Issue 169

6512

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issue 169 | 18.04.11 | Page 1

Tropical forests sunrise industry

This Issue • World of wood protection focuses on Queenstown • Recycled wood has power to cut carbon emissions

Potential and pitfalls as plantations expand across northern Australia

By JIM BOWDEN

Mahogany .. plantation expansion in northern Australia.

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Caribbean pine – are ripening in the tropical climate across far north Queensland, the Northern Territory and Western Australia, but industry stakeholders, in particular private investors, agree it’s no easy road.

But encouraged by the CSIRO land and water science review of northern Australia, they are stepping from the shadows of failed MIS agro forestry ventures and pushing ahead with new-found confidence.

The review was not restricted to gigalitres of water, hectares Cont Page 3

Treated

A LANDMARK Cairns forum has recognised northern Australia as the new frontier for tropical forest development in the Pacific Rim region.

More than 60 industry leaders, forest plantation growers, scientists and government representatives gathered at the Coral Sea ‘capital’ in the first show of united support for what is shaping as a new economy and growing export industry for the ‘top end’.

More than 75,000 ha of tropical forest trees – teak, sandalwood, mahogany and

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issue 169 | 18.04.11 | Page 1

industry news

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 169 | 18.04.11

Small prefabricated houses able to be built quickly may be one of the solutions to help house the thousands left homeless in Japan after the recent earthquake and tsunami.

TRUST TABMA

Australia on call if you to supply prefab want .. houses to Japan

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REPRESENTATIVES of the Japanese Government in Australia have asked the National Association of Forest Industries to help source temporary dwellings for residents displaced by the recent earthquake and tsunami.

The prefabricated units would be purchased from Australian under commercial arrangements, rather than as charity donations.

While nuclear safety and food security have been the immediate priorities, Japan is looking to install 30,000 temporary dwellings in the next two months to help offset the estimated 100,000 to 150,000 buildings destroyed.

Similar temporary dwellings were used following the Kobe earthquake (1995).

Once vacated, the homes were transported to other southeast Asian countries and used in development aid.

Examples provided by the Japanese show a requirement for 30 sq m dwellings split

into two separate homes. The approximate cost of each dwelling is around $A$50,000.

The homes are expected to be lived in for two to three years.

NAFI communications manager Greg Haraldson said Australian companies could play a role in helping the Japanese reach their target of 30,000 dwellings in two months.

“As a key trading partner, the Australian forest industry has close links with the Japanese,” Mr Heraldson said.

“We’re hoping to get the word out that there is an opportunity for Australian companies to supply temporary dwellings.

“Australian mining towns often feature these sorts of dwellings and similar buildings were used to house victims of the Black Saturday bushfires.”

For companies interested in seeing how they may be able to get involved in supplying prefabricated dwellings, contact the Japanese Chamber of Commerce in Sydney (www. jcci.org.au) or in Melbourne (www.jcci-jsm.org.au).

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CAIRNS FORUM

Forest industry advantage for traditional landholders

Scope for economic development From Page 1

of land or tonnes or dollars of production; it was also concerned with equity in decision making, the health of land, river and sea environments, indigenous livelihoods, security, infrastructure and social wellbeing.

“The forum was a useful networking exercise and it revealed opportunities for forestry – and, in particular, opportunities for the traditional landholders. But we must consider the logistics and realise that this is a big part of the world, often difficult to traverse at certain times of the year,” cautioned Rod McInnes,

Talking tropical forests in Cairns .. John Halkett, director, Forestlands Consulting, Sydney, Noel Pearson, chairman, Cape York Institute for Policy and Leadership, Ric Sinclair, managing director, Forest and Wood Products Australia, and Ken Moore, senior research manager, (national rural issues), Rural Industries and Research Development Corporation.

chief executive of Timber Queensland.

“But that aside, there are good and significant prospects for the industry which we should continue to explore and that’s why forums such as this are very useful.”

Climates in northern Australia range from arid in the south to monsoonal in the top half.

Along with extreme soil poverty, this has defied all attempts to develop large-scale agriculture, apart from sugar cane and bananas in the wet tropics and beef cattle in areas surrounding the Lake Eyre basin.

The Cairns forum, initiated by Forest and Wood Products Australia with support from the Rural Industries and Research Development Corporation and coordinated by John Halkett’s Forestland Consulting in Sydney, featured a powerful and thoughtful presentation by indigenous leader and land rights activist Noel Pearson.

He takes the position that the

ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system.

