spruce small roundwood. This is because spruce
produces strong, long white fibres, which are suitable for paper production following mechanical
pulping, with little need for bleaching.
The pulpwood comes from the upper part of the tree. It must be relatively straight and freshly cut
and is cut into standard lengths, e.g. 3 metres with a minimum diameter of 8 centimetres. After
sawlogs, they are normally the most valuable product.
The UK has two pulp mills using domestic timber, both using 100% spruce.
The Egger board mill at Hexham produces both MDF and chipboard
Iggesund Paperboard at Workington is one of two major papermills using UK timber
Iggesund Paperboard at Workington produces high quality folding boxboard, which is a type of
paperboard used in packaging of pharmaceuticals, alcohol and health and beauty products. It is made
by combining alternate layers of chemical pulp and mechanical pulp to produce a strong, low‐density,
stiff packaging material. The mechanical pulp is made from UK grown Sitka spruce, whilst the chemical
pulp is imported.
Caledonian Paper at Irvine produces lightweight coated (LWC) paper, which is used to produce glossy
magazines. It is produced mainly using a combination of UK spruce mechanical pulp, together with
imported hardwood kraft pulp and china clay. The long spruce fibres interlock to produce a strong
basis for the paper, with the gaps filled by shorter fibred kraft pulp and the china clay helping to ensure
a smooth surface which takes a glossy print.
12 | Page3. UK Timber Processing Industry
These two mills process around 435,000 tonnes of pulpwood per annum. In addition, they also
process a further 100,000 tonnes of sawmilling coproducts (clean spruce chips).
Both of these mills are owned by Scandinavian paper companies and in each case they are producing
high value‐added products. These mills require a continual supply of pulpwood, adding a consistent
‘base load’ to timber demand.
Many paper mills are located in the UK, but apart from Iggesund Paperboard and Caledonian Paper,
they all rely on either imported pulp or recycled fibre. If you include paper manufactured from
imported/recycled fibre, the UK is around 40% self‐sufficient.
In terms of recent investments, both Iggesund Paperboard and Caledonian Paper have modern CHP
biomass boilers in place, as described in section 3.4 and the Iggesund paper‐line has been recently
modernised.
Following its recent modernisation and the construction of its large biomass boiler Iggesund
Paperboard can compete with all processors across all sectors for timber.
3.3 Panel Products
Chipwood is normally made from the upper stem of the tree, but detailed specifications depend on
which type of panel is being made.
The wood‐based panel industry processes over 1.3 MT of softwood small roundwood, which is 14% of
UK coniferous timber production. The industry also uses an additional 1.7 MT of sawmill coproducts
and 0.9 MT of recycled wood fibre.
The Egger mill at Barony, Auchenleck produces chipboard
13 | Page3. UK Timber Processing Industry
Over the last decade, the proportion of recycled wood being used by the industry has fallen
significantly due to competition from wood energy. When the panel products industry first used
recycled wood, it was cheap and easily available as landfill was the main alternative. However,
recycled wood is now an integral part of the UK fibre supply and is widely used for wood energy.
Inputs to wood‐based panel mills
Small roundwood 35%
Sawmill coproducts 43%
Recycled wood 22%
Source: Forestry Statistics 2016, National Statistics
There are six panel product factories in the UK. These mills provide important markets for the lower
value top end of the tree and for sawmilling coproducts. They also provide a valuable market for
recycled wood, further enhancing its environmental credentials.
Three different types of wood based panel products are manufactured in the UK. These include
Medium Density Fibreboard (MDF), chipboard and Oriented Strand Board (OSB).
UK Wood‐based Panel Product Mills
Company Mill Products
Norbord Cowie Chipboard
Norbord South Molton Chipboard
Kronospan Chirk Chipboard
Egger Hexham Chipboard
Egger Barony Chipboard
Norbord Cowie MDF
Kronospan Chirk MDF
Norbord Dalcross OSB
These mills generally produce a wide‐range of ‘valued added’ products, such as flat‐pack furniture,
laminated flooring, kitchen worktops and fire‐resistant partitions as well as the panels themselves.
MDF
MDF is used for non‐structural purposes, such as partitions and shopfittings. Fire resistant MDF is
used in applications such as fire doors. It is made by ‘teasing’ the wood into its individual fibres. These
are then coated in a urea formaldehyde resin and pressed under heat and pressure to create a smooth,
dense, uniform panel.
