Irish see forest growth opportunity
Wednesday 30 Jan 2019Irish forestry to invest €250m in major expansion - Industry to add 6,000 jobs as turnover doubles to €1.6bn
The State’s forestry industry is likely to invest around €250 million in coming years as it prepares for a period of major expansion.
A new trade body, Forest Industries Ireland (FII), predicted yesterday that supplies of timber will double up to 2035, boosting turnover to €1.6 billion from €800 million and adding 6,000 jobs to its current 12,000.
Speaking after the body’s launch, Fergal Leamy, chief executive of State forestry company, Coillte, pointed out that the sector has invested €250 million over the last three to four years.
“I would say that there will probably be the same amount again invested in the next few years,” he said, adding that it would be needed to process increased production from Irish forests.
FII predicts that production will double to 6.6 million cubic metres of wood in 2035 from 3.3 million in 2017. Coillte now supplies 51 per cent of this, while 21,000 private growers accounting for the balance.
Forests planted with the aid of incentives introduced in the 1980s and ’90s are maturing, increasing overall production.
Mark McAuley, director of FII, which is affiliated to employers’ body Ibec, explained that production is heading for a high point in coming decades, when it will level out.
According to Mr McAuley, Brexit is the main immediate challenge facing the industry as Britain is its main overseas market.
Michael Glennon, joint chief executive of Longford-based sawmill group, Glennon Brothers, explained that half the timber produced and processed here is exported, with 95 per cent of that going to Britain.
He pointed out that the industry fears the impact of delays at Irish and British ports, as timber is delivered to customers as they order it. “Logistics is the key issue for us,” Mr Glennon said.
Source: Enterprise Ireland
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