Issue 116

6408

AFS/01-10-01 www.forestrystandard.org.au

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issue 116 | 15.03.10 | Page 1

Top of the class Timber turns in good report card on national schools building program

By JIM BOWDEN

AN eleventh hour decision by procurement officers working on the $16.2 billion federal Building the Education Revolution (BER) scheme will give the NSW timber industry an ‘open-door’ opportunity to supply a wider range of flooring materials for the state’s schools enhancement program.

The federal government’s economic stimulus package committed these funds over three years to provide new facilities and refurbishments in Australian schools to “meet the needs of 21st century students and teachers”.

A BER communication procurement notice to the NSW forest products industry last

Timber industry .. running with the ball on schools flooring program.

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week allows for a broadening of the timber flooring mix which previously stipulated only blackbutt (Eucalyptus pilularis) and spotted gum (Corymbia maculata) as the two acceptable species for floor boards with a nominal width of 75 mm.

The schools specification standard – Facilities Flooring and Decking SS383 – has been expanded to include timber species and mixes such as manna (ribbon) gum, silvertop stringybark, white and yellow stringybark, diehard stringybark, Dunn’s white gum, messmate, grey box, red mahogany and turpentine. (See table, Page 7).

“We are working with forest

This Issue • Chile rebounds: massive building program • Rain a pain for state’s timber trade

values back bone of Gosford sawmill • TABMA’s ‘royal flush’ timber awards a winner • New home sales bounce back • ‘Green’ wood science increases life of MDF

 Family

Cont Page 7

issue 116 | 15.03.10 | Page 1

industry news

Chile rebounds Making Massive building program disrupts wood export trade Representing the interests of the forest industries nationally at the Victorian Bushfires Royal Commission

Victorian Association of Forest Industries Level 2, 2 Market Street Melbourne 3000 Tel: +61 3 9611 9000 Fax: +61 3 9611 9011 Email: info@vafi.org.au Web: www.vafi.org.au Page 2 | issue 116 | 15.03.10

A MASSIVE restoration program in the wake of the Chilean earthquake three weeks ago is expected to disrupt the country’s export wood trade as forest companies divert production to help rebuild cities and towns.

More than two million people have been displaced by the quake which hit hardest in the regions of Maule and Bio Bio, which lies in the heart of Chile’s forest industry.

Wrecked port facilities have immobilised shipping and deliveries to markets for Chile’s forest products – Japan, the Philippines, China, Australia and New Zealand – will be delayed for many months.

This introduces a new dimension to the Australasian market as wood-hungry Japan looks to non-traditional suppliers to satisfy demand. Japan absorbs up to 20% of Chile’s plywood production and there is every expectation that Japaneseowned producers in Australia and New Zealand will be asked to help fill the supply gap.

Companies that might expect a ‘tap on the shoulder’ from Japan include Alpine MDF Industries in northeast Victoria, and Nelson Pine Industries in New Zealand, which produces MDF and LVL, and has wood processing investments in Indonesia manufacturing particleboard and plywood.

Both are owned by Sumitomo Forestry Company Ltd of Tokyo.

Also, Juken Nissho Ltd of Japan may turn to New Zealand where it owns and manages 75,000 ha of forest in the northland, east coast and southern regions of the North Island and produces LVL, plywood, veneers and kilndried sawn clear timber.

Despite the devastation it caused, the Chilean earthquake

an impact .. across Australia’s forest and forest products industry .. since 1940

won’t have a serious long-term impact on the economy, and it might even boost growth this year by fueling a boom in the construction industry.

Analysts and the government say first half gross domestic product (GDP) will undoubtedly suffer, as those regions worst hit by the quake grapple with energy supply failures and temporary transport problems.

But after that, the economy should bounce back rapidly.

Investment bank JP Morgan has even gone so far as to upgrade its growth forecasts for Chile in response to the earthquake.

It says the construction boom will push annual expansion this year and next to 5.5%, an improvement on its previous forecast of 5%.

The Chile government says it will take the country up to four years to recover, but economists say Chile is well placed to do this.

Cont Page 10

The Timber & Building Materials Association is Australia’s most progressive timber association and the only true national timber association.

TABMA keeps abreast of all commercial, legislative or bureaucratic issues that impact on our industry and keeps members informed.

The services and benefits offered to members are extensive and assist in keeping overheads and on-costs to a minimum.

Call Melanie at TABMA on (02) 9277 3100 to inquire about our very attractive membership rate.

www.tabma.com.au

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industry news

Rain a pain for state’s timber trade

Floods disrupt bush operations, deliveries in south Queensland

By JIM BOWDEN

THE worst flood rains in more than 120 years have caused massive disruption of Queensland’s forest and timber operations.

Many people living in the state’s south and southwest have never seen anything like it with falls over a two-week period of up to 400 mm putting an area the size of Victoria under water.

The rains set up a ‘chain reaction’ across much of the southern half of the state: forest machinery bogged, logging roads and main highways closed, timber yards swamped, and building sites shuttered.

“The building materials industry in southern Queensland has virtually ground to a halt and it could be another two weeks before the wheels get turning again,” John Jeffrey of Cypress

Flashback: Nothing new here .. one of the major floods in cypress country peaked to a height of 1.4 m over the highest land on the Hyne mill site at Chinchilla on May 2, 1983. Picture by Charles Achilles.

