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issue 127 | 31.05.10 | Page 1
Steel spin
This Issue • The high and ‘wasteful’ cost of CoC • Queensland plantations sale a bargain
How finite industries have sold their ‘sustainability’ claims to gain credits By JIM BOWDEN
THE Green Building Council of Australia’s rewarding of extra credits to the steel and plastic sectors for “environmental responsibility” has dumbfounded the timber industry which is battling for an extra green star point. A new green star ‘steel’ credit, which aims to “encourage environmentally responsible production, design and fabrication methods that result in efficient use of steel”, has been introduced into all green star rating tools. The GBCA says the new credit will remove the focus on high
Man of steel .. not so healthy on sustainability.
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percentages of recycled steel content in new steel products, and instead encourage ‘dematerialised efficiencies’ in the production of steel as a construction material. Now it seems plastic, one of the major toxic pollutants – and one of the most difficult to dispose of – has won a new credit, via PVC, a thermoplastic resin, which also has been introduced by GBCA into green star building rating tools. This removes the minimisation credit attached to the use of PVC products in buildings. Instead, Cont Page 2
stamp on NZ engineered wood • DNA science tracking illegal timber • KL hosts PEFC stakeholder dialogue • Working with wood labor of love
Quality
www.timberawards.com.au
issue 127 | 31.05.10 | Page 1
industry news
Wood has struggled Making for two years just to an get AFS certification impact .. From Page 1
The Victorian Association of Forest Industries, representing the interests of the Victorian timber Industry
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 127 | 31.05.10
the new credit promotes “best practice PVC”. “They’re trying to pull the steel-wool over our eyes,” a wood industry analyst told T&F enews. The steel and PVC sectors have mimicked the timber industry’s use of an expert reference panel – but apparently without the green pressures. The new Mat 5 steel requirement on the GBCA website shows how structural steel components – strongly competitive against timber – can gain their extra credit points by at least meeting or exceeding a nominated steel strength and using a permanent strength grade stamp. Steel gains its second point if more than 60% of fabricated steel is supplied by fabricators or contractors who are accredited to the environmental sustainable charter of the Australian Steel Institute, the peak industry body promoting steel in manufacturing and construction along the entire steel value chain. “This seems ridiculous compared with hoops the timber industry must jump through to achieve green star accreditation such as thirdparty assessment,” Alastair Woodard of Wood Products Victoria told T&F enews. “Timber has struggled for more than two years just to get GBCA recognition of both AFS and FSC certification and they still haven’t decided on the requirements for the second point.” [A revised timber credit came into effect on January 1 following a detailed review of the GBCA’s timber credit, conducted by an independent timber expert reference panel.
If a green star project selects to use the timber credit as part of its green star submission, one point is now available where at least 95% (by cost) of all timber is certified by a forest certification scheme that meets the GBCA’s ‘essential’ criteria for forest certification, or is from a reused source or is sourced from a combination of both]. Mr Woodard added: “We know we will have to wade through a stream of green politics before that one point is considered. So how did they arrive at this position on steel? It’s amazing how some people buy into this stuff.” ‘This seems ridiculous compared with hoops the timber industry must jump through to achieve green star accreditation’ - Alastair Woodard
He said the steel industry might have set a precedent potentially for other building materials sectors and painted GBCA into a tight corner. “Maybe for our second point, like steel, we should set up our own sustainability charter within an Australian timber institute,” Mr Woodard chided. “Then for the second point we won’t have to go through the pain with green sectors – just emulate the steel industry and set it up.” Since the environment became topical, the ‘green style’ so to speak, steel, aluminium and concrete have invested millions of dollars in clever publicity and promotion campaigns, spinning up what they claim are the good environmental aspects of their products. Even the aluminium sector – Cont Page 7
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industry news
Plantations sale bargain
Hancock’s $603m deal good value By JIM BOWDEN
FOREST industry observers reckon Hancock Queensland Plantations Pty Ltd may have achieved a bargain-price deal after walking off with the state’s forest assets for $603 million. Hancock’s purchase of the rights to a 99-year lease of 204,000 ha of softwood and hardwood plantations includes 35,000 ha of freehold land and provision for the establishment of 20,000 ha of hardwood plantations by 2025 under an existing agreement. Announcing the sale, a jubilant state treasurer Andrew Fraser told Parliament on May 18: “The value at the time of our announcement was $500 million. I can advise the House that the contracts I signed this morning are for a sale price of
Andrew Fraser .. have we got a deal for you.
