I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E. Issue English. Close to customers business

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1 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Issue English Close to customers business E U R O P E A N F O C U S I N V I S I B L E WATC H D O G F U T U R E H A R V E S T I N G

2 2 3 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Changing climate, changing forest management Violent changes in weather change also demands on harvesting. page 18 Zero room for error Brothers McGee in Georgia, USA, needed a machine they could rely on. page 20 Paula Myöhänen Hannu Tuorila Invisible watchdog TimberLink a system automatically monitoring the forest machines smoothless function gives contractors a peace of mind during a break at the fire while productivity stays up. page 10 Balanced timber harvesting When forest machines stay balanced in any terrain, productivity boosts. page 24

3 Editorial In the European market Intrac sells trust Invisible watchdog Lower emissions, higher performance G-III Skidders received Tier III Certification TimberRite optimizes the value of timber Changing climate, changing forest management Balanced timber harvesting Zero room for error German Nuhn & Co GmbH: It s all about quality Dealer Conference When going gets tough... Brazil setting sights on growth In forest with simulators European retail companies new direction Mika Kallio battles for the MotoGP World Championship Dmitri Shmelyov the new area manager of Siberia and Far East Russia Trade fairs and exhibitions in 2006 Opportunities & challenges in the Russian forestry market Russia is an immense country in many senses. This also applies to its forest resources, which is estimated to be one fifth of the world total. At the moment, only a fraction of the annual growth of one billion cubic meters is harvested. We have estimated that two or three times higher volumes can be achieved, providing that investments in the forest industry, infrastructure and, consequently, in harvesting equipment, is increased substantially. Currently, 85% of harvesting is done by the full-tree method, with a high level of manual work involved. However, new investments tend to focus increasingly on cut-to-length equipment. In addition to the technology shift, the market structure seems to be changing. Company acquisitions and arrangements between large forest industry companies and smaller harvesting companies are common. John Deere has been an integral part of the Russian harvesting equipment business for more than 30 years and is a definite market leader. Over the years there have also been difficult times and conditions, but operations have continued without a break. The strong commitment to the Russian forestry industry is one of the reasons for our strong foothold in the market. The local production of full-tree equipment is decreasing rapidly. New investment focuses mainly on foreign machines. John Deere can offer technology, products and service for both harvesting technologies. Supporting Russian forestry business and professionals is still a challenge. The immense distances and insufficient road network can create logistical challenges. The easy and fast availability of spare parts and service is one of the key issues for customers productivity. We are investing heavily in the network of service points. There are nine John Deere service points in different parts of the country at the moment from Petroskoi in the west to Habarovski in the east. And there are plans under way to add even more in important and growing areas. The feedback from customers has been encouraging. Studio Amanda Hannu Hietikko General Manager in Europe and Russia John Deere Forestry IN THE FOREST is a copyright magazine published two times a year in English, French, German, Portugese, Russian and Spanish. The magazine circulation is about 45,000. The opinions expressed by the authors or persons interviewed do not necessarily reflect the views of John Deere. Material may be reprinted with permission by contacting ISSN PUBLISHER John Deere Forestry Group th Ave. Moline, Illinois FREE SUBSCRIPTION AND ADDRESS CHANGES See Continental Divisions on page 31. EDITOR-IN-CHIEF Timo Salomaa CONTRIBUTORS We would like to thank everyone who has contributed to the magazine EDITORS Compositor Oy LAY-OUT Typeworks Oy Ltd PRINTING Libris, Helsinki, Finland COVER PHOTO Jyrki Vesa

4 4 5 INTERNATIONAL FORESTRY MAGAZINE Europe CUSTOMERS don t want forest (just) machines anymore The European market for forest machines is challenging and changing. The customers don t want to buy just forest machines anymore. They want to buy harvesting capacity, productivity and profitability. J ohn Deere s forest machines have two stable legs to stand on in the European market. The first is Deere s 50-year presence and solid reputation in the European agricultural markets and the second the company s expertise and edge in forest machines based on Timberjack s excellent track record in the field for decades. Since 2000 when the two companies merged, the competition in the European market has constantly intensified. The traditional markets, such as Scandinavia and Germany, are quite saturated and business there involves mainly equipment renewal and service sales. In France, there is some room for further mechanization, says Mr. Timo Kyttälä, Marketing Director for Europe and Russia. In contrast, Poland and many EasternEuropean countries such as Romania, Slovakia and Croatia have a very low level of mechanization automation, offering strong possibilities of introducing new efficiency into harvesting. The vast and promising market in Russia is familiar to John Deere, with operations dating back 30 years. We are working very seriously in Russia and due to our good personal relations in the industry, we have good potential to develop the industry further. Uncompromised demand for productivity and uptime However, common to all the different countries within the European market is the need for increased efficiency. In practise this means advanced technol- ogy, quality, customer service and commitment to the customers business success. John Deere has the best offering in harvesting technologies machines, automation and service for both the cut-to-length and full-tree technology. To serve the versatile and vast European market well, it is important that we can offer the best solution for different harvesting needs, says Kyttälä. The well-proven track record with customer solutions are now even better with John Deere s strong investment in technology, quality and genuine customer service. Shouldering responsibility for customers success Competition in the European market is intense. Nevertheless, John Deere is the clear market leader. However, although the latest technology and high-quality machines are important, that is not enough on a mature market. What really counts is understanding the customers business and commitment to providing good service at any time, Kyttälä points out. Another important issue is good relations with the customer. This business is based on trust and the importance of personal relations. Unlike the other John Deere businesses, most of the forestry customers are small, family-owned businesses for whom the forest machine either makes or breaks the business. Today our customers don t buy just a machine from us, they purchase harvesting T O T H E N E X T PA G E

