Issue 202

6579

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issue 202 | 05.12.11 | Page 1

Water plan to hit plantations

This Issue • Wood processors paint brighter picture for NZ • Chile in box seat as timber supply crisis widens

Perverse outcomes for forest industry that were potentially high water interceptors were not to be assessed at all.

“The MDBA draft plan will result in perverse outcomes for the management of water interception given its focus on plantation forestry, to the exclusion of other dryland activities,” Dr Pollard said.

“Plantation forests make up less than one-third of one percent of the Murray-Darling Basin, while dryland pasture and crops cover 66% and 10% respectively. Yet these land uses will not be assessed to the same level of scrutiny as

PEAK forest and agricultural industry groups believe the proposed Murray-Darling Basin Plan released last week has failed to achieve the promised balance between social, economic and environmental impacts.

The proposed plan, released by the Murray-Darling Basin Authority, unfairly targets plantation forestry, threatening a vital rural and regional industry.

Australian Forest Products Association chief executive David Pollard said the plantation industry was willing to pull its weight in water reform, but not while activities

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• Profile: Hyne diamonds are forever • Struggle to meet commitments on north coast NSW log supply • Timber hall rises from ashes of Black Saturday fires

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issue 202 | 05.12.11 | Page 1

industry news

Struggle to meet commitments on NSW log supplies Pressure on north coast state forests

By JIM BOWDEN

FORESTS NSW is struggling to meet existing wood supply commitments on the north coast.

Last year it was only able to supply 75% of mill entitlements and this year will be pressed to reach 80%.

Mills with high quality entitlements are under pressure from the government agency to accept small, lower quality logs as ‘replacement timber’ for their survival.

“Plantation resources for high quality sawlogs have been virtually exhausted and Forests NSW now competes for private property supplies to make up their resource shortfalls,” NSW Forest Products Association chief executive Russ Ainley said.

“Every mill is now operating at much less than capacity and with significantly reduced log stocks and every mill has laid off staff over the last year because of log supply problems.”

New player in the region Adrian Joseph, who with four partners purchased the Ford Timbers mill at Urbenville in July after it closed with debts of nearly $4 million, is puzzling industry observers.

Mr Joseph says if he cannot secure a long-term contract for a quota of logs from state forests, his company will never be able to operate at full capacity and would eventually go broke.

“Ten thousand cubic metres a month at least would give us some security. It would allow us to know that we could meet a certain level of demand,” he said.

Urbenville Timbers claim for

Page 2 | issue 202 | 05.12.11

Russ Ainley .. supply of high quality sawlogs virtually exhausted.

10,000 cub m of high quality sawlogs a month (120,000 cub m a year) would make them the largest hardwood sawmill in the state. This would consume the entire yield assessed from the Upper North East.

Boral Timber only has rights to 165,000 cub m for both its mills.

Hurfords, Notaras and all the other independent mills operate on high quality allocations of 2000 to 15,000 cub m a year.

Industry analysts said that in purchasing the business knowingly without a supply agreement, Mr Joseph’s claim would mean that all other mills in the region – with supply contracts similar to Ford Timbers – would have to close.

They suggest Mr Joseph’s projection to create 40 (or 60) jobs would cost about 500 jobs in other towns. Other companies had to commit to value adding and investment in order to secure their supply agreements, but Mr Joseph has jettisoned all such equipment from the previous operation of

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

Core services: • Skill Standards • Material Development • Networks • Strategic Skills Planning • Project Management • Data Collection • Research • Industry Advice • Career Advice • Adult Learning Expertise VICTORIA PO Box 612, North Melbourne 3051 Tel: (03)9321 3500 Email: forestworks@forestworks.com.au NEW SOUTH WALES PO Box 486, Parramatta 2124 Tel: (02)8898 6990 Email: smukherjee@forestworks.com.au TASMANIA PO Box 2146, Launceston 7250 Tel: (03)6331 6077 Email: edown@forestworks.com.au BRISBANE PO Box 2014 Fortitude Valley 4006 Tel: (07)3358 5169 Email: bharle@forestworks.com.au SOUTH AUSTRALIA Unit 2 / 191 Melbourne Street, North Adelaide SA 5006 Tel: 08 8219 9028 Email: michelle@forestworks.com.au

Cont Page 4

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INDUSTRY NEWS

Plan risks alienation of an industry that can play vital role in sustainable future From Page 1

plantation forests.

“Even improved pasture, which uses a similar amount of water per hectare as tree plantations, is not to be assessed for its water use. This could lead to less than efficient outcomes in utilising our water resources.

“Moreover, the projected amounts of water claimed to be intercepted by plantations needs to be more thoroughly assessed. The MDBA bases its analysis on National Water Commission projections, which at the time were known to be highly variable estimates with a high degree of uncertainty.”

Dr Pollard said the only acceptable approach was one based on scientific evidence, facts and objective analysis. AFPA was hoping for a less political approach to the management of water interception in the proposed plan.

“Instead, the MDBA risks the alienation of an industry that can and should play a vital role in the return of the Murray Darling Basin to a balanced and sustainable future, particularly with respect to aspects such as the mitigation of dryland salinity,” Dr Pollard said.

‘The projected amounts of water claimed to be intercepted by plantations needs to be more thoroughly assessed’ – David Pollard “Taking a more balanced approach to the assessment of dryland activities across the basin would be a good start, including sensible thresholds on the scale and significance of water using activities on water budgets.”

