Boreal forests
• Northern hemisphere
• Mainly conifers (“trees with needles”)
• Spruce & Pine
• Less populated areas
• Markets away from growing areas
• Easy to work with
• Straight
• Long
• Suitable for construction and visual uses alike
• Called often “softwood” vs hardwood
Sawn softwood production in
Europe
European forest area grows, but
issues in Central Europe
Photo: NBC
Nordic
sawmilling
• Nordic boreal forests, with relatively
harsh soil and climatic conditions
• Main species Spruce (Whitewood)
and Pine (Redwood)
• Timber slowly grown
• Denser than further south
• Smaller knots than in more
favourble growth areas
• From seedling to mature tree 50-
120 years, depending on area
• Sustainability
• Slow growth cycle is a cost
compared to other areas
• Raw material up to 75% of the total
cost
Finnish forestry is based on
family ownership Photo: UPM
• 75% of the land area is covered with
forests
• 2/3 of the forest area is owned by private
people
• Over 600.000 forest owners (and
growing)
• First forest laws already in the 1860s
• Forest inventories since the 1920s
(reliable data)
• Forest volume has double over the past
50 years
Finland is a world power in
forest product exports
14 000 120 %
Production Export Export share
12 000
100 %
94 % 96 %
10 000
82 %
74 % 80 %
8 000
60 %
6 000
46 %
40 %
4 000
20 %
2 000
0 0%
Paper Paperboard Pulp Sawn softwood Plywood
Logging in Finland: harvesting
less than the growth Photo: Ponsse
Area affected annually by
fellings: < 2%: mostly thinnings
Photo: Forest Industries
Nordic forestry vs
Monocultures Photo:
FAO, Forest Industries
• Nordic forestry mostly 1st
& 2nd thinnings +
regeneration felling
• Monocultures (forest
fields) = single age, single
specie, no thinnings but
clear cutting at the end of
the growth cycle
Wood material flow in Finland
Photo: Forest.fi
13
Forest resources grow all the time
Photo: Forest Industries
3000
Pine Spruce Deciduous
2500
2000
Mill. m3
1500
1000
500
0
1921-24 36-38 1944 51-53 60-63 64-70 71-76 77-84 86-94 96-2003 2009-13 2014-19
10.11.2020
14
The growth of Finnish forests is over
100 mill. m3 per year Photo: Forest Industries
120
Annual growth Total drain Industrial roundwood
100
80
Mill. m3
60
40
20
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
3.3.2021
Finnish roundwood harvest
Photo: LUKE
Different Log Types
(Approx figures, vary from area to area and company to
company)
LOG TOP
LOG TYPE GRADE DIAMETER APPR. %
Small butt logs A 150 -200 mm 20 %
Big butt logs A 200 - 370 mm 30 %
Middle logs B 190 - 300 mm 30 %
Top logs C 150 - 180 mm 20 %
Nordic Sawmilling
Photo: Sawmilling Industry
• Logs
• Top diameter 100-350mm
• Lengths 3,1m – 6,1m in 30cm intervals (in practice
4,3m – 6,0m, with average at around 4,5m – 4,8m
depending on the mill)
• Harvesting especially in Pine/Redwood according to
quality, resulting in several lengths
• Sorted at the mill by top diameter (with 10-20mm
groups) & length & quality
• Timber products
• Thickness (16mm) 19-75mm (100mm), width (75mm)
100-225mm (250/275mm)
• Lengths in 30mm intervals from 3,0m to 6,0m
• Export products are kiln dried normally to Shipping Dry
18-20%
• Rule of thumb
• 2 log M3 needed to produce 1 sawn M3 = 50%
recovery
Nordic Sawmilling vs Other areas
Differences in production Photos: Keitele
• Several lengths vs restricted lengths
• Pine (Redwood) and Spruce (Whitewood) vs
Mostly Spruce
• Leaving the bark on until actual sawing process vs
Debarking at the log sorter
• Use of X Ray to assess the knots etc to
predetermine the sawing pattern / desired
product vs Producing few products in bulk
• Wide product range vs Narrow product range