5 The European forest resources from a satellite view. (Compilation of a calibrated European forest map derived from NOAA-AVHRR data. European Forest Institute. EFI Internal Report. Schuck, A., Van Brusselen, J., Päivinen, R., Häme, T., Kennedy, P.and Folving, S )

6 6 7 I NTERNAT I O N A L F O R ES T R Y M A G A Z I N E Today our customers don t buy just a machine from us but harvesting capacity. Timo Kyttälä Juha Poutanen Marketing Director for Europe and Russia F R O M T H E P R E V I O U S PA G E capacity. To ensure constant productivity, the customer expects full support for his business. This is main focus for our network of own companies and dealers throughout Europe, relates Kyttälä. Focus on quality, customer service and future services One important area to meet these tough needs is quality ranging from product development through production to daily operations. It is important that once the customer gets the machine, it is working flawlessly and is productive from day one. There is extensive planning and testing carried out based on the customers specifications before the machine is delivered, says Kyttälä. John Deere is also expanding its network of service and spare parts centers to increase both coverage and ease of business for customers. Our service centers will offer the same level of service to all our customers throughout Europe. A benchmark for this is the new customer center being built in Joensuu, Finland. And finding new ways to serve customers is ongoing. One example of the future focus is on automation and solutions that help the customers even in remote areas. We are creating services that allow us to diagnose, monitor and even repair our customers machines remotely. This is increasingly important, since some of our markets have enormous distances to harvesting sites. For example, in Russia today, a serviceman can travel 12 hours by train, because there are not always roads, to do just a small repair job! On the whole, growth is not forecast in the European market. But John Deere has clear plans to support the different customer groups business throughout Europe both in mature and growing areas. The needs and services vary, but we intend to always stay a step ahead of customer expectations and provide the right products and services to support and grow their business, concludes Timo Kyttälä. Swedish super service Innovation, quality, commitment and integrity have guided John Deere since 1837 and are still valid values to the company. Being close to the customer, John Deere Forestry AB, the Swedish sales and service organization knows that providing prompt and professional service along with high spare parts availability is what really counts. It gives our customers an advantage over their competitors, states Håkan Petersson, After Market Manager in Märsta, Sweden. John Deere s sales and service organization in Sweden employs almost 250 people who work in 32 service outlets. Their 124 service men are backed up by 13 engineers and product specialists who have the latest technical information and are thus able to keep everybody up to date. We have increased the number of service outlets by four this year in an effort to improve service even further, says Petersson. Next we will launch Forestry+. It contains everything that gives our customers extra value: machine software that adds productivity, improved SAFE and SAFE Plus service programs, Performance Plus parts program, and even spare parts availability and delivery guarantee. Forestry+ is something totally new in the forestry business we are leading the way. Our philosophy is and has always been to be a partner to our customers; we are helping them to succeed rather than just delivering machines. Top training in Czech Cut-to-length harvesting is a fairly new method in Eastern European countries, such as the Czech and Slovak Republics. This has provided contractors opportunities to boost their business and income. The operators are migrating between the contractors to get better salary however, the operators are paid substantially more than the average salary here. The challenge is that the skills required are still developing and the level of salaries needs to be balanced from the contractors view, says Vlastimil Zeman, Managing Director of Merimex s.r.o. Established in 1994, the company has been the John Deere Forestry dealer in the area since Merimex decided to invest in a brand new training center equipped with John Deere harvester and forwarder simulators to fulfill the need for operator training for the cut-to-length method. There is also a classroom with modern audiovisual tools and computers with simulators of operating and measuring systems for John Deere machines. We are expecting to increase the satisfaction of our customers through more qualified operators in our area. Training is carried out by our experienced personnel in cooperation with the Mendel University of Agriculture and Forestry in the city of Brno and the Swedish Skogstekniska Maskinskola in Alfta. Courses focus on the safety, working methods, machine software, minor repairs and other skills. We start with the theory, proceed through the use of simulators to real machines in the forest under the supervision of trained operators, relates Zeman.

7 Jyrki Vesa Intrac s Jaan Maasikas (left), Teet Suursild and Tauri Kakko work for the customer s benefit. Intrac s aim is for the mechanics to specialize in different areas, Intrac sells TRUST TEXT: Auli Packalen/ Compositor Maintenance and spare parts services are a big part of the productivity of timber harvesting in Estonia, Latvia and Lithuania. Intrac, John Deere s dealer in the Baltic countries, has strongly expanded its network and diversified its service portfolio. I deally, of course, forest machines wouldn t encounter any unscheduled downtime. All maintenance would be scheduled well in advance and a sufficient number of wear parts would be kept on hand. But the fact is that no matter how high quality and reliable the machine, Murphy s Law eventually comes into play: Chains wear out, a hidden rock ruins the day and damages the crane Humans are the ones that operate the machines, and on a bad day accidents can hap- pen to even the best operators. These days the productivity expected from logging is so high that downtime has an immediate impact on the operating costs and the profitability of companies. Repairs must be available quickly and spare parts must be at the site preferably at a blink of an eye. Customers expectations are the same regardless of which part of the world timber is being harvested. In the Baltic countries, the availability of maintenance and service parts services is a priority because many companies work three shifts, even on weekends. Contractors want to maximize their machine investments. Intrac Group AB, the John Deere dealer for Estonia, Latvia and Lithuania, has stepped up to the challenge and invested a lot in recent years in maintenance and spare parts services in the region. We sell more than just machines, we also sell trust and support. We do the utmost to solve a customer s problems, Marketing Manager Fredrik Brandhorst sums up Intrac s business philosophy. He believes that fast and reliable services have helped make John Deere the clear market leader in the Baltic countries. Just a decade ago, the green forest machines were the underdog. T O T H E N E X T PA G E