The 3375 km Murray-Darling Basin in the interior of southeastern Australia is named after its two major rivers, the Murray and the Darling. It drains one-

The Murray-Darling .. drains one-seventh of the Australian land mass.

environment, means the environment has a significant amount of water at its disposal,” Mr Linnegar said.

“The impact of this will be job losses, closure of family farms, hardships for regional communities and increases in fresh food prices.”

Nationals Leader Warren Truss says the MDBA has learned nothing.

“We’re now a year on from when rural communities rebelled, burning the draft guide in the streets, because it took no heed Cont Page 6

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David Pollard .. only acceptable approach is one based on scientific evidence

seventh of the Australian land mass and is by far the most significant agricultural area in Australia.

It spans most of the states of New South Wales, Victoria, and the ACT and parts of Queensland and South Australia.

National Farmers Federation chief executive Matt Linnegar, says the draft plan is disappointing. The guide last year did not deliver that balance, and now, after another 12 months, the draft had also failed to live up to promises made.

“The 2750 gigalitres contained in the plan, plus the water historically set aside for the

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issue 202 | 05.12.11 | Page 3

INDUSTRY NEWS

Most north coast mills vigorously competing for private log supplies elections.

Timber companies entered into wood supply agreements for supplies from Forests NSW for the available timber. Every mill suffered a 50% loss of resource.

From Page 2

Ford’s mills.

“The only sawlog resources available in the region are low quality logs from Forests NSW and private properties,” Russ Ainley said.

“Most mills have been vigorously competing for private supplies to make up the shortfall over the past two years, but they are generally of small volumes, mixed quality and are only sustainable for a short period of time.”

High quality sawlog resources from north coast NSW state forests have been fully committed since the Carr Labor government [1995-2005]

Every mill is now operating at much less than capacity and with significantly reduced log stocks and every mill has laid off staff over the last year

Acute shortage .. high quality hardwood logs disappearing.

reserved 1.71 million ha of forest between 1995 and 2010. The north coast forest resource lost 756,000 ha mainly in the forest

agreements of 1998 and the further reservations (including 10,000 ha of plantations) to appease the Greens in the 2003

Ford Timbers secured the same type of agreement as the other milling companies on the North Coast, but finally relinquished it before Urbenville Timbers purchased the business.

Carbon markets part of forestry’s future MARKETS for carbon storage could help maximise future revenue from Tasmania’s forests in tandem with a restructured forest industry, according to Deputy Premier Bryan Green.

“The potential for protecting areas for carbon storage that secure an income from carbon offset markets could add a new string to our forestry bow,” Mr Green said.

However, Mr Green stressed he did not see future market opportunities for carbon storage replacing the forest industry in Tasmania.

“The government wants to ensure Tasmania gets the most value it possibly can from our forests whether from active production, tourism or from carbon credit sales,” he said.

“We need to continue to achieve

1

the maximum benefit from our world-class forest resources and carbon markets will be a part of that future.

Speaking at a forum in Hobart to discuss Tasmania’s forest carbon potential, Mr Green said that historically forestry had made an extremely important contribution to Tasmania’s economy and the many communities around the state

that relied on it.

“The forest industry has created billions of dollars of wealth for Tasmania and employs thousands of people directly and indirectly,” Mr Green said.

“It remains crucial to the ongoing operation of family-owned sawmills and veneer mills but there is no denying we are in a time a change.”

Fulghum Industries, FIRST in wood chippers AN INDUSTRY LEADER FOR 51 YEARS From the 36” utility chipper to a 144” pulp mill wood yard and chip mill machines.

Other specialised individual equipment items include the radial log cranes, drum debarkers, Rosser head debarkers, vibrating conveyors, rotary and drum screens, X rotor hogs and hammer hogs.

Contact details: +64 9 832 7930 or +1 478 252 5223 Email: mark.johnston@fulghum.co.nz

Web: www.fulghum.com Page 4 | issue 202 | 05.12.11

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events

WHAT’S ON?

DECEMBER

forestryfinanceevents.com

1-2: ForestTECH 2011: Tools& Technologies. Improving forest planning and operations. Albury, NSW. www.foresttechevents.com

Engineered Wood Products Association of Australasia.

Conference, dinner, award presentations. (Date to be advised)

21: ForestWood 2012. Museum of New Zealand Te Papa Tongarewa in Wellington. A pan-industry conference jointly hosted by the Forest Owners Association, Wood Processors Association, Pine Manufacturers Association, Forest Industry Contractors Association.

Supported by Woodco, NZ Farm Forestry Association and Frame & Truss Manufacturers Association.

This is the second time that the four organisations have held a joint conference which builds on the successes of previous individual and combined industry events/conferences which have attracted world class speakers and presenters. Fantastic opportunity for organisations and individuals, with a keen interest in forestry, to engage with decision makers and professional specialists from the forestry industry. Visit www. forestwood.org.nz

13-14: Future Forestry Finance: Investment, Growth and Strategic Outlook. Sydney. www.

22-24: WoodEX for Africa.

Johannesburg South Africa: An exhibition for wood and

5-6: ForestTECH 2011: Tools& Technologies. Improving forest planning and operations. Rotorua, NZ. www.foresttechevents.com

JANUARY 2012 19: Inaugural meeting Lateral Thinkers Club (Queensland Chapter). Gathering of timber preservation industry alumini.

