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Global demand for wood

The world market is calling for high quality wood products. Moelven makes money from this. Here is the explanation for the great demand.

The 2018 annual result was the second best in Moelven’s 120-year history. The Timber division made a strong contribution to this result, and it was perhaps not that surprising with the benefit of hindsight. In every quarterly report, one message was repeated every time: Great international demand for wood products.

The Timber division produces components and sawn timber for the Scandinavian home market, but also for international markets. Around half of what is produced by the sawmills in
the Timber division ends up in Scandinavia. The remainder is exported. Timber’s products are in high demand as an input in other industry, and as the quarterly reports reported – demand for this is great.

“We live in time with the world economy, and it is characterised by prosperity and population growth. For us this means that there is greater consumption of wood products throughout the world, and this is an opportunity our clever people at the production units and in sales have grasped,” Lars Thorsrud, market director of Moelven Timber explains.

An increased global standard of living is expanding the middle class. This in turn increases the need for building homes and furniture. In order to meet this demand, there has been a gradual change from classic craftsmanship to constantly more industrial mass production. In China, which is one of the markets Moelven sells directly to via the sales company Moelven Export Sales AB, one can see up close how this trend is evolving. Suzan Ljungemo, who heads Moelven Export Sales, explains :

“When making furniture on a large scale in an industry, it is necessary for production to run smoothly and that the products are identical – without significant blemishes of deficiencies. In order to achieve this, the quality of raw materials must be high. Our slow-growing Scandinavian forests ensure extra high quality wooden products, and it is precisely why many want to use wood products from Moelven as an input in e.g. the furniture industry.

Renewable resources
Demand for wood products has also been influenced by another megatrend: the focus on renewable and climate-friendly products.

“The green shift, the UN’s global climate goals and the planet’s health are persuading more and more people to use wood as a material. Several iconic wooden buildings are being built around the world, not only in Brumunddal – although this is the tallest to date. Previously one only talked about such projects. Now we know they are possible, and constantly more such iconic buildings are being erected. In sum, building from wood has never been more popular,” Lars Thorsrud says.

Biggest in the UK
Wood products from Timber end up in large parts of the world. Besides Scandinavia, the UK is the largest market. There, most is used for construction and the
production of exterior products such as decking. Moelven currently has sales offices in Norway, Sweden, Denmark, the UK, Germany, the Netherlands and Poland. The company also has extensive partnerships with sales agents in countries such as France, Belgium, Italy, Spain and in North Africa and the Middle East. Additionally, Moelven Sales Export sells wood products directly to the Asian market, via the office in Karlstad.


What do Moelven’s wood product end up as?

Here are some examples of what wood products from Moelven are used for in the various markets outside Scandinavia:

Japan: Building homes
China: Furnitur
France: Glulam production
Poland: Furniture
United Kingdom: Construction
Germany: Glulam production
Netherlands: Stairs, packaging
Egypt: Furniture, packaging