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issue 203 | 12.12.11 | Page 1
Chile hot for wood markets
This Issue • Keeping plywood up to standard • Tough markets, but NZ sawmills improve efficiency
Sustainable Forest Power a new force to develop export sales of radiata pine
A ROUND of conferences, mill visits and a study of forest regions in Chile last month convinced importers from Asia, America, Europe and Australia that this rich string beanshaped country alongside the Andes mountains has become a global leader in the softwood business. On-the-ground evidence presented to timber industry experts at an international forest exports event in Concepción demonstrated clearly that in wood silviculture and innovative, value-adding wood
processing Chile has moved well ahead of New Zealand and Australia. Intensive radiata pine plantation management by private sector owners has picked up the mantra of aggressive early pruning and thinning to maximise clear wood production. At the same time, sophisticated wood processing to optimise clear wood yields and to convert this into a wide range of value-added products for export has accelerated. Research and development combined with industry
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• Plan aims for ‘self sufficiency’ in wood supply • Keeping an eye on ‘green steel’ forum • Forestry fund pays $156m for plantations in Tasmania
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issue 203 | 12.12.11 | Page 1
industry news
Illegal Logging Prohibition Bill
Evidence sought in pre-Christmas Canberra hearing
INDUSTRY stakeholders have been called to a public hearing this week in Canberra to give more evidence in support of the Illegal Logging Prohibition Bill. The sudden pre-Christmas invitation follows the referral of the Bill by the Senate to the Rural Affairs and Transport Legislation Committee on November 25 for inquiry and report by February next year. The Bill, which carries significant penalties for importing illegally logged timber or processing illegally harvested domestic raw logs, including imprisonment or a significant financial penalty, or both, was tabled in Parliament by Eden-Monaro MP Dr Mike Kelly on November 23. In the context of international legislative trends, including the US Lacey Act and measures implemented in the European Union, the Bill will support Australia’s efforts to advocate better governance for forest management. Application of the US Lacey Act to timber is ‘protectionist’ – Wall Street Journal On the assumption that the Bill will pass the remaining parliamentary processes early next year, the industry is expecting Canberra to fund some activity to implement and advocate what is essentially the government’s own policy and legislation to supplier countries and the domestic timber supply chain. Among groups giving evidence at the hearings in Canberra on December 14 will be the Timber Importers Federation of Australia, Bunnings, Harvey
Page 2 | issue 203 | 12.12.11
Mike Kelly .. rigorous inspection and monitoring regime.
Norman, NGOs, representatives of the secondary timber processing industry and church groups. Dr Kelly said the legislation would be associated with a very rigorous inspection and monitoring regime, so that people could feel comfortable with the products coming into the country. “To match that, of course, under our trade obligations there’ll also be a domestic illegal logging monitoring regime as well, but this will be easy to comply with.” Meanwhile, an article in the Wall Street Journal says the application of the US Lacey Act to timber is “protectionist”. Reporter and political pundit Kimberley Strassel focused on the prosecution of the Gibson Guitar company under the Act for importing illegal Indian ebony. She said that the company was set up because it was famous and an example prosecution was needed under the law in order to fulfil the objective of curbing timber imports.
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
Chile radiata sector provides clear lessons for Australia, New Zealand From Page 1
investment and commitment has resulted in strong export timber products in veneerbased panels, edge glued and finger-jointed lines, solid wood furniture components, ‘raw’ and pre-coated mouldings, and a wide variety of panel and plywood products. “This effort and confidence coupled with an international marketing activity has propelled Chile into a leading position internationally,” said John Halkett of the Australian Timber Importers Federation who was a keynote speaker at the conference and industry tours from November 28 to 30. Chilean forestry industry participants demonstrated a progressive, infectious and enthusiastic attitude to international timber industry visitors Mr Halkett said Chilean forestry industry participants demonstrated a progressive, infectious and enthusiastic attitude to international timber industry visitors at events hosted by Chilean ginger organisation ProChile. “The Chilean radiata pinebased industry provided some clear compelling lessons for New Zealand and Australia industry participants.” An international seminar, ‘New Trends and Opportunities for Forest Timber Exports’, aimed to boost trade ties between the Chilean timber forest industry and world markets. Closed working sessions of the forest business session – Imagine, Grow, Export – were attended by 33 importers from Asia, America and Europe and importers from 16 different markets toured the regions of Maule, Bio Bio, La Araucania,
International timber industry visitors run a ruler over Chilean industry .. Enrique Schutze, Peru, Mark Currier, US, John Halkett, Australia, Hans Kim, Korea, and Kemal Saglam, Turkey.