14 | Page3. UK Timber Processing Industry
MDF is normally made from spruce small roundwood and from good quality sawmilling coproducts
(bark free white chips). Produced at two board mills in the UK, total production is some 950,000m3 of
board, equivalent to 76% of UK consumption.
Chipboard
Chipboard is used for structural purposes, such as flooring, furniture and kitchen worktops. It is
frequently covered using a wood veneer or laminate. Woodchips are coated with urea formaldehyde
resin and then pressed into a three‐layer panel. The core layer comprises relatively large chips and
gives the board its strength, whilst the surface layers are made from finer material, allowing a
relatively smooth finish.
Chipboard is normally made from any species of small roundwood and large, poor quality logs. Large
volumes of sawmilling coproducts are also used, together with recycled wood. Produced at five board
mills in the UK, total production is some 2,310,000m3 of board, equivalent to 87% of UK consumption.
OSB
This product is made at a single board mill at Dalcross, Inverness. The mill is currently undergoing a
£107 million investment programme which will almost double capacity, allowing the company to serve
growing demand for the product. Once in operation, timber demand is expected to increase by
320,000 tonnes per annum.
OSB is a premium, lightweight structural board, used where lightness and strength are important, such
as in roof sheathing. It is also used to make I‐joists, which are a type of engineered joist used in roofing
and flooring.
OSB is made by cutting roundwood into ‘wafers’. These wafers are then orientated so that each layer
lies at 90 degrees to the layer below. The wafers are coated in an isocyanate resin and pressed into a
three layer panel. The board mill currently produces 320,000m3 of board, equivalent to 58% of UK
demand.
The Kronospan mill at Chirk produces chipboard and MDF
15 | Page3. UK Timber Processing Industry
3.4 Industrial Woodfuel
Wood consumption for industrial woodfuel has increased 16‐fold in under a decade, making this the
second largest market for coniferous timber.
Fuelwood can be made from lower quality parts of the tree and typically includes the upper stem and
bent, or twisted stems. Some 1.6 million tonnes of conifer fuelwood are delivered to the woodfuel
industry per annum. As well as virgin timber, the sector also uses significant volumes of recycled wood
and sawmilling coproducts.
Wood fibre supply for biomass
Virgin timber 51%
Recycled wood 26%
Coproducts 23%
Source: Forestry Statistics 2016, National Statistics
UPM Papermill, Irvine: Woodfuel produces combined heat and power
16 | Page3. UK Timber Processing Industry
Woodfuel is a relatively low value product. However, the sector is expanding rapidly creating a
network of new markets across the country. In many cases, these new wood users can afford to pay
more for their fuel, which has the potential to disrupt traditional timber processing industries.
Wood is used to produce three different types of energy; electricity, process heat and wood
pellets/briquettes.
Modern wood boilers can utilise relatively wet fuel and yet be almost twice as efficient as a
conventional coal fired power station. This is because the energy expended in driving off the water in
wood can be recovered using a condenser and low temperature steam can be used as process heat in
Combined Heat and Power (CHP) stations.
The real innovation has been the range of applications for this low grade heat, for example:
On Site Biomass at Timber Processing Sites
Most major timber processing facilities now have their own on‐site CHP processes, replacing
fossil fuels, as illustrated by Iggesund Paperboard. In 2013, Iggesund Paperboard invested
£108 million in the construction of a 50MW CHP plant, the largest in the UK. The facility
consumes over 600,000 tonnes of woody biomass per annum meeting all the energy demands
for the paper‐mill and allowing surplus electricity to be exported to the National Grid.
Pellet Manufacture
Balcas developed a process where they burn low value timber to generate electricity. The
surplus ‘low grade’ process heat is then used to dry and compress wood to make wood pellets,
which is hence very efficient.
Industrial Processes
In these projects, major energy users are supplied by a dedicated CHP plant. A typical example
is the Speyside CHP plant near Craigellachie. This £74 million project has a capacity of 12MWe
using 140,000 tonnes of wood per annum. This allows it to produce 90% of the steam required
by the Macallan distillery at the same time as exporting electricity sufficient to power 20,000
homes.
Wood‐fired power stations such as the UPM Shotton facility operates 24 hours a day
17 | Page3. UK Timber Processing Industry
3.5 Other Conifer Uses
This category includes specialist uses such as round fencing posts, poles and animal bedding.
