Wood Used By San Group Logging and Harvesting

1. Wood Used By San Group Logging and Harvesting San Cedar Direct​ is a subsidiary of San Group, a global forest products company, founded in 1979. San Group provides Canadian made forest products to over 25 countries worldwide. The most important factor that determines the parameters of lumber is the raw material. Logging is the initial stage in the cycle of woodworking production, the physical characteristics of the harvested forest directly affect the reliability, durability and aesthetic appeal of timber structures. The San Cedar Group harvests timber for sawn timber production at its own base located in BC and Alberta. The annual harvesting volume is up to 15,000 cubic meters of timber. We carry out a careful selection of raw materials for the production of timber, a guarantee of product quality is the impeccable reputation of the company. Harvesting and deep processing of wood is provided by San Cedar Direct in their own stores. It is the main supplier of sawn timber, joinery, laminated veneer lumber blanks. The company leases 35,000 hectares of forest in the region, where it harvests spruce and pine sawlogs in a 50/50 ratio. Almost the entire volume of raw materials, which is 180 thousand m3, is harvested in winter. In winter, sap flow practically stops in the trees, the amount of free moisture is minimal, which has a positive effect on further wood processing. In the process of drying, sawn timber deforms less, cracks less, sawn timber is of a higher quality in comparison with products obtained from sawlogs harvested in the summer. From Harvest to Home, San Group is a company that prides itself in exporting 100% Canadian made products to international markets and was named British Columbia’s 2018 Exporter of the Year. Wood used by San Group Red Canadian cedar is recognized as the best wood in the world for the construction of unique hand-cut wooden houses. San Group has 30+ years of experience in

2. harvesting and manufacturing ​red Canadian cedar​. San Group provides Canadian made forest products to over 25 countries worldwide. San Group is working with the highest grade of Canadian red cedar, also called "old-growth cedar". The average age of each specimen is about 250 years, the annual rings in such logs are very dense, the color of the old-growing cedar varies from beige to dark red and even brown. That's very beautiful! Such a cedar grows at the highest points, high in the mountains. For cedar felling, special stations are used; for selected cedar, helicopter logging is also used. Logging & Harvesting San Group’s cutting and logging techniques consists of the following stages: ● first, the falling is performed - the process of cutting down tree trunks; ● at the next stage, the tree trunk is cleared of branches and twigs; ● crosscutting is the marking and division of the trunk in the transverse plane. The purpose of this process is to divide wood into assortments, such as churak, ridge or log. The best raw material suitable for the production of lumber is obtained from the butt and middle parts of the whip; ● The next stage is skidding - the process of transporting treated trunks for loading. Produced within the cutting area;

3. sorting of assortments and their storage, stacking are carried out on the territory of the logging base. Bucking work is the central and most important operation carried out in a felling area. The cutting of the trunk (whip) into assortments is carried out in strict accordance. The feasibility of the further use of wood depends on the physical parameters of the harvesting, such as the presence of defects, the level of tapering, that is, the natural narrowing of the trunk, the type of wood. In parallel San Group manufactures beams, plywood, sauna boards, decking, siding, fencing, interior cladding and other lumber parts from forest products. The requirements for the quality of houses are constantly increasing. High standards are ensured by the use of wood of the highest grades. Own harvesting, logging, sawmill and woodworking production facilities allow the San Group of companies to meet the expectations of our customers in terms of the quality of wooden structures and parts. ●