Starts 11.30 am Hamilton Hotel, Racecourse Road, Hamilton.

Contact: Robin Dowding. Tel: 0408 660 434

MARCH

woodworking professionals. As a ‘firs’ for Africa, WoodEX will showcase what the continent has to offer in terms of the export and manufacturing of eco-friendly timber products, while creating a platform for business to showcase new technology for the timber industry.

The exhibits will comprise forestry industry and technology; wood materials, machinery and veneer production; furniture machinery and production; solid wood working, machinery and production; industrial surface and preservative treatment technologies; timber construction; wooden arts and crafts; and related service in the timber industry. Visit: www.woodexforafrica.com

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).

29-31: AUSTimber, Mount Gambier, SA. www.austimber2012.com.au

july 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

DNA conference shows life can be barcoded MORE than 450 experts in DNA have converged on Adelaide for a conference that has major significance for furniture dealers, fishmongers and life on Earth generally.

Co-host of the Barcode of Life conference Andrew Lowe, professor of plant conservation biology at the University of Adelaide, says just as barcoding identifies products

in a supermarket, so too DNA barcodes differentiate between species.

“In all living things there’s DNA, and DNA is the basic building blocks that describes how those species, all those individuals, will turn out,” he said.

“We’ve been able to DNA sequence for quite a long time, for a number of decades, but what DNA barcoding is doing

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is identifying particular genes that can provide a genetic identification for all species on Earth.”

The technology could help quarantine

officials

identify

whether timber comes from a protected forest or a catch of fish comes from no-fishing zones.

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 202 | 05.12.11 | Page 5

INDUSTRY NEWS

Can the real Labor wood waste policy please stand up?

FEDERAL Labor must decide where it stands on the use of native wood waste as a renewable energy source, says Coalition forestry spokesman Senator Richard Colbeck.

“Labor sent utterly contradictory messages to industry last week,” Senator Colbeck said.

“In the same week Labor MPs chaired and endorsed a parliamentary report recommending use of native wood waste as a qualifying renewable energy source, Labor tabled draft amendments to the renewable energy regulations that would rule out native forest residues.

Senator Colbeck said recommendation 15 of the House of Representatives’ parliamentary report ‘Seeing the forest through the trees’ stated: The committee recommends that, under any version of the RET (or similar scheme), bioenergy sourced from native forest biomass should continue to qualify as renewable energy, where it is a true waste product and it does not become a driver for the harvesting of native forests.

“Yet in the same parliamentary week, the government tabled an exposure draft of amendments to the renewable energy regulations that would disqualify native forest residues as a renewable energy source,”

Richard Colbeck .. government kowtowing to the Greens.

the senator said.

“Labor’s contradictory actions make no sense – until you consider them in the context of the Gillard government’s string of dirty deals with the Australian Greens.

“Yet again Labor seems to be kowtowing to the Greens, who maintain their ignorance of forest science and oppose native wood waste use on misguided philosophical grounds.

“The Greens have told Julia Gillard they don’t like the use of native timber wood waste so the Prime Minister has decided to rule it out – at the expense of Australia’s energy and forestry industries, as well as good science and genuine carbon reduction.”

No confidence in draft plan From page 3

of their lives or livelihoods.

“Today, nothing has changed.

Compounding the betrayal that regional communities feel is that the MDBA has not identified the environmental assets in the basin that supposedly need saving, nor has it quantified the

Page 6 | issue 202 | 05.12.11

water needed to save them.

“The absence of that basic rationale means no-one can have any confidence in the draft plan and it makes the 2750 gigalitres water cut arbitrary at best.

“This plan has all the hallmarks of another looming Labor fiasco.”

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INDUSTRY NEWS

Australasian and Asian markets expanding frontiers for exporters

Chile in box seat as timber supply crisis widens AUSTRALIA and parts of Asia are heading for a timber supply crisis based on the static, or in some cases reducing availability, of domestic sawn softwood and hardwood resources and an almost 50% increase in population over the next 20 years.

This was the message delivered to delegates at an international forest exports seminar in Concepción, Chile, last week

by John Halkett, technical manager, Australian Timber Importers Federation.

“This population increase will put an undeniable strain on the timber industry that cannot increase supply due to a lack of resource and an absence of business investment in plantation establishment,” Mr Halkett said.

Chile’s forestry exports rose 38% from January through July this year and according to the Agriculture Ministry were worth $US2.97 billion in the first seven months of the year. Chile will also contribute to the 50,000 cub m of South American pine plywood and panel products destined for Australia and New Zealand in the next six to eight months.

Based on increasing demands for forest products, the government is increasing the already vast acreage of Chile’s Cont Page 14

John Halkett .. imported timber products will continue to be an increasingly critical ingredient of Australia’s housing construction industry.

The reality that imported timber products will continue to be an increasingly critical ingredient of Australia’s housing construction industry has sharpened the focus on the importance of a strong timber importing sector “An impending timber supply crisis can only be overcome in the long term by an increase in plantation establishment in the region that would not, however, in the case of softwood plantations, have a positive impact for at least 25 years.

“Timber imports are the only realistic immediate solution to supply constraints.”

This was music to the ears of Chilean timber exporters who are trading in a market that has recovered remarkably from the impact of the global economic downturn and the earthquake that hit the country in 2010.