Round fencing uses timber in round sections for some traditional fencing products. A total of 52 mills
cut this type of product creating locally important market outlets, but total timber consumption is only
0.3 MT per annum.
Timber can also be used to create animal bedding, and a special process is used to create dust‐free
bedding for horses. This, together with miscellaneous uses, such as transmission poles consumes
some 0.16 MT per annum.
3.6 Softwood Exports
Large volumes of timber are transported by boat, especially from remote parts of the UK and around
0.3 MT per annum is currently exported, of which around two‐thirds is sawlogs. This trade is highly
sensitive to exchange rates, but allows access to European markets. Ireland is a strong market for
sawlogs.
James Jones & Sons Ltd are building a new facility at Johnstonebridge just to the north of their Lockerbie sawmill producing
specialised fencing products
18 | Page4. The Future
4.1 Emerging Trends
The most recent investments indicate how the UK timber processing industry will continue to develop
over the next five to 10 years as summarised below:
Local CHP Energy Plants
Plants are designed to take locally available timber and burn it to generate electricity, with the heat
being sold to local markets.
This is significant as it should lead to a network of local markets for energy wood. Efficiency of the
processes and the short haulage distance should enable the mills to pay a good price for energy wood.
Re‐investment in Panel Production
Panel product producers are re‐investing in their existing facilities. This typically includes increases in
capacity and modernisation so that higher value products are produced.
At Egger, investments have focussed on adding value to the ‘raw‐board’ rather than large‐scale
investment in new capacity. This has focussed on ‘tongue and groove’ flooring and ‘peel clean’ floor
panels as well as lamination (e.g. for kitchen worktops, laminate flooring). There has also been
substantial investment in warehousing and finished product handling to ensure flexible and efficient
delivery. The addition of a wood energy plant at Barony, a new recycling plant and impregnation lines
have further improved efficiency.
Kronospan are following a similar pattern, with their current programme focussing on replacing the
lamination line as well as adding additional warehousing and improving the finished product handling
facilities. The addition of new chip silos and the removal of ‘bottlenecks’ in the MDF plant will further
improve efficiencies. We understand that this is part of a larger investment programme in the site,
which could significantly increase capacity.
The Norbord investment is expected to almost double UK production of OSB and will also include
significant investment in wood energy on the site. Over the next few years, further investments are
planned to reduce production ‘bottlenecks’.
This is significant as such facilities are typically very large timber consumers. As such, this investment
ensures that large volume markets for chipwood remain.
Increased Value‐added/Operational Flexibility in Sawmilling
The sawmilling industry has invested heavily in value‐added processes and in operational flexibility.
Two sawmills have also invested in additional facilities to enable them to process larger diameter logs.
The value added processes are typically aimed at adding value to the fencing products. For example,
producing ‘feather‐edge’ fencing panels.
The investments designed to improve operational flexibility are best illustrated by the recent
investments by James Jones & Sons Ltd at their Lockerbie facility. As well as investing in secondary
processing, they have built large‐scale warehousing space to enable them to efficiently produce
fencing products throughout the year and then deliver them to customers on a ‘Just in Time’ basis.
This is significant as it should increase demand for sawlogs and enhance the mills ability to pay.
19 | Page4. The Future
4.2 Emerging Technologies
A brief study of emerging technologies is useful as they indicate potential new markets for timber in
the long term.
‘Off‐site’ Construction
Timber based ‘Off‐site’ construction techniques have evolved over many years but now appear to be
perfectly suited to assist in solving the UK’s housing crisis. The key advantages are:
Lower cost construction: can significantly reduce total construction cost;
Superior insulation: can create exceptionally well‐insulated houses and in some cases the
need for additional heating can be almost eliminated;
Faster construction time: can dramatically reduce the time required for on‐site construction;
Reduced requirement for scarce ‘traditional’ skills;
Dramatically reduced ‘carbon footprint’: Less energy is needed to build the house or heat it
over its lifetime. Furthermore, the building materials act as a store of carbon and can easily
be recycled.
It is anticipated that the use of off‐site construction will increase four‐fold by 2025, creating a
£6.0 billion industry. This opportunity has been recognised by companies such as Legal & General,
who have announced a £2.5 billion joint venture with renewable energy specialist Welink and China
National Building Material Company to build six new factories.
The first of the factories has commenced production in Leeds and is expected to build 3,500 homes
per year.