Supplies told T&F enews.

The Bureau of Meteorology says the rain event began on February 22 when a strong low

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pressure system developed over the Top End within a monsoon trough. Over a 10day period to March 3, an estimated 403,000 gigalitres of rain fell across Queensland and the Northern Territory.

The disruption to the wood trade has extended well beyond the forest. Builders on the Western Downs and in Brisbane have been unable to work on sites and laying slabs has been impossible.

Many Brisbane truss and frame merchants are choked with orders unable to be delivered to soggy building sites.

Queensland’s western cypress industry has felt the full brunt of record downpours.

John Jeffrey of Cypress Supplies says he hasn’t had a delivery of timber at the company’s Caboolture yard for two weeks, which usually receives three loads a week from the mill at Roma, a waterlogged town 475 km northwest of Brisbane.

“We’re fortunate in that we are well stocked at Caboolture but supplies will run out within 3-4 weeks. However, with building sites closed, we have delivered only one set of trusses in the past week when we usually send out three a day,” he said.

Cypress Supplies is especially concerned about the delivery of cypress panels to a hard-won government project in Brisbane, a walkway connected to the Hale Street Link project, due for completion mid-2010.

“The panels were cut and dressed at a specially specified 68 x 44 at our Roma mill and will be tinted with blue oil, so we’ll have blue wood but with the celebrated cypress knots showing through,” Mr Jeffrey said.

“The order is for 25 cub m of panels and we’re on a deadline so the rain depression has left us a little depressed and biting our nails to deliver on time.”

Glen Wilson at Injune Cypress, about 90 km north of Roma, says the mill has been closed for a week. “We just can’t get the logs out of the bush,” he said.

“We’re trying to complete orders for framing timbers in Brisbane and southern Queensland but the rain hasn’t stopped here since December and we’ve chewed up most of our yard supply.”

Mr Wilson says the region has been drenched with more than 450 mm of rain since the New Year, reaching levels only experienced as far back as 1956.

Cypress sawmills at Miles and Chinchilla on the western downs are in reasonably good order. Mitchell Goodchild of Yuleba Cypress said timber yards had been turned to slush but production and bush operations in the region were unaffected by rain storms.

Meanwhile, timber operations in the southeast have not escaped the rain influence.

Hyne’s Tuan mill was shut down a week ago and production at the Imbil mill was interrupted by flash flooding.

The flood rains in southeast Cont Page 4

issue 116 | 15.03.10 | Page 3

industry news

EWPs that tick State wants quick sale of plantations ALL the boxes Engineered wood products manufactured

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Bidders for FPQ locked in

By JIM BOWDEN

QUEENSLAND Treasury has locked in its final selection of potential buyers of the state’s 210,000 ha forest plantations estate.

The government is withholding the identity of bidders on the shortlist but it is believed five companies are in the running to acquire Forest Plantations Queensland. They include Hancock Timber Resource Group, based in Boston, USA, and Global Forest Partners, one of the largest timber investment management organisations.

Treasury is giving all companies access to data related to the 99-year lease arrangement and is arranging forest inspections and meetings with FPQ personnel.

The government is looking for firm bids by the end of April for presentation to Cabinet in June.

Currently, FPQ has demand for about 1.7 million cub m a year with the potential to sustainably supply around 2 million cub m a year.

Industry believes the

government is keen to sell the entire plantations estate to a single buyer.

Premier Anna Bligh is keen to complete the sale as quickly as possible in the face of growing public disapproval of the state’s sale of assets which peaked last week when 4000 workers marched on Parliament House over the government’s plans to sell off its rail, port and forestry assets.

The Premier remains committed to the asset sales and says unions have failed to deliver an alternative economic plan.

The rally on Tuesday last week came after a survey, commissioned by unions, found voters would turf out the Bligh Government over the privatisation plans. The survey showed a 7% swing against the Labor government in five key seats.

Translated across the state, this would see Labor lose about two dozen seats and the Liberal National Party winning in a landslide.

More rain on the way From Page 3

EWPAA

g u arant e e d *

Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Street, Newstead 4006, Queensland, Australia Tel: 61 7 3250 3700 Fax: 61 7 3252 4769 Email: inbox@ewp.asn.au Web: www.ewp.asn.au

* Independently tested to the highest standard; guaranteed to comply with Australian standards; certified under JAS-ANZ accredited product certification scheme; guaranteed to be safe and to carry the designated design load; complies with the Building Code of Australia; meets safety and quality requirements accepted by unions; meets all Workplace Health & Safety requirements.

Page 4 | issue 116 | 15.03.10

Queensland have brought dam water levels to a nine-year high. The combined level of Wivenhoe, Somerset and North Pine dams now sits at 93.8%.

Both Wivenhoe and Somerset continue to receive strong inflows but additional rain is needed for Wivenhoe to reach capacity.

Flood warnings are still in place over much of southern Queensland and more rain is forecast.

John Jeffrey .. flooded roads threaten big building project order.

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events

WHAT’S ON? 15-17: Industry bus tour of Northern New South Wales.

