Issue 183

6533

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issue 183 | 25.07.11 | Page 1

Body in motion

This Issue

AFPA policy forum tackles key issues, announces appointment soon of CEO

By JIM BOWDEN

Linda Sewell .. AFPA the ‘go-to’ organisation..

Just Go t ood W

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A Better Earth Idea from Osmose

sm ®

• Engineered wood drives demand for heavy structural building applications • Lonza’s $1.2bn surprise buy-out of Arch • ‘Ransom’ claim over Triabunna mill sale

Cont Page 2

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The forum followed a full-day meeting of the interim board of directors to finalise directions for the association and identify key issues to assist the executive team.

Ms Sewell said the selection of the inaugural CEO for the association was expected shortly.

Industry observers at the forum agreed this would be a major political role as the timber and forest industries come to grips with resource security, plantations investment and the whole climate and carbon debate.

Also, it would require dexterity in balancing the needs of its members, both importers and local processors, to avoid any

G

MicroPro

Treated

RESOURCE security, new investment to boost plantation assets and the selection of an inaugural chief executive were among key objectives that emerged from the first policy forum of the newly-formed Australian Forest Products Association in Melbourne last week.

More than 60 industry stakeholders gathered on the grounds of the Melbourne Cricket Ground for the historic meeting on July 20 to witness the baptism of AFPA, the lusty offspring of the NAFI and A3P merger.

“We’ve come together as a team, no longer two-sided, and all wearing the same badge,” enthused AFPA transitional chair Linda Sewell.

• Non-compliant structural plywood imports ‘tip of iceberg’ • PEFC stakeholder forums focus on global forest sustainability

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issue 183 | 25.07.11 | Page 1

INDUSTRY NEWS

AFPA pre-eminent voice for $23bn forest industry From Page 1

The Victorian Association of Forest Industries, representing the interests of the Victorian timber Industry

future conflicts.

“We believe AFPA is now the pre-eminent voice for industry speaking for the resource sector, processing and pulp and paper,” Ms Sewell said.

Ms Sewell reminded participants that in just three months AFPA was well on the way to addressing many of the transitional issues it faced; it was already being recognised as the ‘go-to’ organisation by governments, other industries and community groups.

‘AFPA was well on the way to addressing many of the transitional issues it faced’ – Linda Sewell AFPA transitional CEO Allan Hansard opened the forum and set the scene for the audience.

“We have an industry turnover of $23 billion and employment

of 120,000.

That’s enough people to fill this venue [the MCG] and then have more lining up outside.

“While we are not as big as the mining industry – which has $300 billion of investment in the pipeline – we must remember that we provide employment and economic activity in the regional areas not getting the benefits of the mining boom.”

Richard Stanton facilitated the policy session which also included views from members who had specific experiences in the various policy topics. The meeting gave AFPA members the opportunity input into the development of strategies and the future direction of the new organisation.

Key policy issues discussed included: • Investment (industry growth, plantation expansion).

• Resource security (RFAs, water).

• Climate change (including renewable energy).

• Trade and market access (certification, trade measures).

• Timber market development (technical support, representation).

AFPA was established through the merger of the Australian Plantation Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI).

The association is based in Canberra and has strong links with state associations in other capital cities.

Membership inquiries can be directed to (02) 6285 3833. A transitional website has also been established: www.ausfpa.com.au

Forest talks reduced to farce

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 183 | 25.07.11

THE revelation by Tasmania’s Minister for Primary Industries Bryan Green that the state government had rejected an offer from Canberra for the forest negotiations, confirmed this process was now a high farce, Senator Richard Colbeck said.

“Descriptions of the negotiations as a ‘peace process’ have proved to be nothing but misty-eyed drivel,” the Coalition forestry spokesman said.

“There is no agreement and, even if there was, several key elements of the draft document have already been breached by the environment movement.

“And in the face of all this – and the fact that no industry player has signed the so called Melbourne document – the state and federal governments

The future for forest loggers like Phil Voss is up in the air.

blunder on.

“Given there is no deal, what are they funding?”

Mr Colbeck said Timber Communities Australia had made a conscious decision not to sign, and Tasmanian sawmilling businesses had not signed.

“So why is the commonwealth offering money to Tasmania?

“Despite the months of negotiations there is no peace in our forests. Protestors now run xenophobic attacks on industry players.

Cont Page 3

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industry news

Non-compliant structural plywood imports seen as ‘tip of the iceberg’ CONCERNS by the Western Australia Building Commission that non-conforming imported structural plywood products are entering the Australian market “might just be the tip of the iceberg,” industry observers believe.

“The products are misrepresenting the timber grade that they achieve,” the commission’s executive director Peter Gow said in a notice to the building trade.