$603 million.” He went on to say: “The result is above original expectations we had for this transaction, representing a value-for-money result for taxpayers.” However, data published in annual reports by DPI Forestry
puts the value of the state’s forestry plantation assets at closer to $1 billion. From the commencement of commercialisation and introduction of cash accounting, Queensland Treasury approved a valuation technique applied by DPI Forestry to established plantation assets – net realisable value (NRV). Only stands 20 years and older for hoop and 15 years and older for exotics were valued. Applying current market prices and establishment and management costs, the NRV as at June 30, 1998, was $930 million. On July 1, 2000, an Australian Accounting Standard AAS35 (self-generating and regenerating assets) was implemented. Valuation by way of net market value (NMV) was not appropriate as no observable active and liquid market for forest assets existed. Thus in accordance with provisions of AAS 35, NPV (net present value of cash flows) was adopted. All plantation stands are subject to valuation using this method. NPV as at June 30, 2002, was $982 million. The fact that Hancock also acquired 35,000 ha of freehold land in the deal, the $603 million outlay seems a very good price indeed. It is understood that the sale carries the proviso that Hancock is to honour all forest harvesting contractural agreements made with Forest Plantations Queensland. If the Australian Competition and Consumer Commission (ACCC) approves the sale as expected on June 10, US-based Hancock Timber Resource Group (HTRG), which manages Hancock Queensland Plantations, will control some 516,000 ha of commercial
ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system. Core services: • Skill Standards • Material Development • Networks • Strategic Skills Planning • Project Management • Data Collection • Research • Industry Advice • Career Advice • Adult Learning Expertise
VICTORIA PO Box 612, North Melbourne 3051 Tel: (03)9321 3500 Email: forestworks@forestworks.com.au NEW SOUTH WALES PO Box 486, Parramatta 2124 Tel: (02)8898 6990 Email: smukherjee@forestworks.com.au TASMANIA PO Box 2146, Launceston 7250 Tel: (03)6331 6077 Email: wfoss@forestworks.com.au BRISBANE PO Box 2014 Fortitude Valley 4006 Tel: (07)3358 5169 Email: bharle@forestworks.com.au
Cont Page 4
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issue 127 | 31.05.10 | Page 3
industry news
HVP seeks FSC certification in Qld From Page 3
hardwood and softwood resources in Australia In 1998, HTRG (now holding global assets of nearly $10 billion) paid $550 million for Victorian Plantations Corporation, which had a book value of $352 million at the time. Hancock Victoria Plantations chief executive Linda Sewell isn’t commenting on the FPQ buy until it receives approval from the ACCC which will announce its findings on June 10. Ms Sewell, who is chair of the Australian Plantation and Paper Industry Council, joined HVP Plantations after a 10-year tenure at Carter Holt Harvey (CHH) during which she served as the founding CEO for the company’s laminated veneer lumber (LVL) products division. Melbourne-based HVP is
FPQ sale .. contractural arrangements honoured
Australia’s largest private timber plantation company, with more than $800 million in assets. The company is owned jointly by Australian and US superannuation and investment funds. HTRG, based in Boston, acts as overseeing manager on behalf of investors. Executives also represent US investors on the HVP board.
HVP manages around 245,000 ha of land across Victoria, including 50,000 ha of native vegetation for conservation. The company annually supplies three million tonnes of softwood (pine) and 300,000 tonnes of hardwood (eucalypt) to sawmillers, panel producers and pulp and paper mills in Australia and overseas. Each year, HVP plantation
timber is replacing half a billion dollars of potential forest product imports into Australia, supporting local investment and employment. The company supplies around 1.5 million tonnes a year of sawlogs and pulpwood to sawmills in Victoria’s Gippsland region, including Australian Paper’s Maryvale pulp and paper mill. Through a joint venture business, Softwood Plantation Exporters (SPE) in Geelong, which processes plantation pine thinnings and sawmill residues for export, HVP also contributes to Australia’s export performance in expanding overseas markets. Meanwhile, Hancock Queensland Plantations has announced it will seek FSC certification for its new asset. This is in line with other investments by HTRG in Cont Page 6
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Page 4 | issue 127 | 31.05.10
AUSTRALIA TimTech Chemicals Pty Ltd 7/12 Discovery Drive, North Lakes, Qld 4509. PO Box 522, North Lakes , Brisbane Qld 4509, Australia. Tel:+61 7 3480 5802 Fax:+61 7 3491 7983 australia@timtech.info
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events
WHAT’S ON? 3: Australian Forest Contractors Association harvest and haul conference and trade exhibition. Novotel Resort, Coffs Harbour. Registerations: David Drane on 0413 997 257 or email david.d@vic. australis.com.au 3-4: AFCA Conference and Trade Expo, Novotel Resort, Coffs Harbor, NSW. www.afca.asn.au 4: Plantation Thinning and Pruning - Farm Forestry Research Seminar. 10 am DPI Attwood, Melbourne. Contact Rhodey Bowman. Tel: 0358 335957. Email: rhodey.bowman@ dpi.vic.gov.au. 18-20: Timber and Working with Wood Expo, Sydney Entertainment Centre, Sydney. 21-22: Frame Australia 2010 Conference: Housing Construction and Sustainability. Sofitel Melbourne. The major national event for engineered timber and pre-fabrication. View: www.frameaustralia.com.au 21-22: Skills Tasmania Conference, Hobart. Showcasing workforce development and planning. June 28-July 2: 18th Commonwealth Forestry Conference, Edinburgh, Scotland. www.cfc2010.org
JULY 2010 1: Bio-energy Under the Microscope: Fact or Fiction? Brisbane. Unsure how the burgeoning bio-energy market can deliver a return to your business? Attend this Timber Queensland event to ensure you are positioned to capitalise on the
emerging opportunities for the timber industry. www.timberqueensland.com.au/ events 14-18: Interforest 2010 Trade Fair for Forestry Technology Munich, Germany. www.interfrost.de 21-22: Wood Energy 2010 reducing energy costs and improving energy efficiencies. Rotorua, NZ. 21-22: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Rotorua, NZ. www. scantechevents.com 26-27: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Melbourne. www. scantechevents.com 26-27: Wood Energy 2010 (World Reducing Energy Costs & Improving Energy Efficiencies) Melbourne. 26-29: Combined workshop. ATTA / FIAPS / ForestWorks combined annual workshop Hobart. Details: www.atta.org.au
SEPTEMBER 2010 3-5: Canberra Timber & Working With Wood Expo, Exhibition Park in Canberra. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 6-12: Landcare Week. www.landcareonline.com 7-9: Wood Manufacturing 2010. Profitable Wood Manufacturing: Tooling, Technology & Design. Rotorua, NZ. www. woodmanufacturingevents.com 8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.org
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13-15: Wood Manufacturing 2010. Profitable Wood Manufacturing: Tooling, Technology & Design. Melbourne. www.woodmanufacturingevents.com
SUSTAINABLE. sustainable. responsible. . RESPONSIBLE
15-16: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design, Melbourne.
