Issue 149

6471

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issue 149 | 01.11.10 | Page 1

Food for thought

Farmers likely new antagonists as forests deal pushes for plantations

By JIM BOWDEN

SUPPORTERS of the proposed transition in Tasmania from public native forests to plantations may face a bigger stoush with an agriculture sector fighting to retain and expand farm lands for food production.

A landmark forest ‘peace’ pact signed on October 19 between the forest industry, unions and environmentalists put a gradual shift to plantations at the core of a Statement of Principles presented to the premier David Bartlett.

The Construction, Forestry, Mining and Energy Union, a former strong advocate of native forest production, wants the green lobby and governments to secure the

Farming .. the next conflict for forest industry?

industry’s survival by agreeing to a dramatic expansion of plantation forestry.

David Thompson, national

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strategy coordinator of Plantations 2020 asks: “Where will these plantations be developed? They certainly won’t replace native forest areas and any use of agricultural lands is sure to pit farmers against tree growers.”

He added: “The conflict between plantations and agricultural lands is a growing issue. And who will invest in new plantation programs?

Institutional investors were quite happy to pick up established plantations, but since the collapse of forest management schemes, few will want to invest in new plantations.”

There are not enough plantations in Tasmania to meet

Forestry group boosts morale in state conflict

Cont Page 4

issue 149 | 01.11.10 | Page 1

industry news

Time to revisit Making the 2020 strategy an for plantations impact ..

VAFI congratulates all award winners and sincerely thanks generous sponsors, presenters and all our guests who helped make our annual dinner such an outstanding success.

A wonderful effort – Philip Dalidakis Chief Executive

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 149 | 01.11.10

NEW investment models will be needed to provide finance for new plantations.

“We will have to revisit the whole of Australia’s Plantation 2020 strategy,” says the national coordinator David Thompson.

“An industry study on plantation investment has shown growing new plantations for saw logs is not profitable,” he said.

“An increase in timber prices might make plantations more profitable, but this will be hard to achieve as timber imports undercut the market.”

There are suggestions that plantation expansion can be financed from climate change and carbon. While the carbon benefits of new plantations are clear, the potential benefits of phasing out native forest harvesting, in the face of increasing fire risks and other impacts of climate change are highly uncertain.

The Tasmanian agreement has been driven primarily by changes in international timber markets. Australians use the equivalent of 22 million cub m of wood each year in timber, paper and other forest products.

About 30% of this comes from native forests.

Since 1997, the plantation estate has increased at a rate of more than 70,000 hectares a year, doubling from 1-2 million ha.

“It will probably top out at 2.4 million ha by 2020, rather than the targeted 3 million ha, due to the focus on short-rotation trees, which will be replanted instead of developing new areas,” Mr Thompson said.

“Most states and territories have codes of practice for plantation development, many legislated, some voluntary.

“Significant regional

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

How do you employ

apprentices?

David Thompson … demand outlook for Australian wood remains positive.

investment/employment has occurred in plantations and processing infrastructure.

The natural resource benefits of commercial trees have gained increased recognition through acknowledgement of their carbon sequestration credentials.”

However, Mr Thompson says a primary objective of the 2020 Vision – wood supply security for the processing sector, enabling them to operate at an internationally competitive level – is more uncertain as a result of recent farm forestry and MIS developments.

Most expansion has come through forestry MIS which accounts for 34% of the national plantation estate, or 664,000 ha. MIS has focused on pulpwood for the export woodchip market, reflecting the fundamental problem with forestry investment – an unfavourable cash-flow pattern.

Attracting investors is facilitated by initial cost tax deductibility, and minimising the time to harvest (short, rather than long rotation products).

Cont Page 8

At Tabma we do it all!

We recruit We train We mentor We provide reports We develop We rotate if necessary Forget the drama – call Justin Dwyer on (02) 9277 3172 and find out how easy it is for us to do all of it for you.

www.tabma.com.au

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industry news

Baltic pine dominates framing supply market European shipments to Australia rising

By JIM BOWDEN

THE Baltic pine is the traditional Christmas tree in northern Europe – but depending on where you stand in the timber trade, the many thousands of cubic metres of the clean and structurally straight wood flooding the Australian market will be either a gift or a concern as the festive season approaches.

While not actually creating a price war, Baltic pine – known as Norway spruce or whitewood in its country of origin – is entering the framing market at around 5-7% below the cost of locallygrown softwoods.

The rising Australian dollar and

Baltic pine .. a good wood and shipments keep coming.

wood demand has provided an attractive market for European producers and Baltic pine (Picea abies) imports are at an

all-time high.

In Brisbane alone, timber traders report more than 60,000 cub m of Baltic pine, mostly from Czechoslovakia, is filling up warehouse space.

Biggest trader in the wood, Finland-based Stora Enso, says it has more than doubled its volumes to Australia in the past 18 months; at any given time, the second-largest forest products company in the world has 35,000 cub m ‘afloat’ on its way to the eastern seaboard.

The wood, sourced from the dense forests of central Europe, is sold as timber framing material for wall and truss manufacturing from Stora Enso’s Australian distribution centres in Melbourne, Brisbane and a new 25,000 sq m facility opened at Gosford, NSW, last week. Sales are also made in Sydney, Adelaide and Perth through partner distributors.

