Hello,
After 60 years of building Britain's timber dreams, Kingspan Timber Solutions will shut its doors December 19. The company that built the UK's first net-zero show home and supplied Center Parcs' £250 million Woburn Forest can't make the numbers work anymore. One profitable year in the last five tells the whole story.
While Britain loses critical timber frame capacity just as it targets 300,000 new homes annually, Europe's sawmill sector is consolidating at breakneck pace—€400 million in acquisitions creating continental giants (covered in EFP #2). Meanwhile, Ireland issued 1,693 forestry licenses this year, and specialized forestry firms are snapping up niche operators.
The industry's great restructuring accelerates… So here's what's moving European forestry this week:
🔍 The Big Story
Kingspan's Exit Exposes UK Timber's Structural Crisis
Kingspan Timber Solutions' closure announcement reads like a forestry obituary. Revenue collapsed from £19.9 million to £13.1 million in a single year. Staff cut from 90 to 66. Pre-tax losses mounting. The only profitable year since 2019 was 2021—the pandemic construction boom that now feels like ancient history.
This isn't just another factory closure. Kingspan Timber Solutions includes the historic Potton brand, acquired in 2006, which built the UK's first net-zero carbon show home (Potton Lighthouse, 2007). They manufactured 625 lodges for Center Parcs' Woburn Forest—a £250 million project. Industry insiders called them the "gold standard" of UK timber construction.
The timing couldn't be worse. The UK government targets 300,000 annual housing builds while simultaneously losing one of its most capable timber frame manufacturers. Kingspan's parent company clearly sees no path to profitability—they're not selling the business, they're closing it entirely. Final operations cease December 19, 2025.
The closure eliminates significant UK timber frame capacity precisely when sustainable construction demands are highest. Every environmental pledge about timber buildings means nothing without manufacturers to build them. Kingspan's sophisticated production lines, decades of expertise, and established supply chains will vanish in 102 days.
What this means for you: UK timber frame capacity just got scarcer and more expensive. Continental manufacturers will fill the gap—at premium prices. If you supply UK construction, prepare for consolidation opportunities. Source: Timber Trades Journal - Kingspan closure
📊 Quick Hits
1. 📉 Södra Cuts Pulpwood Prices as Nordic Markets Soften
Swedish forest cooperative Södra announced price cuts for softwood/hardwood pulpwood, fuelwood, and forest residues starting September 3-5, reversing August 2024 increases when demand was stronger. The cuts follow similar moves by Mellanskog cooperative and reflect broader Nordic market oversupply. With pulp mills running below capacity and energy wood demand weak, forest owners face the first significant price pressure in 18 months.
The takeaway: Nordic price leadership signals European-wide softening ahead. Source: Global Wood Markets
2. 🌲 Ireland Issues 1,693 Forestry Licenses in 2025
Ireland's Department of Agriculture has issued 309 afforestation licenses covering 2,234 hectares, 742 private felling licenses, 221 Coillte felling licenses, and 421 forestry road licenses (154km) so far this year. After years of licensing backlogs that crippled the sector, the acceleration signals regulatory normalization. Afforestation finally has a pulse again.
The takeaway: Ireland's forestry sector bottleneck is clearing—investment opportunities opening. Source: Agriland.ie
3. 🏔️ Tilhill Buys Steep Terrain Specialist Duffy Skylining
UK forestry giant Tilhill (BSW Group subsidiary) acquired Inverness-based Duffy Skylining on August 31, gaining 12 specialized machines including skylines, three skilled crews, and critical steep terrain expertise for Scotland's west coast operations. Founded in 2018, Duffy developed unique capabilities for harvesting Scotland's most challenging forests. The acquisition signals consolidation even in specialized niches.
The takeaway: Specialized forestry skills command premium valuations. Source: Tilhill Forestry
4. 🦋 Coillte Expands Nature Priority to 134,000 Hectares
Ireland's semi-state forestry company Coillte increased biodiversity-prioritized land from 20% to 30% of its 440,000-hectare estate—an additional 44,000 hectares now managed primarily for nature. This isn't greenwashing; it's removing these forests from intensive production. The shift reflects new EU biodiversity requirements and carbon credit opportunities that make conservation profitable.
The takeaway: Production forestry losing ground to conservation economics. Source: Agriland.ie
5. 🚢 European Lumber Hijacks Canadian Market Share in US
Quebec Forest Industry Council is crying foul as European softwood lumber exports to the US jumped significantly in H1 2025. The catalyst? Anti-dumping duties on Canadian lumber created a price umbrella that European producers are exploiting brilliantly. While Canadians pay penalties averaging 14.54%, Baltic and Central European mills ship duty-free, capturing premium margins in the world's largest lumber market. It's arbitrage at its finest—and completely legal.
The takeaway: US market access just became Europe's most valuable trade advantage. Source: Fordaq
The Weeks Ahead 📅
September 13: ForestryBrief Professional - Forest Carbon Market Deep Dive Part 1
September 17: DigiMedFor live demonstration in Luxembourg's Ellergronn forest
September 24-25: Forest Europe Expert Level Meeting, Stockholm
💡 One Thing to Try This Week
Map your exposure to UK timber frame markets. With Kingspan gone and 300,000 homes targeted annually, the supply gap creates either risk or opportunity. Continental manufacturers with spare capacity could capture premium margins. UK timber suppliers face customer concentration risk. Position accordingly.
Until Tuesday (or tomorrow for Professional subscribers)!
Wish you all the best: Peter
P.S. While traditional timber businesses close doors, forest carbon markets prepare to open the vault. Tomorrow's Professional issue reveals why European forest owners capture only 20% of carbon credit value—and how to flip that equation. Our Carbon Readiness Calculator alone justifies your subscription.
P. P. S. Know a forest professional who’s drowning in EUDR complexity or missing out on timber market shifts? Share FB with them through the referral program below and get a gift after you refer 10 new subscribers!
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