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Wood recycling A transforming marketplace

Wood recycling A transforming marketplace. David Lee Group Operations Director. Hadfield & UKWR – Who are we?. 30+ years experience Agricultural background Leading UK wood recycling business Producer of leading animal bedding brands Significant tonnages to panelboard mills

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Wood recycling A transforming marketplace

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  1. Wood recyclingA transforming marketplace David Lee Group Operations Director

  2. Hadfield & UKWR – Who are we? • 30+ years experience • Agricultural background • Leading UK wood recycling business • Producer of leading animal bedding brands • Significant tonnages to panelboard mills • Leading provider of waste wood for UK WID wood biomass stations • Approaching 100 k tonnes processed pa • Export • Plus several other sustainable products • Total of 250k tonnes in 2010/11 • 3 sites main sites • Manchester, Middlesbrough, Tilbury

  3. Manchester

  4. Middlesborough

  5. Tilbury

  6. Wood waste basics Sources Applications Panel board Manufacturing Bio energy Post consumer (household collections, civic amenity sites) Commercial & Industrial Animal bedding Collection & Processing Construction & Demolition Compost & Mulches Other applications (filter material etc)

  7. Market fundamentals Supply Chain Economics Gate fee + price etc = Processing fee + Haulage + Margin Source Originator Collector Processor Consumer

  8. Supply & demand locations • Supply is based around population • Existing demand is largely northern • The south east has large generation and limited consumption

  9. Waste wood volumes • General consensus is that approx 5m tns of wood waste is generated in the UK per annum • Only 2.1m tns had a “home” in 2008. • For “landfill” read “somewhere else” Question is how much will be accessible? From slide by Poyry

  10. Where does waste wood currently go? The volumes going into the unknown end uses are large but it is almost impossible to determine how much goes where

  11. Markets - Panelboard • Pan European over capacity • Can 100% of UK industry survive? • Regional bias • Majority of capacity is in NW England, NE England and Scotland • Quality requirements • Panelboard feed stock is typically more solid wood than panel products

  12. Markets - Biomass • Existing UK WID facilities • 500k tonnes • Mainland European demand • Swedish, German and Dutch supply from UK • New UK Non WID facilities • RHI and public build schemes • New waste wood pelletising plants have been recently opened • New UK WID facilities • Huge number in planning • Feedstock only exists for approx 750k - 1m tonnes pa • then cannibalisation

  13. Markets - Animal bedding & mulches • High growth in animal bedding in mid 2000s • Lots of new entrants in 2008/09 • Demand influencers • economic conditions • seasonality • availability of alternatives (straw, shavings etc) • Pricing is determined by alternatives • rather than the wood market place

  14. Industry players An industry in flux • Traditional • Aggregators & processors • SMEs • Brokers • Small numbers • Hauliers • Several but AW Jenkinson dominant • Consumers • Panel board • Animal bedding • Limited UK biomass • Today • Aggregators & processors • LWMC and SMEs • Brokers • New entrants from UK & Europe • Hauliers • Expansion of both number and scale • Consumers • Panel board • Animal bedding declining • Export biomass growth • UK biomass stable • Rapid growth in 2012

  15. Wood waste in the NE of England • Significant demand for material • Sembcorp Wilton • Eon Lockerbie • Egger Hewham • Dalkia Chilton • RWE Markinch? • Impact on gate fees as demand comes on line?

  16. A sellers market - key decision criteria • Duty of care • Recycling vs recovery • Costs (gate fees and haulage costs)

  17. Questions? David Lee Group Operations Director Hadfield Wood Recyclers UK Wood Recycling Ltd Mobile - 07973 633829Office - 0161 3702360 Email - david.lee@hadfield.co.uk     www.hadfield.co.uk www.ukwoodrecycling.co.uk

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