[In June 2005, Stora Enso Timber Australia became a wholly owned subsidiary of Stora Enso Timber Oy Ltd after a final purchase of the 49% shareholding of Moxon Timber].

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 6

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issue 149 | 01.11.10 | Page 3

industry news

Plantation timbers won’t make the cut for veneers and joinery From Page 1

wood supply commitments or replace the level of industry activity and employment from native forests. Only 10% of plantations can produce higher value products. The current crop of eucalypt plantations was established largely for pulpwood, either for export or for use in the proposed pulp mill. They are generally not of the right species or varieties, nor have they been managed to produce products for construction, flooring or joinery.

It will take many years to establish a sufficient area to a replacement resource – 20 to 50 years for new plantations to provide higher-value products.

CFMEU forestry division national secretary Michael O’Connor in his support for forest plantations wants a new focus on value-adding through investment in sectors such as veneers.

But the Briggs Group in Sydney, which has been producing veneers for more than 75 years, says plantation timbers won’t make the cut.

“Such statements by a union

leader indicate a complete lack of knowledge of the connection between wood technology and economics,” says Juel Briggs.

“The density and quality of the wood just isn’t suitable for most joinery, decorative veneers, stairs and flooring.

Young monoculture hardwood plantations won’t match the quality and durability of regrowth spotted gum, ironbark, blackbutt or jarrah.

Ms Briggs said fast-grown plantation hardwoods also had another terrible problem that could send a sawmiller or manufacturer broke: spring – or ‘pop’ – due to their growth stress.

“This causes log splitting, often on the log truck or just after it is fallen, which will drop recovery to around 10-20%. Such logs will only be suitable as pulp wood.”

Adding to the growing voices of disenchantment about Tasmania’s plantations push is the similar deal struck between government, industry and conservation groups in southeast Queensland about 10 years ago. As yet, there has been insufficient public or private investment in new

Juel Briggs .. lack of knowledge of the connection between wood technology and economics

plantations to offset losses in timber production from native forests.

Public funding for plantations will need to come from the federal government, with arguments for this investment competing with irrigation, the Murray-Darling Basin water reforms and farm expansion.

Increased plantations on agricultural land continue to create strong community reactions and concerns about loss of community values and farming land and water catchment issues.

As veteran Tasmanian sawmiller

Ike Kelly of Dunalley puts it: “If forest plantations encroach on farming lands – and the state is fast becoming the nation’s new food bowl – will we have to eat wood bark for 30 years?”

Tasmania occupies a land area of 68,300 sq km, of which nearly a third is committed to agriculture. The state is a rich producer of apples, dairy products, beef cattle, pigs, berry fruits, asparagus, potatoes and hops which provide 60% of Australia’s brewery needs.

Adding to the chorus for an expansion of farming lands is the $102 billion food and grocery industry, Australia’s largest manufacturing sector, now under pressure from rising imports and falling exports.

A new economic snapshot of the sector shows for the first time in decades the industry’s international net trade position fell dramatically from a $4.5 billion surplus in 2004-05 to a $1.8 billion deficit in 2009-10.

“This alarming result shows food and grocery manufacturing – which employs 288,000 people – is now a net-importer of food and grocery products which Cont Page 9

Status and Trends of the Global-Pacific Rim Forest Industry

The Role of Australia and New Zealand Visit the conference web site for full details of the program, speakers, field trip, accommodation and registration.

Wednesday 3 Friday 5 November, 2010 Bayview Eden Hotel Melbourne Australia

Page 4 | issue 149 | 01.11.10

Contact: Conference Organiser: PR Conference Consultants – Ms Pamela Richards Tel: + 61 3 5781 0069. Email: enquiry@prcc.com.au

www.prcc.com.au/dana2010

Monday 8 Tuesday 9 November, 2010 Energy Events Centre Rotorua New Zealand

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events

WHAT’S ON? NOVEMBER 2010 3-5 Melbourne; 8-9 Rotorua. The Status and Trends of the GlobalPacific Rim Forest Industry. The Role of Australia and New Zealand.

International and local industry speakers. Field trips included in both conferences. Visit: www. prcc.com.au/dana2010 or contact conference organiser Pamela Richards. Tel: +61 3 5781 0069.

Email enquiry@prcc.com.au 10: Women’s Leadership in the Timber Industry Seminar. The Alto Room, The Langham, One Southgate Avenue, Southbank, Melbourne. 10.30 am-3 pm. $132 p.p. (gst inclusive). The forum is a way of providing a different perspective to issues facing the whole timber industry – a way of providing development and ensuring that good women not only are attracted to the industry but choose the industry as a preferred place to work and build a career. Speakers include Karen Hayes, industry visionary, Judith Tilling, Tilling Timber, and Lisa Marty, Victorian Association of Forest Industries, who has been appointed to ther Department of Primary Industries Women’s Network, representing women in the timber industry. Karen Hayes has vast general management and strategic consulting experience in Australasia, Canada, the US and Europe, primarily in the financial services and information technology industries. She is director, corporate engagement and human capital with UXC Ltd and past finalist in the Telstra Business Woman of the Year Awards. Contact: Kersten Gentle 0418 226 242 or email: kersten@ ftmaaustralia.com.au

12: Construction Skills Queensland Excellence Awards.

