Highlights for the quarter include: Higher Lumber Prices * Key product benchmark prices strengthened throughout Q4’15 as the market adjusted to production curtailments in a number of regions, greater stability in Chinese demand and an extended fall buying period in North America due to favourable weather. Weaker Canadian Dollar * The Canadian Dollar weakened against the U.S. Dollar, averaging $0.749 in Q4’15 versus $0.764 in Q3’15, resulting in favourable currency translations of U.S. Dollar revenues. Castlegar Mill Re-Start * The Castlegar sawmill modernization project commenced start-up procedures on October 5th. Productivity and product quality were ahead of expectations throughout the quarter, resulting in a positive earnings contribution in Q4’15 versus a negative contribution in Q3’15. Tacoma Sawmill Monetization * Monetization of the former Tacoma sawmill assets progressed well in Q4’15, with: (i) the sale of the remaining log and lumber inventories; (ii) a successful auction of machinery, equipment and parts; and (iii) the signing of an agreement to sell the mill property.
Pine from the northern parts of Sweden has been used at the world’s longest bridge over water. The 55-kilometer-long bridge, which crosses both under and over water, connects Hong Kong, Macau and China. SCA has in the collaboration with Martinsons delivered 300 m3 of pine which has been used as decking at two lookout points.
The interest and use of wood is increasing in Asia in general and in China in particular. From having used the material mostly in packaging and furniture production, wood is increasingly being used in house and building production. With this development, Chinas timber imports have also increased from three million cubic meters to about 25 million cubic meters over the past ten years, says Håkan Persson, CEO of SCA Wood Hong Kong.
The latest example of the increasing use of wood is the 55-kilometer-long bridge linking China with Hong Kong and the casino city of Macau. The bridge is the world’s longest bridge over water. In cooperation with Martinsons, SCA has delivered a total of 300 cubic meters of pine to the building of the bridge. The material has been used for the two lookout points that are located on the bridge and serves as gates for the tunnel. There are also cafés and restaurants on the lookout points.
Approximately 23 kilometers of the bridge runs across the sea and in the middle is a seven kilometer long tunnel for ships to pass by. Previously, it took four hours to drive between Hong Kong, Macau and China, now the journey takes 30 minutes. 420,000 tonnes of steel have been used for the building, which is about the same as the 60 Eiffel Tower. According to official data, the bridge has cost over $ 18 billion to build.