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Cont Page 13

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issue 169 | 18.04.11 | Page 3

EVENTS

World of wood protection focuses on Queenstown for 42nd IRG conference THE global financial crisis, wars and natural disasters have not prevented more than 170 delegates from 22 countries arriving in Queenstown, NZ, for the 42nd meeting of the International Research Group on Wood Protection next month.

“It will be a remarkable gathering under The Remarkables and we’re looking to some breakthrough science on chemical wood treatment,” IRG 42 chair and industry consultant Jeanette Drysdale said from Auckland.

“It’s harder to get the numbers as travel becomes more difficult for many, but this will

Jeanette Drysdale .. boron hot topic at IRG 42.

Jack Norton .. first year as IRG president

be one of the few chances left to get together with some of the industry’s cornerstone people who have made a huge

impact on timber preservation in Australasia.”

Ms Drysdale made reference to such stalwarts as Harry

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• New state-of-the-art treatment plant.

Page 4 | issue 169 | 18.04.11

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Greaves, Jack Norton and Doug Howick in Australia and Mick Hedley and Peter Hayward in New Zealand.

T&F enews understands Mr Hedley, senior scientist in wood processing and products at the NZ Forest Research Institute, is unwell but hopeful of attending the meeting in Queenstown.

The IRG, with headquarters based in Sweden, was launched as an independent research group in January 1969 to continue the work of a previous group of experts on wood protection.

Delegates to IRG 42 are from Cont Page 11

The Tru-Core® Process This will set the benchmark for timber treatment in the future.

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events

WHAT’S ON?

APRIL

20: Sydney Hoo-Hoo Club 215 dinner meeting. Northern beaches area. National Hardwood Lumber Association. Understanding North American hardwoods – Mark Barford, executive director, National Hardwood Lumber Association. Contact: Chris White 0411 293 646 or email chrisw@ moxontimbers.com.au

MAY 2: Melbourne Hoo-Hoo Club 217 VIP night. Contact: Garrie James (03) 8706 1252 or garrie@hoohoo. com.au 9-12: 42nd annual meeting International Research Group on Wood Protection. Queenstown, New Zealand. Venue: Moonlight Country, 15 minutes from Queenstown and 8 minutes from both Arrowtown and Queenstown Airport. Contacts: New Zealand – Jeanette Drysdale +64 9 299 9435.

Australia – Jack Norton +61 7 3255 4420.

18: Cut the Cost + Lift the Load workshop. Aimed at CEOs, managing directors, business owners, managers, workplace health and safety staff. Stay abreast of current obligations and get ahead of imminent changes to workplace health and safety and workers compensation in the timber industry with an informationpacked breakfast and workshop.

Venue: Broncos Leagues Club, Red Hill, Brisbane. 7:15 am registration; 7:30 am- 9.15 am breakfast; 9:45 am-2.30 pm workshop. Contact: Shannon Axman-Friend, Events Marketing, Chamber of Commerce and Industry Queensland. Tel: +61 409 348 011. Web: www.cciq. com.au

25: Institute of Foresters of Australia (IFA) and New Zealand Institute of Forestry Conference (ANZIF 2011). Auckland NZ. Theme: ‘Pacific Forestry’. Visit www.anzifconference.co.nz 30-June 3: LIGNA Hannover Wood Fair.

JUNE 15-17: SawTECH 2011. Sawing technologies to improve mill performance. Brisbane. Visit www. fiea.com.nz 26-28: Build NZ. ASB Show grounds, Auckland.

JULY 7: HIA Industry Outlook Luncheon, HIA Home Ideas Centre, 28 Collie Street, Fyshwick ACT. Contact (02) 6285 7300.

13-14: Carbon Forestry 2011.

Key investment drivers and future business opportunities. Auckland, NZ. Visit www.fiea.com.nz 19-20: FTMA Australia National Conference, Newcastle. Join FTMA Australia members on Tuesday, July 29, and network over golf at the iNewcastle Golf Club and other activities. Wednesday, July 20,FTMA Australia AGM prior to conference commencing at 10am.

SEPTEMBER 5-7: NZ Forest Industries Expo 2011. Venue: Rotorua Energy Events Centre, Rotorua. Forest industry leaders and companies from across the world are booking their tickets to participate in the expo (FI2011) and make the most of the 2011 Rugby World Cup while they’re there. Exhibition sites have already been booked by a number of NZ and Australian companies,

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and inquiries being received from Canada, China, Vietnam and Austria. The expo will showcase the best that Rotorua, the wider Bay of Plenty region and the rest of New Zealand has to offer when it comes to forestry and wood products. Contact: Dell Bawden.

