Forest Products BIB

Pulp mills may be getting back on the black liquor gravy train.

Paper and pulp makers, including a number of mills in southwest Alabama, collected $8 billion or more last year in federal cash and tax credits by doing what they've done for decades -- burning the carbon-rich leftovers from the pulp-making process to fuel their mills.

The liquid, known as black liquor, was declared eligible for alternative fuel tax credits if mill operators mixed in a little diesel fuel.

VANCOUVER — The signs are glimmers of hope that British Columbia’s forestry-driven industries may be at the end of years of punishing losses and high unemployment, according to reports released Tuesday by the Conference Board of Canada.

Much of Canada’s wood-products sector has returned to profitability this year, the Conference Board said in its Canadian Industrial Profile-Summer 2010, published in collaboration with the Business Development Bank of Canada.

Report on the Analysis of Development of Forestry Industry and Wood Processing Industry in China

Background of the Research

November 3, 2009 was informed that the State Forestry Administration, the State Development and Reform Commission, Ministry of Finance, Ministry of Commerce, State Administration of Taxation have jointly issued the five departments of the “Forestry Industry Development Plan (2010-2012)”, as a guide forestry plan of action to address the financial crisis in the program.

The “Son of Black Liquor” tax credits will probably cost American taxpayers hundreds of millions, if not billions, of additional dollars, but Congress might grab the money without paper manufacturers getting a dime.

Seven publicly traded paper companies have estimated that they will net about $570 million from the IRS’ recent ruling that made black liquor eligible for Cellulosic Biofuel Producer credits (CBPC), reports the Press-Register of Mobile, Alabama. Leading the way are Weyerhaeuser with $240 million (pre-tax) and Domtar with $200 million.

The other 14 publicly traded producers of black liquor, including the largest (International Paper), have not released such projections, partly because of uncertainty about exactly what the June 28 ruling means. (See Pulp Manufacturers Scratching Their Heads Over Son of Black Liquor Ruling for more information about these uncertainties.)

Meanwhile, the IRS’ “generosity” toward companies that produce, and burn, black liquor as part of their pulp-making operations has caught the eye of Congress, writes Jeremiah Coder for Tax Analysts. “The agency’s administrative largesse appears to be prompting members of Congress to consider legislation to retroactively disallow biofuel credits for black liquor claims.”

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ITTO's Annual Review and Assessment of the World Timber Situation compiles the most up-to-date and reliable international statistics available on global production and trade of timber, with an emphasis on the tropics. It also provides information on trends in forest area, forest management and the economies of ITTO member countries. The document is based on information submitted by ITTO member countries through the Joint Forest Sector Questionnaire, supplemented by other sources as necessary.

LONDON, Aug. 12, 2010 (RISI) - This week the Chinese government, following up on an announcement made on May 27 of this year, released a final list of 279 pulp and paper mills at which capacity is to be removed as part of its broader program of closing small, inefficient manufacturing operations across many industries that pose problems with respect to high levels of pollution or energy consumption.

Yep. That’s right. Recycling doesn’t save trees.

That’s the position of Roger Dziengelski, a Certified Forester and VP of Continuous Improvement and External Operations for Finch Paper, LLC in upstate New York.

One of the major clouds hanging over British Columbia’s economy and forest products industry is uncertainty about the mountain pine beetle epidemic.

To date, the pine beetle has killed an estimated 50% of the province’s mature lodgepole pine.

In a recent economic analysis that focused on the pine beetle epidemic, Central 1 economist Bryan Yu noted that over the past 90 years there have been four or five major mountain pine beetle infestations.

SHANGHAI, Aug. 9, 2010 (RISI) - Expansion (in almost all paper grades), is the word that can be heard most in talks among industry CEOs and executives during recent events that I attended organized by suppliers or industry associations in the pulp and paper industry. The Chinese market seems to have recovered from the earlier economic downturn and players are gearing up for new growth after a pause due to the world financial crisis.

SANTIAGO -(Dow Jones)- Chilean wood pulp producer Celulosa Arauco y Constitucion SA seeks to continue its regional expansion as it develops plans for a new pulp mill in Uruguay, Arauco's corporate director, Franco Bozzalla, said Tuesday.

Arauco, through a joint-venture company with European pulp producer Stora Enso Oyj (SEOAY, STERV.HE), is moving forward in its plan to build a pulp plant in southern Uruguay, Bozzalla told reporters on the sidelines of a forestry sector seminar.

The Investments in Forest Industry Transformation (IFIT) program was launched today by the Government of Canada.

The $100-million program will help to expand opportunities for Canada’s forestry sector through the development of innovative projects and technologies.

The Honourable Christian Paradis, Minister of Natural Resources, launched the program today in Ottawa and made a call for proposals that could receive IFIT funding.

Due to the global recession that began in the second half of 2008, China’s total log imports declined in 2009 to 28.1 million m3 (-5.1%). The unexpected turnaround in the Chinese economy, starting in Q2/2009, significantly moderated the falling trend in Chinese log import volumes for the year. China’s log imports were valued at about US$4.1 billion, down 21% by value from 2008. reports International Wood Markets Group, The total decrease in log imports from 2007 to 2009 was a whopping nine million m3 - a staggering 24%.

California is poised to become the nation’s first state to ban single-use plastic and paper bags at supermarkets and convenience stores.

Gov. Arnold Schwarzenegger, breaking with his usual practice of not taking a position on legislation until it reaches his desk, praised passage of the measure by the Assembly in June, signaling his likely signature should it pass in the Senate.