Importers and local suppliers should have each batch of structural plywood independently tested “While the product may state that it is of a particular grade of structural timber (such as F14), the product when tested against the relevant Australian standards has achieved an overall applicable grade that is significantly less (such as F8).”

Recent testing of a plywood flooring product found it highly unlikely that the tested samples would meet the minimum structural properties required for the branded F14 stress grade in accordance with AS/ NZS 229.0:2008-PlywoodStructural specifications. The evaluated characteristic values suggested the applicable F-grade for the plywood tested was more likely to be F8 for modulus of elasticity, F8 for bending strength, and F11 for panel shear strength.

To prevent inferior products entering the market, Mr Gow has urged importers and local suppliers to have each batch of structural plywood independently tested by an organisation registered with the National Association of Testing Authorities (NATA) to ensure compliance with the standard.

“The end users of the structural plywood (such as builders and consumers) should insist

Imported structural plywood .. does it measure up to Australian standards?

on receiving the certificates of testing for the relevant batches of structural plywood purchased,” Mr Gow said.

“A copy of such certificates should be forwarded to the certifying building surveyor to ensure compliance with the Building Code of Australia.”

The BCA Volume 2 references ‘AS/NZS 2269: PlywoodStructural for wall cladding. This standard is also referenced by other Australian standards that are called up in both volumes of the BCA. For example, structural plywood used for flooring, bracing and roof cladding must be manufactured in accordance with AS.NZS 2269 to achieve compliance with AS 1684-residential timber-framed construction.

‘Frankly, we’ve had enough’ From Page 2

“Just as they have done on every other occasion, the Greens and environment groups have walked out of the negotiations in order to claim they are not party to any agreement and so they can continue to protest.

“It was agreed that the Triabunna woodchip mill would continue to operate, yet that property is now in the hands of multi-millionaire greenies who bought the mill so they could shut it down.

“The Greens and environment groups have delivered nothing to the negotiation process. Yet they have had all the wins, at the expense of the industry’s losses.”

Ahead of a timber workers‘ rally in Hobart last week protesting the lack of government response to the ‘statement of principles’ agreement, Tasmanian Forest

Contractors Association president Ed Vincent said work had dried up for many members.

“Worst of all we feel this crisis is being ignored by government which is what really has frustrations at boiling point,” Mr Vincent said. “Good peoples’ lives and financial security are hanging in the balance.”

He said contractors and their workers had been remarkably patient over the last 15 months of negotiations, in the face of almost incomprehensible personal pressure.

It had now been more than three weeks since [facilitator] Bill Kelty got agreement from the signatories to the statement of principles.

“Frankly, we’ve had enough, our patience has run out.”

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issue 183 | 25.07.11 | Page 3

wood preservation

Lonza’s $1.2bn surprise buyout of Arch boost for chemicals research

‘Interesting shift’ for industry in Australasia THE Lonza Group, a Swiss supplier of pharmaceutical ingredients seeking to diversify its product line-up, will buy global biocides giant Arch Chemicals for $1.2 billion in cash – a deal that has taken the preservation industry by surprise.

Arch employees in Australia heard about the Lonza coup by way of a media release.

Based in Basel, Switzerland, and

a member of the International Research Group on Wood Preservation, Lonza has sales of more than $A3 billion and manufactures active ingredients for timber treatment.

Arch Chemicals, Inc., headquartered in Norwalk,

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Page 4 | issue 183 | 25.07.11

Connecticut, USA, also manufactures products used in hygiene and water treatment and recorded sales of $1.4 billion last year. Along with subsidiaries, Arch has 3000 employees and manufacturing and customer-support facilities

in North and South America, Europe, Asia, Australia and Africa.

“The transaction will allow us to expand our non-pharmaceutical life science business to achieve a well-balanced profile based on two world-leading growth businesses – pharmaceutical contract manufacturing and microbial control,” Lonza’s chief executive Stefan Borgas said.

Cont Page 7

Ransom claim over woodchip mill sale THE Forest Industries Association of Tasmania has accused Gunns Ltd of using the Triabunna woodchip mill as ransom.

The mill on Tasmania’s southeast coast cannot operate until Gunns receives millions of dollars in taxpayer-funded compensation, it was revealed last week.

The $10 million sale contract with millionaire conservationists Jan Cameron and Graeme Wood has cast doubts over the state’s forest industry.

A Gunns spokesman Matt Horan is reported as advising a clause in the contract detailed that the mill cannot operate until the ‘statement of principles’ process is completed. This includes a state buy-back of Gunn’s sawlog contracts.

Chief executive of FIAT Terry Edwards said Gunns’ demands were threatening to derail the entire deal, which aimed to end 30 years of conflict in Tasmania’s forests.

“We understand that one of the conditions of sale to Cameron

Tribunna mill .. chicken-feed for millionaire part-owner Jan Cameron..

and Wood was that they were not allowed to operate the mill until Gunns was satisfied with its compensation package,” Mr Edwards said.