Email: office@bawden.co.nz Website site: fi2010.co.nz

October 21-November 2: 5th International Woodfibre Resources and Trade Conference: Woodchips and Biomass for Global Markets.

Grand Copthorne Waterfront Hotel, Singapore. Presented by DANA Ltd, Pike & Co and Wood Resources International, followed by field trip to Cambodia on November 3, 4 and 5.The field trip is an optional extra to the conference registration fee and will be limited to 80 participants.

Field trip participants will fly from Singapore to Sihanoukville with an overnight stay. Transfer next day to Siem Reap which will include a visit to world famous UNESCO heritage site Angkor Wat. Return Saturday morning. Who should attend? Plantation and other forest owners, plantation investment fund managers, existing-future biomass producers and users, existingfuture wood pellet producers and users, bankers and investment analysts, woodchip producers, wood fibre trading companies, woodchip end users.

july 2012 11-14: AWISA 2012. Sydney Convention and Exhibition Centre.

Contact: Contact Exhibitions Pty Ltd, PO Box 925, Avalon NSW 2107. Tel: 612 9918 3661 Email: info@awisa.com Web: www.awisa.com

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 169 | 18.04.11 | Page 5

AWARDS

Recycled timber has power to cut carbon emissions PERSERVERANCE, commitment to environmental practices and the development of innovative solutions in helping reduce carbon dioxide emissions were drivers that have won a Queensland wood recycling business the coveted 2010 Energex Innovation and Sustainable Award.

Kennedy’s Timbers of Narangba, near Brisbane, has been supplying recycled and eco-sustainable timber to the commercial and residential building industry since 1995.

Energex chief executive Terry Effeney presented the award – crafted from an old power pole – to Michael Kennedy at an awards ceremony Brisbane this month.

Kennedy’s Timbers first approached the government about recycling timber power poles and then developed a method to remove the contaminated edges and dispose of these to regulated waste.

Enhancing the strong environmental credentials of increased timber use Kennedy’s now recycles old Energex poles and cross arms to sell as recycled timber, a process that has now been extended to shorter length poles, further reducing the amount of waste that would otherwise go to landfill and reducing Energex’s carbon dioxide emissions.

This innovative and specialised timber recycling further enhances the strong environmental credentials of increased timber use as opposed to other more carbon intensive materials such as concrete, fibre composites,

Page 6 | issue 169 | 18.04.11

Michael Kennedy of Kennedy’s Timbers (right) received the Energex Innovation and Sustainable Award from Energex chief executive Terry Effeney.

steel, aluminium and plastics.

All Kennedy’s recycled timbers are now graded and supplied according to the industry standard for recycled timber, with independent third party assessment available.

The standard offers specific grading guidelines for manufacturers, suppliers and users. Published by Forest and Wood Products Australia, guidelines provide the Australian recycled timber industry with a professional, consistent standard.

The two guidelines outline the requirements for visually grading recycled hardwood timber intended for structural use and decorative applications.

Although green star and environmentally friendly buildings have long advocated for the use of recycled hardwood, this is the first time visual grading rules have been developed for recycled timber in Australia.

Kennedy’s Timbers played a role in initiating, drafting and producing these timely documents.

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INDUSTRY NEWS

Positive global economic outlook to drive demand for plywood and OSB US housing upturn expected, says report DESPITE some risks in the short term, an increasingly positive global economic outlook will drive the demand for plywood and oriented strand board (OSB) over the five years from 2011 to 2015, according to leading industry analyst and economic forecaster BIS Shrapnel.

The report forecasts strong growth in the production and consumption of plywood and OSB as the global economic upturn strengthens, driven by housing construction, furniture manufacturing and other sectors.

BIS Shrapnel says housing construction in the US is now in the early stages of an upturn and is expected to strengthen considerably from 2011 to 2015.

“Stronger growth in housing construction and economic growth in the US will be supported by growth in the ‘emerging markets’ of Asia and South America, which will have a positive impact on Europe and Australasia,” says report author and BIS Shrapnel forestry director and senior manager Bernie Neufeld.

“While the recent shocks to the global economy such as the tragic earthquake and tsunami in Japan will have a negative impact on the demand for plywood and OSB in the short term, the outlook over the longer term is positive,” Mr Neufeld said.

“There are at least three large plywood plants in the Miyagi prefecture and the destroyed plants supply an estimated 25% of plywood produced in Japan.

This will reduce production capacity in Japan in the face of much stronger demand due to the reconstruction process.

“Together with a strengthening global economy, the reconstruction effort in Japan will boost demand for plywood and OSB, and will present export and investment opportunities.”