Los Rios and Magellan, taking part in more than 450 technical visits and meetings with the local forestry sector. Chile’s Minister of Agriculture José Antonio Galilea referred to the new opportunities presented for the sector, following the announcement of the formation of a new national advisory council – Chile: Sustainable Forest Power. “Institutional strengthening of the forest industry within the ministry is a legislative process that will transform the National Forestry Corporation (CONAF) and create the Chile Sustainable Power forest advisory committee which will consist of eminent persons from the public and private sectors.” The director of ProChile Félix de Vicente stressed the importance of this sector in national exports and the participation of international importers in the event. “In Chile, the forestry sector plays a key role in the economy with 3.5% of gross domestic product, the second most important economic activity in the country,” Mr de Vicente said. “Therefore, it is important to present our customers the versatile nature and
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sustainability of our industry which allows us to strengthen ties with the representatives of the most important target markets worldwide.” In 2010, exports by the productive sector of the region of Bio Bio reached $US4767 million, of which $US3609 million related to total forestry exports. Of five products mostly exported by the region, four of them belong to the forest sector – first, the cellulose, which reached $US1875.9 million
Cont Page 6
WHAT DOES TABMA DO FOR MEMBERS? • TABMA, through information, advice and services, provides its members with practical solutions to improve business management, growth and profitability • TABMA members include merchants, retailers, joiners, manufacturers, frame & truss fabricators, importers, suppliers and carpenters • TABMA places trainees or apprentices that are recruited, inducted, trained and monitored by us • TABMA offers debtors control and collection through its wholly owned subsidiary, Building Trade Credit • TABMA offers trade credit insurance through, IMC Newbury, at extremely cost effective rates. • TABMA recruitment saves you time by advertising, vetting and interviewing for new staff at competitive rates • TABMA offers industrial relations support • TABMA provides industry specific short training courses • TABMA provides OH&S auditing by specialist staff • TABMA offers Chain of Custody consulting and auditing at minimal cost • TABMA offers technical advice • TABMA offers legal advice • TABMA provides members with significant savings on fuel through Caltex and 7-ELEVEN outlets • TABMA offers general insurance advice • TABMA offers significant travel benefits • TABMA holds a gala industry annual dinner TABMA has representation in NSW, Queensland, South Australia, Western Australia and Tasmania. If we can assist you, please contact us on 02 9277 3100.
issue 203 | 12.12.11 | Page 3
INDUSTRY NEWS
‘The complexity of complying with an expanded Lacey Act would discourage companies from importing legal wood’ From Page 2
“And sure enough its travails have scared importers away from an array of foreign wood products,” Ms Strassel said. She says this ties in with the objective in the first place of extending the 110-year-old Lacey Act in 2008 from animal products to include plant and plant products, which was in part to minimise competition for domestic suppliers. The organisations behind the move, she said, were a “murky British green outfit”, the Environment Investigation Agency, trade unions and “industry groups such as the American Forest and Paper Association” – the alliance
Hefty penalties for importing illegally logged timber.
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purported to be against illegal wood. “But what this crew understood was that the complexity of complying with an expanded Lacey Act would discourage companies from importing even legal wood,” wrote Ms Strassel. Underlining the pressure to secure an example prosecution under Lacey, she added, Gibson had not even imported “illegal” timber, such as Brazilian mahogany. It is, she claims, being caught on a technicality for importing timber that was not ‘sufficiently finished’. She concludes by urging the US Congress to repeal the 2008 extension of the Act. And in Indonesia, president Susilo Bambang Yudhoyono has urged the world not to encourage illegal logging in Indonesia by purchasing illicit wood products. Speaking during a tree-planting ceremony in Bogor, outside of Jakarta, Mr Yudhoyono said he was pleased to see the world supporting Indonesia’s efforts to reduce deforestation but said
that foreign countries should commit to buying only legal timber from Indonesia. “There are also elements in the world, the syndicates, that are engaged in shady businesses to carry out illegal logging,” he said in a quote to the Jakarta Globe. Mr Yudhoyono’s comments contrast with a push by industrial forestry advocates to downplay the costs of illegal logging. World Growth International, a US-based advocate for the logging and palm oil industries, maintains that illegal logging is not a major problem, while another US group, the Consumer Alliance for Global Prosperity, is working to undermine certification systems for timber products and the Lacey Act. This is not the first time Mr Yudhoyono has called for greater restraint in timber-consuming countries. In June this year he asked overseas markets to be vigilant against illicit timber. “Whenever we sell timber, we take the heat for deforestation,” he said. “Certainly there are violations everywhere, which is what we’re cracking down on, but the truth is that there are also fences outside the country. “Other countries should stop fencing illegally felled timber.” Indonesia is in the midst of a massive tree-planting campaign. The government is aiming to plant a billion trees a year in an effort to slow deforestation and restore the country’s muchdegraded forest resources. Mr Yudhoyono asked foreign countries to bear the same burden.
