europe

Binderholz’s mega takeover

Article by Eva Guzely | 12.10.2021 - 11:47
Binder_Reinhard.jpg

Reinhard Binder © Binderholz

“It was a once-in-a-decade opportunity,” Reinhard Binder, owner and managing director of Binderholz, said in an exclusive interview with Holzkurier about the planned takeover of BSW Timber, the biggest timber industry in the United Kingdom.

If the takeover gets the go ahead from the competition authorities, the result will be the creation of Europe’s biggest sawmill group. Sales amount to €2.2 billion a year (2021). Binderholz expects sales to total €1.5 billion this year, while BSW is likely to record a turnover of €800 million.

According to Binder, several factors were decisive for the takeover: “Great Britain is the biggest import market in Europe with an annual demand of 12 million m³, of which only one quarter is produced in the country. It’s also a market with strong growth and great potential. The concept of a green economy is a much bigger part of life in the UK than it is in Central Europe.” Furthermore, the seller was looking for someone who wants to continue operating the entire company and has experience with CLT. There were talks with other Austrian companies as well. Eventually, though, Binderholz was chosen because the company presented a coherent business plan which involves the continued operation and expansion of BSW Timber. Also, the Tyrolean company has the necessary financial resources.

High added value already

“BSW is already a highly integrated business, especially when it comes to solutions for the DIY market. The company produces large quantities of pressure-impregnated products and profiled boards. However, there is no CLT at all, which is why the establishment of a CLT production is our top priority,” Binder explained. The goal is to produce CLT in Great Britain using the company’s own lumber.

UK management to stay

Contrary to the acquisition of the two Klausner sawmills in the US, there is no need to put a management team together in the UK. “BSW is very well positioned and has an excellent management team. The key players have already agreed to a long-term cooperation.”

Production takes place at all production sites “on the domestic market”. Among other things, a big Linck line, a Hewsaw line and various band saw lines are in operation. Furthermore, a Linck band saw line is in use at the sawmill in Latvia. The latter convinces with the excellent quality of the raw material.

Sawmill in Slovenia still on hold

In Central Europe, BSW Timber is known for its sawmill project in Slovenia, where the company has already purchased land and entered into a preliminary contract with the state forests. “This project is being thoroughly evaluated,” Binder told Holzkurier.

Sitka spruce as well as Douglas fir, larch and pine are the main raw materials which are available. BSW Timber’s own nursery produces 50 million seedlings a year. The forests are managed by the company’s harvest team. “We are responsible for the entire forest management,” Binder added. The Sitka spruce has a rotation of around 45 years. Although it is coarser than the Central European spruce, it has neither resin pockets nor pressure defects and practically no dead knots.

Pressure-impregnated lumber and all types of planed timber for the DIY market are the main products, also because of the Sitka spruce which is well suited for impregnation.

Expansion of the pellet segment possible

The United Kingdom is also one of the biggest importers of wood pellets. For Binder, this does not currently have priority. In the medium term, however, he plans to take steps for further growth in this segment.

The new king of cutting

With the planned takeover of Britain’s biggest timber company BSW Timber, Binderholz dropped another bombshell this week.

With a production output of 1.23 million m³ of lumber, BSW is currently in 19th place of Holzkurier’s ranking of Europe’s biggest softwood lumber producers.

In this ranking, Binderholz is still in second place and well behind Stora Enso.

After the takeover of “Klausner Lumber Two” last December, Reinhard Binder put the capacity of all of his sawmills at 5.2 million m³. Including the eight production sites in Great Britain (7) and Latvia (1), output would total 6.4 million m³ of lumber a year in the future.

In summer, Holzkurier estimated Binderholz’s planned lumber production to amount to 3.6 million m³ in 2021. Including BSW Timber’s output, this would bring the total to 4.8 million m³ this year and thus to a level which is similar to that of Stora Enso. Once the US production sites are fully up and running, the Tyrolean company will clearly outperform the Nordic group in terms of lumber production.

Europe’s Top 10 softwood lumber producers after the Binderholz-BSW deal
in 1,000 m³
  Company Headquarters Sawmills Target 2021
1 Binderholz + BSW* AT 17 4,830
1 Stora Enso  FI 18 4,880
3 Vida Wood  SE 12 2,500
4 HS Timber Group  AT 4 (5) 2,200
5 Pfeifer Holz  AT 5 2,200
6 SCA Timber SE 5 2,150
7 Rettenmeier Holzindustrie  DE 5 2,120
8 Moelven Group  NO 15 2,110
9 Mayr-Melnhof Holz  AT 3 2,050
10 Södra Timber  SE 7 2,000