The report notes a rapid change in plywood and OSB markets over the past decade with a shift of plywood production from traditional sources such

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as South Asia, North America and Europe to China.

“There has also been a shift of production and consumption of OSB as a cost effective substitute for plywood, from North America to Europe and South America,” Mr Neufeld said.

“Over the forecast period, China, eastern European

countries and Russia will emerge as significant OSB producing regions, which will have a major impact on the dynamics of the market.

“In the past decade there has been massive substitution of less expensive and more resource efficient OSB in Cont Page 8

issue 169 | 18.04.11 | Page 7

INDUSTRY NEWS

Market impact: China, Russia emerge as significant OSB producing regions place of plywood, especially for sheathing in housing construction in North America.

“It is unfortunate that many of the OSB facilities in North America were closed as a result of the housing downturn. This would not have happened if producers had aggressively developed export markets as a hedge to downturns in North America. Over the next five years producers will need to be more aware of global developments as the closed facilities are brought back into production.”

While plywood is still a preferred product for many applications on the basis of its quality, other regions will increasingly use OSB as a substitute where cost and resource constraints are a factor. BIS Shrapnel Forestry

Massive OSB production line in China.

says OSB could be the next new product to emerge in China and other Asian countries. It is forecasting global consumption of plywood to grow at an average rate of about 5% a year, and OSB at 11% over the five-year forecast period.

The rate of growth projected for plywood consumption is higher than the forecasts for production, while the rate of growth for consumption of OSB is lower than forecasts for production. This suggests that there may be an under-supply of

plywood and an excess supply of OSB, which will likely result in considerable substitution of OSB in place of plywood.

Production of plywood is projected to increase from 71 million cub m in 2010 to 84 million cub m in 2015, and OSB from 18 million cub m to 28 million cub m respectively, based on current expansion plans and estimated capacity utilisation rates.

By 2015, North Asia will be producing 54% of the world’s plywood, down marginally from 56% in 2010, and North America will be producing 77% of the OSB. “However, Asia is facing a shortage of forest resources, which will only become more Cont Page 9

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Page 8 | issue 169 | 18.04.11

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INDUSTRY NEWS

Opportunities open for resource-efficient engineered wood 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.

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A high degree of automation technology – wood shavings to finished products – has streamlined the production of OSB plants in Asia.

From Page 8

severe over the forecast period, and this will eventually have a negative impact on the production of plywood in the region,” Mr Neufeld said.

“As resource supply tightens there will be an opportunity for producers of resource-efficient engineered wood products, such as OSB, to export to North Asia, or to establish OSB production facilities in that region as a substitute for plywood.

“On the other hand, Russia has a huge potential resource of logs which have traditionally been exported to North Asia and, to some extent, Europe. This supply will dwindle as Russia implements strategies to add value to its forest resources by taxing the export of logs. This will also present opportunities for establishing plywood and OSB production facilities in Russia with a view to supplying domestic and export markets.”

BIS Shrapnel Forestry is forecasting strong growth in prices as the global economy moves into an upward phase.

Over the five years 2011-2015, plywood prices are expected to increase by an annual average of between 6-8%, and OSB prices between 11-12%. These

increases will be driven by much stronger demand in all regions. OSB producers could be caught short when housing construction moves into a stronger upward phase over the forecast period considering the many plant closures in North America over the past five years.

“Upward pressure on prices is also expected to come from rising input costs as companies voluntarily, or are forced to, shift to more stringent emissions standards,” says Mr Neufeld.

The key plywood importing regions are North America (mainly US and Mexico), Europe and Australasia.

Although Japan and South Korea are net importing countries, China is a major exporter, and North Asia as a region is a net exporter.

South Asia is also a major net exporting region, although India and Vietnam are net importers.

These patterns are not expected to change significantly over the forecast period, although production in Africa may increase as a result of taxation on the export of logs, which will enhance export capacity.

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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 3266 1429 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3266 1429 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready production@industryenews.com.au

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 169 | 18.04.11 | Page 9

CRC FOR FORESTRY

Residues conversion has ability to produce 3 million MW hours a year AS Australia searches for alternatives to emissionintensive energy production, the Cooperative Research Centre (CRC) for Forestry is working with the forest and wood products sector to explore the potential for bioenergy generation from forest harvest residue.

Bioenergy is an affordable, clean and renewable energy source, derived in most cases from material considered to be waste, often the by-product of agricultural and forestry activity.

[The CRC presented its leadingedge Australian research on bioenergy to a workshop in Canberra last week].

“Converting forest harvest residues, or forest biomass, into an additional revenue stream is an attractive option for Australia,” CRC for Forestry’s program manager for harvesting and operations Mark Brown said.