Contact: Karen Johnston at TABMA Queensland.

Tel: (07) 3254 3166.

Email: karen@tabma.com.au 16-17: 4th Global Wood Fibre Trade Conference, Sao Paulo, Brazil. Visit www. pulpwoodconference.com 17: NSW Hardwood Log Supply and Hardwood Flooring: Myths and Legends. Hosted

by Sydney Hoo-Hoo Club 215.

Speaker: Peter Sykes, Forests NSW timber inspector. Meeting will interest anyone involved in producing, marketing or using NSW hardwoods for structural, joinery and flooring purposes. Venue: Prosperos Restaurant, 310 Church Sreet, Parramatta – 6.30 pm for 7 pm start. Cost (including dinner): $40 pp for members; $45 non members. RSVP by Monday, March 15 or contact Chris White on 0411 293646 or Ian Ramsay on 0414 746992.

21: World Forestry Day 22: World Water Day 24-26: International Wood Products Association annual convention Miami Beach, Florida, USA www.iwpawood.org 25: Annual Timber Merchants Association charity dinner supporting the Burns Unit of the Royal Childrens Hospital. Keynote speaker: Joe Helper, Minister for Agriculture and Forestry. Venue: River Room at the Crown Casino, Southbank, Melbourne.

Cost (GST inc) including predinner drink, 3-course meal and beverages: $165 pp (members);

$175 (non-members). Payment no later than February 25.

Non-members who book a table of 10 will be eligible for member pricing of $1650. Bookings to Ingrida Matulis on (03) 9875 5000 or email ingridam@timber.asn.au 31: International wood composites symposium and technical workshop 2010 Seattle, Washington, USA. www. woodsymposium.wsu.edu

APRIL 2010 7-10: Australian Trucking Convention. Gold Coast Convention and Exhibition Centre.

Tel: (02) 6253 6900. Email: ata@ atatruck.net.au Download full program from www.ataevents.net.au 8: TABMA NSW Chain of Custody Breakfast. 7.15 am for 7.30 am.

Rydges Hotel, Parramatta, Sydney.

Guest speakers from AFS. FSC, EWPAA, Green Building Council of Australia. Cost: $50 pp (includes full breakfast). Contact Melanie on (02) 9277 3177.

15-18: 40th annual J1V HooHoo Convention – The Next Decade: A Vision for Hoo-Hoo. Rydges Melbourne Hotel. HooHoo business day, industry tour, sponsors’ dinner, convention dinner and entertainment, farewell breakfast. Convention program and registration details: www.hoo-hoojiv.org.au 15: Dubai International Wood and Wood Machinery Show Dubai. www.dubaiwoodshow.com 16: National Carpenters Day. Celebration of carpenters and their work throughout Australia.

Highlights include presentations, barbecues, entertainment,

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Carpenter of the Year Award and Apprentice Carpenter of the Year competition.

Entries close March 24.

Visit www.carpentersday.com.au

SUSTAINABLE. sustainable. responsible. .

RESPONSIBLE

18-21: APPITA Annual Conference and Exhibition/Pan Pacific Conference Melbourne. www.appita.com.au

The National The National Association of of Forest Association Industries (NAFI) Forest Industries (NAFI) represents is striving for an Australian companies, ecologically sustainable individualssociety and Australian organisations involved achieved through in thedynamic, forestry and forest products internationally industries. competitive forest industries.

NAFI works with state and

MAY 2010 18: Victorian Timber Industry Supply Chain Seminar: Connecting the Pieces for Business Success. Radisson Hotel, 380 William Street, Melbourne.

Contact: Peter Roberts, Timber Merchants Association on (03) 9875 5000 or John Halkett, Australian Timber Importers Federation on (02) 9356 3826.

19-20: Wood Supply Chain Optimisation 2010. Bayview Eden Melbourne. Technical seminar details successful strategies that have been adopted to improve planning, logistics and operations through the wood supply chain.

Contact FIEA +64 3 470 1902. www.woodsupplychain.com 21-23: Timber and Working with Wood Expo, Brisbane Showgrounds, Fortitude Valley.

2010

MARCH 2010

24-25: Wood Supply Chain Optimisation 2010, Rotorua, NZ. www.vafi.org.au

JUNE 2010

3-4: AFCA Conference and Trade Expo, Novotel Resort, Coffs Harbor, NSW. www.afca.asn.au 18-20: Timber and Working with Wood Expo, Sydney Entertainment Centre, Sydney.

federal governments to support interestsis of to its NAFI’sthemission members while the same represent theatinterests time improving industry of members by standards and practices, promoting the promoting sustainable environmental forestry management and educating the broader sustainability and community on theof the prosperity economic, environment Australian forest and social benefits of industries. a strong sustainable forest industry.

National Association of The National Association Forest Industries Ltd of Forest Industries (Est. 1987) Ltd (EST.1987) PO Box 239, PO Box 239, Deakin ACT 2600 Deakin, ACT 2600 Tel: (02) 6285 3833.

Tel: (02) 6285 3833 Fax: (02) 6285 3855 Fax: (02) 6285 3855 Web: www.nafi.com.au www.nafi.com.au Web:

issue 116 | 15.03.10 | Page 5

housing

Investors return as home sales bounce NEW home sales rebounded by 9.5% in January, a Housing Industry Association survey shows.