8 8 9 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Dealer Excellence Award 2005 for Intrac Group John Deere s Dealer Excellence Award 2005 was given to the Intrac Group in May in Moline, Illinois, USA, at the John Deere conference for European and Russian dealers. John Deere s forest machines are the clear market leader in the Baltic countries. Intrac Group has demonstrated a strong commitment to investing in the forest machine sector and the development of the entire service network in the Baltic region, says Timo Ylänen, Marketing Manager, John Deere Forestry Oy. The Intrac Group s head offi ce is in Sweden and it has subsidiaries in Estonia, Latvia and Lithuania. In recent years, Intrac Eesti AS, SIA Intrac Latviha and UAB Intrac Lietuva have invested particularly in the development of maintenance and spare parts services in the Baltic countries. Intrac Group s network of retail and service outlets in the Baltic countries includes 11 spare parts and maintenance sites and 25 service vehicles. Additionally, the Group has eight forest machine repair workshops. Intrac guarantees that John Deere forest machine customers will receive the spare parts they need within 24 hours of ordering them. Machine repairs in the workshop or the forest The Intrac group of companies in its present structure has been the John Deere forest machine dealer in the Baltic countries since the mid 1990s. The Intrac group of companies is the offspring from the Finnish trading house Thomesto. Thomesto s history with green machines in the Baltic countries and Russia counts back several decades. For a long-term partnership to work, says Brandhorst, both parties must be in tune with each other. We share the same way of thinking with John Deere. For both of us, the customer is always at the heart of everything, he emphasizes. Customers have also been the driving force behind Intrac s investments. Over the course of five years, the company has invested about 5 million euros in workshops, mobile service vehicles and the development of spare parts services. Brandhorst points out that customers are very different and their expectations regarding services vary widely. Many of them still do most of their own maintenance and even some big repairs. More and more customers, however, have realized that it isn t always cost-effective to do the work themselves, and, in fact, it can turn out to be very expensive in the long run. Rather than doing the work themselves, they are buying services from an independent partner so that they can focus on what is essential in terms of their own business. The service hours sold by Intrac are increasing year by year, and we want to ensure that we have enough service bays so that customers get their problems resolved quickly, Brandhorst says and points out that they also offer service on the weekends. And maintenance agreements are becoming more and more popular, he adds. Intrac s flagships are the new sites in Tallinn, Estonia, and Riga, Latvia. A similar service site is scheduled to open in 2007 also in the Lithuanian capital of Vilnius. Intrac has a total of 11 outlets in the region, each with its own spare parts inventories and eight of them with a workshop. But it isn t always feasible to transport a machine long distances for maintenance or repairs. Often times, it is much easier for the customer if the mechanic can visit the forest

9 site. At the moment, Intrac has a total of 25 service vehicles in the three Baltic countries, and most of those vehicles are fully equipped right down to the welding equipment. Attitude conditioning In spite of a very strong growth total sales increased 65% last year spare part sales accounts for 15% of Intrac s net sales. Availability of spare parts is a matter of pride for Intrac employees, and that explains why Intrac maintains a relatively large inventory of spare parts. Brandhorst says that customers in the Baltic countries have learned to value high-quality spare parts, fuel and oil. They ve noticed that John Deere recommends a certain type of diesel or oil for a reason, he says. Attitude conditioning starts with the personnel s know-how and the expansion of it. The professional skills of the mechanics are kept upto-date through, e.g., training collaboration with John Deere. Brandhorst emphasizes that knowledge of the latest technology is important especially because John Deere forest machines are becoming more technologically advanced all the time. He says that Intrac s investments are now starting to pay off. Net sales have increased very quickly and even profitability has remained at a decent level in spite of the major investments. He has a clear vision of what it will take for Intrac and John Deere to keep their customers trust also in the future. First of all, we must be close to the customer; we must have a network of service sites Verno Õige (left) and Tauri Kakko have about 220 service jobs per month. that is dense enough and enough service bays. Secondly, the fleet of service vehicles must be comprehensive. Third is flexibility in maintenance services; the customer decides what he wants. One may want to service his machine every 1000 hours, and another might want something else. And the fourth thing, of course, is spare parts services. The Baltic countries are not the only ones that have been investing in the development of maintenance and spare parts services. John Deere s goal is to further develop its maintenance and spare parts network, and good partners like Intrac play a key role in this. Green Estonia Intrac s Sales Manager for Estonia, Tauri Kakko, doesn t have time to twiddle his thumbs at his desk in the Tallinn office. He spends a lot of hours on the road because Estonia s favorable economical development is also being seen in logging and in the demand for green forest machines. Last year a record number of John Deere harvesters and forwarders were sold in Estonia. Just as in its neighboring countries to the south, Latvia and Lithuania, practically 100% of the mechanized logging in Estonia is done using the cut-to-length method. The increase and modernization of the forest machine base have substantially boosted the number of personnel at Intrac s Estonian sales offi ce. At the moment, there are close to 70 employees in Estonia, and recruiting is always under way for good service mechanics. We have about 220 service jobs per month, three quarters of them in the workshops and a quarter out in the field. Maintenance and spare parts services are available around the clock because it isn t unusual for companies to work 24 hours a day, 7 days a week, Tauri Kakko says. According to him, there can never be too many service bays open in the workshops, so work efficiency and quality are key. Intrac s aim is for the mechanics to specialize in different areas, some in diagnostics and some in basic maintenance and repairs. Kakko s colleague Kaido Kokk is in charge of Estonia s spare parts service. Spare Parts Manager Kokk is a quite the master of optimization: The work is a balancing act between the size of the spare parts inventory and economic reality. However, in tight situations it is the customer who always comes first. Kokk would rather overstock the fast-moving spare parts than have to turn a customer away. We have a 24-hour service for our customers: If the customer orders a part before 3 pm, they ll receive it the next afternoon at the latest, Kokk says. Also stocked are the strategically important bigger parts, the demand for which is naturally more difficult to predict. Along with basic spare parts, Intrac also sells e.g. anti-skid chains, floatation tracks, hydraulic components and oils, buckets and filters.