Presentations in four categories – Training Excellence – Schools Program; Learning Organisation Excellence Awards ; Employer Commitment to Training; Stars of 2010. Venue: Brisbane Convention and Exhibition Centre. Cost: $130pp (inc. Gst); $1200 table of 10. Price includes three-course meal, wine and entertainment.

Contact: Luke Burrows (07) 3309 4714. Email: lburrows@ppr.com.au 12: Multinail Machinery’s Expo, Gold Coast. Working demonstrations of Multinail’s Mini 10 table press, MAC Saw, Roller Master System, The VectorSaw, FastSet Jigand Portal Gantry.

BBQ lunch will be provided so what better way is there to extend a weekend on the Gold Coast.

Contact Multinail Machinery (07) 3297 3280 15: Engineered Wood Products Association of Australasia annual general meeting and conference.

Gold Coast International Hotel. Tel: (07) 3250 3700.

17-19: ForestTECH 2010 Tools & Technologies to Improve Forest Planning & Operations, Rotorua,NZ. 17-19: Japan Home and Building Show 2010. Contact: John Gore at jlg@eurofair.co.nz 22-24: ForestTECH 2010 Tools & Technologies to Improve Forest Planning & Operations, Albury, NSW. 22-26: PMA market group outward mission to India.

23: Engineered Timber Products: Building an Innovative, Sustainable Future. Understand

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how engineered timber products enable you to do more with less.

Victoria Park Function Venue, Herston, Brisbane 3.30-6 pm. To rgister visit www.timberqueensland. com.au/events

DECEMBER 2010 1: AFCA annual general meeting, Melbourne. Preceded by board of directors meeting.

9-10: Bioenergy Australia 2010 conference, Sydney.

Preceding technical tour December 8). Visit: www.bioenergyaustralia. org

2011 FEBRUARY

2-4: ATFA Flooring and Finishes Expo. Sydney Exhibition Centre. Contact: Australilan Timber Flooring Association (07) 5492 8696. Visit: www. flooringandfinishes.com.au 14-18: Wood Science Course, University of Melbourne and CSIRO, Melbourne. Contact Silvia Pongracic on 0418 764 954 or visit www.gottsteintrust.org

MAY 30-June 3: LIGNA Hannover Wood Fair.

25-June 4: LIGNA industry tour (Germany, Italy, Austria).

SEPTEMBER 5-7: NZ Forest Industries Expo 2011. Venue: Rotorua Energy Events Centre, Rotorua. Contact: Dell Bawden. Tel: +64 73627865.

Mob: +64 274745485. Email: office@bawden.co.nz Website site: fi2010.co.nz

SUSTAINABLE. RESPONSIBLE. The National Association of Forest Industries (NAFI) is striving for an ecologically sustainable Australian society achieved through dynamic, internationally competitive forest industries.

NAFI’s mission is to represent the interests of members by promoting the environmental sustainability and the prosperity of Australian forest industries.

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

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

issue 149 | 01.11.10 | Page 5

industry news

Turning stock into dollars as housing market slows down From Page 3

Stora Enso sources most of its wood from private forest owners, state forests and companies in Finland, Sweden, the Baltic states, continental Europe and Russia. The company’s mills in Finland and Sweden alone process about 38 million cub m annually.

Many Australian truss and frame manufacturers have switched to Baltic pine, pointing out its accurate size tolerances, form stability, consistent standard and flexibility in sizes and lengths.

Stora Enso Queensland manager Phil Reilly said the rising Australian dollar had benefited importers – “but you’ve got to take the good with the bad.”

“Whatever the exchange rates are doing, you’ve got to remain competitive. The market is advantaging us at the moment, but we’ve seen it go the other way.”

Stora Enso Australia has just opened a new warehouse at Gosford in New South Wales and is moving its Brisbane operations from the Port of Brisbane to a new warehouse in Virginia in the new year.

The president of the Frame and Truss Manufacturers Association Peter Wines of Wines Truss and Frame, Melbourne, said the industry was very attracted to the Baltic pine product. “It’s a beautiful wood and many manufacturers are using it, and have been for some time.

“Personally, I’ve stayed with the Australian product, but it’s

costing me 5-7% more than the imported wood,” he said.

A flat housing market is also affecting the trade in Queensland. Carter Holt Harvey is reported to have scaled back operations to four days at its Caboolture sawmill and Hyne has slowed production at Tuan, although a lot of wood from Tuan is servicing the Sydney trade.

TABMA Queensland director Myles Forsyth of Forsyth and Romano says the surge of lowcost European wood has to have an affect on the market.

“Although we’re bucking the trend with good, steady orders right now, many in the industry are telling us how desperate things are in the market place,” he said.

“A lot of them are turning stock into dollars because of a slackening in demand and market pressures, so the imported product looks pretty attractive price-wise.”

Mr Forsyth said prices for Australian framing material were holding.

“However, we are always looking at opportunities to improve our market share.

We’ve used Baltic pine in the past, but that doesn’t mean we won’t use it in the future.”