“Australia’s current wood residue could produce three million megawatt hours of electricity a year and result in a permanent reduction of greenhouse gas emissions, or three million tonnes of CO2, each year,” he said.

found that some of the systems currently used in Europe could be adapted for use in Australia, and the CRC is conducting field trials in the use of some of these systems.

The United States is also investigating the potential for forest biomass to generate renewable energy. The CRC invited experts from Europe and the US to share their experience at a workshop last week that also heard from Australian companies who are pioneering in this area.

Efficient supply chain critical to the success of bioenergy projects

However, there were many challenges, including quality, costs and sustainability.

“A number of commercial operations in Australia are already using wood, including harvest residues, as an energy source, and other ventures are in development,” Mr Brown said.

“But, in most cases, the biomass supply chain design is still developing. Experience

around the world has shown that an efficient supply chain is critical to the success of bioenergy projects.”

While Australia is moving towards increased renewable energy options, Europe is already a world leader in generating bioenergy from forest residue, producing 696 million cub m of woody biomass each year. Analysis by the CRC for Forestry has

Wood residues could result in a permanent reduction of greenhouse gas emissions, or three million tonnes of CO2 each year The workshop examined issues including how to cost-effectively harvest and haul forest biomass intended for energy production, how to ensure forest biomass is high enough quality for energy production, and the impact of biomass harvesting on soil nutrients and future forest growth.

A report on the workshop will appear in a future issue of T&F enews.

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Page 10 | issue 169 | 18.04.11

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

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EVENTS

Boron hot topic at IRG meeting From Page 4

Australia and New Zealand, Austria, Belgium, Canada, Chile, Denmark, Estonia, France, Germany, Iran, Ireland, Japan, Norway, Slovenia, Sweden, the UK and the US, with registrations expected from Malaysia, Thailand and China.

Murray Sturgeon, managing director of Nelson Pine Industries Ltd, Nelson, NZ, will be keynote timber industry speaker at IRG 42.

A leading producer of laminated veneer lumber, Nelson Pine has capacity to produce 1 million cub m a year, or 40% of the Nelson-Marlborough region’s annual radiata harvest.

The application of boron in timber treatment will be a hot topic at the meeting following the NZ Department of Building and Housing’s release last month of a single framing hazard for timber which has polarised the industry.

H1.2 treated timber is required for most external wall framing, but for many buildings, smaller quantities of timber treated to H3.1 are required in higher risk situations.

This has led some designers and builders to default to the H3.1 hazard class everywhere to avoid timber being mixed up on site, and because of the perception of improved durability. In addition, the timber industry’s demonstrated preference away from solventbased treatments has, sometimes, led to the use of even higher hazard classes copper-based preservative treatments designed for exterior uses.

There is strong evidence of over-specification in construction projects, where timber of unnecessarily high treatment class is being

used in low-risk applications, leading to additional costs and difficulties in construction, mill supply procedures, merchants’ inventory management, and downstream management of treated timber waste.

Research conducted over the past eight years on the durability of treated framing has confirmed that timber treated to the H1.2 retention level of boron (0.4% m/m BAE) provides satisfactory resistance to decay and the spread of fungi within the building if the framing gets wet. Scientific research now shows that boron at the H1.2 retention level offers comparable protection to LOSP at the H3.1 level for framing timber.

There has been an historical concern about the perception that boron will leach from timber when it gets wet. However, the department is satisfied that boron treatment at the H1.2 level will provide adequate protection and robustness for framing inside the building envelope, including protection during the construction phase while the timber is exposed to weather.

Jeanette Drysdale will cover this subject in her presentation to IRG 42.

In his first year as IRG president, Jack Norton, a senior principal scientist at Queensland’s ecoscience precinct, said the program’s panel of international speakers had been confirmed.

The precinct is a $280 million joint venture between the Queensland Government and CSIRO that brings together more than 1000 scientists, researchers and staff who were previously scattered around the state making it hard to collaborate.

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issue 169 | 18.04.11 | Page 11

EVENTS

Malaysia’s WoodMart show doubles exhibition space for three-day event FOLLOWING a highly successful debut in 2010 in Kuala Lumpur, the Malaysian Timber Council’s WoodMart (MGW) exhibition will again take centre-stage at the Kuala Lumpur Convention Centre from October 4 to 6 next year as a one-stop selling, buying and networking platform for local and international timber suppliers and buyers.