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issue 202 | 05.12.11 | Page 7

FWpA

2011 seMinArs TechnicAl ToolS FoR you FWPA’s R&D Works seminars are part of an ongoing initiative designed to deliver technical research and solutions. Seminars will be held throughout 2011 in all major forestry regions. syDney, tuesDAy 13 DeceMBer 2011 topic

presenter

Automated scanning of the opening face of a log to maximise value of appearance grade logs (Solid Wood Initiative)

Marco Lausberg

Design and incorporation of a carbon calculator into house energy consumption software (CSIRO)

Mike syme

FastTRUCK – a model to optimised forest transport planning (CRC Forestry)

Mark Brown

Assessing cants to maximise outturn of structural timber (Solid Wood Initiative)

Marco Lausberg

Review of potential impact of VOC emissions on future market share for engineered wood products (CSIRO)

robert Mann

Community Engagement Handbook (CRC Forestry)

Lain Dare

Performance of nail plate roof truss systems (CSIRO)

Mike syme

Kiln drying: dynamic kiln scheduling and reduction of post drying conditioning time (Solid Wood Initiative)

Marco Lausberg

Adding value through biomass recovery: turning waste into a product (CRC Forestry)

Mark Brown

Near Infrared for predicting wood quality (CRC Forestry)

Geoff Downes

How to guarantee in-service warp stable timber (Solid Wood Initiative)

Marco Lausberg

Market trends and preference for timber products in the residential alterations and additions sector (NSW TDA)

Andrew Dunn

Venue: premier Boardroom, rydges Hotel parramatta, 116 James ruse Drive, rosehill.

Free parking at the venue reGistrAtion: 8.30 am (coffee on arrival) start 9.00 am Finish 12.30 pm (followed by a light lunch)

rsVp DetAiLs Please register your attendance at http://fwpardworksseminarssydney.eventbrite.com/

by Friday 9 December 2011 Page 8 | issue 202 | 05.12.11

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FOREST STUDY

Selective logging effective strategy to protect forests A NEW study on biodiversity conservation by scientists from the National University of Singapore and the University of California says selectively logged forests have considerable conservation value and should be included in effective strategies to protect biodiversity.

The study supports recent findings that selectively logged forests maintain significant levels of biodiversity.

The assessment examined 138 scientific studies across 28 tropical countries, analysing 2220 pairwise comparisons of biodiversity values in primary forests and disturbed forests. It found that biodiversity levels were lower in disturbed forests, but that results varied considerably by geographic region, taxonomic group, ecological metric and disturbance type.

While the researchers propose that old-growth forests should be a priority in biodiversity conservation, they also conclude that selectively logged forests have conservation value and are worth protecting.

EWPs that tick ALL the boxes Engineered wood products manufactured

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Selectively logged forests have conservation value.

The research supports the findings of a study, authored by Princeton University scientists, that forests logged for only a few valuable tree species retain the majority of their biodiversity.

The findings were based on an analysis of the number of birds and dung beetles in logged and unlogged forests in Malaysian Borneo, which were then matched against the financial returns of logging from the same forests.

The research found that the level of biodiversity in forests fell by only 25%, despite the value of standing timber falling dramatically after one (60% drop) or two (80% drop) harvest cycles.

The researchers conclude that “selectively logged forests represent a cost-effective means for wildlife conservation”.

The findings are especially relevant for forested nations in the Asia Pacific – including Papua New Guinea, Indonesia and Malaysia – where environmental groups continue to push for a halt to commercial forestry operations in favour of large conservation areas.

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issue 202 | 05.12.11 | Page 9

Study supports findings that selectively logged forests maintain significant levels of biodiversity They argue, “As selective logging is rapidly expanding throughout the tropics, ecological restoration of such areas might represent an effective strategy to alleviate threats to biodiversity.”

The findings imply that sustainably managed, selectively-logged forests maintain significant levels of biodiversity and should be considered effective strategies for forest protection.

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COMPANY PROFILE

Hyne .. diamonds are forever

New management structure gives clear-cut path to future for a Queensland timber icon As part of this review process, the company has made the decision to withdraw from the supply of job-lot LVL and I Beam products as well as ceasing to supply a free design and layout service associated with this product range.

This move will see the closure of the Hyne I Beam manufacturing plant in Brisbane on December 22.

Hyne will continue to grow and develop its glulam business (Hynebeam 17c, 18c and 21c) in both the residential and commercial sectors. This means ongoing technical support and design services for these products as well as continuing to support the Hyne Design 7 software package.

The company will also continue to stock a range of LVL products that will complement the marketing of its structural products.

QUEENSLAND timber industry icon Hyne has been working through a process to restructure management of the company.

Chris Hyne said the Hyne board had decided that a collaborative approach to management experienced over recent months would continue to bring many positives to the Hyne business.

On this basis, the Hyne board has appointed Peter Hyne, Jon Kleinschmidt and Chris Robertson as joint CEOs of the company.

‘We have worked with each other for a long time, so it’s really an extension of what we have done every day now for many years’ – Peter Hyne The joint CEO’s will continue to provide a strong allegiance of collaborative leadership and decision making for the company and will seek engagement from across the company to achieve and realise the strategic plans and drive a strong future for Hyne.

The new management structure gives Hyne three chief executives drawn from strategic areas of the business, Peter Hyne – sales and marketing, Jon Kleinschmidt – finance and business development, and Chris Robertson – production and technical development.

Chris Hyne, a fourth generation member of the Hyne family that established a sawmill on the banks of the Mary River at Maryborough in Queensland almost 130 years ago, will take on a new role as executive director, working closely with the joint CEOs in a mentoring and support role.