“Without the promise of peace, FIAT would no longer be involved in the process, and the whole deal would fail.

“This means we will not support one additional hectare of reservation of the forests, no industry restructure will be possible and no compensation will be paid to Gunns for their wood-supply agreements.”

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events

WHAT’S ON? JULY 26-28: Malaysia Timber Council seminars, Melbourne (InterContinential Hotel, Tuesday, July 26) and Sydney (Marriott Sydney Harbour Hotel, Thursday, July 28). Join the Malaysia timber industry contingent, lead by the Minister Tan Sri Bernard Dompok and CEO of MTC for an update on industry on policy and business development in the Malaysian timber industry. There will be no charge to attend the seminars, but prior registration will be necessary.

Inquiries: John Halkett (02) 9356 3826. Email: john.halkett@bigpond. com or John Bagley (02) 9487 2776. Email: bagleys2@gmail.com

AUGUST 16: Australian Timber Importers Federation board meeting and AGM. Park Royal Melbourne Airport Hotel. Includes presentation

by Ric Sinclair, managing director, Forest and Wood Productrs Australia - the new Wood Solutions website. Lunch and FWPA presentation at 1 pm. AGM commences at 2 pm. Inquiries to John Halkett (02) 9356 3826 or john.halkett@bigpond.com 28-27: Vareity Club Bush Bash, Queensland. Brisbane Hoo-Hoo Club 218 has entered the event to raise funds for children’s charities.

Contact: Alan Jones (07) 3010 1823.

SEPTEMBER 2: Women of Timber High Tea. Curvee Lounge, The Sofitel, Brisbane. The aim of the event is to gather as many women of industry, representing a variety of roles and organisational sectors, to get together and share their knowledge, experience and ideas.

Ticket price $55 p.p. (inc. gst).

RSVP August 26. Tel: (07) 3254 3166. Email: karen@tabma.com.au 5, 6, 8: WoodSolutions 2011.

Bringing together leading international and Australasian exponents of timber design.

Adelaide (Monday September 5), Intercontinental Adelaide, North Terrace. Sydney (Tuesday, September 6), Sydney Marriott Hotel, College Street. Melbourne (Thursday, September 8), The Windsor Hotel, Spring Street. Visit www.woodsolutions2011.com.au 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, 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 6-7: BNZ Forest Industries Tech Clinics 2011. Rotorua, NZ www. forestevents.co.nz 7: BNZ Forest Industries 2011 Conference: Innovative products, designs and new developments for timber building. Rotorua, NZ. www.forestevents.co.nz 14, 15: Industry Development Conference - Productivity and Competitiveness, Hyatt Hotel,

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Canberra. Hosted by ForestWorks, the conference will provide an in-depth exploration of the many impacts and opportunities facing the industry in 2011 and beyond. The conference has been specifically scheduled to coincide with parliamentary sitting week, providing a great chance for industry players, union representatives, policy makers and MPs to gather, network and share ideas. Tel: (03) 9321 3500. www. forestworks.com.au/conference

October 16-19: SilviLaser 2011. University of Tasmania, Hobart. Visit www. silvilaser2011.com 21-23: Timber & Working with Wood Show. Melbourne Showgrounds, Epsom Road, Ascot Vale. Contact: (02) 9974 1393. Fax: (02) 9974 3426, Email: info@eee. net.au 31-2 (Nov): 5th International Woodfibre Resources & Trade Conference. Grand Copthorne Waterfront Hotel, Singapore.

Contact Pamela Richards on 61 3 5781 0069. Visit www. woodfibreconference.com

NOVEMBER 8-11: IUFRO Forest Health Joint Meetings. Colonia del Sacramento, Uruguay. Organised by the National Agricultural Research Institute (INIA) in Uruguay, the University of Uruguay (UDELAR) and the International Union of Forest Research Organisations (IUFRO). Motivated by the massive development of the forestry sector in several countries in South America.Visit www. iufrouruguay2011.org

Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have 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).

AFPA was established to cover all aspects of Australia’s forest industry: - Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting.

For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.

issue 183 | 25.07.11 | Page 5

FORESTS AND CARBON

Dr Pep Canadell .. forests playing much larger role in carbon sinks.

Forests absorbing one-third of fossil emissions: CSIRO

THE world’s established forests remove 2.4 billion tonnes of carbon a year from the atmosphere, equivalent to onethird of current annual fossil fuel emissions, according to new research by CSIRO. This is the first time volumes of the greenhouse gas absorbed from the atmosphere by tropical, temperate and boreal forests have been so clearly identified.

“This is really a timely breakthrough with which we can now clearly demonstrate how forests and changes in landscape such as wildfire or forest regrowth impact the removal or release of atmospheric carbon dioxide (CO2),” says CSIRO’s Dr Pep Canadell.