• Visual & Structural products vs Structural
products
Nordic Sawmilling vs Other areas
Differences in production: How
to optimise the visual and
financial yield Photos: Microtec, Sawmill
Industry
• Use of X Ray to see inside the log before it is cut
• Camera grading / scanning for fast, accurate and
efficient visual grading
• The aim is to
• Optimise / choose the right saw set for each
log (eg to maximise yield and minimize falling
products)
• Visual grading to predetermined grading
groups: knots, wane etc
Nordic Sawmilling vs Other areas
Differences in production: Visual and
non graded products Photos: Flanagans,
Shermanyoung, Elliotts
• Non-Visual grades are used mainly for building
work
• Strength Grades denote the strength properties if
used more demanding building use and where
certain minimum, precalculated properties are
needed (joists, roof trusses etc)
• Compared with better Nordic visual grades like
Unsorted and Fifths more knots, bigger knots,
shake, distortion and even wane is allowed
Mature Spruce Tree (Whitewood)
Parts of the trunk / uses
(Regeneration / Final cutting)
ENERGY ( TOP & BRANCHES)
PULP WOOD PULP / PAPER
TOP LOG FURNITURE
GLUED SECTIONS
INTERIORS / EXTERIOR CLADDING
CONSTRUCTION
STRUCTURAL PRODUCTS
ROOF TRUSSES
GLULAM
LOG CONSTRUCTION
DIY- PRODUCTS
COMPONENTS
PACKAGING
BUTT / MIDDLE LOG
ENERGY (STUMP)
Mature Pine Tree (Redwood)
Parts of the trunk / Uses
(Regenration/final cutting)
ENERGY (TOP & BRANCHES)
PULP WOOD PULP
PULP WOOD
C / TOP LOG FURNITURE
LAMINATED SHEETS
INTERIOR DECORATION
B / MIDDLE LOG
LOG CABIN INDUSTRY
COMPONENTS (FINGER JOINTING)
PACKAGING INDUSTRY
A / BUTT LOG
JOINERY INDUSTRY
WINDOWS
DOORS
MOULDINGS
COMPONENTS
ENERGY (STUMP)
23
Distribution of export market for
Finnish forest industry products
in 2020 Photo: Forest Industries
Finnish forest industry export value (2020)
10,4 billion €
Share of total export value 18 %
4%
Main exporting countries
Germany 14 %
China 10 %
Great Britain 7%
North America 7%
7% 58 %
22 Japan 4%
%
5%
1%
3%
22.2.2018
23 LÄHDE: Tulli
See the
trees
from the
forest
Photo: Jari
Salonen
Automatisation & digitalization
are used already in the forest Photo:
Ponsse
Customers and markets are largely
dictating what kind of logs for which
end use are needed from forest
Photo: Turun Rakennustuote
Everything is used for best
possible use: Logs to sawn
timber, plywood or LVL
Photos: Metsäteho, UPM, StoraEnso
Everything is used for best
possible use: Pulpwood & chips for
pulp/paper Photos: UPM, MS, Amazon, Sappi,
Everything is used for best
possible use: Sawdust to
chipboard, hardboard, pellets
Photo: MS, K Rauta, Hartman
Everything is used for best
possible use: Energy wood
Photo: Biomassenergy, JPJ Wood, UPM
Everything is used for best
possible use: Future trends
Photo: Spinnova, Metsa, UPM, Bioeconomy
Production planning Photo: UPM
• Combining sales and production
• Bearing in mind profitability and production efficiency
• Steering log lengths according to needs (sales)
• Communicating sales possibilities/need to sales (allocation)
• Optimising patterns (yield / value yield)
• Stock turnover / rotation
• Production efficiency
➢ Coordinator at the interface of wood procurement,
production and sales
Production Planning Terminology
• Yield
• How many m3 of logs is needed to produce 1m3 of sawn goods
• Value yield
• Total value of the products from the log
• Log matrix
• Price/distribution matrix used at harvester for log optimization (diameter/length)
• Bucking/cross cutting
• A process in which stem is cut to shorter logs (different lengths)
• Cutting pattern
• Certain cutting pattern for a log class. Can be movable also. Contains center cut and sideboards