The January result was an encouraging early sign that upgrade owner occupiers and investors may be coming into the new home building market in sufficient numbers to offset the withdrawal of stimulus to first-time buyers.

HIA chief economist Dr Harley Dale said that private sector detached house sales increased by 10.1% in January, the first decent result since August last year. Multi-unit sales recorded a second consecutive increase in January, rising by 4.1% following a 14.5% jump in December 2009.

“If we were to get a sustained improvement in new home sales

Page 6 | issue 116 | 15.03.10

over the first half of 2010 then that would suggest a second round new housing recovery is achievable, driven by private demand from upgrade buyers and investors.”

However, Dr Dale said it was vital to see evidence of a second round recovery emerge in coming months in what remained a very challenging period for residential construction.

“The successful policy of targeting new home construction via the tripling of the grant to first time buyers has now gone, interest rates are on the rise, and the considerable supply side obstacles to boosting the new housing stock, such as land supply and skilled labour constraints, are still clearly evident,” Dr Dale said.

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industry news

Schools building program .. much more than timber desks.

Heat is on along the supply chain From Page 1

associations to determine the ability of the industry to supply these timbers,” BER procurement manger Anthony Lee told T&F enews.

“The heat is on along the supply chain as many new school building projects in New South Wales are past the earthworks and foundation stage. The project’s demand for timber flooring for multi-purpose school halls has put a huge pressure on supply need.”

Industry observers believe the BER projects under way in the state will require up to 90,000 sq m of flooring. With BER projects for school buildings started also across other states, the demand for timber flooring nationally will be gigantic, they say.

Timber promoters contacted were disappointed that despite advice from industry at least six months ago, the BER procurement program had not expanded the species list beyond blackbutt and spotted gum much earlier.

“This has put a serious chink in the supply chain which now has short notice to meet the demands of the schools building program.”

Mr Lee admitted the use of

blackbutt and spotted gum had been an “historic specification” for NSW schools. “We realise this was traditional rather than practical,” he said.

Mr Lee said some suppliers had requested that the board lengths be wider than 75 mm but this was not contemplated.

There were no restrictions on the thickness of boards, however.

Chief executive of the Timber Merchants Association Victoria Peter Roberts said he believed there were no restrictions on timber flooring species and Victorian ash and Tassie oak were accepted for sports floors.

“If anything, the schools program seems to be dragging its feet in Victoria, but there have been no supply problems for merchants.

Timber Queensland chief executive Rod McInnes said the roll out of the schools building program was keeping industry busy.

“The state program has put a preference on the use of Queensland timber and there is no limitation to any particular species, provided they meet Australian standards,” he said.

“There is nothing about winning jobs on the basis of timber

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species and both structural cypress and pine are being used along with Queensland hardwoods for flooring.

“Manufacturers are busy fabricated trusses for school buildings and are happily participating in the program.”

Queensland will receive $2.6 billion for schools infrastructure under the BER program to include new buildings, science and language centres, and (under the National School Pride program) classroom refurbishments by early 2011.

The state will also receive $1.3 billion for social housing, to be spent on maintenance, upgrades and construction of about 4000 new properties.

BER projects are generating thousands of jobs in local communities – for manufacturers and material suppliers, builders and tradespeople across the construction industry, people working in the service and hospitality industries, as well as architects, engineers and small business.

(A) Any one of these species is acceptable for selection for any one job. (B) If a ‘New England’ or ‘stringybark’ mix is to be supplied for any one job, those mixes must not include species other than those marked as acceptable (X) in the columns above.

issue 116 | 15.03.10 | Page 7

events

TABMA’s ‘royal flush’ timber awards a winning hand for Queensland industry ENTRANTS in the Queensland timber awards will reap major benefits from a new-look judging process introduced this year.

The awards, to be announced at a gala function on October 9, will again highlight excellence in industry .. “but judging criteria will also double as a ‘self-audit’ tool to assess the strengths and possible areas of improvements for timber businesses and organisations,” says Karen Johnston, chief executive of TABMA Queensland, which is arranging the event.

“To maintain the credibility of these awards and therefore the prestige and honour they represent for finalists and winners, the judging criteria for 2010 have been adjusted to reflect recent ideals and

Page 8 | issue 116 | 15.03.10

“The judging criteria while offering transparency in the process also helps to increase the efficiency and business operating standards across all industry sectors.”

Ms Johnston said the gala industry dinner awards presentation at the Sofitel Brisbane Hotel was the only event of its kind. ”It provides a platform to

members of industry to directly have a say,” Ms Johnston said.

“Which of your suppliers goes ‘above and beyond’ to help you operate a successful, quality, service oriented business?

Do you have a loyal customer with efficient operations and high commitment to safety standards? Does the company you work for provide continuous opportunities for you to further develop your skillset?”

The awards give merchants, manufacturers, wholesalers and sawmillers the means to identify who should be considered for the ‘top prize’ and be recognised at state level.

The big event has attracted five early-bird sponsors – Gunnersen, Timber Queensland, Wade Sawmill, Kennedy’s Classic Aged Timbers and Asian Pacific Timber Marketing.

