Tag "wood processing company"

29/11/2012 /  Annual meeting dedicated to trade in round timber takes place at Directorate General of State Forests

The annual meeting dedicated to the issues of trade in round timber was held at the Directorate General of State Forests on 21 November 2012. The meeting was attended by representatives of the Ministry of the Environment of the Republic of Lithuania, regional coordinators of the Panel of the Directorate General of State Forests, and representatives of timber processing companies and associations.

Gintaras Visalga, deputy director of the Directorate General of State Forests, presented an overview of the situation with trade in round timber in 2012 and the prospects for 2013.

At the meeting, the participants discussed amendments to the rules for trading in round timber, the Round Timber Electronic Trading System (AMEPS), and other important issues. Juozupas Zimnickas, director general of UAB Juodeliai, presented the development and prospects of the wood processing company.

The discussion concerning trade in round timber involved discussions and decisions on the following key issues:

  • Regarding initial price. A new procedure will come into effect on 1 January 2013. According to this new procedure, a buyer of round timber will be entitled to propose a price 10 per cent lower than the initial price proposed.
  • It was decided to introduce amendments concerning the guarantee payment. From now on, it will be sufficient to pay the guarantee payment at any one forest district of the country to participate in tenders concerning round timber in all forest districts of Lithuania.
  • Concerning the state forest reserve. The state holds a 12 per cent forest reserve. Wood processing companies proposed transferring the said share of forests to the state and to forest districts so that economic activities can be carried out there. This would be beneficial for the timber industry because these forests are rich in biofuel reserves.
  • Concerning priorities for local processing companies. It was decided that, as soon as the new political situation in the country becomes clearer, efforts would be made to ensure the creation of more favourable conditions for local wood processing companies to purchase timber.

16/11/2012 /  Modernisation of trade in round timber promotes a more transparent and competitive Lithuanian timber market

For nearly half a year now, wholesale trade of round timber produced in state forests has been carried out via the Round Timber Electronic Trading System (AMEPS). The first operations were started via the AMEPS in June of this year, when the first electronic auction for long-term (ten years) and short-term (half a year) contracts for the purchase and sale of timber was launched. At that time, 520 buyers bought timber from all 42 forest districts of the country for nearly LTL 170 million. Auctions of this type for the purchase of round timber are to be held every half a year, which means that the next auction will take place very soon—in December of this year.

Auctions involving short-term contracts for the purchase of timber take place on a daily basis. This year, approximately 800 auctions of this type have been held via the AMEPS. When submitting their electronic applications, the buyers do not know their competitors, which means that there is virtually no chance of any unlawful agreements or price reductions. Furthermore, every auction participant can see who has won and why.

‘The purchase of timber is now simpler and more transparent’, Juozupas Zimnickas, head of the Wood Processors’ Association, said in praise of the AMEPS. According to Mr Zimnickas, that several hundred buyers participate in Lithuanian round timber auctions is perfect evidence that market laws operate in the country, and all wood companies of all sizes can compete in equal conditions. It should be mentioned, however, that this procedure when the interests of not only large but also of medium-sized and small entrepreneurs are considered is not welcomed by some of Lithuania’s large wood processing companies. The AMEPS has been criticised by the latter.

It can be stated that the procedure for the purchase of timber from the state sector is improving and creating a real competitive environment in the Lithuanian timber sector, which ensures maximum benefits for the state both in the long and short run.

Based on an article by Pranas Satkus, Lietuvos Žinios, 9 November 2012.

20/09/2012 /  Belgian, Swedish and Polish wood processing companies visit

Last week UAB Juodeliai was visited by a joint delegation of representatives of Belgian, Swedish and Polish wood processing companies. The guests represented some of the largest producers/suppliers of pallet wood and pallet parts in their respective countries. The purpose of the visit was to see the wood processing facilities and production installations of UAB Juodeliai, check the quality of the company’s produce, and discuss cooperation opportunities.

Members of the delegation visited the Jūrė production facility, where they watched the production process starting from sorting of logs and ending with packing and warehousing of finished products. The guests appreciated the high quality of the pallet wood. Cooperation issues were discussed and the first orders were signed afterwards. Sweden became a new market with which cooperation was started this year.

The main export market for the company’s pallet wood remains Germany, where up to 59% of the company’s products are sold. This market is followed by Belgium with 10%, Holland with 9%, Poland with 8%, and other countries with 7%.

27/07/2012 /  Representatives of the wood processing company Juodeliai attend the forum ‘Training of young employees aimed at raising the competitiveness of business companies’

The forum ‘Training of young employees aimed at raising the competitiveness of business companies’ for companies and students/schoolchildren was held on 24 July at the Europa Royale Marijampolė hotel. The purpose of this social initiative was to familiarise young people with companies operating in the region and with the activities of these companies. In this way, business companies of the region are involved in providing professional information to youth, while schoolchildren and students have an opportunity to learn more about the labour market.

During the event, UAB Juodeliai, producer of pallet wood, was mentioned together with other well-known companies of the Marijampolė region such as UAB ARVI and UAB MANTINGA. These companies provide the greatest contribution to the reduction of unemployment among the population of Marijampolė town and county, and to the successful professional growth, attraction of investments, and development of the region.

The close contacts of UAB Juodeliai with the academic community, participation of the company in socially responsible business initiatives, and direct communication with potential employees bear fruit. After the company’s participation in the KTU Career Days 2012 event, a promising young employee joined the company. The managers of UAB Juodeliai confirmed that the company would continue to participate in socially responsible business events.

16/05/2012 /  Chancellor of the Ministry of the Environment of the Republic of Lithuania and the Deputy Forester General Visit UAB Juodeliai

On 9 May, Robertas Klovas, chancellor of the Ministry of the Environment of the Republic of Lithuania, and Gintaras Visalga, deputy forester general, visited the wood processing company Juodeliai. The aim of the visit was not only to visit the wood processing company, but also to meet board members and the Wood Processors Association and discuss the most urgent issues.

Together with Andrius Zimnickas, director of UAB Juodeliai, and Juozupas Zimnickas, director general of UAB Juodeliai, Mr Klovas and Mr Visalga visited a manufacturing unit of the company located in the village of Jūrė. The chancellor of the Ministry of the Environment was showed around the storage area for logs and production facilities by the managers and was able to inspect the working conditions of employees. Mr Klovas was interested in the annual output of logs processed by UAB Juodeliai and sourcing of raw materials. The guests were pleased to hear that the vast majority of timber is sourced from Lithuanian state-owned forests.

After visiting the manufacturing unit of the company, guests and managers of the company continued their meeting at the head office of UAB Juodeliai in Marijampolė. The discussion was also joined by A. Kavaliauskas and S. Astrauskas, representatives of the Wood Processors Association. The discussion focused on the new electronic wood trading procedure. The most urgent issue was the problem of ascending price long-term and half-year auctions. The managers of UAB Juodeliai and representatives of the Wood Processors Association suggested carrying out auctions not by open ascending price auction, but by sealed first-price auction.

During the meeting, problems related to biofuel were also discussed. Mr Klovas promised that the Ministry of the Environment would attempt to prevent timber suitable for processing being used for firewood. Assurances were also given to support only biofuel boiler units suitable for burning not only firewood, but also waste and straw.

The meeting was useful for all parties. In order to progress in the field of wood processing, further cooperation is expected in the future among the representatives of the government, producers, and associations.