Mr Forsyth, who operates a wholesale timber outlet at Capalaba and a truss and prenailed frame plant at Archerfield, says the timber trading business environment is changing.

“Not so long ago, material and labour were about 50-50 of production costs. Today labour Cont Page 9

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Page 6 | issue 149 | 01.11.10

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INDUSTRY NEWS

USGBC begins collecting votes on wood certification in LEED program The US Green Building Council last week began collecting votes on proposed language that would set standards on which groups’ wood certification schemes will qualify for points in the USGBC’s LEED program recognising green construction.

Ballots will be accepted until November 23, and the council expects shortly afterward to announce results that are just about certain to displease several key groups that have fought for years over this issue.

Unlike most policy votes that USGBC takes, this one won’t be decided by the council’s 17,000 member companies.

Rather, the votes will be cast only by a ‘consensus group’ of USGBC members who got the chance to opt into the group this summer. USGBC officials then reviewed the consensus group to determine whether its membership was “balanced” (a term it has never comprehensively defined) across the three main USGBC member groups: users, general interest, and producers. USGBC has concluded that the group’s membership is balanced, a USGBC spokesman has commented.

“The proposed credit language has been revised to base LEED (Leadership in Energy and Environmental Design) credit eligibility on a benchmark which covers the governance, standards substance, chain of custody and labelling and accreditation and certification process attributes of forest certification programs and labels,” he said.

The consensus group will be voting on proposed language that sets benchmarks for any wood-certification group that would like to have its certification system qualify for LEED points.

To date, only wood certified by the Forest Stewardship Council qualifies for LEED points. That

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irks organisations such as the Sustainable Forestry Initiative, the Canadian Standards Association, the American Tree Farm System and the Program for the Endorsement of Forest Certification Schemes (PEFC), which all argue that certification programs also should qualify.

That benchmark language – the fourth draft of a document that Cathy Abusow .. all credible forest certifications programs should be recognised.

has been undergoing revisions for several years – was released on June 14 and quickly was assailed from opposite sides by two of the most vocal groups in the fight. As with the three previous drafts, SFI led the roster of groups complaining that USGBC’s standards were jury-rigged in such a way to as to bar any group other than FSC from qualifying.

SFI – which was founded by Cont Page 11

issue 149 | 01.11.10 | Page 7

industry news

Cream of European machinery drives $3.5m flooring line at Kempsey sawmill Federal minister applauds innovation at Australian Solar Timbers MACHINERY from Denmark, Sweden and Canada is providing new efficiency standards for a $3.5 million hardwood flooring line opened last Friday at the Australian Solar Timbers sawmill at Kempsey, NSW – arguably the most advanced operation of its kind in Australia.

The new flooring line and other facilities, unveiled by the federal minister for forestry Senator Joe Ludwig, were partly funded by grants competitively tendered through a program run by the Department of Agriculture, Fisheries and Forestry (DAFF) to promote innovative investment.

AST uniquely tendered three projects and was successful in each case resulting in a total infrastructure investment of $3.5 million during the past year.

The line involves machinery from Denmark, Sweden and Canada and is significantly the most advanced operating in Australia. In what is truly an

international project, AST sent staff to Germany for research and then employees to Europe and North America for training.

Installation involved visits from each supplier country – Denmark, Sweden and Canada – as well as New Zealand.

“We are all very proud of this achievement as the equipment is so sophisticated it is more akin to a hospital CAT scanner than a traditional sawmill,” AST director Douglas Head said.

“Our employees had to step up to new levels of training and management of a complex project and excelled in the process.”

General manager Darren Dowling said the new line lifted Australian Solar Timbers to a new level of quality control and environmental responsibility while upgrading industrial safety.

“AST can now end match to a quality level unmatched in Australia in solid wood floors,” he said.

Douglas Head .. employees had to step up to new levels of training and management.

“Our grading is totally reliable as it is managed by computers and we improve our recovery by producing a unique short flooring product – Panache – for the designer market.

“The flooring line monitors board shape and moisture content individually, making our floors the most reliable and easiest to lay. This is the quality benchmark of the future for

flooring.”

AST produces 19 mm tongue and groove end-matched strip flooring from a wide range of northern NSW hardwood species, sourced mainly from the renewable regrowth forests managed by Forests NSW to internationally recognised standards of best practice. Another product, AST TimberLay, a solid 12 mm thick overlay flooring, has proved ideal for apartments and commercial and domestic applications.

Australian Solar Timbers was the first Australian mainland hardwood flooring manufacturer to be accredited under the Australian Forestry Standard Chain of Custody Certification Scheme.

Senator Ludwig was joined at the opening ceremony at Kempsey by Rob Oakeshott, MP Lyne, and Alan Hansard, chief executive of the National Association of Forest Industries.

Australia’s plantation policy at the crossroads Cont Page 2

Some MIS firms have vertically integrated, building regional wood processing capacity, and developing new processing techniques for small plantation logs. Others have investment products geared toward longer rotation, higher value sawlogs.

[Investment in longer rotation MIS forestry was stimulated by new taxation rules in 2007, which allow MIS investors to trade out of their investment after four years. Previously, they had to remain in the investment until harvest to achieve tax deductibility), improving market liquidity].

