This is the last Friday Up-Date for the next three weeks as even the “ED’ has to take a day or two’s leave during the year but never fear we will be back early in September to pick up where we left off. This week saw us on mill visits in the Mpumalanga Highveld and what a pleasure to be up in that part of the world once again. News from these millers is that they are finding it no different from the rest of you, just as tough. These guys have the added disadvantage in that many of them are at loggerheads with their erstwhile sawlog supplier and so are getting it from both ends (more stress!!) News from the Bargaining Council is that employers raised their offer to 7.25% and organised labour have until tomorrow 15th August to respond. It has not been an easy year for the council and so let’s hope that they reach finality by the end of this week. It has not been a happy year for us here in the sawmilling and forest industry and we mourn yet another passing of one of our good friends, Andre Martens. Andre was the husband of Elsmarie who was tragically killed in the helicopter accident just a month or two ago. Many of you, especially the older generation will remember Bailey Becker a tall tree in the independent growing sector who sadly passed away earlier this week. We send our condolences to the family’s. Let’s hope that is the last of the bad news we shall hear from the industry for the rest of this year at least. You will have received under separate heading this week an invitation to all sawmillers to attend a DPE workshop on biomass options for SAFCOL (and the broader industry). This promises to be an extremely important departure point for millers who will deal with SAFCOL in the future and for the industry in general who find guidance from this relationship so we urge you all to try and make the time to accept the invitation.  SITUATIONS VACANT This week we have an several appeals from first year “forestry” students at Saasveld who are looking for placement for their period of Experiential Training starting in April 2014. If there is anyone out there who can assist please get in touch with either SSA or Saasveld directly. Below is the condensed CV of an operational Sawmiller who is looking for employment in the industry and comes well recommended. PERSONAL Name:  Peter MaunzeD.O.B:   7.7.1970Address:  Diggersrest, PO Box 74 GV, Tzaneen 0850.Tel no: 0734118373email: pmaunze0@gmail.com QUALIFICATIONS  B Tech Wood Technology. (2006) National Dip Wood Technology. Sawdoctor certificate (1994). Board grading certificate. EMPLOYMENT & EXPERIENCE Diggersrest Timber Company as drymill production manager (2013). SHefeera Timbers as production manager (2011). Whiteriver Sawmill as drymill manager (2007). Roburnia Forest Products as sawdoctor and drymill quality control (2003). Forestry Company of Zimbabwe as sawdoctor (1995). COMPETENCES (not limited to:)  Quality control. Resource management. (workers, machines and material) set and work with the budget. control boilers, drying, grading, finger jointing, sizing, cutting tools, maintenance and despatch. good communicator up, down and liasing. Computer literate. contribute expertise on timber manufacturing activities.very responsible, punctual, mature and passionate to achieve targets. REFERENCES Tony Nienaber (Diggersrest) 0832368241 Stander (WRSM) 0137522287 Roburnia (0178459150) Frank Terrink (Shefeera) 0155160204    LOCAL AND INTERNATIONAL NEWS MONDI REPORTS STRONG PROFIT GROWTH IN SA BUSINESS International packaging and paper group Mondi has reported strong performance in its South African division, which achieved an underlying operating profit of €44-million in the six months ended June, a 52% increase on the comparable prior year period, boosted by higher domestic selling prices, good domestic containerboard volume growth and improved export margins. Mondi group CEO David Hathorn told Engineering News Online that the company had been successful in its push for export pulp and containerboard price increases to compensate for cost inflation. “On the export side, the effect of the weaker rand has also been helpful in improving export margins.” Phaswana appointed joint Mondi chair Mondi achieves 35% growth in Q1 underlying operating profit Packaging group says acquisitions lay basis for future growth The focus on cost containment in the local business continued, in particular on reducing forestry costs through increased mechanisation. “In the forestry area, we continue to mechanise to try and simplify and reduce the cost base. The Richards Bay mill is very stable and at Merebank, we are now down to a two-machine mill site, which simplifies that mill and provides us with a stable platform to work with for some time to come,” Hathorn said. However, comparison with the previous six months was distorted by a large fair value gain on the revaluation of forestry assets of €27-million recognised in the six months to the end of 2012. The comparable amount for the first half of 2013 was €10-million. In May, Mondi announced the proposed closure of one of the two newsprint machines at Merebank. The machine stopped production with effect from July 1, but the business would continue to operate the remaining 120 000 t/y newsprint machine. Further restructuring activities at Merebank, as a result of the closure of the