“This restructure will ensure Hyne has a long, sustainable and profitable future,” Hyne

Page 10 | issue 202 | 05.12.11

Collaborative leadership at Hyne .. Chris Robertson, production and technical development, Jon Kleinschmidt, finance and business development, and Peter Hyne, sales and marketing,

chairman Martin Kriewaldt said.

At a meeting with the new management team at Hyne’s Virginia offices in Brisbane, all three CEOs agreed that the new structure would lift management capabilities across the business.

“We have worked with each other for a long time, so it’s really an extension of what we have done every day now for many years,” Peter Hyne said.

“We can get on and get things done better with a much flatter management structure,” Chris Robertson added.

Hyne has also revised its product range and market offer over the last few months based on the current and future

Chris Hyne .. new executive role at Hyne.

economic outlook, and will be refocusing the business on its core strengths and capabilities to ensure it is well positioned to endure these challenging market conditions.

‘These changes will enable the company to come together and continue to develop our people, our capabilities and make Hyne the supplier of choice with our customers’ – Chris Hyne These changes will allow Hyne to focus on its core structural softwood framing business, further developing the Hyne Frame / Hyne T2 Blue / Hyne T2 Red and Hyne T3 Green product brands.

While the current environment is difficult, Hyne is confident it has a strong future.

“These changes will enable the company to come together and continue to develop our people, our capabilities and make Hyne the supplier of choice with our customers,” Chris Hyne said.

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COMPANY PROFILE

Lambert’s philosophy remains true: an ability to change key to the future THE great man literally pulled me into his office.

Eager to get on with the interview, Lambert Hyne had granted me this day in December 1982 to talk about the 100th anniversary of Hyne and Son Pty Ltd at the Kent Street offices in Maryborough.

Sadly, I was one of the last to interview this grandson of Hyne founder Richard Matthews Hyne. James Richard Lambert Hyne died three years later at the age of 83. His eldest son Warren had taken over as managing director on his father’s retirement in 1979.

Lambert Hyne joined his father in the company in 1921 and served until his death in 1985.

During that long period, he applied himself to the business absolutely. He gained his early experience during the difficult years of the Great Depression, soon followed by the equally difficult period of World War 2.

These early hard years toughened him commercially and gave him a lifelong aversion to debt. At the same time, it gave him a compassion for the hardworking battler and a deep sense of responsibility for the

head of the company. And with the new management changes at Hyne, his belief that an ability to change is the key to future success echoes the sentiments of his grandfather in that interview almost 30 years ago: “Tempus omnia vincit .. time conquers everything.

“Nothing stands still. Change is continuous, thus if the corporate body cannot change with the times it, like the human body, falls by the wayside, dies and in a very short time is but a memory.

Deep sense of responsibility for the wellbeing of those who served him with loyalty

At another Hyne opening ceremony in 1978, Lambert Hyne introduces one of his two favourite Queensland premiers Joh BjelkePetersen. The other was William Forgan Smith (1932-42).

wellbeing of those who served him with loyalty.

Lambert Hyne often related to his friends: “I am half Hart, half Hyne, but I’m not halfhearted.”

His mother was Jessie Hart, daughter of one of the founders of Maryborough timber company Wilson Hart

and Co established in 1865.

Talking with Warren Hyne’s son Peter in Brisbane, it gave me the privilege of reporting on the contribution to industry of three generations of this dynamic timber family.

Peter becomes the fifth generation Hyne to sit at the

“As I look back over the last 100 years of this company’s history I am impressed with the ability to welcome change and implement its effects.

“So as we enter our next 100 years, I believe if the management shows the same ability to be ahead of the changes that inevitably will occur, then we face the next century with confidence and enthusiasm.” – JIM BOWDEN

Industry positives in revision of AS1604 A HOST of industry positives is expected to flow from a proposed revision of the AS/ NZS 1604 series specification for preservative treatment of timber – the result of a TM006 joint technical committee meeting in Melbourne last week involving key stakeholders.

The changes to the standard are so substantial that Standards Australia has advised industry there will be a total revision of AS 1604 (five parts) rather than an amendment.

This will evolve as the AS1604 2012 series which is expected

to be ready by September next year.

Changes to specifications refer particularly to glueline and veneer treatment of engineered wood and include a number of formulation changes and the introduction of two new formulations.

The changes – particularly parts 3 and 4 – have significant relevance to engineered wood, which is a growing and more complex sector structurally and develops products more quickly than the solid wood industry, therefore needing greater

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timber treatment requirements.

The redrafted five parts will go to public review early next year after which responses will be used to prepare a committee draft to be examined by all stakeholders before publishing

by Standards Australia.

Key industry bodies represented at the Melbourne meeting included the APVMA, Queensland Department of Employment, Economic Development and Innovation (DEEDI), Forest and Wood Products Australia, the Engineered Wood Products

Association of Australasia, the Glulam Laminated Timber Association of Australia, Monash University, Forests NSW, Timber Queensland, the Australian Forest Products Association and the Australian Timber Importers Federation.

New Zealand was represented by the NZ Timber Federation, the Wood Processors Association, the Pine Manufacturers Association and NZ Responsible Care (formerly the Chemical Association of New Zealand).

issue 202 | 05.12.11 | Page 11

TIMBER DESIGN

Architect’s timber community hall rises from the ashes of Black Saturday fires

Building reflects heart-blood of Victorian township A COMMUNITY hall burnt to the ground in the Black Saturday Victorian bushfires has been replaced by an architect-designed building set to become a community icon after it was officially opened by the Governor of Victoria Alex Chernov last month.

