Timber Industry future remains bright despite challenging year

STIRLING, U.K. - July 10, 2015 - PRLog -- According to the report, 2015 is proving to be a hugely challenging year for everyone in the timber industry with the detriments of the strong pound on one side and the robust economy and the predicted dramatic growth for both private and public sector housing over the coming years on the other side.

While the growth of the UK economy in the last year is good news overall, the report cites the strength of the pound against the euro and Swedish kroner as the key influences on the sawn timber market which has seen a recent downward shift. This has meant domestic producers are being undercut by imports of timber products with UK exports of roundwood also being affected.

There is good news for private sector producers, however, as the share of UK production continues to swing towards the private sector with a 57% share in 2014.

Standing timber sales prices have remained stable so far this year with prices similar to those in 2014 and demand continues to be strong. The demand for fencing has remained healthy as has the demand for small roundwood for chip and biomass which means prices have held up despite other downward price movements.

The author of the report, UPM Tilhill’s Timber Operations Director Peter Whitfield concludes: “While our forecast log price for 2014 was on target, the forecast looking ahead will be very different and the industry will need to reflect the impact of the exchange rates in prices. Despite the challenges and the need for some belt tightening in the short-term, the long-term future for timber remains bright.”

UPM Tilhill, established more than 60 years ago, is a national company operating from a network of offices throughout the UK. UPM Tilhill is the UK’s largest forest management and timber harvesting company. The company provides a full range of consultancy and contracting services to the forest owner and forestry investor.  Further information is available at www.upm-tilhill.com

ENDS

Notes to editors: Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 21,000 people and its annual sales are approximately     € 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com

For further information contact Suzi Christie PR Consultant for UPM Tilhill on 01435 830031 or e-mail suzi@blueberry-pr.co.uk