MGW 2012 was launched this month on behalf of the Malaysian Minister for Plantation Industries and Commodities Tan Sri Bernard Dompok, in a ceremony attended by representatives from the industry and government agencies Buoyed by the success of the debut show, MTC has doubled the exhibition space to 2000

At the launch of MGW 2012 this month .. standing, from left, YB Datuk Aaron Ago Dagang, Malaysian Timber Council chairman, Datin Paduka Nurmala Abdul Rahim, secretary-general, Ministry of Plantations, Cheah Kam Huan, chief executive, MTC, and, front, from left, Thibault Chauvin, French Timber, Mike Snow, executive director, American Hardwood Export Council, and Ricky Yap, Victory Enterprises.

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Page 12 | issue 169 | 18.04.11

sq m to occupy two halls at the convention centre, extending the show from two to three days.

Representatives from 13 companies and organisation have already confirmed participation in the event.

They include the American Hardwood Export Council, French Timber, Ah Hai Industries, APP Timber, Java Berhad, Lionex, Low Fatt Wood Industries, Victory Enterprise, Sarawak Timber Industry Development Corporation, VinForest Industries, Professional Surfaces, Kronoloc Industries and the Malaysian Wood Industries Association.

A wood art section will be a new feature for craftsmen to express their creativity in timber in various finished forms. There will also be a ‘best presentation’ award’ for the most creative exhibitor’s booth.

Apart from facilitating business among local and overseas suppliers, agents, distributors, importers, manufacturers, wholesalers and others in the

supply chain, MGW 2012 aims to promote and encourage the wider application and use of timber from Malaysian and international sources.

The Malaysian Timber Council is promoting the event through its offices in London, Shanghai and Dubai to bring prospective buyers from traditional markets in Europe, the USA, Japan and Australia, as well as emerging markets such as China, Russia and countries in Eastern Europe, the Middle East and Latin America.

MGW 2012 will feature a wide selection of tropical and temperate hardwood and softwood products such as logs, sawn timber, plywood and panel products, wooden flooring, wooden decking, doors and windows, mouldings and furniture components.

MGW 2012 is endorsed and supported by the Ministry of Plantation Industries and Commodities; Malaysia External Trade and Development Corporation; Malaysian Wood Industries Association; Malaysian Panel-Products Manufacturers Association; Timber Exporters Association of Malaysia; Malaysian Wood Moulding and Joinery Council; Malaysian Furniture Industry Council; and Association of Malaysian Bumiputra Timber and Furniture Entrepreneurs (PEKA) MGW’s debut show last year attracted 108 exhibitors from more than 20 countries including Australia, Brazil, Canada, China, France, Germany, India, New Zealand, South Korea, the UAE, UK and the US. In addition, more than 2000 trade buyers from 50 countries attended, with sizeable representations from Japan, the Netherlands, China, India, Singapore, Thailand and the UAE.

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CAIRNS FORUM

NT sawmill to process mahogany for export to Asian furniture trade From Page 3

Queensland government is wrong about the economic impact of its wild rivers legislation aimed at regulating new development within a declared wild river and its catchment area.

He says the controversial laws will stifle development and erode indigenous rights in Cape York.

Forum delegates agreed; and there was a need to overcome the ‘welfareism’ in the Aboriginal community.

“Ultimately, you’ve got to lift these people up through economic development – and forestry is one way to go,” they said.

Mr Pearson said giving land rights to traditional landholders was one thing but vegetation and wild rivers legislation was reducing their freedom to work the land.

FWPA managing director Ric Sinclair praised the forum for highlighting issues on tropical forest development, but he said it was clear there were no significant solutions at this stage in a region beset by widely scattered and diverse regions.

“But forums such as this should continue; those with a strong belief in the industry should be encouraged to network on a regular basis,” he said.

“I guess what I am saying is ‘southerners’ should allow the industry in northern Australia to work out its own destiny – and the role for forestry.”

The key players in tropical forestry plantings at the forum included Tropical Forestry Services at Kununurra, WA (Indian sandalwood), Elders Forestry (teak and red mahogany), African Mahogany Australia and Hancock Resources, who have plantation

Teak and red mahogany plantations in Queensland will ultimately be used in structural and appearance grade timbers.

assets running through far north Queensland.

Forum coordinator John Halkett said it was recognised that in the past research and development had not kept pace with tropical forestry development.

“Forestry research had tended to concentrate on southern parts of Australia, more focused on radiate and blue gum trials.

He said R&D must be cranked up and timber utilisation identified to encourage tropical forestry investment.

“The trees are in the ground in the North and the industry must look at all the options for wood processing,” he said.

There is an emerging volume of African mahogany coming on stream from 25,000 ha planted in the Northern Territory; many trees are more than 20 years old and harvesting will start next year.