The awards are being promoted as the ‘Royal Flush Opportunity of the Year’.

If you are interested in an advertising opportunity with national exposure lasting

celebrate the industry, the state and our top performers,” she said.

Nomination forms for each category in the awards can be downloaded from www.tabma. com.au Nominations close on April 30 and are open to all members of industry, not just TABMA Queensland members.

“This is an opportunity for

months across the nation, targeted marketing, positive branding, and unparalleled networking rolled into one, with a number of packages to suit all budgets and needs, please contact Karen Johnston at TABMA Queensland, Timber House, 500 Brunswick Street, Fortitude Valley 4006. Tel: (07) 3254 3166. Fax: (07) 3254 4599.

TABMA Queensland group at last year’s gala timber industry dinner in Brisbane are Karen Johnston (chief executive) and Kelly Everett pictured out front of the executive team, from left, Myles Forsyth, Forsyth& Romano Group, Mal Goatham, Pacific Wood Products, Keith Maitland,Tasman KB (TABMA Queensland chairman), Roger Healy, Simmonds Lumber, and Michael Gaske, Ozline Timbers.

trends as well as give greater weight to operational areas of importance,” Ms Johnston said.

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innovation

New development on ‘green’ wood science increases life of MDF LOW carbon technology that waterproofs, strengthens and extends the life of softwood by up to 50 years has been shown in trials to be able to turn MDF into a product for outdoor use that could revolutionise the use of the wood composite.

The technology is called acetylation and has been developed by UK company Accsys Technology PLC. Acetylation works in a similar way to soaking chestnuts in vinegar and oven-baking them to make them go extra hard.

The patented process changes softwoods at a molecular level making them stronger and more durable than hardwoods, such as teak.

Accsys says the technology, which is non-toxic, helps protect the world’s hardwood resources and locks up carbon for far longer than unacetylated wood.

Trading under the name Accoya wood, the high-tech product is 100% recyclable and is already being used for doors, windows and cladding – and has even been used in infrastructure projects, such as bridges.

A recent independent cradle to gate report by environmental consultancy Camco demonstrated that Accoya wood’s carbon footprint is lower than many traditional building materials such as PVC, aluminium and unsustainably sourced tropical hardwood. It also boasts the green credential of having been recently recognised as a ‘gold’ standard product under the eco-certification scheme Cradle to Cradle.

Now, Accsys has found a way to successfully adapt the acetylation technology for use in wood ‘elements’, such as chip, fibre and particles, which

Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region.

Weekly distribution is over 6,000 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region.

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New technology puts MDF outdoors.

it claims will revolutionise the wood composites industry.

Accsys recently joined forces with Medite Europe Ltd, Europe’s leading manufacturer of MDF (medium-density fibreboard) to launch Medite Tricoya, an MDF panel made from acetylated wood fibres.

The two companies first signed a joint development agreement last year.

Accsys said the extensive testing of Medite Tricoya against conventional MDF at a laboratory in Germany demonstrated its superior performance in terms of swelling and durability in wet conditions.

The company believes the testing shows it is suitable for use in everything from cladding to bathrooms and outdoor play frames.

Michel Maes, global manager panel products for Accsys says the Medite Tricoya has the scope to “revolutionise” the way board panels can be used and creates an opportunity for manufacturers to develop products that are stable, durable and environmentally sound.

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issue 116 | 15.03.10 | Page 9

ndustry news

‘We are committed to getting back on our feet in no time,’ pledges Arauco president From Page 2

It is too early to estimate the economic cost of the quake – outgoing president Michelle Bachelet has mentioned $US30 billion – but the Chile’s policy of funneling windfall copper profits into a $US14.7 billion rainy-day fiscal savings fund will help shoulder the cost of rebuilding.

The all-important copper industry, which accounts for half of Chile’s export revenue, was largely unaffected by the quake; most of the big mines are in the north of the country, 1500 km from the epicentre.

Investors are also looking toward the possibility that the Chilean government will use money from an $11 billion fund to pay for rebuilding efforts.

The government would have to convert the dollar-denominated funds to local currency to pay for construction work.

Meanwhile, the Chilean forest and wood products industry faces a lot of work to rebuild quake-ravaged facilities.

“We are committed to getting back on our feet in no time,” says Matías Domeyko, president and chief executive of Arauco, which operates 12 sawmills in Chile.

Big construction program ahead .. buildings collapse in Concepcion, Chile. The massive earthquake moved the city about 3 m to the west.The power of the earthquake, which is estimated to have killed more than 800 people, shifted other parts of South America from the Falkland Islands to Fortaleza, Brazil. Preliminary measurements, produced from data gathered by researchers from four universities and several agencies, including geophysicists on the ground in Chile, show that Buenos Aires, the capital of Argentina moved about 2.5 cm to the west after the quake and Chile’s capital, Santiago, moved about 28 cm to the west-southwest.

With capacity of 3.4 million cub m of sawn timber and wood and remanufactured products sold in more than 28 countries, Arauco is the major wood producer in the southern hemisphere.

Mr Domeyko is adamant that Arauco’s industrial facilities will resume operations, except for the Mutrún sawmill in Constitución, which was swept away by the 2.34 m tsunami that hit the central coast.