Dr Canadell is co-author of the paper ‘A Large and Persistent Carbon Sink in the World’s Forests’. He says: “What this research tells us is that forests play a much larger role as carbon sinks as a result of tree growth and forest expansion.”

An international research team combined data from forest inventories, models and

Page 6 | issue 183 | 25.07.11

satellites to construct a profile of forests as major regulators of atmospheric CO2.

In addition to the large carbon sink, scientists now know that deforestation is responsible for emitting 2.9 billion tonnes of carbon a year – an exchange that had not been known in the past because of a lack of data.

For comparison, total emissions from fossil fuels are currently above eight billion tonnes of carbon a year.

Dr Canadell, who is also executive director of the Global Carbon Project, said emissions from deforestation were much larger than previously thought, suggesting that the potential benefits of avoiding deforestation through the United Nations-backed Reduced Emissions from Deforestation and Degradation (REDD) scheme, are much larger than previously appreciated.

The REDD scheme aims to formulate a financial value for the carbon stored in forests.

He said a surprising finding was the large capacity of tropical Cont Page 10

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industry news

Lonza Group estimates global market for microbial control products now $10 billion

From Page 4

Industry observers in Australia see the buy-out as “an interesting shift for industry”. They believe the deal will benefit the industry globally by increasing research and development of timber preservatives.

It is likely to be ‘business as usual’ for the Arch business in Australasia for at least six or seven months.

Lonza research will be greatly enhanced by the addition of the services of Dr Alex Valcke who was poached by Arch from Janssen Pharmaceutics, part of the Johnson & Johnson family of companies, in 2009, after a 25year career with the company.

He was appointed Arch’s vicepresident of innovation and research, reporting to chairman, president and CEO Michael Campbell.

Stefan Borgas .. strategic and cultural fit.

Michael Campbell .. the right strategic partner.

leader in controlling unwanted microbes,” he said. “The business will enjoy a strong platform for accelerated future growth for the benefit of all our stakeholders.”

Arch chairman Michael Campbell said Arch was confident it had found the right strategic partner to help its business reach the next level of success.

The global market for microbial control products, which is growing at 4 to 6% a year, is valued at about $10 billion, according to Lonza.

‘Lonza and Arch offer highly complementary products and technologies and together will be the global leader in controlling unwanted microbes’ – Stefan Borgas World-wide acquisitions by Arch include Hickson International PLC in 2000 and the remaining 51% of the Koppers-Arch wood preservative joint venture in Australia in 2007.

Lonza hopes to close the deal later this year, pending the acceptance of two-thirds of Arch shareholders, as well as regulatory approval.

The company anticipates annual cost savings of $50 million within two years of closing the deal, which it plans to finance entirely with debt.

Stefan Borgas said the transaction represented an excellent strategic and cultural fit.

“Lonza and Arch Chemicals offer highly complementary products and technologies and together will be the global

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issue 183 | 25.07.11 | Page 7

CERTIFICATION

PEFC global sustainability standard advantage for industry stakeholders Forums looked at the social aspects of forest certification “WE’RE reaching a crucial tipping point for standards development, sustainable forest management and chain of custody certification – and Australia will benefit from global expansion of PEFC.” Speaking to almost 200 Australian stakeholders this month, Geneva-based Ben Gunneberg, secretarygeneral of the Program for the Endorsement of Forest Certification, said revised PEFC standards were adding benefits not found in any other global forest certification scheme.

Mr Gunneberg and Kayt Watts, chief executive of the PEFCendorsed Australian Forestry Standard, met stakeholders from business, industry organisations, government and the media and presented at breakfast forums in Sydney, Melbourne and Brisbane.

Special talks were held with Department of Agriculture, Fisheries and Forestry officers in Canberra.

“PEFC has introduced unique criteria specifically focused on advancing social aspects in forest certification,” Mr Gunneberg said.

“Our sustainability benchmarks are world-leading and perfectly placed to expand forest certification specifically in regions such as Asia, Africa and South America, which still make up less than 10% of the total global certified area.”

Mr Gunneberg said revised PEFC standards, approved in November last year, included references to essential international agreements such as the United Nations Declaration on the Rights of Indigenous Peoples in the forest management standard and the incorporation of social requirements in the chain of

Page 8 | issue 183 | 25.07.11

Chief executive of Forestry Plantations Queensland Brian Farmer (right) confers with Ben Gunneberg, secretary-general of PEFC, and Kayt Watts, chief executive, Australian Forestry Standard, at a stakeholder breakfast in Brisbane. FPQ Pty Ltd manages about 204,000 ha of softwood and hardwood plantations accredited under the AFS standard

Getting together at the PEFC/AFS breakfast forum in Brisbane are Richard Fuller, Queensland sales manager, Gunnersen Pty Ltd, Brisbane, Karen Johnston, chief executive, TABMA Queensland, Dave Barbour, Forestry Plantations Queensland, and Ross Garsden, client manager, NCS International, Brisbane.

custody standard.