Victorian-based plantations manger African Mahogany Australia intends to build a sawmill in the Northern Territory to process logs for export to the furniture trade in Asia and India.

Mahogany veneers are also a high-value option with 20 cm trees, 11-12 years, peeling down to a core of about 3-4

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cm.

The highly-prized Indian sandalwood, grown in Kununurra’s fertile Ord River Irrigation Area, is destined to produce oil for use in cosmetics as well as timber for ceremonial applications.

R&D must be cranked up and timber utilisation identified to encourage tropical forestry investment Elders Forestry’s teak and red mahogany plantations in Queensland will ultimately be used in structural and appearance grade timbers.

John Halkett said another major push at the forum was to see how employment and social outcomes for Aboriginal people could be improved, both in terms of utilising their land for plantation development and focusing on native forests.

He referred to the worthwhile ForestWorks and Gumatj Corporation’s Yolngu forestry project in northeast Arnhem Land which is developing ongoing skills and training for indigenous workers.

He said the Cape York Land Council was considering a

similar project.

Mr Halkett said the Cairns forum was timely in reviewing forestry and the timber industry in northern Australia.

There was evidence of a decline in domestic wood processing capacity in some product categories, including medium density hardwood boards, structural softwood and panel products.

There was also the issue of stalled new land planting and restocking of harvested plantation areas.

“It is also becoming increasing difficulty to source legality verified hardwood timber products from southeast Asia,” he said.

Mr Halkett pointed to a chronic housing shortage with a 300,000 dwelling backlog and a need to lift annual dwelling starts to about 180,000.

“We must also factor in predictions of a probable population expansion to more than 30 million in the medium term.”

He said opportunities for forestry and the timber industry in northern Australia included the supply of medium density dark hardwood timber products into a strong demand side market from plantation-grown species like African mahogany, teak and native regional hardwoods such as Daintree stringybark (Eucalyptus pellita) and Cooktown ironwood (Erythrophloem chlorostachys).

“There are strong prospects for tree crops to supply speciality products like sandalwood oil and activated charcoal and for short rotation tree crops and wood residue utilisation for ‘green’ energy products,” he added.

issue 169 | 18.04.11 | Page 13

RESIDUES TO REVENUES

Melbourne, Rotorua wood energy talks draw international audience Weyerhaeuser in joint venture on wood biofuels MORE than 300 delegates attended the Residues to Revenues conference series in Rotorua, NZ, and Melbourne this month.

The industry make-up of the conference has steadily widened over the years since it first ran in 1999. Originally targeted at sawmillers, this year’s audience included technical people from a range of associated industries – electricity suppliers, forest owners, recycling companies, local councils, sawmills, wood manufacturing plants and energy efficiency agencies.

“The growth of both numbers and diversity of conference delegates in the past two FIEA conferences has been encouraging,” FIEA event director John Stulen said.

“It shows that wood energy is an area where people see more potential for industry profitability in the future – and not just sawmillers,” he said.

A large contingent of technical and industry practitioner speakers was lead by two keynote addresses from USAbased experts.

Important updates included biochar technologies, wood pellets global trade, moves by leading countries to lift wood energy production and a host of case studies helping to guide both users and producers of wood energy to improve their business relationships and commercial as well as community-derived advantages.

Highlights from the FIEA event, which included a large greenenergy expo, were case studies from both small and large wood energy users. The expo revealed significant commercial movement in the production of biochar and the eventual linking of carbon-positive forestry byproducts being used to boost agricultural productivity and sustainability through carbon sequestration on farmland.

Scientist turned commercial developer Adriana Downie outlined commercial biochar developments being spearheaded by her company Pacific Pyrolysis.

Another big item from the FIEA array of speakers was news

John Sanderson, Earth Systems, David Mitchell, Adelaide Woodfibre, Dennis Haye, Conveyor, and John Sich, Andritz.

Page 14 | issue 169 | 18.04.11

that two USA heavyweight companies – wood producer Weyerhaeuser and fuel producer Chevron – are now collaborating in a joint venture to explore biofuels from wood and inter-grown crops in Weyerhaeuser forests planted with rows spaced purposely for co-production of bio-energy for transport fuels.

Green-energy expo reveals significant commercial movement in the production of biochar and the linking of carbon-positive forestry by-products President and CEO Michael Burnside spoke from the headquarters of Catchlight Energy on the development of the joint venture.

“The most relevant USA experience, highlighted by Liz Hamilton of DPI Victoria, was the forest-to-to-fuels linking to fuels-for-schools project which Dave Atkins led for the US Forest Service,” Mr Stulen said.