newsprint machine, were also implemented. In total, a special item charge of €18-million was recognised. Meanwhile, from a group perspective, the positive momentum from the end of the previous year, with good sales volumes and reasonable price levels in Europe, continued into the first half of 2013. Mondi achieved a record underlying operating profit of €366-million, 21% above that of the second half of 2012 and 35% above that of the comparable prior year period. This reflected the strong operating performance and reasonable trading environment, particularly in packaging paper and the South African division, as well as the benefit of the group's strategic acquisitions completed in the latter part of the previous year. These acquisitions included Mondi Swiecie’s May 2012 purchase of the entire share capital of Saturn Management from Polish Energy Partners for €31-million in cash and the assumption of debt of €57-million. In October, Mondi acquired 99.93% of the outstanding share capital of Nordenia from Oaktree Capital Management and certain other minority shareholders for a cash consideration of €259-million. In November, the group bought two corrugated box plants in Germany and the Czech Republic, as well as a 105 000 t recycled containerboard mill in the Czech Republic from Duropack Group for €133-million. Mondi’s focus over the past six months had been on integrating and optimising the acquisitions and executing the key expansion projects initiated over the past 18 months. “The group's major expansion projects are progressing according to plan and remain within budget. Some of the synergies identified at the time of the acquisitions have already been achieved, and we remain on track to meet the previously announced synergy targets,” Hathorn said. He highlighted that the integration of Nordenia had gone particularly well, with the expected synergies having increased by 30% by the time of the year-end results, despite a soft macro environment in Europe. “We are very pleased with the acquisition, it is materially earnings enhancing,” Hathorn noted. Compared with the first half of 2012, sales volumes grew across all major paper grades. While European demand remained generally sluggish, this was compensated by market share gains. A reasonable industry supply/demand dynamic, supported by some supply side rationalisation, enabled the group to maintain or increase selling prices in most key paper grades during the period. Mondi remained strongly cash generative with cash generated from operations of €431-million. Working capital as a percentage of turnover was 13%, reflecting the normal seasonal pick-up in the first half of the year, as well as the changing business mix following the acquisition of Nordenia in the fourth quarter of 2012. Capital expenditure (capex) of €167-million represented 89% of the group's depreciation charge. Mondi reported good progress on its major strategic projects, which it said should see the rate of capex increase in the second half as planned. Net debt of €1.84-billion at June 30 decreased from €1.87-billion at the end of December, while an interim dividend of 9.55c a share, up 7% on the prior year interim dividend of 8.90c a share, was declared. OUTLOOK Mondi stated that new industry capacity in the uncoated fine paper segment, coupled with prevailing demand softness in Europe, could impact on the supply/demand balance in the short term. Further, the second half would be impacted by the group’s regular mill maintenance programmes, the impact of which was estimated to be between €50-million and €60-million on underlying operating profit when compared to the first half of the year. However, Mondi was confident that the momentum from the strong first half performance and the expected continuation of a good pricing environment in the packaging grades would enable the group to deliver results in line with expectations. “There are some big capital projects that are ongoing, our spent capex of €370-million and depreciation will be higher than usual for this year and next year. As these projects are all on track and within capital costs, we are optimistic and need to keep the focus on delivering those over the next 18 months,” Hathorn stated. THEBE BUYS 70% STAKE IN MINING SUPPLIES GROUP TRIMRITE JOHANNESBURG (miningweekly.com) – Thebe Investment Corporation has bought a 70% stake inRealite Trimrite, a supplier of timber-based support products to South Africa’s deep-level mining industry. The group acquired the stake through its subsidiary Thebe Mining Resources (TMR), which focuses on investments in the mining value-chain. Thebe stated that the previous corporate shareholders of Trimrite, namely Reatile Mining Solutions, Reindus and Standard Bank South Africa, had completely exited the business. Management owns the remaining 30% of Trimrite. TMR interim CEO Jacques de Wet said the acquisition dove-tailed with TMR’s strategy of building a black-owned mining supplies business. “Together with TMR, Timrite will seek new growth opportunities not only in South Africabut also across the continent, especially nontimber products. We are also exploring opportunities outside of Timrite’s traditional gold and platinum sectors with a focus on the coal sector,” he stated. De Wet added that demand for underground mine support products was expected to