“We are also at a verge of a major growth in certified area with endorsed systems now in Uruguay and Latvia and the lifting of the suspension of our Russian system,” Mr Gunneberg said.

“Countries such as Ireland have applied for endorsement, and a range of countries in Eastern

Europe have set up initiatives with the aim to develop national standards. We’re also excited about developments in China and its commitments to PEFC as a major producer of forest products.

“China has the fastest growing forest area globally, and the country’s efforts to sustainably manage its forest resources are welcomed.”

During the breakfast forums, Kayt Watts introduced a business card-sized AFS ‘factsat-a-glance’ tool for the timber industry’s front-end marketing staff.

“The card provides a very clear reference to the value of certification, chain of custody and forest sustainability for consumers,” Ms Watts said.

Mr Gunneberg said it was significant for private forest growers in Australia that both the Canadian sustainable forest management standard and the Canadian sustainable forest management for woodlots and other small area forests had been endorsed by PEFC International.

He said a workable standard had been delivered that responded to the specific needs of Canadian woodlot owners and complied with PEFC’s sustainability benchmarks.

Canadian woodlots are on average less than 40 ha in size and generally owned by rural families, with particular values that the standard needed to address. This standard gives woodlot owners across Canada, who together produce about 15% of the Canadian wood supply, access to the benefits of PEFC certification.

More than 50 woodlot owners in Nova Scotia have already broken new ground with certification to the standard in a pilot program supported by the provincial government.

About 235 million ha of forests are in compliance with internationally accepted sustainability benchmarks set

by PEFC, the world’s largest forest certification system and more than 8000 companies and organisations have achieved PEFC chain of custody certification.

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Celebrate innovation and advances in forestry, wood products and design just before the international rugby starts on 9 September. Be part of the forestry and wood processing revolution. If you have anything to do with wood you and your company must be there.

Book your place and get more information, www.fi2011.co.nz The PF Olsen Forest Industries Expo 2011 will showcase the latest equipment, technology and systems from New Zealand and around the world, to an international audience. You can book to attend or register for a display site indoors or outdoors through www.fi2011.co.nz The BNZ Forest Industries Tech Clinics will feature 14 practical and independent clinics that will cover every facet of the forestry sector, from new tools for improving efficiencies in forest management through to the very latest in timber design, construction and building practices. For more information go to www.fi2011.co.nz.

The BNZ Forest Industries Conference on 7 September will focus on innovation and design in timber construction following the tragic earthquakes in Japan and Christchurch (2011), Haiti (2010), Chile (2010) and Italy (2009).

International speakers will cover recent major advances in design, technology and construction. For more information go to www.fi2011.co.nz

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www.fi2011.co.nz issue 183 | 25.07.11 | Page 9

FORESTS AND CARBON

Deforestation is not forest management DEFORESTATION should not be confused with active forest management, Coalition forestry spokesman Richard Colbeck says.

An article published in Science journal reporting on the relationship between forests and carbon storage has attracted much mainstream media interest but has unfortunately been misrepresented by green groups as advocating for the locking up of forests.

“There are heated debates at present involving forestry, both in my home state (Tasmania) where the future of the industry is at stake and also nationally with respect to the government’s carbon tax scheme,” Senator Colbeck said.

“Deforestation is the destruction of forests and it should not in any way be confused with the responsible and sustainable forest management practices

InSurAnce..

It’S All In the SelectIon

Climate Commission and to the Gillard government to highlight flaws in the commission’s latest report. They emphasised opportunities for carbon storage in managed forests and in wood products, and the use of wood in construction as alternatives to metal, concrete and plastic, which all have greater fossil fuel emissions.

Mr Colbeck said the industry was also frustrated that forestry had been excluded from the Richard Colbeck .. heated debates on forestry.

of timber communities around Australia.

“Forest management has significant potential to help Australia reduce greenhouse gas emissions – a fact supported by science but unfortunately ignored by the government.

“Recently, 87 highly qualified forest scientists wrote to the

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Page 10 | issue 183 | 25.07.11

Carbon Farming Initiative, and that native forest biomass would be ineligible for renewable energy credits – “neither of which make sense”.

“Both the Intergovernmental Panel on Climate Change and the UN’s Food and Agriculture Organisation recognise that sustainable management of forests, including a mix of conservation and timber harvest, is optimal for carbon reduction,” Mr Colbeck added.

Forests removing 1.6bn tonnes of carbon a year

forest re-growth to remove atmospheric CO2. Regrowth took place following the end of logging and slash-and-burn land clearing projects, and, to a lesser extent, when new forest plantations were planted.