“Considering both the

dynamism of the Chilean forest sector and the quality of its professionals, I expect that the recovery after the quake will be much speedier than reported,” says Dr Luis Apiolaza of the School of Forestry at the University of Canterbury, Christchurch, NZ, in a letter to T&F enews.

Referring to Chile’s pulp industry, Kurt Schaeffer at the RISI forest products information service says global buyers are likely to reach out more

Matías Domeyko .. industrial facilitiess will resume operations.

aggressively to secure tonnage, and pulp sellers are likely to become more aggressive in raising prices.

“It isn’t inconceivable – if a substantial amount of capacity in Chile remains out for weeks or longer – that prices over the next few months could move up by $US200 or more from current levels, in steps of $50$75 or more per month,” he said.

Reports say at least 3.7 million metric tons of annual market pulp capacity has been shut in Chile due to structural damage.

RISI quotes producer contacts saying a lack of output from Chile would have a big impact on China and southern Europe.

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Page 10 | issue 116 | 15.03.10

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industry profile

Family values backbone of sawmill Kerrie Guest retains passion for timber business SETTING the scene for a life dedicated to the timber industry, ambitious sawmiller’s daughter Kerrie Guest, 62, wrote an essay when she was 10 saying she was going to run her father’s company.

Now at the helm of the family’s timber business, Walker Bros at North Gosford, NSW, she remarks: “It took a lot longer to get there than I thought it would when I was in school.”

Although she has two brothers, Kerrie says she was always interested in sawmilling and timber and started working for her father in 1967.

“About this time, I spent nine months in Europe and while there on my 21st birthday, dad gave me shares in the business,” Kerrie recalled. “So when I returned, I went back to work at the sawmill, but this time as a shareholder.”

Getting married and having children meant Kerrie was only able to work part-time in the mill, but she also developed her own general retailing business.

She and husband Richard now have three daughters – all in their thirties – and six grandchildren.

Walker Bros Timber & Building Supplies is celebrating 75 years in business. The Walker Bros story started when brothers David and Alex purchased a sawmill at Ourimbah Creek in 1933. David fed the mill with logs using a bullock team and Alex ran the steam-driven sawmill.

Life was tough in the middle of the Great Depression, so the mill was shifted closer to the source of logs in Mangrove Creek and David and Alex moved their families into Gosford and camped at the mill during the week.

By the late 1930s, the advent of trucks and tractors – instead of bullocks – meant the sawmill no longer needed to be located

in the forest. The brothers acquired the current site in Glennie Street, North Gosford, which was nearer the railway and offered employees better living conditions. A new sawmill was built in 1939.

During the 1940s, returned soldiers formed the core of the sawmill workforce, teaming up to also build their own homes and provide for their young families. In 1946, Alex Walker’s son Peter joined him in the mill followed later by his other son Brian.

Kerrie says family values remain the backbone of Walker Bros operations.

“By sticking together we have kept the company running successfully through the toughest of times, including the massive fire, which burnt most of our buildings and equipment to the ground in 1995,” she said.

“Within three working days it was business as usual, operating as best we could.

Rebuilding over the next 12 months gave us the modern plant we have today.”

During the next decade the business thrived with the rapid growth of the Central Coast region and the company’s diversification into imported and value-added timber products.

Assisted by manager Keith Sparrow, Kerri now heads a thriving enterprise – one of the state’s premier timber merchants with latest products and services and also supplying traditional timbers.

“The introduction of engineered beams and other value-added products point the way to the future, but we still do some sawing of larger sizes,” says Kerrie. “I’m not sure if it’s the most profitable part of our business, but it connects with our sawmilling past and it’s in my blood to do it!”

At the heart of the company’s

Advertising: Tel +61 7 3256 1779 Email: cancon@bigpond.net.au

Continuing the passion .. sawmiller’s daughter Kerrie Guest .

recipe for success is a policy of employing staff who are experts in their chosen fields.

The strong family tradition at Walker Bros has continued.

Manager Keith Sparrow is the third member of his family to

work for the company. His father commenced as a driver in 1951 and his brother John was manager during the 1970s. The Sparrow family has amassed a huge 98 years of service to the company.

Another employee Frank Pemberton has served 55 years and his brother Alf and their sons have also worked for the company.

“Timber’s sustainability is what we all should be focusing on,” Kerrie says. “When we operated our sawmill we worked the same areas of forest for 60 years.”

“My brother Peter who has been a bushman all his life visited the area a few months ago. He was almost in tears about the state of the forest, especially the fuel Cont Page 12

How much pulp will that tree produce?

A NEW TECHNOLOGY TO HELP FORESTERS FAST-TRACK GENETIC DEVELOPMENT Foresters can now precisely predict Kraft pulp yield from standing trees in eucalypt plantations with hand-held devices that use near-infrared radiation (NIR) and provide immediate results.

www.fwpa.com.au for more information

Email: info@fwpa.com.au

issue 116 | 15.03.10 | Page 11

ndustry profile

FOR SALE

Sawmilling … it’s in the blood at Gosford

Value-adding the way to the future

Magnificent timber block

$880,000

Located Jimna area – Queensland Area: 243.5 hectares. Elevation 600 metres Normal rainfall 45 in.

