DIVERUS establishes German division: paving the way for future growth and new timber trading destinations

DIVERUS responds to market fluctuations by establishing a German division and exploring new timber trading destinations

VILNIUS, LITHUANIA, July 13, 2023/EINPresswire.com/ — Lithuania-based timber export and import company DIVERUS, operating in Europe, had strengthened its position in Germany by setting up a separate division headed by an experienced specialist in the field Olaf Klinkert, Country Manager at DIVERUS GmbH. In response to market fluctuations, the company intends to add new trading destinations around Europe, having previously exported mainly to Asia.

Founded in 2004, DIVERUS has been one of the leading round timber trading companies in the German market since 2019, in areas severely affected by bark beetles in North Rhine-Westphalia, Lower Saxony, Saxony-Anhalt, Hessen, and Thuringia. Lithuanian company has exported its largest volumes of round timber from these regions to Asia, mostly China.

Since, both global and European wood industries, now facing imbalance, were affected by the pandemic at first and then Russia’s war against Ukraine, DIVERUS’ expansion into the German market is a testament to its determination and resilience.

Although this year the German market appears to be shrinking, the major players in Germany are still maintaining relatively high log prices. In China, meanwhile, prices have fallen significantly in the last six months. Donatas Jucius, Founder of DIVERUS, comments: “The latest data indicates a sharp drop in timber demand within the Chinese construction sector over the past ten weeks (April-May 2023). The Chinese themselves have not seen such a volatile situation in the construction sector for eight years.”

Meanwhile, in Germany, there is a shortage of round timber in the second quarter of 2023, as most of the spruce forests in the most affected areas have been cut down in the last few years. In 2022, a total of 78.7 million cubic metres of timber was logged in German forests, according to the Federal Statistical Office (Destatis). Trees damaged by insects, wind, snow and other causes accounted for 44.7 million cubic metres.

Bark beetle infestations have already been observed in other countries such as Italy and Austria. According to Tomas Jucius, Round Timber Partner at DIVERUS, Western European countries affected by the bark beetles will make a major effort to get the damaged wood as far away from the forest as possible, therefore a fall in round timber prices is to be expected, as the market is likely to see a surplus of logs.

“Germany is exposed to far-reaching economic uncertainty. The collapsing construction industry and the end of the recently recorded special boom in the wood sector are currently unsettling the forest and wood industry. At least in the summer holiday season, this will continue or even increase further. It will then be interesting to look at the development in autumn”, says Olaf Klinkert, Country Manager at DIVERUS GmbH.

Having branches in Poland, Estonia, Ukraine and now in Germany DIVERUS generates annual sales of 0.5 million cbm of timber production and a turnover of €79.2 million in 2022 (2021: €86.2 million; 2020: €63.7 million).

DIVERUS in Germany is looking for long-term partnerships. This is reflected in the establishment of a German division as well as the development of a strong vision for the future. “Given our experience in the German market, we are resolute in our mission to enhance forest owners’ interests by establishing our own fleet of logging trucks and starting to buy steep forest from private forest owners, organising the cutting down of trees, and being able to deliver the timber to our customers by our own transports in the future”, says Tomas Jucius. The company also has plans to strengthen timber trading relations between Western Europe and Scandinavia.

Donatas Jucius
DIVERUS
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DIVERUS positioning – ENERGETIC. ATTENTIVE. CARING.