Analysis
Forestry, a modernized sector
The high level of productivity of forestry in Limousin and the consequences for the industry of the storm in 1999 generated intense development activity in the wood industry, in particular at the level of logging (forestry operations) and initial processing (sawmills).
Having started well before 1999, forestry company modernization, in relation to mechanization and logistics using felling machinery and haulage vehicles, was given a boost by the need to adapt to deal with the large number of trees brought down by the storm and to exploit them as quickly as possible. In addition, the physical context, topography and categories of products to be dealt with, lent itself favourably to these changes.
Today the Limousin region appears to be one of the most modern in France in terms of mechanized forestry, that is more than 80% for softwood and in the region of 20% for hardwood. There are more than 80 combined high-tech machines being used in the region.
The sawmill sector is
experiencing two-speed
development
In the case of hardwood, the average quality of the wood and an unfortunate combination of circumstances over a period of several years, has not supported the development of companies, which, despite an abundance of wood brought down by the storm, have not increased their business activity, nor have they, with rare exceptions, modernized their production machinery.
In the case of softwood, on the other hand, the quality of the product (Douglas fir in particular), the large volumes available, a significant increase in the amount of wood felled and a favourable combination of circumstances has generated major development of companies, whose total production has more than tripled in twenty years (105,000 m3 in 1981, 362,000 in 2003). Furthermore, we are seeing a significant concentration of activity into large units, some of which are reaching the size of large national companies and are starting to have a strong impact, above all sawmills processing Douglas fir, outside the region.
Paper and panel production
is directly linked to the local
resource
International Paper’s factory in Saillat-sur-Vienne, is the group’s main production unit in France. It consumes about 1.6 million tonnes of wood in the form or logs or related sawmill products. Supplying it is by and large beyond regional limits. By the nature of wood and wood derivatives used, International Paper plays a considerable roll in the local wood industry. It is finding significant difficulty in acquiring supplies of raw materials due to the great fragmentation of private forestry. Manufacturers of pulp and panels worry about competition generated by a strong increase in the consumption of biomass in energy production. This competition may upset the operating conditions of production units and lead to a significant fall in their competitiveness. This situation should improve as an economic woodenergy industry is set up, which, upstream will optimize conditions of acquiring smallwood and forestry residues.
The panel sector, the second field directly linked to the local resource, is represented by two units currently employing more than 350 staff in Ussel: Polyrey, belonging to the International Paper group, and Isoroy, belonging to the Portuguese Sonae Industria group.
Integrated into international groups, these units are subject to fierce competition both outside and inside their own group. Their future depends on their capacity to constantly improve their profitability. It is directly linked to strategies defined by the shareholders. Thus, as the group has demonstrated its desire to focus on its core activities, International Paper is restructuring its Polyrey subsidiary and is looking for a buyer for this business. In the case of Isoroy, the introduction of a product commanding greater added value will enable the Ussel concern to find new room for progress.
Energy-wood, the beginnings
of development
The use of biomass for the purpose of energy production is in the process of being developed in Limousin. It is expressed in particular by projects to meet the industrial needs of such companies as International Paper, and collective heating projects, which are being created in a relatively sustained fashion. To date, there are about fifteen projects or collective heating installations, generally with a heating network, more than half of these installations being in the departement of Creuse. Furthermore, four projects for large heating installations for collective or industrial use have been selected in the context of a call for national projects.
Secondary
transformation,
to make the most
of a local resource
This sector includes sixty companies employing about 3,000 staff. To this industrial sector should be added a fabric of small-scale producers numbering about 650 companies employing about 1,000 staff.
Secondary transformation of wood in Limousin comprises two main sections: primary and secondary joinery and the manufacture of solid wood furniture, or more commonly, from panels, not connected with the local resource:
The manufacture of woodwork and timber frame houses is mainly based today on Northern Woods or exotic species. However, some companies are developing products using Douglas fir, in particular; this is the situation for Cosylva for example, a company in Creuse specializing in gluedlaminated timber, which is working to make use of local resources in collaboration with sawmills in the region.
On the other hand, in the secondary joinery field, local wood has not yet succeeded in winning a place in the market in competition with exotic varieties. This business is also suffering from competition with other materials, in particular PVC, aluminium and composite materials.
A desire to structure
the industry
Encouraging partnerships within the wood industry is an element that is favourable to the development of economic activity. With this objective in mind, the professionals have started to organize themselves within the “Association du pôle interrégional Massif Central Bois (APIB)”, or the Massif Central Wood inter-regional centre Association. The purpose is to promote networking among companies, to support their efforts at innovation and provide them with shared services in order to better adapt to changing market conditions.
This task will be based on the wood centre head office which is due to open in 2006 in Tulle.