10 10 11 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Operator Timo Turpeinen (left) and his colleague Sakari Isohanni have been testing TimberLink in Finnish forests this winter. TimberLink The invisible watchdog TimberLink performance and condition analysis system for harvesters has been in tough pilot use this winter. The results are good logging is more economical and preventive maintenance is keeping the harvester maximally at work. At the turn of the 21st century, a basic research project was launched at John Deere Forestry s R&D department in Tampere. The R&D professionals involved in the project were looking to optimize the performance of forest machines. All too often, the way the machine functions doesn t become an issue until there is a problem. So we started envisioning prevention, says Development Manager Arto Peltomaa. With TimberLink moving into production late last year, the dream has now become a reality: the machine performance and condition monitoring system is already in trial use in dozens of machines in different market areas. One of the trial users is Marko Uusitalo s company, working in northern Finland. A tool for economic operations The M. Uusitalo Oy company bought its first machine chain, a Timberjack 770 and 810B, at just about the same time the designing of the TimberLink got under way back in late 1999, early The company acquired its second machine chain in December 2004, and the third in the summer of 2005, two 1070Ds and two 1110Ds. In particular, Marko Uusitalo praises the 1070D as a good general-purpose machine in the flat terrain of northern Finland, where the trees in the pine-dense forests are not very big. All his machines are run in two shifts by about ten permanent operators. The timber goes to local sawmills. Even during the slower periods,

11 there is plenty of thinning work in Uusitalo s own forests, if not elsewhere. After reflecting on the significance of TimberLink for the M. Uusitalo Oy company, Marko Uusitalo says: For us, it is a tool for economic operations. A forest machine has many functions that gradually change as the conditions vary and the components age. If a hose breaks, you notice it right away, but you don t notice a minor change in saw performance. The change may be very, very small, but when the same motion is repeated tens of thousands of times, it can have a substantial impact, he says. The same holds true for the monitoring of fuel consumption. Of course previously too we kept track of how much fuel was going into the tank. But with TimberLink, fuel consumption can be monitored by each phase of work, i.e. how much is used for sawing, feeding, driving and loading. The data obtained gives us a lot of insight: For instance, we can see if the machine is too small or too big for certain logging areas. The 1070D is ideally suited for our 200-liter forests, says Uusitalo. The little things add up Marko Uusitalo and operator Sakari Isohanni offer a practical example of how TimberLink brings savings. With TimberLink, we were able to see that the grapple pressure had decreased slightly, resulting in an increase in average fuel consumption of 0.5 liters per hour. If the machine is running 3,500 hours a year, that adds up to more than 1,500 liters annually. One thing for sure is that the price of fuel isn t dropping. Consumption was quickly returned to normal by servicing the valve. Together with his operator colleague Tomi Turpeinen, Isohanni compared the data provided by TimberLink about the performance of different machines. Let s say the chain becomes dull during sawing. TimberLink immediately detects the decrease in performance, Isohanni says. It is such an easy tool to use. The only problem is that you seldom have enough time to go as deep into the menus as you d like to while you re out in the forest. So, for routine use, the operator should check TimberLink mainly for the most critical productivity and fuel economy figures. And then the more detailed data should be accessed when something isn t right with the machine. Everyone benefits TimberLink produces accurate and detailed information specifically about the machine s not the operator s performance. In fact, the operator s impact is filtered out from many of the measurements so that the technical condition of the machine can be detected as accurately as possible. With or without filtering, Sakari Isohanni doesn t see TimberLink as a disadvantage for anyone. If it takes one operator longer to use the boom than another, there is room for improvement, he says with genuine enthusiasm. Marko Uusitalo points out that Timber- Link also benefits the service technicians. There aren t any major problems with new machines, but after a while the parts start wearing and have to be replaced. Thanks to TimberLink, the worn parts don t come as a surprise to the contractor, operator or the service technician. And it s definitely nicer to replace parts when you re in a warm workshop rather than out in the freezing forest. The fact that John Deere has developed this kind of performance and condition monitoring system indicates that the company s forest machines can hold up to rigid scrutiny, Uusitalo thinks. Unique software in forest machines TimberLink is an add-on application to the Timbermatic 300 control system, explains Development Manager Arto Peltomaa. It runs in the background of the Timbermatic 300; when you want to review the data it has collected and analyzed, you just click the user interface open. In other words, TimberLink doesn t require any new sensors to be added to the harvester because it utilizes the same data already being used to control the machine s various functions. It sounds like TimberLink is just a big plus for forest machine contractors. TimberLink increases productivity, reduces downtime and decreases operating costs, Peltomaa confirms. It yields information about things that cannot be pinned down even by the most experienced operator things like fuel economy. The machine might be running fine with no obvious problems, but perhaps too much fuel is being consumed. Thanks to TimberLink, the malfunction can often be pinpointed to a specific subsystem, and that makes the service technician s work easier. In an ideal situation, a service technician wouldn t even have to be called to the site at all, because the TimberLink monitoring system would warn the operator of changes in the machine s performance before it is too late. That way, the causes of the change could be checked out during routine maintenance. When machine performance is optimized early enough, downtimes decrease. TimberLink also helps to determine optimal settings and configurations, which help save fuel and prolong the life of the components, Arto Peltomaa adds. All new John Deere harvesters are equipped with the TimberLink interface, which can be launched 40 times free of charge. Thus the system can be tried out before a purchase decision is made. In the upcoming months, deliveries of the application will begin also for existing D model harvesters that use the Timbermatic 300 system.