Page 8 | issue 149 | 01.11.10

State government forestry agencies, whose resource has spawned much industry development, have virtually ceased planting new areas.

Some states have sold their forests to private interests, or are intending to do so.

“A major element of the 2020 Vision is ‘small scale’ plantations.

However, small scale-farm forestry has struggled to become a significant supplier of wood in Australia,” Mr Thompson said.

“Farm forestry represents 8% (169,000ha) of the national plantation estate (2 million ha), but contributes less than

0.1% to log supply. Successful farm forestry enterprises often involve on-farm value adding and access to niche markets.”

Mr Thompson says plantation policy is at the crossroads. The ‘big end of town’ (MIS forestry) has suffered serious setbacks as a result of the global financial crisis. Foreign and domestic interests have bought some of their assets, and may buy into public plantation sales.

“Belief in farm forestry appears to be waning, with funding for extension and research programs withdrawn.

The Emissions Trading Scheme, which was supportive of

planted trees as a carbon sink, is on hold. Promising biomass energy opportunities for forestry have suffered a fall as the price of renewable energy certificates (RECs) has declined.

“It is a challenging time for the national plantation 20920 Vision, and yet, despite the uncertainty, the demand outlook for Australian wood is positive.”

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industry news

Good decisions pay dividends From Page 6

represents a smaller percentage of the total production cost, so any price reductions we can get on material has a bigger effect on our competitiveness in the market,” he said.

Referring to the current market, Mr Forsyth said good orders for frames and trusses were still coming in. “If we weren’t hearing bad reports from others we’d be pretty happy. There are concerns the market might fall in a hole any time soon.”

He said the state schools program had been good for business over the past 12 months, but this was now over.

“We were well known as a supplier of trusses and frames to commercial projects but most of our jobs now are

predominantly residential.

“We’ve been fortunate and we’ve made some good decisions and that’s paying dividends. There’s a dip in the housing market, but we’re holding on – without the previous government incentives.”

Mr Forsyth said the market was tough, and some major competitors had closed down.

“And it’s not just small operators who have suffered; some of the bigger manufacturers have gone under. I think the smaller guys can be more flexible in their businesses; they don’t have the same commitment to plant and equipment and can turn their operating costs on and off more easily than the bigger operators.”

Food industry will protect farm lands From Page 4

impacts industry’s growth and competitiveness,” says chief executive of the Australian Food and Grocery Council Kate Carnell, a former CEO of NAFI. “Industry is still a major exporter but imports are rising fast, eroding the trade surplus historically enjoyed by the industry. To protect Australia’s food supply and overcome this challenge, there must be a ‘whole-of-government’ national strategy to ensure food and grocery manufacturing’s long-term growth, increase export earnings and boost competitiveness,” Ms Carnell said.

The detailed report – examining fresh and processed food, beverage and grocery industries – shows the complex industry was made up of 31,000 businesses in 2009-10 (236 fewer than the previous year), spends about $3.5 billion a year on capital investment and accounts for $44.8 billion of the nation’s international trade

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Kate Carnell .. boosting food industry’s competitiveness

($50.9 billion in 2008-09).

Ms Carnell said the wideranging report showed the industry represented 26% of the total Australian manufacturing industry by turnover (compared with 28% in the last report), and remained comparable ($102 billion in 2007-08) to the mining industry.

Advocates for forest plantation expansion in Tasmania will have a tough time convincing the food industry it can do with less farming lands.

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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 149 | 01.11.10 | Page 9

engineered wood

Students build plywood house in 3 days Cutting costs with engineered panels

STUDENTS at Marrara Christian College in Darwin have demonstrated how a plywood house suitable for communities can be built quickly and cheaply – and they completed the assignment in three days!

Six students, aged 16 and 17, constructed the two-bedroom timber house for remote Aboriginal communities, using plywood panels manufactured by Carter Holt Harvey and brought to Darwin by container.

The house will cost about $150,000 when fitted with kitchen equipment, a bathroom and wardrobes, and will cost several hundred thousand dollars less than houses being built under the federal government’s $700 million indigenous housing program.

Richard Hart, trade training centre manager at Darwin’s Marrara Christian College, said the students – now completing certificate II in engineering – built the house from the ground to lock-up in three days using a new Carter Holt Harvey building system under the supervision of two tradesmen. The plywood panels were put together on site using 8000 screws.

The panels manufactured at a factory in Canberra and brought to Darwin in a container can be easily handled by two people.

Mr Hart said the project was

The timber house in Darwin .. built by students in three days using plywood panels.

New engineered wood technology .. the Carter Holt Harvey building system uses prefabricated wood panels.

not undertaken to embarrass the federal and Northern Territory governments over their Strategic Indigenous Housing

and Infrastructure Program (SIHIP), which aims to build 750 houses as well as rebuild 230 and refurbish 2500 others in 73

remote communities and town camps by 2013. ‘’We took a different approach to the government’s Strategic Indigenous Housing and Infrastructure Program; our aim was to show our students how timber houses suitable for communities can be built quickly and cheaply,’’ Richard Hart said. ‘’The time and skills required to construct residential homes using conventional building systems is one of the most important challenges facing the housing market today, particularly in remote communities,” Mr Hart said, noting that building a prefabricated house allows non-tradesmen to do most of the work.