“Dave was an excellent addition to our conference program as he had the success of five other states taking up the Montana program in recent years – plus it is so directly relevant to the bushfire issues in Victoria in particular.”

With such a vast experience in this area of forest-fire-fuelreduction and conversion to wood pellets for schools, Dave Atkins was quickly snapped up by a number of supporting industry organisations who supported the FIEA conference.

He is spending most of April in Australia working with members and staff at DPI Victoria, VAFI, SEFE and Forestry Tasmania and will be working in an expanded role for biomass utilisation when he returns to the USA next month.

FIEA plans to continue with a focus on showcasing case studies, global trends in wood pellet demand and benchmarking Scandinavian success stories for future conferences.

Michael Taylor and Greg McCormack, Midway, Marius Neser, Forests NSW, and Dr Nawshad Haque, CSIRO.

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RESIDUES TO REVENUES

Lex McLean, Forest Centre, and David Drane and Barry Fennell, Australian Forest Contractors Association.

late news

Stronger voice as two organisations form single body THE Australian forest, wood, pulp and paper products industry now has a stronger voice in dealings with government and in key negotiations on the industry’s future as two peak associations merged to form a single national association.

The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI), after each organisation’s members voted unanimously in favour of a merger at extraordinary general meetings in Melbourne last week.

Ms Linda Sewell, who transitional chair of the new organisation, pointed to the strength the merger adds to the industry’s voice in key negotiations.

“AFPA now covers all aspects of the forest industry from the forest growers, harvest and haulage operators to

processors and exporters,” Ms Sewell said Allan Hansard, who has been appointed transitional chief executive of the new organisation, said AFPA would also play a key role in representing the industry as critical climate change and water policies were developed.

“These include the carbon tax and the Murray Darling basin plan,” he said.

“A federal parliamentary Inquiry into the forest industry is also about to commence.

“I would like to acknowledge the efforts of the boards of NAFI and A3P and in particular the respective chairs – Linda Sewell and Greg McCormack.

“Their willingness to merge shows that the industry is able to unite and present a single voice to government.”

The new organisation will be based in Canberra and a new website and rebranding will be released in coming weeks.

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Sascha Kloft, Haas Recycling Systems, Bruce Tootton, DKSH Australia, and Charles Stansfield and Barry Vaughan, VicForests

Classifieds POSITIONS VACANT Policy and Standards Manager FSC Australia is seeking a Policy and Standards Manager who is experienced working in a diverse multi-stakeholder environment; has a sound knowledge of FSC standards and requirements of the ISEAL Code of Good Practice for Standard Setting as well as relevant ISO Guides.

This person needs to be able to think on their feet, apply sound judgement to complex problems and find consensus between divergent interests. Ideally this person would have successfully managed a multi-stakeholder standard development process and have experience providing advice on standards and policy issues for a multi-stakeholder Board. The individual will demonstrate leadership while maintaining a close relationship with colleagues, the Honorary CEO and Directors.

FSC Australia is committed to building its organisation and staff resources over the coming year and will be recruiting for a Chief Executive as financial resources become available. The successful candidate would be invited to apply for this position.

Contact info@fscaustralia.org for more information.

issue 169 | 18.04.11 | Page 15

Annual Timber Industry Charity Golf Day Now in its 25th year the Queensland Timber Industry Charity Golf Day is set for

Friday 27th May, 2011 with proceeds going to the Variety Club of Queensland

THE DETAILS: Competition is a 4 ball Ambrose, 4 players per team. Prizes awarded to teams for 1st, 2nd & 3rd places as well as the Bradman prize for last place. There is a maximum of 36 teams able to play so get in quickly.

COST: $600 per team of 4, includes lunch. $150 per individual, includes lunch.

VENUE: Gainsborough Greens Golf Course Yawalpah Road, Pimpama RSVP: Friday 6 May, 2011

AGENDA FOR THE DAY: 8.00am Arrive & register at Gainsborough Greens Golf Course. A hot BBQ breakfast will be served.

9.00am Shotgun start.

2.00pm Return to clubhouse for a hot lunch.

Well renowned entertainer, Fred Lang followed by prize presentation.

More Info Contact: 0419 754 681

PLEASE COMPLETE BELOW & RETURN BY FAX TO 5483 6179 OR EMAIL MORTY@SPIDERWEB.COM.AU COMPANY NAME

PLAYER 1

EMAIL

PLAYER 2

PHONE

FAX

ADDRESS

Page 16 | issue 169 | 18.04.11

A Joint Industry Association Event

PLAYER 3

PLAYER 4

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