12 12 13 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Lower emissions, HIGHER PERFORMANCE John Deere s product development looked at the new emissions regulations for diesel engines and saw an opportunity: Lower the emissions and increase the performance of non-road diesel engines. Slowly but surely the world is coming to the consensus that environmental pollution and climate change must be curbed or future generations will face serious problems, at minimum. The consumption of fossil fuels and thus non-road diesel engines are under the toughest scrutiny; restrictions on the emissions of these engines have been phasing in since the mid 1990s. The latest emissions regulations, called Shared goal: cleaner air The use of fossil fuels is one of the biggest loads on the environment all over the world. Burning fossil fuel releases carbon dioxides, which cause - among the other so-called greenhouse gases - global warming and are a threat to the earth s climate. Fossil fuels also contain impurities, like sulfur and nitrogen. When burned, they form nitrogen and sulfur oxides that are hazardous to the environment and humans. Burning fossil fuels also generates, among other things, carbon monoxide and particulates. To control and curb the emissions of non-road diesel engines, the goal of the US Environmental Protection Agency s Tier standards and the EU s respective Stage standards has been to restrict the emissions of non-road diesel engines. In the next Tier 4/Stage IV phase in 2011, the particulates and nitrogen oxide emissions will be in effect entirely eliminated and the emissions bar will become virtually non-existent. Tier 3/Stage III A, took effect at the beginning of 2006 and are for >130 kw engines. The regulations require the nitrogen oxide emissions of new engines to be 40 percent lower than the previous engines. Starting next year, the same regulations will apply also to <130 kw engines. At John Deere, the premise of engine development has been that customers don t have to sacrifice achieved benefits. Cleaner emissions and improved performance aren t exclusionary of each other. The PowerTech Plus engines going in to John Deere forest machines not only comply with the new, tougher emission requirements, they also perform better, respond better, and have better low-speed torque. The first 1270D and 1470D harvesters equipped with the new PowerTech Plus engines will roll out of John Deere Forestry s Joensuu factory in May, and the first 1710D forwarders in June. The plan is to first equip the bigger forest machines with the new engines, followed by the smaller models, and by the end of 2007 all new John Deere forest machines will have Tier 3/Stage III A-compliant engines. Focus on combustion, not on after treatment At John Deere, the focus of reducing engine emissions is on combustion technology and on understanding combustion on what happens inside the cylinder. The aim is to treat the emissions before they are even created. The lower emissions and improved performance of the PowerTech Plus engines are the result of many technological innovations. The emission regulations on non-road diesel engines have been effective, and the particulate matter (PM), hydrocarbon (HC) and nitrogen oxide (NOX) emissions have decreased substantially. The increased output in the >130 kw engines is a result of the switch from the 8.1- liter engines to the 9-liter engines and the four-valve cylinder heads. In emissions control technologies, the two biggest areas are the cooled exhaust gas recirculation (EGR) and the variable geometry turbocharger (VGT), lists Henry Palonen with John Deere Forestry s product development. He heads the design team for cooling systems and engines. Going with the 4-valve cylinder head improves the flow of gases and makes opti-

13 Don t rev the engine for nothing! The new John Deere forest machines take advantage of the PowerTech Plus engine s better low-speed torque to reach desired driving speed with lower engine RPMs. The benefit of the ECO III characteristics (economy and automated working RPMs) is that the maximum RPMs are not used at low speeds since they are not needed. The impact of the engine s lower RPMs on fuel consumption is clear. One ECO III characteristic is designed for economical driving with a light load on easy terrain, or for moving from one site to another on a logging road. It is an added feature of the normal driving power transmission and enables a bigger transmission ratio with lower engine RPMs. With the separate percentage adjustment scale, the operator can adjust driving speed to increase faster than normally, so the gas pedal doesn t have to be pushed quite as far down as usual. Another ECO III characteristic is the added feature of the crawling gear in the forest machines, which reduces the RPM range used by the engine when driving at low speeds. When driving slowly in a small crawl range, the engine s RPM range is narrower. And when the crawl area is expanded, also the RPM range increases as the driving speed range increases. So the characteristic decreases the RPM range used by the engine, thus avoiding the use of unnecessarily high RPMs and engine revving. With AutomaTED WORKING RPMs, it is possible to avoid running the engine at working RPMs unnecessarily. When the work is stopped, the engine s RPMs automatically drop to an idle level and are stored once work is resumed. The delay can be adjusted by the operator. mized nozzle placement possible. Consequently, burning is cleaner, the use of energy is more efficient, and the output is better. Meanwhile, the cooled exhaust gas recirculation (EGR) affects the combustion heat; the lower temperature means fewer nitrogen oxides created by the combustion and better fuel consumption. In other words, the same output is achieved with less fuel and fewer emissions. Another advantage of the lower temperatures is that it enables more variable injection timing, allowing for better efficiency. Moreover, the injection can be divided into several phases, reducing noise, Palonen says. Perhaps the biggest source of pride in John Deere engine development is the use of the variable geometry turbocharger in the nonroad diesel engines. According to Palonen, the new kind of turbo actually makes the cooled exhaust gas recirculation possible and also brings a lot of other good things. The variable geometry turbocharger enhances the low-speed torque and brings a faster response for power demand, i.e. faster availability of power during loading. Additionally, engine efficiency is better and fuel consumption is lower. The enhanced low-speed torque makes it possible to integrate eco-friendly features into the new engines (read more on the following page). What s more, the communication between the engine and the machine s control systems has been significantly improved. There are many more sensors in the engine, enabling much more careful monitoring of the differ- TO THE NEXT PAGE