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
20-21: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design Rotorua, NZ. 30-2 October: The Future of Forestry and Forest Science Conference. Celebrating the centenary of forestry education in Australia. Sydney Myer Asia Centre Carrillo Gantner Theatre, Melbourne University. Contact: Event Planners Australia forestry. Email: 2010@eventplanners.com.au
OCTOBER 2010 10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000. 15-17: Melbourne Timber and Working with Wood Expo, Melbourne Showground, Melbourne. Contact: (02) 9974 1393. Fax: (02)9974 3426
2010
JUNE 2010
Email: info@eee.net.au
19-20: MTC Global Woodmart: Gateway to International Wood Markets. The first ‘one-stop’ selling and buying platform for all suppliers and buyers of wood and wood products. Early bird discount 5%. Organised by the Malaysian Timber Council at the Kuala Lumpur Convention Centre, Malaysia. Contact: Malaysian Timber Council. Tel: +60 3 9281 1999. Fax: +60 3 9289 8999. Email: council@mtc.com.my
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 127 | 31.05.10 | Page 5
SUPPLY CHAIN SEMINAR
Quality stamp on engineered wood from NZ suppliers MEMBERS of the New Zealand Pine Manufacturers Association met more than two years ago to discuss how they could collaborate in promoting engineered wood – fingerjointed and laminated products – in the Australian market. Members were facing increasing competition from other international suppliers and felt their supply position was under threat. “Feedback from NZPMA customers, mainly Australian importers and wholesalers, suggested NZ suppliers were not doing enough to distinguish their products from other suppliers, and were suffering lost market share as a consequence,” Nigel Wilshier, managing director of OTC Timber Co, Otorohanga, NZ, said at the recent supply chain seminar in Melbourne. “At a time when international markets were in steep decline, the group decided some coordinated promotional work was needed, along with a focus on improving service to the Australian market.”
Quality assurance .. Nigel Wilshier launches the PINENZ brand at the Melbourne supply chain seminar.
A group of nine long-standing and experienced suppliers to Australia decided to work together to promote NZ engineered wood supply through the distribution chain to Australian builders and timber merchants. “The objective of the promotional work is to distinguish PINENZ manufactured products as Cont Page11
Seeking FSC certification From Page 4
Australia. FSC Australia chief executive Michael Spencer said that if the company was successful in gaining certification this would be an important boost for downstream companies in the Queensland timber industry who have been seeking FSC certification. “FSC Australia has previously approached the Queensland Government with customer companies seeking to produce
Page 6 | issue 127 | 31.05.10
FSC certified products in that state,” Mr Spencer said. “However, the former management was not responsive and one company was forced to utilise material from overseas and interstate to meet customer demand.” Mr Spencer said the FPQ sale had the potential to provide an important boost to environmental, social and economic outcomes from forest management in Queensland.”
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industry news
Forest and wood industries win hands down on low emissions, sustainability From Page 2
and it is likened to solidified electricity in the way it sucks up power for production – is pushing green credibility because it says its products are 100% recyclable. The claim is mostly supported by the number of tin cans melted down and recycled. The plastic industry also hypes up its “sound environmental credentials” because it can be recycled. It wasn’t that long ago that green ratings were earned by the amount of PVC that was pulled out of a building. The new PVC credit came into effect for all green star projects registering after April 7 and by “encouraging responsible manufacturing and innovation” is expected to see a rise in the use of best practice PVC or vinyl products across the building sector. For projects registered before April 7, the option is to use either the old minimisation credit or the new, best practice credit. Vinyl Council of Australia chief executive Sophi MacMillan says the new PVC credit will allow builders, specifiers and architects to gain green star points for use of certain vinyl
Zero emission forests growing on solar energy.
products that meet best practice criteria in manufacturing. The previous green star rating tools awarded points for not using PVC products, which led to PVC being de-selected as a material of choice for building projects seeking green star certification. “With the new green star credit, PVC no longer attracts a ‘negative credit’ and some certified vinyl products will actually gain points toward green star accreditation,” Ms MacMillan said. Under the PVC credit, projects will be able to claim two points towards their green star rating if the project’s flooring and resilient wall coverings, cable,
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pipe and conduit – which together account for the majority of PVC use in buildings – meet the Green Building Council’s best practice guidelines. The GBCA endorsed the new PVC credit following a review by its technical steering committee and an expert reference panel and stakeholder feedback. “This important change puts PVC on a level playing field with other building materials and follows a long and robust consultation and scientific review process,” Ms MacMillan said. This all seems so incredible, because none of these finite products, even on tipytoes, could ever reach the high
environmental, renewable and sustainable attributes of timber. An analysis of greenhouse gas emissions intensity attributed to 115 industry sectors within Australia vividly illustrates the competitive positioning of the forestry sector; it is the only sector that can report a net loss in greenhouse gas emissions. In the federal government’s carbon pollution reduction scheme green paper [July 2008] produced by the Department of Climate Change, the CO2 emissions per unit of revenue for each industry is calculated as the direct and indirect electricity emissions associated with each industry per million dollars of revenue. Among the top emitters are aluminium and cement and lime with 9945 tonnes of CO2 emissions per unit of revenue, iron and steel with 1568 tonnes of emissions and concrete with 818 tonnes. Way down the list are sawmill products at 254 t emissions and wood materials at 212. Forestry and logging shows MINUS 1493! The forest and wood product industries rest their case.