Such houses typically include a mix of domestically produced and imported components. However,
some of the leading companies are committed to increasing the local content of their houses and this
will continue to drive demand for UK timber.
‘Mass Timber’
‘Mass Timber’ is a term used to refer to the ‘mass’ use of timber products in large‐scale projects, such
as high‐rise buildings, which are conventionally built with steel and concrete.
For example, at the Dalston Lane development, a 10 storey building, with 121 flats was built using
Cross Laminated Timber (CLT). The project relied on 3,852m3 of CLT for its strength and this led to an
80% reduction in weight compared to conventional construction, reducing the number of deliveries
required.
To date, CLT has been imported. However, Lanarkshire firm, CCG has recently invested £4.2 million in
a new CLT factory using research carried out by Napier University. Although initial production has
been using imported timber, trials have demonstrated that UK timber could be used.
‘Mass Timber’ is currently used in buildings of up to 14 storeys tall, but it is believed that up to 25
storey buildings could be built this way. If used in combination with a concrete core, it is possible to
build even taller, with the tallest currently at 18 storeys.
As the use of ‘Mass Timber’ continues to develop, it is likely to lead to further increases in timber
demand.
20 | Page4. The Future
CLT technology can offer an 80% reduction in the weight of buildings, reducing the cost of foundations and the number of
deliveries (Kier Eastern courtesy of Ramboll)
Dalston Lane, Hackney London comprises 121 flats and was built using 3,852m3 of CLT (Ramboll)
21 | Page4. The Future
Bio‐Refining
This technique uses wood to produce liquid biofuels and chemicals. Some, such as cellulose fibres can
be modified using nano‐technology into high performance structural materials. For example, some
‘wood/plastic composites’ enhanced using this technology can be as strong as steel, but 80% lighter.
Researchers are considering the applications of a range of wood/plastic composites in car
manufacture.
Scandinavian companies such as UPM, Stora Enso and Borregard have pioneered wood based
biorefining with production facilities in Finland, Sweden and Norway.
The companies produce an enormous range of performance chemicals, speciality cellulose,
ingredients (e.g. flavours and fragrances), fine chemicals, cellulose fibrils and liquid biofuels. These
compounds are used to replace oil‐based products across a wide range of industries. For example,
Borregard claims to supply 23 different industrial sectors.
This type of technology clearly has significant potential. Although there are no immediate plans to
build a biorefinery here, the UK has a long track record of welcoming inward investments of advanced
wood processing technology.
FIM Services Limited
Glebe Barn
Great Barrington
Burford
OX18 4US
Tel: 01451 844655
Email: fim@fimltd.co.uk
FIM Services Limited is accredited to the ISO 9001 standard
22 | PageAppendix I Major Timber Processing Investments in full‐scale production
Date Amount Company Location Country Industry Sector Comments
2007 £110,000,000 Egger Hexham England Panel Products New chipboard mill
2008 £90,000,000 EON Lockerbie Scotland Wood‐fuel CHP power
2009 £75,000,000 Caledonian Paper Irvine Scotland Wood‐fuel CHP power
2009 £24,000,000 Balcas Invergordon Scotland Wood‐fuel Pellet mill
2009 £10,000,000 Cordiners Banchory Scotland Sawmilling Major upgrade
2011 £25,000,000 James Jones Lockerbie Scotland Sawmilling Third saw‐line
2012 £5,000,000 BSW Dalbeattie Scotland Sawmilling Planer grader‐line
2012 £1,000,000 BSW Dalbeattie Scotland Wood‐fuel Biomass boiler
2012 £2,000,000 BSW Newbridge Wales Wood‐fuel Biomass boiler
2012 £11,000,000 Ignis Wick Scotland Wood‐fuel Originally owned by council, but bought out by Ignis
2013 £108,000,000 Iggesund Iggesund England Wood‐fuel 150 MW CHP
2013 £20,000,000 Gordon & Sons Nairn Scotland Sawmilling biomass, kilns, scanning & sorting
2014 £1,200,000 Peter Irving Hutton England Sawmilling biomass and kilns etc
2014 £2,000,000 Forest Garden Sennybridge Wales Sawmilling Mill expansion and treatment
2015 £2,000,000 BSW Newbridge Wales Sawmilling Edger
2015 £15,000,000 Pontrilas Hereford England Sawmilling Upgraded sawmill & log sorting line
2016 £5,000,000 Egger Hexham England Panel Products Tongue & groove & peel clean
2016 £8,000,000 Egger Hexham England Panel Products Warehousing
2016 £3,000,000 BSW Carlisle England Wood‐fuel CHP plant
2016 £1,000,000 BSW Boat of Garten Scotland Wood‐fuel biomass bioiler
2016 £2,000,000 BSW Fort William Scotland Wood‐fuel heat log plant
2016 £4,500,000 James Jones Forres Scotland Engineered wood New finger jointing and general upgrade of JJI line
2016 £30,000,000 Iggesund Workington England Paper New press and chipper
2016 £14,000,000 Glennons Troon Scotland Wood‐fuel biomass facility.