Top pole production country with high quality iron bark, grey gum and hoop pine.

Sunday Creek Rd to Kenilworth on southern boundary.

Eastern and western boundaries are Conondale National Park.

Bitumen road frontage. Permanent flow in Six Mile Creek. Great views. Power on property.

An assessment of the standing timber, product range and approximate value was undertaken on the western portion 107 LX 2421 in March last year.

In preparation for the assessment, aerial photos were procured, the regional ecosystems overlayed, proposed strip lines considered and their GPS points down loaded to gain a representative sample of various forest types.

Data collected includes species, diameter at breast height (cm), potential product and its length, and whether the tree would be harvested, retained or chemically treated.

Management units were identified and mapped by assessing the consistency of the forest in relation to species mix and productivity. The strip data was then extrapolated to give a per hectare figure of available volume and extrapolated over the unit area.

Professional report indicates value of timber at $307,000 as at February 09, rising to $788,000 in 8-9 years.

All inquiries and requests for detailed assessment data and aerial photographs should be directed to: Richard Long – Rent-A-Stand Pty Ltd, PO Box 37 Greenslopes 4120 Brisbane, Qld, Australia Tel: Fax: Mob: Email:

+617 33241288 +617 33970914.

0408 884 979 sales@rent-a-stand.com.au

Page 12 | issue 116 | 15.03.10

Still sawing timber to meet customers’ needs .. Kerrie Guest discusses orders with manager Keith Sparrow.

From Page 11

loads just waiting for the right bushfire conditions that will wreak tremendous damage on the area we worked in and loved.

“Regular hazard reduction burning that was a feature of our operations has been replaced by years of neglect,” says Kerrie. “That is part of the argument for managing the forests in a sensitive, sustainable way. Locking them up doesn’t mean that they are returning to where they were when Europeans arrived.

This forest had always been periodically burnt by Australia’s original inhabitants – they actually managed this country better than we do.”

Kerrie says trying to get that message across about timber’s sustainability and environmental attributes is a real challenge for the timber industry.

“Unfortunately, some of the extreme green messages that have reached politicians have been to the detriment of timber use and the long term health of our forests.”

Referring to the Wood Naturally Better campaign, she says the industry must promote

timber as a preferred building material.

“Nothing will convince me that steel is more viable than timber.

Just look at the difference in manufacturing energy consumption – and timber actually stores carbon – not the case with steel or concrete.”

“The community is waking up to the connection between timber use and climate change, which opens another door for us to promote wood products.”

Kerrie reckons the industry’s promotion campaign is helping to keep architects and project home builders on side and up-to-date. “This has always been an area of difficulty for our industry.”

Kerrie’s interests outside the business revolve around travelling – when she can. “I also like to read, have some time at the beach and play with the grandkids. That about takes up any spare time I have.”

“I promised myself that on my 60th birthday I would cut back to a four day week, but I still haven’t been able to deliver on that promise. I must really have sawdust in the blood.”

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on the road

Kia reinvents the crossover SUV diesel

Lighter Sorento has grown in length and stature “WE’LL throw on a couple of lamb shiskabobs and there’s still some baked camembert eggs with bacon. Just park your car under that bunya tree.”

Comfortable in the Kia Sorento SUV, we had been following the signs up from Canungra above the Gold Coast to Mount Barney and had arrived at a farm house gate that beckoned: join the lunch tour.

“We’re too late,” my daughter moaned. “It’s all over.”

“Don’t worry, we’re sure to have hot scones and tea with the Enright boys when we get to their Beaudesert sawmill.”

Then out stepped the lady in jodhpurs and apron with that offer of the tasty left-overs – and our bottle of cool Vince reserve verdelho from O’Reilly’s Canungra winery just seemed to jump out of the Esky.

Our barbecue chat turned to the black, brooding 4WD XM Sorento under the bunya.

Given that a few years ago Kia was really only known for bargain-basement cars, its rise has been meteoric. One of the main reasons for this was the Sorento, which arrived in 2002 and competed respectably against the 4x4s of its day.

But the heavy 4x4 with the separate chassis and rigid suspension of yesterday is just so de rigueur today; Kia has completely reinvented it as a modish crossover SUV. The hardcore dual-range 4x4 hardware and separate chassis have been ditched, leading to a huge 215kg weight cut. That and a fine new diesel engine and six-speed transmission means its economy is now class-leading.

Despite its history of being cheap and cheerful, Kia has gone the way of Hyundai and transformed its offerings. First it was the Cerato and then the Soul, now the Sorento has arrived and is following suit.

At first glance, you would never pick it as a Kia. It has grown by 10 cm in length and 7½ cm in width, allowing it to accommodate seven seats across the range. More sophisticated suspension means it now rides and handles much more like a car than a truck.

The stretched headlights and defining grille give the car a menacing edge, while the LED taillights make it stand out at night. But it’s in the cabin where the Sorento really shines. It’s hard to understand how Kia can get away with making a car feel this luxurious for the price tag.

The driver’s seating position is very commanding with great forward visibility.

It’s not until you start driving the Sorento that you appreciate just how impressive Kia’s feat really is. Kia’s new 2.2-litre diesel is astonishing to say the least.