14 14 15 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E New in PowerTech Plus engines Cooled exhaust gas recirculation (EGR) decreased NOX and particulate emissions, reduced fuel consumption and engine noise Variable geometry turbocharger (VGT) Better low-speed torque, faster response for power demand, better efficiency and lower fuel consumption 4-valve cylinder head better fuel economy and performance New generation common-rail fuel system more efficient combustion Higher fuel injection pressure Electronically calibrated nozzles better combustion, reduced fuel consumption, and steadier operation Electric feed pump enables automatic bleeding Added engine sensors more accurate diagnostics, more accurate monitoring of engine condition, and shorter downtime G-III Skidders received Tier III Certification The muscle behind the updated 648G-III Grapple Skidder and 640G-III Cable Skidder is the new PowerTech Plus diesel engine manufactured by John Deere Power Systems (more information on previous page). This field-proven 6.8L engine runs cleaner without sacrificing power. Exhaust gas recirculation (EGR) cools and mixes measured amounts of exhaust gas with incoming fresh air to lower peak combustion temperatures and reduce NO2 emissions. This is the most efficient way to reduce emissions without timing retard. The engine s four-valve design, with high-pressure common rail fuel injection, provides greater low-speed torque and better transient response. Temperature contolled fan runs quieter The enhanced cooling system developed for the 600 Series Skidders features a new sucker fan design. Air is drawn in the front, through the cooling package and out the sides. It s a more efficient way to reduce the temperature of the air surrounding the engine. The fan runs noticeably quieter, too. The hydraulically driven cooling fan is temperature controlled, so it runs only as needed, minimizing horsepower use and drag. The fan is fully reversible to automatically blow debris off the grill screen. The combination of the reversing fan and increased perforations around the grill housing provides optimum airflow into the engine. Other updates include a larger fuel tank on the single- and dual-arch 648G-III Skidders. The transmission features internal oil flow for the bearing to the front housing, which gives a more consistent flow and eliminates easily damaged external lines. FROM THE PREVIOUS PAGE ent areas of the engine. The more detailed the information available to the operator and the service technician, the better the engine s condition can be monitored and preventive measures performed when needed. This increases machine uptime. Most innovative engine of the year John Deere s 9.0 liter PowerTech Plus engine has recently received a couple of different awards. The engine received the Diesel of the Year 2006 award, which Diesel magazine awards for the most innovative diesel engine of the year. The magazine is the only one in Europe specializing in diesel engines. The panel issuing the award is made up of engine industry experts from 16 countries. Another recognition came from Construction Equipment magazine, which gave the engine a Top 100 Product of the Year award. The list includes the one-hundred best innovations related to construction industry machines. According to the magazine, the purpose of the list is to give the year s most significant new products the attention they deserve.