• Log inflow / Log batch
• Big enough volume of logs harvested from a certain area usually is known by some accuracy
(prediction)
• Simulator
• Program with which one can simulate and optimize cutting patterns
• Sawn good grades
• SF/VI in WW, US/V/VI in RW, schaal boards (boards with wane) or sharp edged boards
Production planning process
Sales Inquiry Sales Delivery
Production Checking
Log order Production
Planning possibilities
Wood procurement Photos: Koskisen
• Log matrix is
• used to obtain desired lengths
• in specific diameter areas (bucking instruction)
• Limitations
• in timber trade (contract) and
• in harvesting (efficiency/accuracy)
• Distribution matrix and price matrix
• WW/RW
Wood procurement / Matrix
Matrix
Price Matrix Over Bark WW Log
Lower limit Upper limit Length cm
Diameter mm Diameter mm 340 370 400 412 430 460 490 520 550 580 610
160 179 -2 -2 -1 -2 300 320 380 380 320 -1 -1
170 179 -2 -2 -1 -2 300 320 360 380 350 360 360
180 189 -2 -2 -1 -2 300 320 350 380 360 360 360
190 199 -2 -2 -1 -2 320 320 350 380 380 350 350
200 214 -2 -2 -1 350 320 320 320 350 350 380 360
215 229 -2 -2 -1 350 300 320 320 380 380 350 350
230 239 -2 -2 280 -1 350 350 350 400 350 380 420
240 259 -2 -2 300 300 300 320 350 350 380 380 420
260 269 -2 -2 320 300 320 350 350 380 380 420 410
270 279 -2 -2 350 -2 320 320 350 350 380 420 410
280 289 -2 -2 350 -2 320 320 350 320 400 420 410
290 299 -2 -2 350 -2 320 320 350 400 400 400 420
300 329 -2 -2 320 -2 -1 380 -1 350 350 380 380
320 339 -2 -2 350 -2 -1 -1 -1 300 380 380 380
340 359 -2 -2 320 -2 -1 -1 -1 350 350 350 350
360 379 -2 -1 -1 -2 -1 -1 -1 350 350 350 400
380 419 -2 -1 -1 -2 -1 -1 -1 320 320 350 370
420 420 -2 -1 -1 -2 -1 -1 -1 320 320 350 370
Sales/Production Planning –
Long term Photo: TTF
• Long term production planning (saw model)
• Prethinking/allocation to which markets or
customer certain products are allocated
• Yearly, half yearly or quarterly based
• Plan vs. real life
• Market situation changes, exchange rate
effects
• Goal is to see the big picture and
(realitistically) allocate the products to obtain
best possible result
• Log inflow is based on the history data
• Sales and production planning discussion
Sales/Production Planning – Mid
term Photo: Posi Joist
• Mid term production planning
• Monthly based or periodic planning at a mill
with both RW/WW
• Sales are known (more or less at least)
• Production planner advises sales team
about sales possibilities
• Log distribution is known better
• Instructions for log sorting
• diameters and lengths, either picking
certain lengths or falling lengths
Sales/Production Planning –
Short term Photo: DDK
• Short term production planning
(weekly/daily basis)
• Very detailed
• Choosing right log classes for
cutting in order to have the goods
ready for shipment on time
• Bearing kilning/sorting capacity in
mind
• Ideally everything is cut to order
40
Finnish forestry sector export
volumes since 1960 Photo: Forest Industries
Milj. tonnes/m3
16
Exports 2020
Pulp Paper, paperboard and
14 converted products 1000 t 8 100
Paper & Board & Converted Products Chemical Pulp 1000 t 3 850
Sawn and planed goods 1000 m3 8 300
12
Sawn and planed goods Wood-based panels 1000 m3 900
Change from prev. year
10 Wood-based panels Paper, paperboard and
converted products -15,3 %
Chemical Pulp -6,7 %
Sawn and planed goods -8,3 %
8
Wood-based panels -9,8 %
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
28.2.2018 2.7.2020
Finnish forest product exports by
product group Photo: LUKE
Finnish forest
mosaic
Lots of small forest areas
of various ages / stages
of growth