Less than two years after fires on February 7, 2009, the hall at Narbethong, 87 km northeast of Melbourne, was opened just as the 2011 bushfire season warnings were announced.

The hall is the result of a pro-bono collaboration with Emergency Architects Australia and other consultants, made possible by major funding from the Victorian Bushfire Appeal and a $520,000 sponsorship

Narbethong Community Hall .. a ‘highly transparent’ building that allows residents and passing traffic to see the liveliness of the community while allowing the occupants of the hall to have a strong connection with the surrounding landscape.

from McDonald’s.

“One of the greatest challenges was designing a timber hall in

an area that has a very high rating of bushfire protection,” said Ms Ninotschka Titchkosky,

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prinicipal of BVN, architects of the new hall.

“We wanted the hall to reflect the timber industry that is the heart-blood of the Narbethong community, and to give the people of the town a good and positive legacy out of the disaster of two years ago,” Ms Titchkosky said.

In order to meet the bush fire requirements, the outside of the building is made up of floor to ceiling double glazing that is wrapped in a bronze mesh fire resistant screen.

Internally the primary material is local timber. The timber floor, ceiling and curved screen express Narbethong’s history Cont Page 13

No matter what the species, timber selected for appearance applications will inevitably require a finishing coating to prepare it for its service life.

Recent surveys conducted by timber industry peak bodies have confirmed a strong preference amongst builders (80%) for the sourcing of pre-coated timber products. This option is a superior and more cost effective alternative to traditional on-site finishing methods and procedures.

TIMBECK’s pre-coating facility provides all the benefits that factory controlled pre-finishing has to offer and enables timber merchants to offer this practical service to their customers through its contract pre-coating service.

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Page 12 | issue 202 | 05.12.11

Timbeck Cedar Products – Australia’s Pre-Coating Specialist Brisbane - 07 3888 7788 Sydney - 02 9709 4466 www.timbeck.com.au info@timbeck.com.au

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TIMBER PRESERVATION

Helping to rebuid lives

Community hall rises from Black Saturday ashes.

From Page 12

and the 4.2 m high verticals of the timber screen are reminiscent of the trees found in the region and the nearby Black Spur Forest.

Ms Titchkosky said the timber screen also created a variety of internal spaces including nooks for small group meetings to the perimeter with the primary large gathering space located in the centre of the building with access to an outdoor terrace to the North.

The hall is a ‘highly transparent’ building that allows residents and passing traffic to see the liveliness of the community while allowing the occupants of the hall to have a strong connection with the surrounding landscape.

The Narbethong community sought the help and advice of leading professionals in rebuilding the hall as part of a plan to manage building in future bushfires.

As sign of confidence in the new building, a working bee planted 3000 trees, shrubs and grasses, many of which were donated, to complete the landscaping in time for the opening.

Emergency Architects Australia sends experienced architects and other built environment specialists to disaster areas to work alongside aid agencies, local communities and

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

Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region.

Timber&Forestry e-news hits your target market – every week, every Monday!

HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au

Award winner .. Paul Michael chairman of the Timber Development Association and chief executive of Weathertex Pty Ltd, presents the award for best Australian-designed international project to Carla Wachmiller, general manager, Emergency Architecture, Sydney.

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

governments and funding institutions to rebuild devastated areas in a sustainable way.

Together they develop appropriate and sustainable strategies for each phase of disaster relief.

Emergency Architects believes the construction of permanent rather than temporary structures, using local materials, delivers a faster long-term result.

A not-for-profit organisation, Emergency Architecture helps to rebuild lives and support local communities in Australasia and the Pacific region.

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.

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issue 202 | 05.12.11 | Page 13

INDUSTRY NEWS

Improvements in logistics and freight rates have benefited timber importers From Page 7

pine and eucalyptus plantations and opening new industrial plants.

Mr Halkett said Australasia and Asia continued to be strong drivers in a global economy still beset by weakness and uncertainty, notably in the European and North American economies.

Unlike other developed countries, new dwelling starts in Australia had not been seriously impacted by the global financial crises and at 156.000 housing starts a year currently stood at just below the medium-term average.

“Australia also has an acknowledged substantial housing construction backlog,” Mr Halkett told delegates.

These trends and future predictions suggest notable opportunities for Chilean and other timber product exporting countries to increase their share of Australasian and Asian markets “With new housing starts having an ‘underlying demand’ estimated at 175,000 dwellings a year, timber importers will

Queensland forester Terry Johnston inspects a 13-year old Eucalyptus grandis during a study tour of Chile.

Picture by Jim Bowden

have an increasingly significant role to play.

“The alterations and additions market in Australia has also remained relatively stable and forms a significant part of timber product demand.

“The reality that imported timber products will continue to be an increasingly critical ingredient of Australia’s housing construction industry has sharpened the focus on the importance of a strong timber importing sector to enable the country to deal with its housing shortage.”

Mr Halkett said that from 10% in 2008-9, the total volume of logs harvested in Australia in 2009-10 remained around the same at just over 25 million cub m. The gross value of logs harvested (at mill door prices) also remained constant at $A1.7 billion.

However, while the total harvest remained flat, there was considerable difference in trends between the forest sectors.