“Unfortunately, some countries have not looked on forest regrowth as a component of REDD, and so are missing a very important opportunity to gain even further climate benefits from the conservation of forests.

Tropical forest re-growth has a large capacity to remove atmospheric CO2. Regrowth takes place at the end of logging and slash-and-burn land clearing projects, and, to a lesser extent, when new forest plantations are planted

“Combining the uptake by established and forest regrowth plus emissions from deforestation, the world’s forests have a net effect on atmospheric CO2 equivalent to the removal of 1.1 billion tonnes of carbon every year.

“We estimate that tropical forest regrowth is removing an average of 1.6 billion tonnes of carbon a year,” Dr Canadell said.

“Carbon exchanges from tropical forests have the highest uncertainties in this analysis and this research has required a concerted effort to refine them to our best knowledge.”

From Page 6

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MARKETS

Canada feeding China’s growing appetite for wood CHINA’S increased appetite for lumber is helping to fire up British Columbia mills and keep loggers in the forests as demand from the US remains subdued.

For the first time, BC companies are making more money from the wood they send to China than from shipments south of the border.

Figures show the province’s softwood lumber shipments to China, including Hong Kong, in the month of May were valued at $122 million, compared to $119 million for US shipments.

While more wood – roughly 1.2 million cub m compared to 1.1 million cub m – went to the US in May, the Chinese exports were more expensive.

Exporters don’t know how much lumber Chinese importers might have stockpiled, which will need to be consumed before they buy large volumes again From January to May, the province exported 2.8 million cub m of lumber to the world’s fastest-growing economy, more than double the value and volume exported there during the same period last year.

Most BC lumber sent to the US is used in house construction, but in China it is used for apartment buildings, trusses, commercial buildings and furniture.

However, there is some uncertainty about what Chinese buyers will do for the rest of the year because there are signs they no longer have access to the same easy credit they’ve enjoyed the last two years, which allowed them to buy large volumes of lumber all at once.

The old patterns of lumber

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HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia A worker at a lumber mill in British Columbia walks past stacked softwood ready to be shipped to China.

pricing have changed dramatically by the collapse of the US housing market and the rise, since 2009, of China’s demand.

At this point, exporters don’t know how much lumber Chinese importers might have stockpiled, which will need to be consumed before they buy large volumes again.

Canadian producers believe the Japanese demand for more wood to rebuild homes destroyed by the March tsunami will also pick up in a major way in six to nine months.

BC shipments to all Asian countries in the first five months of 2011 were valued at $776 million compared to $464 million of lumber sent to the US. These Asian exports represent almost half the total value of provincial lumber shipments so far this year.

During the first five months of last year, Asian exports accounted for $464 million – a third of all lumber sales – while American exports were over half of all shipments at $851 million.

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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 183 | 25.07.11 | Page 11

WORLD TRENDS

Engineered wood driving demand for heavy structural building trade THE increasing acceptance of structural engineered wood products for use in heavy structured building applications such as floor bearers, floor joists, headers and beams, is driving demand and leading to an expansion of investment and trade in these products in the US, Europe and Japan.

The rapid growth in consumption is also driving new product development.

“Building systems using these products have the potential to revolutionise the building industry, with wood-based products replacing, or used in conjunction with other materials such as steel, brick and concrete in residential and non-residential construction,” says Bernie Neufeld, senior manager with research and

CEDAR TONE

Rapid growth .. cross-laminated timber at record consumption levels.

business analysis group BIS Shrapnel.

In an updated report on engineered wood products, to be published early next year,

WALNUT

Mr Neufeld says these levels of market penetration have not yet been matched in any other country, which suggests there is considerable scope for

BURNT RED

The current pattern of world demand, together with currency exchange rates, has had a significant impact on the local cost. Any conceptions that Western Red Cedar is an expensive material have largely faded. This world renowned and prized species is ..

• Surprisingly cost competitive • Extremely versatile (popular internal and external products) • Comes with impeccable environmental credentials

black ash

CLEAR

market expansion.

The market update covers LVL, I-joists, glulam and crosslaminated timber.

In a very short time, LVL, strand lumber and I-beams have developed a strong presence in the US and represent 35% of the material used for floor bearers and joists. Similarly, glue laminated beams have developed a strong presence in Japan, where they represent more than 60% of the materials used in posts and beams of traditional housing.

Glulam is also used extensity in Europe and more recently LVL and I joists have penetrated the market.

Cross laminated timber is a relatively new product Cont Page 13

GREY MIST

And to make the whole situation even more appealing, TIMBECK has completed a full review of all its products and added new dimensions to Western Red Cedar in building:

• A cladding range now with concealed fixing • Engineered fixing recommendations for cyclonic regions • Expanded profiles for the popular screening and décor applications • Addition of new colourWOOD series for claddings & screening

And it’s readily available, either natural or pre-coated, from TIMBECK, the Western Red Cedar manufacturing and pre-coating specialists.