issue 127 | 31.05.10 | Page 7
industry news
EWPs that tick Hardwoods enlist to help in huge lift ALL the boxes of Navy warships Engineered wood products manufactured by EWPAA member companies top the list
Duty calls .. Boral hardwoods hit the deck
Consistent QUALITY LOWEST emissions Structurally SOUND and SAFE Wood from 100% LEGAL, CERTIFIED forests GUARANTEED to Australasian Standards JOBS security
EWPAA
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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 8 | issue 127 | 31.05.10
AUSTRALIAN hardwood timbers have been used in the construction of the largest shiplift in the southern hemisphere, with a capacity to support and lift warships weighing up to 9300 tonnes. Located at Port Adelaide, the shiplift was commissioned by Defence SA after winning the contract to build three $6 billion Navy-Air warfare destroyers. The impressive shiplift weighs 3000 tonnes and required a workforce of up to 200 people to build it. The 155.8m x 34m lift sits at ground level and can be lowered to 18.5m below sea level to allow vessels to float on and off. Appointed to design and install the shiplift, Rolls Royce Marine awarded Boral Timber the contract to supply the substantial 564 cub m of hardwood timber. Blackbutt and spotted gum species were specified due to their hardness and crushing strength, providing the modulus elasticity, shear
parallel to grain, compression perpendicular to grain and bending perpendicular to grain required. The timber subframe sits over a steel platform consisting of 18 individual sections. The subframe is fixed onto the steel joists using lag screws. Rolls Royce Australia’s project manager Bernie Dobson said his company was impressed with the capability of the South Australian supply chain companies. “This was an extensive project but the efficiency of all the companies involved meant it ran smoothly. We’re delighted with the finished structure which boasts excellent strength while also holding aesthetic appeal.” The shiplift project was commissioned in late February and forms part of the South Australian government’s $400 million commitment to infrastructure at Techport Australia, supporting the Navy’s Warfare Destroyer Program.
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appointments
Louise brings key training skills to TABMA WA office A STRONG background in group skills training equips Louise Collier well for her new position as membership manager in Western Australia for TABMA Australia. “Louise has a wide experience in the placement of trainees and apprentices and in recruitment and sales,” TABMA chief executive Colin Fitzpatrick said. “This experience will be of great benefit to TABMA members as Louise will help them in staff placement at minimal cost as well as providing members with additional benefits and services.” The Hardware & Building Traders Group (HBT), with which TABMA has a strong alliance, recently held its annual conference and expo in Perth. The conference was attended by more than 330 HBT members from around Australia. A booth at the convention gave TABMA the opportunity to promote group training, recruitment services, OH&S audits and the Wood Naturally Better promotion. Following TABMA’s successful chain of custody breakfast in Sydney, Mr Fitzpatrick said TABMA was now able to offer
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 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday!
Louise Collier .. new membership manager for TABMA in WA.
members CoC certification at a group rate. This heavily discounted rate is exclusive to TABMA members and details can be obtained from TABMA’s Sydney head office on (02) 9277 3100. “TABMA is continually looking at improving and streamlining the services and benefits offered to members and is currently negotiating a couple of exciting major arrangements that will be of great financial benefit to members,” Mr Fitzpatrick said. Details will be announced in T&F enews in the next couple of weeks. Louise Collier can be contacted on 0424 014 510.
HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3256 1779 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready Tel: +61 7 3841 8075 production@industryenews.com.au
Push for forest roundtable TASMANIA’S Premier David Bartlett is challenging environmentalists to help make the state’s forest industry work. He has extended the deadline to start the forestry roundtable process so details can be finalised. The process will be coordinated by Rob Woolley, head of the Forests and Forestry Industry Council. The Premier said those in the
timber sector were ready to sit down and begin discussions and there was no time for excuses from environmentalists. “They’ve been calling on this for decades. Here’s their opportunity. They need to get their own house in order and step up to the plate and be part of this.” Mr Bartlett said. “A list of excuses why they can’t join us is not good enough.”
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Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising. The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.
issue 127 | 31.05.10 | Page 9
SUPPLY CHAIN SEMINAR
DNA science tracking illegal timber Helping to reduce cost of CoC certification SCIENTIFIC evidence, such as the use of DNA techniques, is helping to track illegal timber and bring down the cost of chain of custody certification. Speaking at the recent supply chain seminar in Melbourne, Darren Thomas, managing director of Double Helix Tracking Technologies, said a simple, affordable method was now available to verify origin and species of timber products. He said DNA, present in trees and wood products, was used in much the same way as in human criminal forensic science popularised in TV crime shows such as CSI. “We can use the properties of DNA to match wood samples back to forest source and determine the geographic origin of the harvested timber,” he said. Mr. Thomas stressed that such DNA techniques are not intended to replace existing methods of timber certification, but are designed to support and strengthen the paper-based chain-of-custody systems. “Everyone knows that the paper-based system is vulnerable to fraud, especially in developing countries like Indonesia and Papua New
Talking timber certification on the Malaysia Global Woodmart 2010 exhibit at the supply chain seminar are Bronwyn Foord, general manger, Window and Door Industry Council, John Halkett, Australian Timber Importers Federation and Darren Thomas, managing director, Double Helix Tracking Technologies, Singapore.