The volume of softwood logs showed some recovery in 200910, partly offsetting the 18%

fall in native forest-sourced logs. The volume of hardwood plantation-sourced logs had remained relatively constant since 2004-05. The majority of this harvest had been directed at woodchip export markets.

Based on ABARES data, consumption trends for timber and wood-based products for 2009-10 confirm that the value of timber imports increased by 6% to almost $A430 million and that volume increased by 13% to about 750,000 cub m in line with increased domestic demand for timber products .

Mr Halkett said although timber product exporters to Australia had been the beneficiaries from a strong Australian dollar, timber exporters from Europe, North and South America had enjoyed a favourable impact from reduced processing costs resulting in lower unit cost of production.

“This is because of processing efficiencies and economies-ofscale not seen in comparable Australian wood processing facilities,” Mr Halkett said.

“Also recent cost improvements in logistics and shipping freight rates have worked to benefit timber importers and assist in moderating wholesale prices.”

‘Sunshine Boys’ meet for some chow and a chat at Tatts THE Australian Timber Industry Stabilisation Conference (Sunshine AusTIS) held on Queensland’s Sunshine Coast 29 years ago links these fiends in industry pictured enjoying a preChristmas luncheon last week at the Tattersall’s Club, Brisbane’s oldest private membership club.

Members of the group were either conference speakers or delegates or were on the AusTIS committee in 1982.

The gathering also took the opportunity to celebrate the 200th edition of Timber &

Page 14 | issue 202 | 05.12.11

Forestry enews.

Seated front, from left, Brian Schaumberg (forestry), David Armstrong (former general manager, Queensland Timber Board), and Dick Pegg (forestry).

Standing, from left, David Gough (forestry), Dr Gary Bacon (forestry), Tim Evans (industry), Don Towerton (industry), Charles Achilles (former manager, Hyne Chinchilla), Charlie Henry (industry), Jim Bowden (Timber&Forestry enews), and Norris Lewis (industry/forestry).

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INDUSTRY NEWS

US a timber colony for Asia?

Export frenzy: bubble bursts for China’s log trade

THE recent frenzy of log and lumber exports to China, which sent ripples rolling through various parts of the international timber industry this year, has experienced a sudden slowdown.

Industry insiders are unsure how long the slowdown will last.

The US Forest Service says log inventory has simply been maxed out in China and it will take a month or two for the market there to dip deeply enough into the inventory to bring demand back up.

“Whether the slowdown lasts several weeks or several months, the lesson to take away is the volatile nature of the Chinese market,” the president of the American Forest Resource Council Tom

InSurAnce..

It’S All In the SelectIon

for raw logs has driven prices up, especially for lower grade varieties like Hemlock.

Hemlock has traditionally sold for $US100 to $US150 per thousand board feet less than Douglas fir, but the Chinese have bid it up to the Douglas fir level.

“They really don’t care about grades of wood, because so much is used in cement forming,” one market observer said.

The rise in exports has also left sawmills with an acute timber supply problem. US federal law prohibits the export of timber from public land, so exports are cutting into critical supply from private holdings, starving local mills in the process [read New Zealand].

Buoyant .. although the weak housing markets have continued to suppress prices for logs and stumpage for US forest landowners, there has been tremendous growth in opportunities from the export market – although there are signs that this is weakening..

Partin said.

“That’s something we’ve tried to put out there about these foreign markets. While it sounds

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Tom Partin .. ships sitting idle in Chinese harbours.

like they will be on board for a long time, it could change your whole program immediately.”

He said a number of purchase orders weren’t being honoured; ships were sitting idle in Chinese harbours, unable to unload their cargo.

One factor appears to be overbuilding. A large number of housing units recently put up along the Chinese coast remain empty.

The China boom has been very profitable for landowners and logging companies in the US, but has had an adverse effect on northwest sawmills.

That’s because China’s hunger

Private and industrial owned land represents 19% of the land base, but accounts for a disproportionate 75% of the timber production. Thus, when private industry exports logs, that represents lost money for Oregon mills.

“We are at risk of becoming a timber colony for Asia,” one industry analyst said.

“While undermining our mill infrastructure and surrounding communities, at the same time we are further increasing the pressure for harvest on public forest lands,” he said.

Tom Partin said legislation on forest management in the US was expected to be introduced soon.

issue 202 | 05.12.11 | Page 15

INDUSTRY NEWS

Good vibes among Tasmanian forests as Huon Valley mill cranks back to life

Forestry Tasmania negotiates 40,000 cub m log supply potential investors in value adding plants in Tasmania are progressing satisfactorily.”

Mr Gordon said he was pleased some customers are thinking outside the square and looking at new opportunities.

Shane Dohnt from Gondwana Forest Products has opened a retail outlet for high value turnery and knife making woods in Seattle, USA. Shane is marketing not only Tasmania’s very special timbers, but also woods from other Australian states.

The new venture, while small in size, will ensure Tasmanian timbers are on the ‘must-have’ list for professional wood artisans around the world.

THE Southwood sawmill in Tasmania’s Huon Valley will soon crank back into life under the new ownership.

Victorian company Dell Vista, headed by well-known sawmiller and businessman Ken Last, purchased the mill from Gunns Ltd. Forestry Tasmania has secured orders for two shipments prior to Christmas with mixed loads of whole log and softwood chips Forestry Tasmania has negotiated a wood supply agreement for 40,000 cub m of sawlog for the mill, consistent with the Tasmanian forest intergovernmental agreement.