Producing 145kW and 436Nm of torque, the punchy fourcylinder engine sips through just 7.4L/100km. Drive is sent through a six-speed gearbox with sequential shift modes.

As an SUV, the Sorento is fitted with an all wheel drive system. Integrated into the system is hill descent control and downhill brake control.

Standard features in the Platinum include: dual-zone climate control, key less entry,

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Among the wood at Enright’s Sawmill, Beaudesert .. the smart Kia Sorento Si 4x4 SUV seven-seater.

keyless start, six-disc CD player with MP3 compatibility, iPod and auxiliary inputs, reversing camera, auto-dimming rear vision mirror, central locking, cruise control, privacy glass, panoramic sunroof, electric windows, fog lights, electric mirrors, alloy wheels, leather seats, xenon headlights, automatic headlights, automatic windscreen wipers and electric driver’s seat.

Standard safety features include: ABS with EBA and EBD, ESC with Traction Control, engine immobiliser, driver and front passenger SRS airbags, front side SRS airbags, full length curtain SRS airbags and speed sensing auto door lock.

Cargo capacity is a respectable 1047 litres with the second row up and 2052 litres with the second row folded.

All seven seaters, our test XM Sorento Si 4WD Wagon 2.2 CRDi manual goes at $39,990; the XM Sorento SI 2WD wagon 2.4 litre auto at $36,490; up to the XM Sorento Platinum 4WD 2.2 CRDi auto at $48,990.

Some stats – Engine: 2199cc DOHC four-cylinder (16 valve); power: 145kW @ 300rpm; torque: 436Nm @ 1800rpm; induction: turbocharged, direct injection; transmission: six-speed automatic; CO2 emissions: 194g/km; fuel tank capacity: 70L; fuel type: diesel.

Yes, we did enjoy the tea and scones with the Enright brothers. And talking about food you might like to know that the sleeply little village of Sorento in Illinois, US – which gave our Kia its name – was the childhood home of Esther Snyder. Who’s she you all ask.

Don’t you know? She founded the in-N-Out Burger chain in the states.

Then maybe you didn’t want to know.

issue 116 | 15.03.10 | Page 13

Chain of Custody I N F O R M AT I O N S E M I N A R

Brisbane • Thursday, August 20, 2009

New POR Briquette System

Chain of Custody 433 On Logan Conference Centre 433 Logan Road, Stone’s Corner LIMITED INFORM A T I OTO N60SSEATS EMINAR

This Brisbane important and timely seminar, organised

by TABMA Queensland, • Thursday, August 20, 2009 will help reduce433 some the confusion relatingCentre to chain of custody. It OnofLogan Conference 433 Logan timber Road,industry Stone’shas Corner will ensure the Queensland the information required LIMITED TO 60 SEATS for compliance with legislation,Key speakers will present information This seminar, organised

by TABMA Queensland, andimportant there willand be timely a question and answer forum. will help reduce some of the confusion relating to chain of custody. It Speakers include:

will ensure the Queensland timber industry has the information required • Colin MacKenzie, manager, timber application and use, Timber Queensland for compliance with legislation,Key speakers will present information • Simon Dorries, General Manager, Engineered Wood Products Association of and there will be a question and answer forum.

Australasia Speakers include: • Kayt Watts, chief executive, Australian Forestry Standard Ltd (AFS) • Colin MacKenzie, manager, timber application and use, Timber Queensland • Michael Spencer, chief Manager, executive, Engineered Forest Stewardship Council (FSC) • Simon Dorries, General Wood Products Association of Australasia • Kayt Watts, fee: chief executive, Forestry Standard Ltd (AFS) hot breakfast Registration $65 pp (TABMAAustralian member) $80 pp (non-member) • Includes • Michael Spencer, chief executive, Forest Stewardship (FSC) begin at 8 am. and morning tea. Note: Arrival 7:30am.

Breakfast 7:45 am.Council Presentations RSVP by Friday, August 14, to: Registration fee: $65 ppPO (TABMA member) $80 pp (non-member) • Includes hot breakfast Tabma Queensland, Box 532, and500 morning tea. Note: 7:30am.

7:45 am. Presentations begin at 8 am.

Brunswick Street,Arrival Fortitude ValleyBreakfast 4006 RSVP Friday, Tel:by (07) 3254August 3166. 14, Fax:to: (07) 3254 4599.

Tabma Queensland, PO Box 532, Mob: 0438 295 136 500 Brunswick Street, Fortitude Valley 4006

www.tabma.com.au

Tel: (07) 3254 3166. Fax: (07) 3254 4599.

Mob: 0438 295 136

Description: Super Oscars x 2, oil cooling system, Bagging carosels, 25 m3 live floor hopper to allow for ebbs and flows of sawdust shavings.

This is a very neat system. It will reduce your waste by 90% of original size.

We have spent a lot of time to develop this machine and are selling due to a change in business model.

Machines have done +&- 100hrs Come and look .. you won’t be disappointed!

Timber & Lattice, Port Adelaide SA 5015 Contact:

Mark Tucker 0412 698 956

for sale

www.tabma.com.au

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reach your market weekly s direct delivery s very affordable Page 14 | issue 116 | 15.03.10

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