2017 £500,000 Egger Hexham England Panel Products Merchandising area
2007‐17 £50,000,000 BSW Fort William Scotland Sawmilling Major new sawmill
2010‐16 £40,000,000 Egger Barony Scotland Wood‐fuel Biomass plant
2010‐16 £63,000,000 Egger Hexham England Panel Products Recycling plant, warehousing, glue plant
2011‐15 £12,000,000 Egger Hexham England Panel Products Impregnation lines
2012‐17 £12,000,000 Egger Hexham England Panel Products Lamination lines
2013‐17 £3,000,000 BSW Various UK Sawmilling Secondary process automation
£749,200,000Appendix II Major Timber Processing Investments just coming into production
Date Amount Company Location Country Industry Sector Comments
2017 £74,000,000 Estover Craigellachie Scotland Wood‐fuel 12MWe CHP for the Macallan distillery
2017 £138,000,000 Estover Cramlington England Wood‐fuel 28MWe CHP for Aesica Pharmaceuticals and MSD
2017 £110,000,000 Stobart Energy Widnes England Wood‐fuel CHP used to dry wood‐chip & pellets
2017 £25,000,000 Green Plan Energy Wrexham Wales Wood‐fuel 5.4MW CHP for business park
2017 £30,000,000 Alpha Real Renewabl Killin Scotland Wood‐fuel 6.0MWe CHP
2018 £107,000,000 Norboard Inverness Scotland Panel Products Upgraded OSB mill with continuous press
2018 £16,500,000 James Jones Lockerbie Scotland Sawmilling Multi‐head saw‐line, kilning, treatment, incising
2018 £6,000,000 Pontrilas Hereford England Sawmilling New conversion line
2018 £5,000,000 Pontrilas Hereford England Sawmilling Large log line
2018 £20,000,000 Kronospan Chirk Wales Panel Products Replacement melamine facing line, warehousing/handling.
£531,500,000!
(
Ridings "
) Windymains UK TIMBER PROCESSING MILLS
Verdo BSW Petersmuir
?
! Norbord
?
! "
)
d TIMBER INTAKE
Callanders ?
! ?
!
"
)
d Timber Processors
Tesco
D Pulp & paper mill
?
! Softwood sawmill, Small
UPM Caledonian Paper
Bedmax ?
! Softwood sawmill, Medium
D )
"
d ?
! Softwood sawmill, Large
Auchengate !
( J Law Ë
! !
? Mixed/Hardwood sawmill, Small
Egger UK
?
! Mixed/Hardwood sawmill
?
! "
)
James Jones !
? ?
! (imported timber), Small
A&J Scott
Wilsons Lockerbie "
) Wood based panels, Small
UPM Export EON/AW Jenkinson
"
) Wood based panels, Medium
Carronbridge
"
)
d Sawmill !
( "
) Wood based panels, Large
Land Energy !
( Round fencing, Small
Forest Garden
?
! Creca Sawmills !
( Round fencing, Medium
?
!")
d Egger UK
!
( Round fencing, Large
BSW Carlisle
?
! "
)
d "
)
d Energy, Small
?
!
?
! ?
! !
? "
) "
)
d Energy, Medium
Kerr
BSW Dalbeattie 2
I TG Norman
Taylormade "
)
d Energy, Large
Kronospan - railhead ?
! TO Mounter "
)
d Energy (imported timber), Large
Pallet, MDF & Chipboard
?
! 2 Infrastructure
I
"
)
d
D AW Jenkinson
Ë
! Animal bedding, small
Iggesund
"
)
d
Sembcorp Utilities
P Irvine Kronospan - railhead
dI2
!
(
"
) John Boddy's
±
Barden Biomass
Scale 1:1,000,000 Nidd Valley Sawmills !
? ?