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events
WHAT’S ON?
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 Engineered Wood Products Association of Australasia. Conference, dinner, award presentations. (Date to be advised) 13-14: Future Forestry Finance: Investment, Growth and Strategic Outlook. Sydney. www. forestryfinanceevents.com 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
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
22-24: WoodEX for Africa. Johannesburg South Africa: An exhibition for wood and woodworking professionals. As a ‘firs’ for Africa, WoodEX will showcase what the continent has to offer in terms of the export and manufacturing of
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
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.
29-31: AUSTimber, Mount Gambier, SA. www.austimber2012.com.au
july
Student opportunities in FWPA careers programs FOREST and Wood Products Australia is offering opportunities to students to support their studies in the forest and wood products sector in 2012. These programs have been developed as part of FWPA’s commitment to building skills capacity to promote careers in the forest and wood products industry. There are a number of scholarships and awards now open accepting applications including: • Four FWPA post graduate scholarships worth up to $35,000 a year are open to post
graduate students undertaking research into a number of priority areas of interest to Australian forest and wood products based industries. Applications close December 31. • Two FWPA indigenous scholarships worth $5000 each available to eligible indigenous Australian students completing a Certificate IV, Diploma or Degree in subjects that relate to the forest and wood products sector. Applications close January 31, 2012. • The prestigious Denis Cullity Fellowship designed to support the on-going professional
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development of leading Australian forest and wood product scientists. Applications close January 31, 2012. • The Russell Grimwade Prize worth $40,000 designed to encourages the advancement of forest science in Australia. Applications close January 31. Those wishing to apply, or who have employees or students looking to further their career in the forestry industry, can visit www.fwpa.com. au / scholarships-and-prizes for details and application guidelines.
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 203 | 12.12.11 | Page 5
INDUSTRY NEWS
Wide benefits in thinning red gums THE NSW natural resources commissioner says a plan to thin red gum saplings in new national parks could have wider benefits. After confirmation in budget estimates last week, the crossborder community will be asked for its ideas on the trial. Commissioner John Williams says it was a strong recommendation of the Natural Resources Commission before the state gazetted 100,000 ha of red gum forests as national parks last year. Mr Williams says the trial is needed to increase biodiversity in the red gum parks but it may also reduce the fire risk. “By using the thinning process and other involvement we’re trying to maximise the habitat
diversity,” he said. “It needs to have its focus on providing the biological, ecological outcome and of course in some instances it may well assist with fire management.” There has been a push from some southern Riverina residents worried the thick tree growth could change flood patterns and increase the fire risk. “Under the period of flooding that we’ve had since regulation, we’ve lost in some of those red gum forests that have been made into national parks, some of the heterogeneity and opportunity for habitat that we need,” he said.
Forest products a $6bn industry by end of year
Adding value .. Chilean industry emphasis on veneer-based panels, edge glued and finger-jointed lines, solid wood furniture components and ‘raw’ and precoated mouldings. From page 3
(39.3% of total exports from the region) and second, lumber, which topped $US532.2, equivalent to 11.2% In third place is plywood with exports valued at $US 302.9 million, representing 6.4% of exports. In fifth place is wood fibreboard, which at $US246.4
Page 6 | issue 203 | 12.12.11
million accounts for 5.2 % of total exports from the region. Up to October this year, exports by the forest sector emerged as the second most important commercial sector of Chile, reaching almost $US5 billion. The industry’s worth is expected to climb to $US6 billion by the end of this year.