Guinea,” he said. “What DNA verification does is scientifically validate the paper trail, giving the customer and the certification auditors more confidence in the system. “By relying more on the scientific evidence, physical audits can be reduced, in turn bringing down the overall cost of certification and making the CoC process much more efficient for Australian importers and timber merchants.” Such a solution is timely as the federal government is expected to soon announce its latest statement on illegal logging policy. Much of the information provided to seminar delegates
by Singapore-based Double Helix Tracking was based on experience with the United States Lacey Act amendments. “The Americans have taken a different approach by announcing a ban on trade in illegal timber products, but they are finding it extremely difficult to enforce,” Mr Thomas said. “By introducing the requirement of declaring the country of harvest, they have created a new market for the verification of those declarations – something that is now possible with DNA. “Learning from the experience of the Americans, Australia can definitely benefit by adopting a technology that enables the effective implementation of
policy.” Many delegates at the supply chain seminar representing both Australian producers and importers expressed the need for a ‘level playing field’, one where domestic industry can compete fairly with overseas producers without being undermined by cheap illegal timber products. “I’m not surprised by the positive response we received,” Mr Thomas said. “Everyone wants the same thing – to have a competitive, stable and sustainable Australian timber industry. DNA verification can make this happen by introducing an unprecedented level of transparency, enabling the industry to self-regulate. “In fact, the Australian industry is already an early adopter of DNA verification,” he said, referring to Simmonds Lumber’s use of the system to verify the origin of merbau imports. Mr Thomas said there remained a need for a strong message from the Australian government in the next few weeks. “Unfortunately, Australia is a number of years behind when it comes to illegal logging policy. “
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Page 10 | issue 127 | 31.05.10
Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)
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ceRtification
The high and ‘wasteful’ cost of CoC Lumber industry a voice in the wilderness of paper, the chain of custody is broken and my customer, the building owner, will not get the appropriate credit. Let me share a real scenario that is beginning to happen in the marketplace today. I had a recent meeting with one of my costumers discussing LEED certification on their building. Our company is both FSC and SFI chain of custody certified. He wants his building
I THINK we can all agree that lumber is one of the greenest products on the market today. Today we have well-managed forests and by most estimates we have more trees growing on the Earth than we did 25 years or more ago. Now, let me get to my point. Where did lumber get off the proverbial bus when it comes to the US Green Building Council (USGBC) and its LEED rating system? ‘It does not take a rocket science degree to know that developers and owners are not going to pay an additional 7% just to earn LEED points’ Many forest certification systems exist, including FSC, SFI (Sustainable Forestry Initiative), CSA (Canadian Standards Association), ATFS (American Tree Farm System) and PEFC (Program for the Endorsement of Forest Certification) and it appears that a majority of the mill producing lumber in Canada and the US are, in fact, certified to one of these systems. But what is often overlooked
This contribution from US component manufacturer Ben Hershey, immediate past president of the American Structural Building Components Association, sends a thought-provoking and timely message to industry in Australia. Communicating with Timber&Forestry enews, Mr Hershey said he hoped the article would spur conversation with the appropriate groups to come up with an overall approach to correct the problems both countries face.
is the cumbersome and costly process of chain of custody. You can stamp all you want that your product is FSC or SFI certified, but without that piece
to achieve LEED certification. I prepared my quote and showed him my base price for components made with regular lumber, and then I showed him the price for FSC lumber (an additional 25%). Note that the additional 25% would apply to engineered wood products as well. Needless to say, he was not Cont Page 14
Audited every six months From Page 6
superior to their alternatives and grow PINENZ members’ sales in the Australian market,” Mr Wilshier said. He said one way to achieve that objective was with a tangible quality system with real outputs that represented why PINENZ quality products would work for supply chain partners and builders. To that end, an accredited quality system, with a registered quality mark, PINENZ, has been established to promote the benefits of the group’s products. Each member has to undertake and pass qualification audits
of its manufacturing processes and products to become a certified member of the PINENZ quality scheme. The scheme requires continuous monitoring of process and product quality, regular testing of products, and an audit by a JAS-ANZ accredited certification body, Asure Quality, every six months. Members’ products are now being manufactured and distributed in to the market and will carry an identifying quality mark symbol to indicate it has been made to the required Australian standards for quality and durability.