15 TimberRite optimizes the VALUE OF TIMBER In Europe, optimizing measuring systems are generally used in the logging of timber; elsewhere in the world, however, optimization has been left up to the operator. But this is about to change: Waratah s TimberRite is a measuring system designed for tracked forest machines. If a forest machine doesn t have an optimizing measuring system, it is up to the operator to determine the length of the logs and the cutting points, says Product Marketing Manager Juha M. Järvinen from Waratah. This has been the case particularly in the southern hemisphere where trees grow quickly. Perhaps because of that, the utilization of raw materials hasn t received the same kind of attention that it has elsewhere, especially in the Nordic countries. In recent years, however, Australian and New Zealander forest companies and land owners have started focusing on maximizing the return on their investments. Optimizing the use of raw materials brings in a better return; this requires the use of an optimization system. There is clearly a demand for TimberRite measuring system the engineers didn t have to push the product, the demand was marketdriven, Järvinen notes. From calculating length-combinations to control quality Matti Tarkka has been responsible for the technical development of TimberRite since the beginning of For the past year now, he s been part of a three-person team dedicated on the development of TimberRite at Waratah s factory in New Zealand. TimberRite is based on the Timbermatic 300 measuring and control system. 90 percent of the software is shared, so as measuring system they are almost identical. There are no differences in the equipment, PC, electronic modules, menus and displays, he says. But the differences in the remaining ten percent are quite substantial. In a tracked harvester, which frequently is an excavator converted to forest use, the controls for the booms and the power train e.g. are ready. Also the harvester head top saw is a rather common option. This, and the fact that the controls are different from wheeled harvesters, had to be taken into consideration also in the measuring system. For a contractor, TimberRite naturally involves an initial investment, but the benefits quickly become clear. When the operator can focus on cotrolling the quality of the logs and can relax when it comes to calculating the various length combinations, he doesn t tire nearly as quickly. For the same reason, an inexperienced operator blossoms more quickly, Juha M. Järvinen says. Multipurpose TimberRite Unveiled in New Zealand Before deliveries began at the beginning of the year, TimberRite was tested for a year in Australia and New Zealand. The feedback was encouraging and supportive. The functions that worked so well in the Timbermatic 300 also worked well on the other side of the globe, Matti Tarkka notes. TimberRite won t remain an application exclusive to Australia and New Zealand: May saw the launch of deliveries to South America and the rollout will continue to Europe, Russia and North America. South America is an outstanding example of TimberRite s multipurpose capabilities. In South America, primarily eucalyptus is logged for use as pulp, so you don t really need optimization. But TimberRite is valuable also in the monitoring of production: The operator can production and other data right from the forest machine. TimberRite s map applications are also useful in all market areas, Tarkka says. TimberRite s official unveiling was in New Zealand from March 9-11, 2006 at the Forest Industries Show. It is the most important forest sector event in New Zeeland, attracting all the major manufacturers and nearly 10,000 visitors. The event was held in the city of Rotorua, which is located in the central part of New Zealand s North Island. Rotorua is a volcanic area and at the heart of the Maori culture, Matti Tarkka describes his adopted hometown. Its geysers make it one of the most popular tourist destinations in New Zealand. Tourism and forestry are, in fact, the two most important industries in this forested region. Visitors to the Waratah exhibit got to tour a plantation typical to the region and see TimberRite in action: The images on the display were transmitted wirelessly to a big screen on which visitors could watch TimberRite operate in real-time. Waratah s global sales organization was present. The launching of TimberRite will begin in all market areas, so the show was a good opportunity to learn more about the product, Juha M. Järvinen says. One of the biggest attractions at the show was a virtual simulator of a tracked harvester. Read more about that on page 28 of this magazine. The next Forest Industries Show will be held four years from now.

16 16 17 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E CHANGING climate, changing forest management Violent natural catastrophes have made the headlines in recent years. As an example, the 1999 storm in Western Europe blew down 180 million m³ of wood, corresponding one fourth of the annual felling increment. It is common to blame climate change for such extreme phenomena. However, there is no statistical evidence yet that storms have become more frequent and more violent. If the present trend continues, we may face more devastating storms in the future, says Marcus Lindner, a program manager for Forest Ecology and Management in the European Forest Institute. Statistics do prove that forest fires have become more frequent due to global warming and the subsequent droughts. Heavy rains will also become more common. The wet soil makes the trees less stable and as a result stands can easily be uprooted by a storm. Assuming that climate change is a phenomenon that must be taken into account, forest management can have a significant impact in reducing forest vulnerability. Damage has increased, but the reason can also be that there are more trees, the trees are more productive and they are planted on a risky, often wet site, Lindner points out. And economically attractive conifers have outnumbered the more resistant broadleaved species, adds Gert-Jan Nabuurs, a senior researcher in European Forest Scenario Studies. Challenges to harvesting The downed timber must usually be recovered from the forest immediately. If it is left in the forest, the risk of fungi and insects will increase. Harvesting is more dangerous because storm-felled trees fall across each other and there is a lot of tension in the stems. Costs increase because of the difficult working conditions and because some of the damaged wood is sparsely distributed over many stands, explains Lindner. The logistic challenge arises from inventorying the damage, timing the recovery operations in such a way that losses are minimized, avoiding insect pests and deciding where it makes economic sense to recover and where it is better to leave the trees on site, says Lindner. The impact of storms on the global harvest and growing stock is not very significant. The local impacts can be severe, though. The wood market normally recovers in a couple of years. But natural disasters can be very detrimental for livelihood at the regional level, and particularly for an individual forest owner, Nabuurs points out. A contention is that manufacturers of forestry equipment should take the changing cli-

17 As natural disturbances become more common, the appearance of future forests will probably change in the future. mate into account. Acceding to and operating in the damage forests is a challenge. Flexible machinery will be needed for small-scale harvesting. With an increasingly frequency of heavy rains, equipment must be able to operate on wet soil. In addition, the increase in mixed stands poses a challenge for sorting, according to Nabuurs. Recommended: a good mixture of species adapted to the site Natural catastrophes are impossible to predict so there are no straightforward recommendations for protecting the forests. Some general rules apply. Cutting should be planned so that vulnerable stands are not exposed to full wind speed. Secondly, planting on a wet site should be avoided since the rooting may remain shallow. Thirdly, planning for cutting cycles should be adjusted every year. Even-aged stands of coniferous species seem to be more vulnerable to natural disturbances, says Lindner. A mixture of species is often recommended, but spruce is economically more attractive, he explains. After the 1999 storm, French and German forest owners did replant a mixture of species. In Canada, forest owners have been encouraged to plant aspen with spruce to make the forest more fire resistant. Smaller scale, new species As natural disturbances are likely to become more common, the appearance of future forests will probably change in the future. There is a trend towards small-scale forestry which might be more resilient to storms. In addition, new species will probably be Recent natural catastrophes and their consequences: The 1999 storm in Western Europe: 180 million m³ of downed timber. The 2005 storm in Southern Sweden: 80 million m³ of downed timber Bark beetle damage in Germany in the late 1990s: 4,000 hectares (9,880 acres) of forest destroyed. Hurricane Katrina in Southern US in 2005: 66 million m³ of downed timber. Forest fires in Southern EU countries in 2003: 800,000 hectares (1 980,000 acres) of destroyed forest. imported. It is difficult to estimate when a forest owner should change species, however, because the existing trees are tolerant to some climatic changes and may even adapt genetically, Lindner says. Global warming has positive impacts at least in northern countries: warmer temperatures stimulate growth and rotation periods will be shorter. Forests are important in mitigating the impacts of climate change as they can be used for carbon sequestration. In addition, forests can be used to produce bio-fuels, which could reduce consumption of fossil fuels. Again, new forestry equipment will be needed for extracting and transporting the logging residue for biomass production.