For comprehensive details on the full product range and complete information on colourWOOD and other coating and and finishing options, visit www.timbeck.com.au All sAles, technicAl AnD generAl inquiries – Brisbane (07) 3888 7788. sydney (02) 9709 4466. info@timbeck.com.au

Page 12 | issue 183 | 25.07.11

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THE CRITICAL DECADE

Laminated wood vs. solid lumber

From Page 12

that has been developed in Europe, has rapidly grown to annual consumption levels of 300,000 cub m, and will soon be produced in other regions for use in residential and non-residential construction, including multi-storey buildings.

Mr Neufeld says manufacturers worldwide are facing increasing pressure to provide better quality forest products at a

lower cost, while declining log quality is making the production of high performance solid wood products more difficult.

Non-wood substitutes are gaining prominence due to factors such as stability, uniformity and guaranteed performance.

“Wood product manufacturers have responded by using lamination of veneers, wood fibre strands or solid wood, to engineer high performance products,” Mr Neufeld said.

“The result has been the rapidly expanding production and consumption of LVL, laminated strand lumber, glulam, crosslaminated timber and I-beams in Europe, North America, north and southeast Asia and Australasia,” he said The applications for laminated products vary considerably from one market to another; large dimension solid lumber, which has traditionally been used for heavy structural applications, is increasingly being replaced by

laminated products, which are recognised as having superior performance.

ceiling of the signature Oval and for six other buildings at the Vancouver Olympic Winter Games.

Structurlam, Canada’s leading supplier of heavy timber packages, is one of the only companies in North America that can manufacture complex glulam arches such as those

used in the Olympic Oval.

Company president Bill Downing believes CLT will eventually replace concrete in residential, institutional and prefabricated wood buildings. His new CLT construction package consists of prefabricated wood walls, floors and ceilings, which is popular in Europe, but little

known in Canada.

Where defect-free wood is required, lamination can often provide a solution. Qualities such as strength and stability are inherent advantages of laminated products.

Inquiries should be directed to Bernard Neufeld. Tel: (+61 2) 8458 4209 or email bneufeld@ bis.com.au

CLT challenges concrete construction in Canada THE Canadian company that supplied glulam structures for the award-winning Olympic Oval in Vancouver in 2010 is now poised for its next venture – the design and development of cross-laminated wood panels for modular building assembly.

Structurlam Products built arched wood beams for the

“We’re always pushing the envelope of wood design and wood construction,” says Mr Downing.

“The cross-laminated timber product has the potential to revolutionize commercial construction in Canada.”

Conference focuses on forests in the Pacific

GREEN and CLEAN Engineered wood products from EWPAA members are manufactured from 100% LEGAL forests – they are GUARANTEED to meet all Australasian standards.

Engineered wood products have the best environmental credentials and the lowest emissions.

They meet all specifications for emissions certified under JAS-ANZ accreditation.

You can rely on EWPAA certified products – other certifications are just not the same.

Choose consistent quality and structurally safe PAA-accredited products.

Don’t be exposed to liability.

Unbranded, non-compliant products are not worth the risk!

Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Sreet, Newstead, 4006 Queensland Australia Tel: +61 7 3250 3700 Fax: +61 7 3252 4769 Email: inbox@ewp.asn.au Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

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issue 183 | 25.07.11 | Page 13

INDUSTRY NEWS

NZ wood-plastic technology gains new market acceptance in Europe Composites manufactured for decking, furniture

ONE of the world’s largest engineered wood producers will use New Zealand science to widely market revolutionary wood-plastic composites in Europe for decking, fencing, pallets and furniture.

The new technology has been developed by Crown Research Institute Scion which has negotiated an exclusive licensing agreement with Sonae Indústria Group, based in Portugal.

Sonae has the right to negotiate with Scion for other regions except Australia, New Zealand, Japan and Korea.

The company processes more than 10 million tonnes of wood annually, producing particleboard, MDF, hardboard and oriented strand board at 27 production sites in eight countries.

Scion developed and patented the technology under its biofibre research program funded by New Zealand’s former Foundation of Research Science and Technology (now Ministry of Science and Innovation).

“We recognised the growth in commercial application of natural fibre reinforced plastics and saw an opportunity for wood fibres, which have been very difficult to process with

much so, Sonae has named the technology’s product ‘WoodForce’.

“In addition to the high performance of this product, what’s also exciting is the fact that the technology can easily fit into existing manufacturing and processing chains,” says Scion’s chief executive Dr Warren Parker.

Free-flowing .. wood fibre pellets are a highly attractive renewable resource used to reinforce plastics.

plastics,” says Jeremy Warnes, science leader at Scion.

