In Cameroon more than 50 sawmills have stopped production and in Gabon 22 sawmills, mostly Chinese, have ceased production. In both countries the shut downs are mainly because fuel supplies have run out and operators are unsure on how long this will last. The mill closures have meant a lot of workers have been sent home.
Part of the problem, according to local sources in Gabon, is related to the huge outstanding amounts due to energy companies in the country by the government. These companies say they have not been paid the full amount of VAT rebates for years. It is also reported that the distributors purchase fuel from the refineries at 1,000FCFA per litre but have to sell at 800FCFA as the government is subsiding fuel but has not yet arranged how it will refund the distributors.
The Gabon refinery is producing about 50% of that demanded the balance being bought in Nigeria or Togo however there is not enough supply and the electricity company and railways have priority after which gas stations are supplied and finally the industries.
Some timber operators are sending staff out at night with small containers to collect fuel for which they have to pay a premium.
A bad time to close mills
The disruption of production comes at a time when there is good demand for some species. Belgian buyers are said to be back for doussie, white doussie (Pachyloba) and padouk. The firm demand pits Belgian buyers with those for the Indian market which has been looking for sizeable volumes of doussie and padouk.
For other species demand is very quiet especially in Europe where it is holiday season but producers say interest in the redwoods and okoume for the Middle East is rising.
Transport services operating as normal
Ports in the region are said to be operating with Kribi and Dooula still reporting high stocks. Owendo Port is undergoing regular dredging but shipments are flowing out. Railways services in Gabon have been cut because of the fuel shortages and preference is being given to manganese exporters.
The post Many sawmills close in Gabon and Cameroon due fuel shortage appeared first on Global Wood Markets Info.