!
Carlow House
Timbermatic
Locharbriggs
Dumfries Derek Fox & Sons !
( Drax
DG1 1QS
Tel: (01387) 711211
Fax: (01387) 711212 BG Fencing !
(")
d
"
)
d
!
( Ë
! Bowland Bioenergy
© Crown copyright and database rights 2017
Ordnance Survey AL100018344 17/11/17 Whitfire Shavings
Licence No. AL100018344
!
?UK TIMBER PROCESSING MILLS ?
!
Jeffrey Walkers
TIMBER INTAKE UPM Shotton
EON
"
)
d
"
)
d
Timber Processors Clifford Jones CPL Distribution
D Pulp & paper mill "
)
d
!
( "
)
d
?
! Softwood sawmill, Small
Gwyddelwern Sawmill
?
! Softwood sawmill, Medium A Hingley & Sons
?
!
?
! Ë
!
! Softwood sawmill, Large
? Bedmax
Corwen Forestry A&E Evans !
?
!
? Mixed/Hardwood sawmill, Small ?
!
! Rainworth Fencing
Mixed/Hardwood sawmill )?
" !? (
?
! !
(imported timber), Small Kronospan ETC
Astley Fencing
) Wood based panels, Small
"
"
) Wood based panels, Medium
GDF Suez Energy (International Power)
"
) Wood based panels, Large
Round fencing, Small ?
!
"
)
d
?
!
!
(
TAFS (Salop)
!
( Round fencing, Medium
Ransfords
Brigstock Sawmill
( Round fencing, Large
! ?
! ?
! !
?
Energy, Small
?
!
"
)
d
UK Timber
d Energy, Medium
"
) Caerfagu !
( Forest Garden
"
)
d Energy, Large BSW Newbridge
!
( M&M
Volac ?
!
"
)
d Energy (imported timber), Large "
)
d
?
! KG Smith & Son
2 Infrastructure
I James Davies !
( Pontrilas Sawmill
Ë
! Animal bedding, small !!
? ( D Williams !
?
?
!
Teifi ?
!
Forest Garden
?
!
DJ Davies Premier Sawmill
?
!
"
)
d
± Scale 1:1,000,000 Western Bio Energy
"
)
d
!!
? (
Fountain Timber
Waitrose "
)
d
"
)
d
RWE Aberthaw Ë
!
Carlow House
Locharbriggs Mendip Woodshavings
Dumfries
DG1 1QS ?
! ?
!
Tel: (01387) 711211 Ellis/Thomson "
)
d
Fax: (01387) 711212 AJ Charltons Verdo
Norbord Clanville Sawmill Ë
!
17/11/17
East Sawmill Bedmax
© Crown copyright and database rights 2017
Ordnance Survey AL100018344
Licence No. AL100018344
?
!
"
) ?
!UK TIMBER PROCESSING MILLS
TIMBER INTAKE
Ignis
"
)
d Timber Processors
D Pulp & paper mill
?
! Softwood sawmill, Small
?
! Softwood sawmill, Medium
! Softwood sawmill, Large
?
!
? Mixed/Hardwood sawmill, Small
Mixed/Hardwood sawmill
?
! (imported timber), Small
) Wood based panels, Small
"
"
) Wood based panels, Medium
Gordon's
James Jones "
) Wood based panels, Large
Balcas Mosstodloch
Tulloch Timber !
( Round fencing, Small
"
)
d !
( Round fencing, Medium
?
! ?
! ( Round fencing, Large
!
)?
" ! ?
! Helius CoRDe "
)
d Energy, Small
Munro
Norbord "
) "
d )
d d Energy, Medium
"
)
Estover Energy
"
)
d Energy, Large
"
)
d Energy (imported timber), Large
BSW Boat of Garten ?
! James Jones 2 Infrastructure
I
Aboyne Ë
! Animal bedding, small
?
! ?
! Cordiners
?
! ?
!
BSW Kilmallie Pallet Logistics
?
!
± Scale 1:1,000,000
Polney Sawmill
( ?!
! Cally Sawmill
James Jones
Kirriemuir
Carlow House
Locharbriggs
Dumfries
DG1 1QS
Tel: (01387) 711211 RWE NPower
Fax: (01387) 711212
Gargunnock Sawmill
© Crown copyright and database rights 2017
17/11/17
"
)
d
Ordnance Survey AL100018344
Licence No. AL100018344
!
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