remain resilient, owing to the Department of Mineral Resources’ mining safety imperatives, which required continuous improvement in safety standards.Trimrite MD Theunis Bester said Timrite had been steadily growing its exposure to the non-timber support market and the industrial timber market and that Thebe’s commitment to expand its investment in mining and mining services would create additional growth opportunities for Timrite. “This is a fantastic opportunity for TMR,” commented Thebe executive chairperson Vusi Khanyile, adding that the acquisition reinforced TMR’s commitment to investing in businesses that were crucial to the mining value chain and building communities.x Timrite owns four sawmills in Mpumalanga where the timber is processed and supplied to its customers, mainly in the gold and platinum industries. The company supplements its own timber with long-term supply agreements with private and corporate plantation owners. CANADIAN SAWMILLS: HIGHEST LEVEL OF SALES SINCE 2007 According to the Canada's National Statistical Agency, total sales in the wood product industry were up 19.7% over the 12-month period from June 2012 to May 2013 compared with the same period one year earlier. By comparison, total manufacturing sales in Canada, excluding wood products, decreased 1.1% over the same period.Wood product manufacturing was one of only eight industries where sales increased from June 2012 to May 2013, and represented both the largest dollar gain and largest percentage gain by industry. Sales in wood product manufacturing reached $22.7 billion from June 2012 to May 2013, their highest point since 2007/2008.The rise in exports was largely attributable to growth in the US housing market. Data published by the US Census Bureau report that unadjusted housing units started in the United States reached 863,600 units from June 2012 to May 2013, up 28.9% compared with the same period a year earlier. The IPPI indicates that wood prices in sawmills and wood preservation industry have risen 10.5% over this period as a result of increased demand. TRADE CONDITIONS MAINTAIN POSITIVE TREND - INDEX Despite some month-to-month volatility, trade conditions observed by the South African Chamber of Commerce and Industry’s (Sacci’s) surveys over the last 12 months have been positive, the organisation reported on Tuesday as it published its July Trade Activity Index (TAI). The July TAI, which is calculated using Sacci’s monthly Trade Conditions survey, maintained the positive level of 55 observed in June, while the seasonally adjusted TAI recovered the one point lost between May and June to measure 57 in July. SA trade conditions may tighten during second half SA trade conditions remain positive, despite international tightening – Sacci Trade conditions contract following strong April showing The sales volumes and new orders subindices increased by three index points in July to 57 and 60 respectively, while the subindices on supplier deliveries and inventories declined by five and six index points respectively between June and July. The decline in inventories in July followed a strong build-up in May and June.Sacci noted that 66% of respondents polled in July indicated that sales prices had increased, compared to 64% in June, while rising input costs were experienced by 77% of the respondents in July as opposed to 71% in the prior month. This increased from the 66% of respondents indicating rising input prices in July 2012. Meanwhile, fuel prices, which increased by 21.7% year-on-year, and other administered prices, which increased by 7.5% year-on-year, continued to increase at rates notably higher than general inflation. “Despite some negative indicators, the survey revealed that respondents were more positive about trade prospects for the next six months than about the current situation,” Sacci said in a statement.  Both the unadjusted and seasonally adjusted trade expectations indices measured 63 in July, while respondents’ outlook for sales volumes and new orders were slightly more positive in July than in June. The pressure on input and sales prices was expected to remain high, with the subindices on price expectations at 78 and 67 respectively.     Meanwhile, employment conditions in the trade sector appeared to be stabilising, with the July level remaining at 50.  The employment prospects index declined to 52 in July from 54 in June, which further supported a stabilising employment environment. ONE FOR THE END OF THE WEEK Four married guys go golfing. At the 4th hole the following conversation takes place:  First guy: "You have no idea what I had to do to be able to come out golfing this weekend. I had to promise my wife that I'd paint every room in the house next weekend."  Second guy:"That's nothing. I had to promise my wife that I' d build her a new deck for the pool."   Third guy: "Man, you both have it easy! I had to promise my wife that I'd remodel the kitchen for her."  They continue to play the hole when they realise that the fourth guy has not said a word. So they ask : "You haven't said anything about what you had to do to be able to come golfing this weekend. What's the deal?"   Fourth guy: "I just set my alarm for 5.30 am... when it went off, I gave the wife a slap on the backside and said: "Golf course or intercourse?" She said: "Wear sun block."