The Darwin house has an enclosed veranda, ideal for the outdoor-style living preferred in remote communities.

Eddie Morgan, executive officer of the Primary Industries Training Advisory Council (NT), who is representing ForestWorks on the house project, said the students had worked three days on pay and two days as part of their schooling.

“The students are doing a wonderful job. Their trainer tells me building firms are lining up to meet the students at the end of the year,” Mr Morgan said.

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Page 10 | issue 149 | 01.11.10

Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)

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industry news

‘Time for USGBC to sunset this lengthy process’ From Page 7

forestry companies but now is an independent organisation – also has complained that the USGBC panel writing the drafts regularly has ignored what SFI has submitted during the comment periods for the past three drafts regarding fundamental questions about forestry practices.

These concerns drive deep into core issues, such as what makes a tree farm good or bad and whether genetic manipulation should be permitted.

Meanwhile, the US branch of FSC issued an open letter urging readers to tell USGBC that the fourth draft of its proposed forest certification benchmark “still falls far short of ‘exemplary forestry’ and permits certification systems to be dominated and controlled by proponents of status quo forestry.” It also called a proposal “a substantial lowering of the bar compared with FSC’s

international principles and criteria and multi-stakeholder governance system.”

In that open letter, FSCUS warned that if the fourth draft of the benchmarks get put up for a vote, FSC would recommend a “no” vote.

“It’s time for the USGBC to sunset this lengthy benchmark process, and once and for all recognise all credible forest certification programs,” says SFI president and CEO Kathy Abusow.

“The rest of the world gets it – wood is a sound and responsible building material, and forest certification is an added proof point that forests are well managed.

Less than 10% of forests are independently certified to internationally recognised standards. Recognising all certification programs means more choices for builders and architects, and encourages responsible forestry globally.”

US housing recovery still has long way to go SALES of previously owned US homes rose a greater-thanexpected 10% in September but remained at depressed levels that point to a painful and protracted recovery for the housing market.

The rise took sales to an annual rate of 4.53 million units, the National Association of Realtors said. It was the second monthly gain and far outstripped economists’ expectations for an increase to a 4.3-million-unit pace.

Still, the data did little to weaken the case for further monetary

easing

from

the

Federal Reserve, with sales far below the 5-million-unit pace usually associated with a healthy market.

“This is relatively good news but the housing market situation has a long way to go before it fully recovers,” says Chris Christopher, a senior economist at IHS Global Insight.

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issue 149 | 01.11.10 | Page 11

TIMBER DESIGN AWARDs

Polished performance by Sydney architects wins Sanderson trophy A WORKER-friendly office building and warehouse complex in Sydney displaying the ‘perforations, routed grooves and exposed polished edges” of plywood panels has won the 2010 Geoffrey Sanderson Trophy in the Australian Timber Design Awards.

The trophy was presented by the Engineered Woods Products Association of Australasia to project architect Brad Schott of Bates Smart Architects at the gala awards night at Luna Park last Friday.

The perpetual trophy for best use of plywood and LVL was first presented in 2007. It recognises the service given to the industry by the late Geoffrey Sanderson, who was president of the Plywood Association of Australasia (PAA) 1988-89 and 1998-2003.

The award is raising the awareness of innovations in the design, use and application of certified engineered wood products among architects, specifiers and builders.

Plywood was used extensively throughout the office building and warehouse of the Sydney

Sydney Water, Potts Point, Sydney .. winner of the 2010 EWPAA trophy for best use of plywood and LVL presented at the Australian Timber Design Awards.

Water Corporation at Potts Hill.

“The perforations, routed grooves and exposed polished edges utilise the thickness and structure of this unique material,” Mr Schott said.

The atrium balustrade features a custom perforation, which repeats across standard sheet sizes to form a continuous pattern along the whole length of the atrium, for both acoustic and decorative effect. This pattern continues across pin-

fixed breakout screens and privacy screens throughout the building to unify the spaces.

Routed grooves feature on the circular reception desk, atrium planter boxes, and meeting room wall panelling.

The exposed ply edges of the ceiling blades and screens are repeated in custom furniture, with breakout benches and layout tables using a laminate top and polished 75 mm thick ply edges.

Susanne Steiger, technical officer at the Engineered Wood Products Association of Australasia in Brisbane, admires the Sanderson Trophy.

The Potts Hill complex incorporates 6000 sq m of office and 4500 sq m of warehouse space designed on the principles of efficiency, economy of means and sustainability.

Armourfloor UltraCote engineered hardwood flooring from Big River Timbers, Grafton, NSW, was used throughout the project.

Diverse industry program for EWPAA conference FOREST plantation development, wood energy, new wood adhesive technology and timber design are among presentations by a diverse panel of industry speakers selected for the Engineered Wood Products Association of Australasia conference on the Gold Coast on November 15.

Three days of talks and meetings at the Gold Coast International Hotel will include the EWPAA board of directors meeting, annual general meeting and technical committee reports.

Keynote speakers include Linda Sewell, chair of A3P

Page 12 | issue 149 | 01.11.10

and chief executive of HVP Plantations. Ms Sewell joined HVP Plantations after a 10-year tenure at Carter Holt Harvey during which she served as the founding CEO for the company’s laminated veneer lumber (LVL) products division.

