Derome timber export to the US about to start
Derome is constantly looking for new options, and the company’s first delivery of timber to cross the Atlantic is about to take place. As Sweden’s biggest family-owned timber company, exporting to new markets is a natural next step.
There is good demand for high-quality timber in the US. The number of new builds there has doubled since the housing crash of 2009 and 2010, and homebuilding is expected to continue at a high level going forward. At the same time, production of sawn timber in Canada – the biggest US supplier of structural timber – has declined due to a shortage of timber on account of fires, insects and other issues.
- We are increasing production of a sawmills the whole time, and as there is plenty of demand it seems natural to focus on the US as a new market for us. We must not place all our eggs in one basket, and we have to grab opportunities when conditions change, says Gunnar Jakobsson, CEO of Derome Timber.
Kinnared sawmill first up
The first consignment is made up of timber from the Derome sawmill in Kinnared, which is one of a total of five sawmills owned by the company. The consignment is about to leave from Varberg by ship and is heading for Lake Charles, Louisiana before being transported on to customers, mainly housebuilders in Texas, Louisiana and other states.
- The warehouse at the port in Lake Charles gives us a cost-effective storage solution near to our customers in an area with a strong financial position that is seeing good growth. Our offering is also positive when compared with the competition from Canadian sawmills, reckons Carina Tollemark, member of the Export Sales team at Derome Timber.
When it comes to exporting to the US, the fact that new demands are made of the production process – due to the fact that the Americans use different lengths and dimensions to those used in Sweden – presents a challenge.
- We have been working hard to prepare over the last few months. Exporting to the US makes new demands of the entire production chain, and our staff have done a fantastic job, explains Gunnar Jakobsson, CEO of Derome Timber.
Driving force is one of Derome’s core values, and this is clearly apparent when the company chooses to establish itself on new markets. Having the desire and the courage to try new things is creating both development opportunities and security for its staff.
Gunnar Jakobsson, CEO of Derome Timber, +46 (0) 340 666575
Carina Tollemark, Export Sales at Derome Timber, +46 (0) 340 666508