13/05/2010 /  Increasing Demand for Secondary Products of Sawmills

The increasing use of renewable energy resources opens up new opportunities not only for owners of biofuel plantations or forestry owners, but also for wood-processing companies – sawmills.

Currently, UAB Juodeliai produces and successfully sells more than 5000 m³ of secondary wood products during a month, which include about 40% of sawdust (approximately 30% of the total quantity of sawdust includes coniferous tree sawdust, and the rest – deciduous ones), and 60% of wood sliver (pulp chips). The production of the sawmills that belong to UAB Juodeliai has been well evaluated by not only Lithuanian but also by foreign buyers of wood products, who use wood as the main raw material for production of their products.

The opinion that the secondary products (sawdust, pulp chips, or cut-offs) obtained in wood-processing companies are only worthless waste has changed dramatically over the last decade. Currently, many representatives of the country‘s sawmills can only confirm that the secondary products (pulp chips, sawdust) obtained during the manufacturing process are as successfully sold as the main products (pallet blanks, pallets, etc.), and sometimes even better.

29/04/2010 /  Tenders of round wood by mutual agreement become more intensive

Currently, tenders of round wood by mutual agreement are particularly active. Wood resources are sufficient in the country. This results a successful cooperation between forestry and wood industry sectors, which is based on market principles and competitiveness.

Wood processing companies that are willing to purchase raw material are required to participate in these tenders that take place in different forest enterprises, and often the same day and at the same time. It is consuming some time and expenses. Purchasing by mutual agreement it is difficult to predict what quantities of raw material will be offered by forestry enterprises during the tenders. Due to such fluctuating wood sales wood processing companies do not reach the expected results, because it is becoming more difficult to plan the production without knowing the quantities of wood.

According to Juozupas Zimnickas, General Director of UAB Juodeliai, only long-standing and half-yearly wood purchase contracts provide more guarantees both for buyers and sellers that mutual obligations are going to be fulfilled, and ensure a regular supply of raw material required for production.

23/04/2010 /  Introduction to a market of the United Arab Emirates

An annual exhibition for the wood-processing industry “Dubai International Wood & Wood Products Show” took place on 13-15 April 2010 at the Dubai Airport Expo Centre in the United Arab Emirates. The exhibition was attended by more than 300 enterprises of wood-processing industry: wood products manufacturers, suppliers, trade companies, and etc. A variety of wood products were presented at the exhibition, and the participants also have a possibility to change information regarding to timber processing. The major part of the participants was the representatives of trade companies from the United Arab Emirates, as well as, the representatives of the wood-processing enterprises from America, Europe and Asia. A few stands belonging to Lithuanian enterprises also could be seen here.

More than 5000 guests from around the world visited this exhibition for the wood processing industry in Dubai. Director of the UAB Juodeliai Andrius Zimnickas also had the opportunity to visit the exhibition. During his visit, Mr. Zimnickas became acquainted with the conditions of the business environment that are specific to the United Arab Emirates. A. Zimnickas noticed that the wood products market of the United Arab Emirates, as a main market for the wood processing companies, is not very attractive, because the manufacturing of the wooden pallets (i.e. Euro pallets or CP pallets) isn’t developed very well. The most part of the products that are imported into this country constitutes of the products of wood processing industry from the United States and China.

According to A. Zimnickas, UAB Juodeliai have established mutually beneficial business relationships with representatives of the wood processing industry of the United Arab Emirates, and he didn‘t exclude the possibility of future cooperation.

07/04/2010 /  UAB Juodeliai expands the geography of sales and output of its production

For many years of experience working with Western European countries, UAB Juodeliai has established close partnerships with the economically strong countries such as Germany, Belgium, Holland, in which the majority of wood products manufactured in the Company are being exported until now.

The current economic hard times have encouraged the seeking of new export opportunities in other European Union countries. Cooperation relations with such countries as the Czech Republic, Austria, Denmark, Slovenia, Poland, Estonia and France have been established. The increased circle of clients across Europe makes it easier to realize the production, and promotes closer cooperation with transport companies.

The realization markets for the Company‘s production are expanding also in other directions – requests from Turkey, Israel, Greece, United Arab Emirates and other countries are increasing. The demand of the Company‘s wood production, increased due to the market development, resulted in production and sales increase. During the 1st quarter of 2010, UAB Juodeliai produced 13,174 m3 of various pallet blanks (europallets, CP pallets and one-way pallets), i.e. 49,91% more compared with 4th quarter of 2009 (The increase in production volume was partially resulted from reconstruction in the one production department). Most of the production was exported to Western European countries, and only a small part is realized in Lithuania. Total sales of wood blanks equals to 12,956 m3, i.e. 56,46% more compared with 4th quarter of 2009.

06/04/2010 /  Spring melt-water in forests prevents raw material from exporting

After the first quarter of this year, the Company‘s management of UAB Juodeliai is pleased to have successfully fulfilled the agreed obligations to the raw material suppliers. During that time, the Company bought more than 28 thousand cubic meters of sawn round wood, and thus acquired a sufficient quantity of raw material for the successful execution of production. A major part of the total volume of bought production comprised wood from Lithuanian forest enterprises.

At the beginning of the second quarter of this year, the annual spring problem occurs – forest roads that are hard to get through. According to the foresters of the country, a lot of sawn round wood is felled and stored in forest storages, but due to spring melt-water many forest roads are impassable for wood trucks, and some of them are closed temporarily. The passage problem impedes the shipment of sawn round wood.