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INDUSTRY NEWS
Tough marketing conditions but NZ sawmills improving efficiency THE closure of the Eurocell sawmill in Upper Hutt region is symptomatic of the state of timber markets in New Zealand and overseas. “Any suggestion that NZ sawmills are non-competitive and have not invested in new plant are way off the mark.” says Howard Tonge, president of the New Zealand Timber Industry Federation. “New regulatory requirements, buyer needs and a drive to greater efficiency have been major reasons for continual upgrading and investment by sawmills in this country. “Timber grading equipment, more efficient sawing technology, labour saving grading and sorting equipment and focused management have been some of the improvements introduced by New Zealand sawmills in recent years.
more,” Howard Tonge said. “Export markets for timber have been brittle due to the impacts of the global financial crisis.” Historically, low building activity is the biggest cause of issues facing the sawmilling industry in New Zealand. Mr Tonge says the population and household formations continue to grow at a pace that is quicker than building activity. It is here that central and local government have an ability to ease the burden facing first home buyers and others keen
Howard Tonge .. mill a victim of market conditions.
to set up house. “Shifts in policy that will encourage the direction of savings into housing rather than funds management will achieve a great deal for many families and the industries and trades associated with construction to say nothing of the spill over effects to the wider population,” Mr Tonge said. “Even simple measures to reduce the compliance costs of land development will have Cont Page 10
‘Any suggestion that NZ sawmills are non-competitive and have not invested in new plant are way off the mark’ – Howard Tonge “These have all resulted in a vastly more efficient industry.” Mr Tonge said regrettably the Eurocell mill was a victim of market conditions that had seen massive volumes of logs shipped off shore and poor timber demand at home and in overseas markets impacted by the global financial crisis. The closure of Eurocell, a subsidiary of the Christchurchbased Ranex Group and producer of a wide range of radiate products, affected 40 people. “The explosion in log exports to China and the demands of the supply chain to that market have left local sawmillers struggling for logs to process at times over the past year and
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issue 203 | 12.12.11 | 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 203 | 12.12.11
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OPINION
‘Green steel’ forum an intiative worth some investigation WHAT’S the steel industry up to? Well, for starters, they have just launched a steel stewardship website with the theme: Towards a Greener Supply Chain with Australian Steel. An industry forum has been established to bring together all participants with a view to achieving sustainability improvements across the whole steel supply chain. An early initiative of the forum is the development of a certification scheme called Responsible Steel. This will extend from mining through manufacture, fabrication and use, to final disassembly and reuse or recycling. The industry says the scheme will provide specifiers and purchasers with clear and transparent sustainability credentials for steel suppliers in Australia. Providing specifiers and purchasers with clear and transparent sustainability credentials In parallel with the certification scheme, the forum is developing a high level input-output map of the complete steel supply chain, including life cycle Inventory data. The forum has the financial support of the Department of Innovation, Industry, Science and Research, the NSW Office of Environment and Heritage and Sustainability Victoria. Now wouldn’t it be great to see a similar Australian timber industry initiative? At this stage, the industry has addressed end-of-life reuse and recycling issues through the National Timber Product Stewardship Group (NTPSG). But a group or forum looking
the
Watchdog
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
at the whole supply chain life cycle of timber would be a good initiative. The NTPSG was formed by the industry to address end-oflife issues of timber products, representing all sectors of the timber supply chain. Some key objectives of the group are to double the recovery of post-consumer timber and wood products for reuse, recycling and energy by 500,000 tonnes to 1 million tonnes by 2017 and to optimise the positive environmental outcomes from the disposal of residual post-consumer timber and wood products – with due recognition of these industry achievements.
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
Optimising positive environmental outcomes Timber companies and associations should visit www. timberstewardship.org.au for more information about the group and access to a directory of more than 200 reuse and recycling companies throughout Australia.
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Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising. The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.