“The investment by Dell Vista is a welcome sign of confidence in the timber industry, and we certainly welcome the company with open arms, as I am sure will those workers who have found jobs in the mill,” Forestry Tasmania managing director Bob Gordon said.

“It was a shame to see this modern piece of infrastructure lying idle, and personally I can’t wait to get back down to Southwood to see it return to being a hive of activity.”

Forestry Tasmania, along with other forestry companies in the state, is turning its attention to the Christmas break. It is normal for many in the harvesting, export and processing sectors to shut down for a short period over the festive season, but given the current uncertainties in the industry, the break this year is likely to be longer than usual for at least some companies.

“We have been advised by Artec that it intends to apply a temporary shutdown of its

Page 16 | issue 202 | 05.12.11

There is still a lot of value placed upon the beauty of Tasmanian sawn hardwood

Pre-Christmas shipments .. Bob Gordon (left) supervises loading of a cargo of logs in Hobart.

hardwood chipping operation from November 18 until midJanuary, although its Bell Bay plant will continue to process softwood until at least the end of this month,” Mr Gordon said.

This extended break is the result of a knock-on effect from Asian customers who are reducing stock levels in the lead up to the Chinese New Year, and have deferred until January two planned shipments from Bell Bay. With the Triabunna mill still closed and unlikely to re-open for at least four months, the extended Artec shutdown

presents challenges for Forestry Tasmania. While there will be no market for export woodchips for the six weeks, FT will continue to supply the state’s sawmillers and processors during the interim period.

“On a more positive note, Forestry Tasmania has secured orders for two shipments prior to Christmas with mixed loads of whole log and softwood chips, and we are also making progress on our Innovations Plan,” Mr Gordon said.

“A key plank of the plan is to rotary peel wood that would otherwise have been exported as chips. Negotiations with

Forest industry commentator Robert Eastment says the market for hardwood and native timbers is quite strong, but just where the resource will come from is still uncertain.

“There’s still a lot of value placed upon the beauty of Tasmanian sawn hardwood,” he said.

“A lot of the architects, designers and builders and draftsmen do appreciate it, especially in the urban areas where they have some fairly wealthy investors in homes; there’s still a demand.”

Mr Eastment says the success of the sawmills will hinge on wood supply and if the type of wood suits the machinery in the mills.

“It really does depend on the resource. Can they get the type of resource they want to go through it, and can they saw it and turn it into what customers want?”

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Classifieds REQUEST FOR TENDER Request for Tender 12/2011

SURPLUS SAWMILLING EQUIPMENT for sale

Identify the industry development options for native forest

Identify Industry Development Options for timber in Western Australia Native Forest Timber in isWestern Australia The Forest Products Commission seeking a suitably qualified and experienced consultant to identify

The Forest Products Commission is seeking a suitably qualified and opportunities in further developing the native timber experienced consultant to identify and review opportunities in further processing industry in Western Australia from 2014 to developing the Timber Processing Industry in Western Australia 2023. from 2014 to 2023.

Tender inquiries, contact: Gavin Butcher on (08) 9363

Tender Gavin Butcher. Tel: (08) 9363 4618 or email gavin.

4618 inquiries: or gavin.butcher@fpc.wa.gov.au. butcher@fpc.wa.gov.au.

Documents available from: www.tenders.wa.gov.au

Documents available from: www.tenders.wa.gov.au

Closing Friday, 9 December 2011 at at 3.00 pm Closing Date: Date: Thursday, 22 December 2011 3.00 pmWST. WST.

Paul Optimiser saw equipment – new. Rexroth servo motors, drive, computer hardware etc.

Scanmeg Log Scanner – new. 1 pair scanner heads. Model D36 - EX R.

INTERNAL SALES AN OPPORTUNITY We are seeking a knowledgeable, high quality candidate for an internal sales position.

The long-term contract is for a minimum of five years and offers an attractive salary package.

The successful applicant will work with builders, architects and home owners on a wide range of projects – residential, commercial, etc – helping with timber specifications and the correct choice of timbers and will be based at Narangba, 34 km north of Brisbane.

Send resumes to: cath@kennedystimbers.com.au HEAD OFFICE: 228 Potassium Street, Narangba, Q 4504.

Tel: 1300 788 884 International: +61 7 3293 0528.

Fax: +61 7 3293 2402. www. kennedystimbers.com.au

5ft McDonough Resaw (pictured). Allen Bradley servo setworks, Infeed deck and rollcase, 3-way outfeed and transfer deck almost full roundabout. Motor control centre included.

$A55,000 (+ gst if any) Other Used Equipment to sell: 1 x Jamor Setworks suit bench or resaw.

1 x heavy duty Tilthoist.

1 x set of lug-loading chains with duckers and speed-up chains.

1 x Jaymor metal detector.

Various roll cases, tansfers and conveyors.

Various shavings and sawdust extraction systems. Blowers, fans and rotary valves.

Switchboards, motor control centres and power factor units available.

Lots of surplus electric motors, gearboxes and variable speed drives.

Hydraulic power packs and valves.

Lots of spare PLC and control parts.

Contact KARL DIXON E-mail: industryelectrics@xtra.co.nz Tel: +64 07 378 8302 Mob: +64 0274 731442

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issue 202 | 05.12.11 | Page 17

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Page 18 | issue 202 | 05.12.11

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