18 18 19 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Paula Myöhänen

19 BALANCED timber harvesting Balanced bogies in a forest machine improve operational efficiency and comfort in demanding terrain. Balanced bogies have been a standard feature in most John Deere harvesters and forwarders for years. By optimizing the weight distribution on all the bogie wheels, the balancing unit ensures the best stability, grip and traction. This allows the machine to maneuver more easily and more safely in rough or steep terrain. A balanced bogie also minimizes the swaying of the loaded machine by maintaining support and ground contact with all the bogie wheels in all conditions. This enables higher driving speed with a load and higher productivity. Less impact on terrain Because the balancing units in the bogie axle distribute the total weight optimally to all bogie wheels, it also allows all the wheels to transfer their fair share of the traction force to the ground. With an unbalanced bogie, it may happen that only one bogie wheel stays on the Bogies help in Finnish terrain Over the years,, forest machine operators in Finland have become accustomed to the comfort and efficiency offered by balanced bogies. Jorma Myller has been a forest machine operator for nearly 20 years. The bogies in Myller s John Deere 1110D forwarder have been a great help in his work. Especially when I back down a hill and there is a rock or a mound in the way, the bogies ensure balance and traction, notes Myller. Heikki Yijälä has been operating forest machines equipped with balanced bogies since His company uses Jorma Myller 1270D and 1070D harvesters and 1410 and 1110D forwarders. Compared with conventional machines, Heikki Yijälä finds the balanced bogies on the John Deere machines to be a clear advantage. I would never go back to a machine that didn t have these bogies, says Yijälä. The work gets done more quickly when you have balanced bogies that provide agility when climbing slopes. Heikki Yijälä By optimizing the weight distribution, the machine cab and load remain stable ground and has to do all the work alone. Distributing the weight and traction force evenly over a larger area minimizes ground damage due to less ground pressure and tearing force from each wheel. The design of the John Deere balanced bogie is streamlined by placing the portals inside the wheel rims. This makes the bogie ends smaller and widens the ground clearance between the bogie beams. Wider ground clearance reduces the need to steer the machine to avoid contact with rocks and stumps. The main benefits of this feature are lower fuel consumption, faster driving speed and less risk of getting stuck on obstacles.

20 20 21 I N T E R N A T I O N A L F O R E S T R Y M A G A Z I N E Zero room for error Brothers Clint and Brian McGee in Georgia, USA, were looking for a tracked feller-buncher with a leveling system. John Deere 759G proved to be the right choice. Brothers Clint and Brian McGee work in all types of terrain. The breadth of assignments for their company, McGee & Sons Logging, in Fairburn, Georgia, goes from working in a swamp to clearing timber on the side of the interstate for a deceleration lane. As Clint McGee said, It s probably about a 60-degree slope, with traffic. There s zero room for error. We needed a machine we could rely on in any kind of situation. What they were looking for was a tracked feller-buncher with a leveling system. After extensive research and conversations with other loggers, they went with the John Deere 759G. The list of features met their tough demands. The main feature was how the leveler positioned the cab to the front or rear of the tracks, which makes it much more stable. What they discovered on some of the other machines was that the cab stays in the center of the track frame, causing it to slide backwards. The control over the tree with the 759G has proved excellent. The way the saw head is able to hold the tree even on steep terrain, with the tree leaning back out of the head or leaning away from you, is outstanding, McGee says. The McGee brothers have been pleased with the fuel efficiency of the feller-buncher, too. They are running it up to two and a half days on one tank of fuel. Something worth having The new reversing fan that automatically blows off debris has been helpful in their operation. The operator doesn t have to get out every 30 to 45 minutes to clean off the screen by hand. And those five to ten minutes really add up at the end of a shift. And as McGee says, Any time you can keep the operator in the cab, you re going to be better off from a productivity standpoint. He continues, With the other machines, you practically needed a set of ear plugs to sit in the cab, but the 759G is one of the quietest cabs I ve ever been in, and it s more comfortable. And that s a lot easier on the operator. The 759G can be lowered below 14 feet, which allows the McGees to transport it themselves, saving them a thousand dollars every time they move it. But maybe the feature that was most decisive on the John Deere feller-buncher was that John Deere was willing to provide a warranty that was much longer than other manufacturers. And, according to Clint McGee, if someone is willing to stand behind its equipment like John Deere, then they must have something worth having. To be honest, that s what pretty much sold us on the machine, he says. After 200 hours, Clint McGee thinks the 759G has saved them about four or five days of chainsaw work. Deere has great equipment, it s affordable and their parts availability is outstanding. And in my opinion, the 759G is the best buncher out there. Any time you can keep the operator in the cab, you re going to be better off from a productivity standpoint.

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