If it’s your timber, make sure it’s in the competition. Ring the architect, builder or owner; pay the fee; organise the photos. The 2010 Australian Timber Design Awards is your chance to have your timber products showcased. If you’ve supplied timber or timber products to an eye-catching house, office block or resort development, make sure your contact knows about the Timber Design Awards. Let us know about the project by email at info@timberawards.com.au
ENTRY FORMS AND INFO AVAILABLE AT
www.timberawards.com.au Entries close 16 July
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issue 127 | 31.05.10 | Page 11
WOOD CONSTRUCTION
Multi-storey LVL building first to use timber seismic method Innovative NZ engineering wins $1m prize A NZ team of architects and designers has won a $1 million prize for creating a world ‘first’ building concept that features earthquake resistance design and multi-storey laminated veneer lumber construction. The Nelson Marlborough Institute of Technology arts and media building, the largest ever capital investment in the arts in the ‘top end’ of the South Island expected to cost around $9 million, has sourced all materials within 100km of Nelson. Construction started on January 26 and the building is expected to be completed before Christmas. A national competition for the design stipulated that the building must be sustainable, local and substantially made of wood. In partnership, the Ministry of Agriculture and Forestry and the institute offered a $1 million cash prize towards the construction costs. The Nelson-based team of Irving Smith Jack Architects Ltd and engineering firm Aurecon won the competition against a formidable array of top design teams. The judges described the building concept as “unique in the world in terms of wooden building design and a vital teaching tool to promote the use of wood in commercial construction”. In completing a world ‘first’ timber seismic design, Aurecon structural engineers used pairs of rocking timber walls, joined with energy dissipaters. The structure is able to absorb seismic energy and reduce building damage during an earthquake. This is
Page 12 | issue 127 | 31.05.10
a new generation of seismic engineering known as damage avoidance design. All structural beams, columns and floors are of engineered timber construction in LVL. Sourced from Nelson Pine Industries the material has excellent strength properties, is durable and fire resistant. This allows the design of beams, columns and floor systems that are the equivalent of steel and concrete. A series of design innovations contributed to the sustainable design approach employed. Devices including mixed mode heating and cooling, heat exchangers, thermal mass, high insulation levels, use of natural daylight, assisted ventilation
and solar water heating reduce energy consumption. At completion, energy usage will be monitored by the University of Canterbury for comparison with more traditionally constructed buildings. By using locally manufactured LVL as the primary structural element, local fabricator Hunter Laminates and Potius flooring to manufacture structural components, the project is supporting Nelson’s radiata forests and timber manufacturing industries. Irving Smith Jack has designed the building to highlight its timber construction; when completed, timber components will remain visible, showcasing the innovative design approach
and allowing this building to act as an exemplar for both the design and building industries. “A state-of-the-art building such as this is going to be an integral and memorable part of gaining their qualifications for our arts and media students,” NMIT chief executive Tony Gray said. The design has had to accommodate the diverse and sometimes conflicting requirements of different arts and media activities. It will need quiet spaces as well as places where there can be lots of noise. Also dust-free environments and those where dust can be created. Some activities need Cont Page 13
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certification
KL hosts PEFC stakeholder dialogue A STAKEHOLDER dialogue focused on the revision of the PEFC’s core documentation and requirements for sustainable forest management and forest certification schemes, and on forest certification initiatives in the Asia-Pacific region, will take place in Kuala Lumpur, Malaysia from June 16-18 “As PEFC (Program for the Endorsement of Forest Certification) is comprehensively reviewing and revising its benchmarks, this dialogue welcomes input into the standards revision process,” the chief executive of Australian Forestry Standard Ltd Kayt Watts said. “While market and societal expectations as well as sound scientific knowledge are relevant, stakeholder participation is crucial to
Ben Gunneberg
establish viable and pragmatic standards.” AFS is closely involved in the revision process of the PEFC guidelines, as a member of PEFC and by participation on the Working Group for Standards revision. Later this year, the Australian
forestry standards are commencing their five-year review. “The development and outcome of the PEFC revision provides a global insight to what stakeholders are expecting and can provide beneficial information and direction for us,” Ms Watts said. “I encourage Australian and NZ stakeholders to participate in this forum to ensure contribution and direction and to hear others in the region present and share their experiences, challenges and successes in developing their certification initiatives.” “We believe this stakeholder dialogue will provides an ideal opportunity to learn about and exchange views on forest certification in the region and to share with us your opinions and suggestions on critical issues
Sustainable design approach Fron Page 12
to be in restricted zones, and some can be carried out in relatively public areas. It makes best use of natural light and ventilation, and will efficiently accommodate workflows for a wide range of processes. This building will be equipped with up to date digital gear necessary for contemporary arts and media practices
including music editing and composition, video, graphic design, image manipulation, publication design and production, animation, internet design and more. It will also include workshops with a range of technical equipment and specific facilities for handling different processes, materials and substances. • Pictures by Irving Smith Jack Architects.
