Founded in 2009, Malwa Forest specialises in the development and production of compact machines from its base in Skene, south-west Sweden. Here, owner Magnus Wallin talks about how the company has grown over the years, its range of low-impact machines and the environmental benefits they offer.
WHAT IS THE BACKGROUND OF MALWA?
Back in 2006, I started to import used Japanese mini tractors like Yanmar and Kubota. Many of these were sold to private forest owners. I mounted small trailers with hydraulic cranes so these small tractors could be used in thinning, etc.
Before this, I worked as an engineer, doing safety inspections of mobile cranes and other lifting equipment. One thing led to another, and I started to design a purpose-built mini forwarder.
WHAT WAS THE MOTIVATION BEHIND THE FOUNDING Of the company?
I grew up with an entrepreneurial father, so I think I have it in my blood. ‘How hard can it be?’ was his attitude when faced with any problems, and this approach to challenges has always been a great inspiration to me. With my engineering background, an extended knowledge of many forest owners’ needs (as a direct consequence of my mini tractor customisations) and a problem-solving nature combined, I recognised an opportunity to fill a gap in the market.
HOW HAS THE BUSINESS GROWN?
The first years were kind of shaky at times, as my wife Madeleine could tell. The two of us worked alone in the company – and with five kids, it wasn’t always easy. In 2009, when we introduced the first Malwa 360, many suppliers were greatly affected by the 2008 economic collapse, but we had very good support from ours. We raised some capital in late 2010 and made progress, but still with very small margins.
The introduction of the Malwa 560 in 2013 was in many ways a tough challenge, and we made a negative result that year, but since 2014 we have shown black numbers and a growth in turnover of about 15–20 per cent annually.
In December last year, we delivered machine number 200 in the 560 series (it was also, coincidentally, the first machine sold of the fourth generation of the 560 series), and we entered 2021 with an all-time-high order book. All in all, we have in a 10-year period gone from being in an underdog position to becoming the market leader in our segment – a team effort that makes my heart thump a little faster to think about.
WHY DID YOU CHOOSE TO FOCUS ON LOW-IMPACT MACHINES SPECIFICALLY?
Our business case is focused on the forest owner. Forest machine development in Scandinavia and all over the world has had one target for years: lowering the cost of cutting and extracting the log.
This has led to the creation of bigger machines with higher production and load capacity. This development has been led by the forest industry, but the forest owner has had little or no influence in this process. The industry has also pushed the contractors to invest in middle-sized machines that can work in both thinning and clear-cuts. But these machines are not the best options for either thinning or clear-cuts. If you then add the challenges we are facing due to a warmer climate, with more rain in our part of the world, we found that the forest owner was left with very little choice in which equipment to use in his/her thinning. There were no manufacturers focusing on this segment.
WHAT ARE THE BENEFITS OF USING A LOW IMPACT MACHINE FOR FOREST WORK?
As we focus on thinning, we need to think about what the aim of that operation is: remove the bad trees and focus on the best trees, with as little impact on the ground as possible, to leave a stand that will generate high volume and still be storm resilient and stable. It’s true that our extraction cost is higher than on a 15-tonne forwarder, but studies show that these costs in first and second thinning are balanced, with margins, over the rotation time in higher volumes and less windblow.
WHAT DOES THE MALWA RANGE OFFER OPERATORS LOOKING TO MAKE A MINIMAL ENVIRONMENTAL IMPACT?
It’s no secret that we have looked at the big forest machines when we have designed our product line. 60 years of development of the forwarder have led to similar designs on the big ones whether they are red, green, yellow or blue.
When I started Malwa, I noticed that there was no manufacturer in the low-impact range that used this great resource of experience and knowledge. So, we focused on downsizing the technology from the big machines, to a small-sized machine, with features like state-of-the-art CAN bus electronics, proper hydromechanics transmission, and no wheel motors or drive rolls in the bogie, for example.
WHAT’S THE MOST POPULAR MACHINE IN THE MALWA RANGE?
Today, the three models which make up the Malwa 560 series are achieving almost the same in volume. But the combi machine (combined harvester/forwarder), introduced in 2014, was a game-changer for us.
Moving on from exclusively developing forwarders, to start working with harvesting head machines as well, has really expanded our business. We have seen many contractors investing in a combi and then expanding to a set-up made of a harvester and a forwarder.
MALWA HAS STATED THAT THE TYPE OF STAND-ORIENTED THINNING WHICH CAN BE PERFORMED USING MALWA MACHINES IS THE ‘OPTIMAL SOLUTION’ FOR CREATING MORE STORM-RESISTANT FOREST STOCKS – CAN YOU ELABORATE ON THIS?
If you don’t do thinning, you will have fewer or no problems with storms and hurricanes.
As soon as you start to cut down trees, the risk increases; that’s why we find it more appropriate to use smaller machines to minimise the width of the strip road. If we can create a homogenous tree canopy and stand, it will be more resistant to wind and storms.
If you think about it, it’s pretty logical and not that difficult to put into practice – if you have the right tools, that is.
WHAT ARE THE BIGGEST CHALLENGES FACING LOW-IMPACT FORESTRY?
I think the biggest challenge for us is the fact that many look at the forest in the same way as they look at the stock market; pick out the result in every quarter, or equivalent in the forest – every action. You want to maximise profit in first and second thinning without taking away profitability over the whole rotation time. The best way to overcome this is by showing good examples; well-performed thinning jobs, done by professional contractors who take pride in delivering the service that the forest owner is asking for.
COULD WE REACH A POINT WHERE ALL FOREST MACHINES ARE ‘LOW IMPACT’?
I am sure that the challenges of change in climate, public opinion and industries’ need for supply will be on the table for a long time. And I am just as sure that the definition of ‘low impact’ will be different depending on who you talk to. With that in mind, I am happy and proud that we produce machines with a genuine focus on keeping the environmental footprint low.
HOW WOULD YOU SUM UP THE ETHOS OF THE BUSINESS?
To pave the way for a new, modern way to manage forestry – aiming to create a high value in the forest, while keeping the environmental impact low.
WHAT’S NEXT FOR MALWA?
I firmly believe there are exciting times ahead for Malwa. We have a strong focus on international expansion and will continue to develop the company to meet existing and future customers’ requirements with good service and reliable, low-impact machines.
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