“Agricultural fibres such as hemp, flax, and sisal are used as reinforcing fibres but have disadvantages such as seasonality in supply, variable quality, and specialist processing equipment is needed to convert the fibres into a form that can be processed by plastics manufacturers.”

The technology enables production of wood plastic composites with long wood fibre reinforcement, which are easily fed into conventional extruders and injection moulders and processed as bio-based fibre reinforced plastics.

While the first commercial applications of the technology are likely to appear in Europe, the intellectual property is retained in New Zealand; Scion has filed an international patent.

“The licence deal is likely to return royalties exceeding $10 million over the next decade, if Sonae Indústria and the technology are successful in the market,” Dr Parker said.

“And that’s just the start, with the rapidly expanding global market for natural fibre plastic composites.”

Dr Warren Parker .. royalties will exceed $10 million.

The main advantage of the pellets is the strength they give to traditional polymers. So

Scion, based in Rotorua with 340 staff, is dedicated to building the international competitiveness of the NZ forest industry and building a stronger bio-based economy.

Biomass missed opportunity for reliable power to communities FORESTRY Tasmania says a decision not to include biomass in the list of renewable energies under the federal government’s carbon tax means it has missed an opportunity to deliver more reliable power to regional communities.

FT has plans to develop a biomass plant at its Southwood

Page 14 | issue 183 | 25.07.11

mill in Tasmania’s Huon Valley.

Assistant general manager Michael Wood says the plant will go ahead even without government support.

“In every other part of the world woody biomass is an acceptable part of the renewable energy spectrum, and we see no

reason why that should not be the case in Australia,” Mr Wood said.

The Wilderness Society has been campaigning to stop the development of the wood-fired power plant in the Huon Valley and welcomes the exclusion of biomass from the government’s renewable energies list.

The lobby group says biomass is not a valid renewable energy.

“The same thing applies to woodchips as applies to biomass. We only harvest and produce the woodchip pulp wood that is left over after we’ve scheduled the harvest for sawlogs and veneer logs.”

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Classifieds FWpA 2011 R&D pRoJect funding opportunities Forest and Wood Products Australia invites the submission of R&D project proposals/expressions of interest for up to 50% funding for projects addressing published industry research priorities. Details of forest and wood products industry priorities can be found in the series of industry investment plans available from www.fwpa.com.au.

Each investment plan provides details of industry outcomes expected from successfully completed projects in addition to the level of available FWPA funding within each priority area. Preference will be directed towards project proposals containing significant levels of co-investment by project partners and collaborators.

For further details on applying visit www.fwpa.com.au ApplicAtionS Should be submitted to FWPA via email to chris.lafferty@fwpa.com.au

by Friday 29 July.

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• More than 6,500 deliveries and 15,000 viewers each week • Read and re-read everyday as the most authoritative industry information medium • Best rates, best service - unbeatable • Faster, wider penetration of your message in Australiasia than any other industry publication • Adverts take readers and potential clients direct to websites Contact Timber & Forestry Enews Tel: +61 7 3256 1776 Email: cancon@bigpond.net.au

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Customer Process Engineer Join an established multinational company supplying products and technical support to customers around Australia.

Use your initiative and skills to engineer solutions for customers as part of a supportive and motivated team.

Location is flexible and can be based in either Brisbane, Sydney or Melbourne.

We are searching for a self-motivated individual with a desire to grow to join our unique team. Can you cope with managing your own time with no time clock?

Our company prides itself on providing excellent technical support to our timber greatment customers. Our customers are geographically scattered so our team is as well. Your team mates are only ever a phone call away but you will often be the only company representative on a customer site so you must be able to positively represent the company to staff at all levels from plant operator to CEO. Good communication skills are vital in this role and you must be able to make competent oral presentations to small groups as well as write clear and concise reports and proposals.

As the Customer Process Engineer, you would be required to call upon your training and experience to assist in offering engineering solutions to our customers. We will provide training on the specific processes, but the 10:57 AM engineering is mostly about pumps, pipes and valves plus some materials handling.

Our company can provide customers with expert assistance ranging from advice on new pumps and valves to designing complete treatment plant operations. As a member of the technical support team, you would be expected to have at least basic CAD skills and project management ability.

Our company also offers a complete automation package. This is a PLC/ PC based system and you would be expected to be able to leverage your previous exposure to PLC based control system to quickly learn how to support these systems. To be suitable for this position you would be required to demonstrate: •

• • •

• •

Advanced Diploma of Engineering or equivalent training as a mechanical/electrical or process engineer.

Appropriate engineering or automation experience.

Strong computer skills.

A proven ability to communicate effectively with clients both verbally and in written and report format.

A willingness to travel.

A desire to learn and apply new skills.

You would need to have relevant Australian work rights.

If you meet the above requirements and are looking for a long term position where you can grow your skills, contact us or apply by email at jobs@osmose.com.au

issue 183 | 25.07.11 | Page 15

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