SavetheDate! 9 September 2010 Sofitel Melbourne on Collins
concerning the PEFC standards revision,” the secretary-general of the PEFC Council Ben Gunneberg said. “As the world’s largest forest certification system and the certification system of choice for hundreds of thousands of small and family forest owners, it is our collective responsibility to support the development of sustainable forest management practices and forest certification in the region with standards that integrate best practices, new scientific knowledge and stakeholder and customer expectations.” Mr Gunneberg said continuing success in delivering certified sustainable forest management globally depended on strong forum participation. “The resultant requirements will apply to over two-thirds of the world’s certified forest area.” The forum subjects include how to ensure balanced stakeholder participation in developing national standards; ensuring the recognition of indigenous people’s rights relating to forest resources; ensuring basic labour, health and safety standards in all forestry operations; and how to stop forest conversions and what approach is best to limit the use of herbicides. Registrations online at pefc-mtcc.eventbrite.com
“Australia’s Place in the Changing Global Forest Products Market” Conference will be presented by ForestWorks, the Industry Skills Council for Australia’s Forest, Wood, Paper and Timber Products Industry and supported by Industry Groups Complete coverage of topics and speakers relevant to our industry, including: • • • • •
Future opportunities for global forestry markets Certification and regulation of global markets Ownership and investment in Australia Industry led solutions for a sustainable industry Growing timber markets including renewable energy
The 2010 Forest Industries Liaison Dinner will also be held on: 9 September at the Regent Theatre on Collins Street, Melbourne For information please contact: cday@forestworks.com.au
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issue 127 | 31.05.10 | Page 13
certification
Points should be awarded for optimum value engineering in the rating system From Page 11
happy with the price increase and talked about switching the project to steel which was about 15% more than my regular lumber pricing to him. How did that happen? Well, those of us who are FSC certified had to spend money with the folks at FSC to have CoC certification. Couple that with the cost of certifying the forest the mill produced the lumber from and, surprise, you get higher cost lumber. All of this is added cost for lumber already produced from a managed forest. And what would the difference be if my customer did decide to use steel? There would be no additional charge for LEED certification because steel is a recycled content material that LEED automatically awards credits for and there is no cumbersome CoC requirements with steel. Excuse me? I am not here to debate the environmental aspects of wood vs. steel. I merely am questioning where the lumber producers have been throughout this entire process and how they allowed the USGBC body through FSC and other agencies to price certified wood out of the marketplace. Why have lumber producers and various organisations spent so much money educating architects and engineers on the benefits of using wood? The industry has spent millions of dollars already on the WoodWorks program here using money from the softwood lumber agreement and contributions from producers and associations. It appears to me that this money has been completely wasted if USGBC is not going to make it cost competitive to use wood in the commercial structures they are trying to promote. Yet
Page 14 | issue 127 | 31.05.10
I understand the importance of marketing wood and wood products to architects and engineers. In the scenario above, the lumber industry is causing our customers to think about moving toward steel given the higher cost of wood. It’s more like EconomicWorks! It does not take a rocket science degree to know that developers and owners are not going to pay an additional 7% just to earn LEED points. Where is the visible and vocal fight from lumber producers trying to get USGBC to accept wood as stamped and stop this money making charade of chain of custody? I have often wondered why the lumber producers have never done more to tell their story to the American public about how we grow trees today and put down this Gore-type myth
Many certification systems, but chain of custody a cumbersome and costly process.
that we are robbing the forests of trees. I had the opportunity to visit the Weyerhaeuser Mount St Helens Learning Centre [located inside the blast zone of the May 18, 1980 eruption of Mount St. Helens in Washington State] and was amazed at the quick response to replanting 18 million trees that were lost during the volcanic eruption. Surprised? You should be. Where is the education of this? Somehow the lumber industry, even with all the money it has spent on its association marketing programs, lost its voice trumpeting the good things its industry does, starting with the use of the whole tree and managing the forests that it comes from. You, the lumber producers, need to stand up and start fighting for what is right and promoting wood as the green product it is. Otherwise, while we like working with steel components as well, our customers will be increasingly pushed in that direction. So where do we start? My thought is you need to be at the table now with LEED and change the requirements to allow wood that is stamped with the various forest certification programs and credit awarded accordingly without the added cost of chain of custody. If you cannot do this, then why should component
manufacturers continue to fight to use FSC, SFI or any other certified wood? The industry should also be working to get more seats at the table. Look at the makeup of the USGBC and FSC governing boards; I do not see any of you at the table helping to guide or set policy. The Structural Building Components Association has taken the position that we should not need CoC certification for our products given the major value of building system engineering. We believe that wood is an inherently green product. We further believe that a greater number of points should be awarded for optimum value engineering in the LEEDNC rating system for new commercial structures. Our company has taken the time and money to be FSC and SFI chain of custody certified and to have individuals trained in the LEED program. We believe we need to be involved in these activities if we are going to stay current with our customers’ needs. But keeping current on green programs does not take away the difficulty of trying to sell customers wood that is significantly more expensive that it should be. You hear our voice – but where is yours? If you want to see continued use of wood in commercial applications like WoodWorks promotes, and not see these structures move increasingly to steel or other applications, then the lumber industry need to start being heard. * Ben Hershey is president of Alliance TruTruss, based in Phoenix, Arizona, USA. The words also appeared in the May Structural Components Magazine.
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events
Working with wood labor of love for thousands at Brisbane event By ROBIN DOWDING
atwoodworkforwomen.com
THE Timber and Working with Wood show hit the river city last week at the Brisbane RNA showgrounds. The show is now more than 20 years old and like most things in life has matured to fit today’s expectations and needs. Back when the first shows were held at the old Sydney showgrounds before moving to Homebush Bay after the Sydney Olympics, there was a tendency to try and be all things to all people. Time has distilled the organisers’ thinking and planning; today the focus is very much on the enthusiast and timber hobby specialist. The event now happens in most of the major cities at some point in the year, and it attracts wood turners, carvers and cabinet makers. There are also plenty of exhibits for building trades, architects, designers and other stakeholders in the mainstream timber industry. The show has been under new management for the past two years since being purchased by Sydney-based Everything Exhibitions and Events Pty Ltd. Managing director Elizabeth Falloon said the plan was to improve the show year on year and make it a primary showcase for manufacturers and suppliers to display their products and services. If this year’s Brisbane show is anything to go by, they are achieving their goal. With more than 90 exhibits ranging from Aboriginal wood art to woodworking for women, there was something to cater for all interests. All the usual suspects like tool, timber and finishing product suppliers were there with new products to show off and
In these competitive times, all businesses need to be in the face of the buying public. A trip around the Working with Wood show confirmed for this writer that upfront demonstrations to an audience that has paid to walk through the door must pay dividends.