HVP manages around 245,000 ha of land across Victoria, including 50,000 ha of native vegetation for conservation and supplies three million tonnes of softwood and 300,000 tonnes of hardwood to sawmillers, panel producers and pulp and paper mills in Australia and overseas.

Speaker David Headberry, formerly national energy manager at AMCOR, is an independent consultant and public officer of Major Energy Users Inc, a group that represents the interests of 20 major gas and electricity users in Queensland, New South Wales, Victoria and South Australia.

Todd Miller, technical manager, Hexion Speciality Chemicals, will outline latest research on formaldehyde free binders.

He has recently returned from the International Wood Composites Symposium in

Seattle, Washingon, USA, were he presented on a no-added formaldehyde adhesive system for hardwood plywood.

Associate professor Greg Nolan, director, Centre for Sustainable Architecture with Wood at the University of Tasmania, will address the conference on impediments to the growth and success of engineered wood products in the non-residential sector and the opportunities.

Managing director of Forest and Wood Products Australia Ric Sinclair will give an overview Cont Page 13

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ISSUES

People of Forestry a growing force in conflict over Tasmania’s forests

FT staff band together to fight unfair criticism STAFF at Forestry Tasmania confronted with a barrage of unfair criticism over management of the state’s forest have banded together to form a ‘fighting group’ – People of Forestry Tasmania.

The group aims to discourage politicians and the media from using Forestry Tasmania as a pawn in the political debate in Tasmania,” chairman of the group Dr Martin Moroni said.

“An email to staff and subsequent survey clearly gave the group a mandate to represent the majority of FT employees in its quest to stand up to the continuous barrage of unwarranted criticism of FT and its employees,” he said.

The committee consists of FT representatives from head office and regional districts.

Dr Moroni is supported by Peter Pepper (Huon), Murray Kirkwood (Derwent), Brenton Jansen (Murchison), Tony Scott (Bass), Jane Becker (Mersey) and head office employees Dr Peter Volker, Dr Paul Adams, Dr Tim Wardlaw, Penny Douglas, Ian Riley, Rosi Davis and Maria Butcher.

“The objectives of the new group are to communicate

Protecting their reputation .. committee members of the People for Forestry Tasmania, standing (from left) Dr Paul Adams, Maria Butcher, Penny Douglas and Ian Riley, and seated (from left) Dr Tim Wardlaw, Rosemary Davis, Dr Martin Moroni (chair) and Dr Peter Volker.

the stories and values of staff members as individuals and to empower them to speak out with confidence; to engage and enhance their reputation with the public by communicating who FT is rather than what FT is, and fostering better communication within the organisation,” Dr Moroni said.

He said although the group had been formed for only a few months, it had been successful in achieving its initiatives.

“We have written several letters to newspapers either under the PoFT umbrella or from individual employees,” Dr Moroni said.

“For the first time, representatives of the group confronted protesters outside Forestry Tasmania’s head office in August which was very effective in suggesting alternative methods of communication to the protesters while indicating staff do not appreciate protester

intimidation at the front doors to their workplace.

“We have also met with unions and politicians to brief them on the group’s formation and activities, and have also set up our own blog. [peopleofft. blogspot.com].”

People of Forestry Tasmania now anxiously awaits the outcome of the Statement of Principles document which was presented to the Premier on October 19.

“With the release of the principles more detailed negotiations will take place,” Dr Moroni said.

“PoFT will endeavour to meet with any group or committee that is formed in the hope of ensuring that employees of FT are heard, and that their expertise and knowledge will not be lost in any future forestry scenario.”

He said Forestry Tasmania had around 500 employees, and every one of them made a significant contribution to the organisation and the Tasmanian economy.

“We owe it to the people of Forestry Tasmania and their families to pursue our objectives,” Dr Moroni added.

EWPAA conference speakers From Page 12

of the FWPA generic timber promotion program.

Other speakers include Bryn Maidment, National Safety Council of Australia; Hank Bier (optimising structural properties; Nick Livanes, Osmose Australia

(MicroPro timber treatment and update on EWP product testing); and Rob McGavin (DEEDI hardwood project).

A review of changes to the forest certification and chain of custody standards will be presented by Australian Forestry Standard Ltd.

Associate Professor Greg Nolan .. opportunities for engineered wood in the non-residential sector.

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issue 149 | 01.11.10 | Page 13

EVENTS

Kuala Lumpur’s global wood week

WoodMart debut attracts trade buyers from 50 countries THE Malaysian Timber Council’s Global WoodMart 2010 in Kuala Lumpur made a successful debut in the trade fair scene of southeast Asia on October 19 and 20.

A total 108 exhibitors from Malaysia, Australia, Brazil, Canada, Chile, China, France, Germany, Ghana, India, Indonesia, New Zealand, Singapore, South Korea, Thailand, United Arab Emirates, Uruguay and the US supported the event, officially opened by the Malaysian minister of plantation industries and commodities Tan Sri Bernard Dompok MGW 2010 is aimed at promoting timbers of temperate, boreal and tropical species under one roof for the first time in southeast Asia, for international timber suppliers and buyers to meet and conduct business.

More than 2000 visitors inspected displays and wood products from both local and international suppliers.

Trade buyers came from 50 countries, with sizable representations from Australia, China, India, Indonesia, Japan, the Netherlands, Singapore, Thailand and the UAE. Malaysia imported $US640 million worth of timber products from the US, Brazil, Indonesia, Australia, New Zealand, Ghana and elsewhere in 2009.

“Although Malaysia is a major producer of timber, we see an enormous, opportunity in pooling together resources to meet the growing demand for timber products in a highly globalised and environmentallyconscious market,” MTC chief executive Cheah Kam Huan said.

“It is the right time for a show like the MGW to be launched.

Sourcing and utilising off-shore wood sources complements domestic supplies from plantation and sustainably managed forests.

Page 14 | issue 149 | 01.11.10

Some of the APP Timber team at Global WoodMart 2010.

Michael Hermens, managing director of APP Timber, shows glulam products to Malaysian minister of plantation industries Tan Sri Bernard Dompok on the APP stand at Global WoodMart.

“Imported non-tropical wood species also adds diversity and value to Malaysia’s timber products to contribute towards the government’s goal of achieving RM53 billion of timber exports by the year 2020 under the National Timber Industry Policy launched last year.

“The other aim of WoodMart is to bring industry members in the Asian region – particularly from China, India, Indonesia, Thailand and Singapore – closer to facilitate cooperation on resources.”

An MOU was signed at the KL event between Malaysia (represented by Malaysian Timber Industry Board, Malaysian Timber Council and Malaysian Furniture

Dati Tan Chin Huat of the Malaysian International Furniture Fair (left) with John Chan, director, American Hardwood Export Council, Hong Kong.

Pictures by Michael Turnstone.

Promotion Council) and Thailand (represented by Thai Parawood Association and Wood Processing Club, and Federation of Thai Industries) to establishing a joint committee to look into the development of rubberwood-based industry in both countries.

The next MTC Global WoodMart will be held in October 2012.

A ‘global week of wood’ in Malaysia kicked off on October with a packed audience of 188 for a dialogue on the requirement for timber legality verification in the global market, presented and co-organised by the Malaysian Timber Council (MTC) with presentations by the European Forestry Institute, European Commission, Timber Trade Federation (UK), and the Importers Federation of the Netherlands Five speakers from different

angles explained their understanding of current developments in FLEGT [Forest Law Enforcement, Governance and Trade], VPAs [voluntary partnership agreements] and the US Lacey Act. Dialogue was lively, but inconclusive .. and there is still a long way to go – 27 months, in fact – before the EU completes the current intended legislation and before Malaysia as a whole signs up to the new VPA, delivering FLEGT licensed timber to the EU by 2013.

The proceedings were wrapped up with an update on certification and verification developments in Malaysia

by Chew Lye Teng, CEO, Malaysian Timber Certification Council, followed by a panel discussion.

Prominent among the individual companies at Global WoodMart was APP Timber, the specialist wood importer based in KL but now operating throughout the region. A strong team of specialist sales personnel discussed the availability of an ever increasing range of wood materials from suppliers, some of which were from New Zealand, Uruguay, Chile, USA, France and Indonesia under an opposing softwood glulam structure representing the very essence of the event.

Malaysian company Java Berhad fielded an impressive display of hardwood lumber, veneer and board products.

Lionex Timber Malaysia, which had e-blasted a very positive campaign to the market to attend the event, was strongly in evidence exhibiting tropical and temperate lumber and machined products.

The American Hardwood pavilion provided visitors with technical publications to back the half dozen US exporters who had made the trip to KL.

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Classifieds CALL FOR NOMINATIONS

Standards Reference Committee AS 4708

Standards Reference Committee for the Revision of AS 4708 – Australian Forestry Standard for Sustainable Forest Management

Be involved to make a change

With the five-yearly review of Australia’s sustainable forest management standards about to commence, the opportunity to help ensure Australia’s forest management remains at the forefront of sustainability is open to every interested stakeholder group.

Nominations are open for membership of the broad and inclusive Standards Review Committee. The Committee will consist of around twenty people from a range of backgrounds, interests and expertise.

Nominations to participate on the Standards Reference Committee for the Australian Standard in Sustainable Forest Management will be based on area of expertise. Preference will be given to those nominated or endorsed by a National representative body, although individual nominations can be made and will be considered.

To put forward a nomination please download the Participation Kit from the AFSL website: www.forestrystandard.org.au or email Standards-Revision@forestrystandard.org.au to request a Participation kit.

The Standards Revision division of Australian Forestry Standards Limited is holding a Briefing Seminar on the process to participate and be involved in the revision of AS 4708 – Australian Forestry Standard for Sustainable Forest Management Date/time: Thursday 4h November, 2010 commencing at 12:30 pm to 2 pm Location: The Windsor Hotel, 111 Spring Street, Melbourne, Victoria Includes: Sit-down lunch Topic: Standards Reference Committee AS 4708 –

Be involved to make a change RSVP: Email: Phone:

By Monday 1 November. 2010 Standards-Revision@forestrystandard.org.au or 02 6122 9000

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issue 149 | 01.11.10 | Page 15

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