Wood turning, no mater what, kept the crowds entertained at the wood show.
demonstrate along with a range of newcomers, keen to make an impression. Those we spoke to were all happy with the response and interest shown in their stands. One stand in particular, Woodwork for Women, was run by business owner Patt Gregory who was very pleased with her involvement. Patt explained: “This is the first show we have ever done, even though I have been teaching woodwork for women since 1998 in my home town of Mullumbimby. “The response at the stand has been very encouraging; women are keen to get into this sort of thing because the DIY programs on television have opened up a whole new area of awareness.” Patt has also produced a book to be published shortly and runs various woodworking courses for women. But, she says with a little coyness, “men are also welcome.” For any women (or men) who are interested, Patt can be contacted on (02) 6684 3160 or
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Timber demonstrations popular at Brisbane’s Working with Wood show
Thousands attended the twoday show in Brisbane and the 10 or so specially designated demonstration areas were constantly attracting their share of interest. Wood turning, toolsharpening, wood finishing, whatever, people just wanted to learn and work with timber.
issue 127 | 31.05.10 | Page 15
INDUSTRY NEWS
EWPs .. it’s all about product knowledge MORE than 30 marketing and sales personnel brushed up on technical aspects relating to plywood, LVL, particleboard and MDF at a successful threeday product knowledge course on the Gold Coast last week. A regular event organised by the Engineered Wood Products Association of Australasia, the program included subjects such as environmentally sustainable development, basic wood science, product application and uses, preservative
treatment and marketing of EWPs. Strong discussion on softwood and hardwood structure centered on grain direction; properties along versus across the grain; effect on structural properties and hygroscopic (moisture) movement; density; effect of characteristics on structural properties; sloping grain; effects of moisture on structural and dimensional properties; panel stability; and balanced construction.
Talking product knowledge on the Gold Coast .. Sam Ling, Australian Wood Panels, Lesley Ireland, Boral Plywood, Simon Dorries and Ewan Brown, EWPAA, and Myron Cause, Timberhelp
Queensland Timber Industry Awards Gala Night
A meet-the-products session looked at marine, structural, exterior and interior plywood. Course participants discussed standards, bond types and durability, veneer qualities and face grades. A ‘family’ of particleboard and MDF products, including reconstituted wood panels and raw materials, was presented by consultant Alan Hallilgan who outlined manufacture, product range, standards, properties, applications and uses. “The course went well and response from delegates was very positive,” EWPAA general manager Simon Dorries said. Australian delegates shared information with industry representatives from New Zealand and Papua New Guinea; all gained a wealth of knowledge about products passed on by technical experts. The group, a combination of senior management and staff, included manufacturers, merchants and wholesalers and chemical treatment suppliers.
Sharing product knowledge .. Josh Smolenaers, The Laminex Group, Ballarat, and Andre Siraa, Zelam Ltd, New Plymouth, NZ.
Trans-Tasman participants .. Sharon Adlam, DYNEA, NZ, and Kristina Day of Zelam Ltd, NZ.
Please nominate the companies and/or individuals that you believe are ‘a step above’ in the following categories:
October 9, 2010
NOMINATIONS CLOSING SOON! Page 16 | issue 127 | 31.05.10
new sponsors join our ‘early bird’ crew!
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FOCUS ON SUPPLY CHAIN SEMINAR
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Contact: John McLachlan john@skookum.co.nz +64 274 932 612
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www.skookum.co.nz
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issue 127 | 31.05.10 | Page 17
Chain of Custody
BRUKS CHIPPERS FOR SALE
I N F O R M AT I O N S E M I N A R B R U KBrisbane S 8 2 0 • Thursday, August 20, 2009 The Chipper On Logan Conference Centre C MBruks 820 Drum433 Produces High Quality 433Export Logan Road, Stone’s Corner Chips from Slabs and Trim Blocks.
LIMITED TO 60 SEATS
TWO Chippers to Choose from: important and timely seminar, organised by TABMA Queensland, - This One Refurbished in Sweden - will One Good Original helpVery reduce some of the confusion relating to chain of custody. It Condition
will ensure the Queensland timber industry has the information required
Technical Data: with legislation,Key speakers will present information for compliance • 30-60 m³ chips/hr there will be a question and answer forum. • 2and knives • Infeed opening – 540mmx365mm(WxH) Speakers include: • Max solid wood thickness – 250mm • Colin MacKenzie, manager, timber application and use, Timber Queensland • Chipper drum speed, 720 rpm • Simon General Manager, Engineered Wood Products Association • No. of feedDorries, rollers – 2/4 (upper/lower) • Feedwork power rating – 2.2/4 kW Australasia • Main power rating – 110 kW • Kayt Watts, chief executive, Australian Forestry Standard Ltd (AFS) • Weight – 4200kg
of
• Michael Spencer, chief executive, Forest Stewardship Council (FSC)
Also Available: Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast BRUKS 820 tea. CSNote: Drop Feed DrumBreakfast Chipper and morning Arrival 7:30am. 7:45 am. Presentations begin at 8 am.
RSVP by Friday, August 14, to: Australia Tabma Queensland, PO Box 532, Ph (1800) 600 053 500 Brunswick Street, Fortitude Valley 4006 Tel: (07) 3254 3166. Fax: (07) 3254 4599. Darren Ousey 0407 041 947 Mob: 0438 295 136
www.tabma.com.au
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New Zealand Ph +64 9 276 2402 (0800) SKOOKUM John McLachlan +64 274 932 612 Geoff Strang +64 274 304 981
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for sale reach your market weekly s direct delivery s very affordable Page 18 | issue 127 | 31.05.10
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