issue 203 | 12.12.11 | Page 9
INDUSTRY NEWS
Keeping plywood up to standard
FWPA funds revisions to comply with AS1720
GETTING together at Plywood House in Brisbane last week for deliberations on a number of plywood standards are, seated from left, Kevin Lyngcoln (chairman), Simon Dorries, general manager, Engineered Wood Products Association of Australasia, Andrew Powell, Timber Development Association (NSW), and Warwick Banks (observer), and standing, Ch-nam Si, Standards Australia, John Barber, New Zealand Wood Processors Association, Doug Gaunt, Scion New Zealand, Sharon Adlam, Building Products Innovation Council, and Graeme Beattie, BRANZ New Zealand. The revision of the standards, funded by Forest and Wood Products Australia, assures they are consistent with the latest version of AS1720.1 –
InSurAnce.. It’S All In the SelectIon
Timber Structures Code; “The updates will ensure plywood can continue to be used in all building applications governed by the Building Code of Australia,” Simon Dorries said. “The funding by FWPA is greatly appreciated by industry.” Mr Dorries said extensive
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Page 10 | issue 203 | 12.12.11
revisions of LVL standards would take place in 2012. Stakeholders at a meeting of the TM006 committee in Melbourne recently addressed changes required to the AS/ NZS 1604 series. The 5-part standard covers solid sawn and round wood (part 1), as well as engineered products like various woodbased panels (part 2), plywood (part 3), LVL (part 4), and glulam (part 5). [Only part 1 (sawn and rounds) is an Australian product; the other four parts are joint Australia/ New Zealand standards]. The AS/NZS 1604 series was extensively revised and published in 2010, but since that time there have been significant changes to biocides, formulations (e.g. carrier system)
and product manufacturing (e.g. veneer thickness, application of biocide to veneer surfaces), in addition to the gluelines and/ or the veneers themselves. There were also a number of operational-type changes such as the route to introducing preservatives to the standard, clarification of branding requirements, and the designation of some new preservative numbers. “Taken together, these changes were sufficient in numbers and significance to warrant another revision of the five parts of the standard,” committee chairman Dr Harry Greaves said. Key industry bodies at the Melbourne meeting included the Australian Forest Products Association, APVMA, Australian Timber Importers Federation, DEEDI, Engineered Wood Products Association of Australasia, Forests NSW, Glued Laminated Timber Association of Australia, Monash University, NZ Pine Manufacturers Association, Responsible Care New Zealand, NZ Timber Industry Federation, Timber Preservers Association of Australia, Timber Queensland / FWPA, and the Wood Processors Association NZ.
Mill has struggled to be viable From Page 7
major positive affects.” As an example, Mr Tonge says, reducing the local government charges associated with the development of sub-divisions would be a huge boost. The Eurocell timber mill is one of dozens of mills to shut in recent years. Along with the plunge in the house-building market, with no immediate signs of a lift in demand, exports of lumber have dived, while raw log
exports continue to boom, increasing by more than $100 million in the past four months compared with a year ago. Ranex Group chairman Colin Hair said the mill was hit by a combination of weak demand for house-building timber, difficulty in getting logs at a competitive price and competition from exporters for raw logs. “The business has struggled to be economically viable,” Mr Hair said.
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INDUSTRY NEWS
National plantations plan aims for ‘self-sufficiency’ in timbers RFAs should be extended, says parliamentary inquiry THE federal government should create a national plan for plantations and renew existing regional forest agreements to ensure the timber industry’s future, a federal parliamentary inquiry has found. This approach should include whether Australia should aim for wood supply ‘’self-sufficiency’’, an issue of importance for the construction industry. These were some of the key recommendations of the inquiry into the forestry industry by the House of Representatives standing committee on agriculture, resources, fisheries and forestry, which have just been released. The report’s figures showed that in 2010, Australia had a trade deficit in wood products of $1.9 billion – $4.2 billion of imports and $2.3 billion of exports. Imports of construction-related products – sawn wood and panels – totalled $680 million whereas exports of the same products were $212 million. Despite calls from environmentalists to abolish the regional forest agreements, the committee said the RFAs should be reviewed, improved and extended. They provided some certainty for both conservation and wood supply.
Wood supply .. benefitting the building industry.
The committee said the ‘’peace deal’’ being negotiated in Tasmania between industry and environmentalists was a departure from the RFA process, but specific to Tasmania, and could not be extended to other
regions of Australia. A national plan for plantations should ensure that the right tree species were planted in appropriate locations and with proper infrastructure. This would include deciding
whether long-rotation plantations (more than 20 years) should be a policy aim and what was the best way to fund them, including an assessment of managed investment schemes. The biggest impediment to expanding these plantations was ‘’the considerable investment period (with increased risks) and the decades-long wait for a return on that investment’’. The committee made a total of 19 recommendations to the federal government. Australian Forest Products Association chief executive David Pollard said it was essential that a taskforce involving industry and government be established to ensure key recommendations were followed through. Among the inquiry’s recommendations were: • Promote wood products as replacements for more energyintensive materials. • Develop standards quantifying the carbon stored in different wood products made from harvested trees. • Develop a national plan to provide infrastructure and extension services for farm forestry.
Survey of members provides valuable feedback for FWPA A SURVEY is under way by the Australian Forest Products Association to determine the issues and concerns of members of the new organisation. This information will be factored into AFPA’s work program for 2012 to ensure that it is able to most effectively respond to
member concerns. Given the number and variety of issues that members are confronted with, AFPA chief executive David Pollard is keen to ensure that the association is fully cognisant of these issues and well positioned to take a strategic approach, to ensure
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timely and effective action. The survey by email started in early December and will be monitored by AFPA policy manager Grant Johnson. AFPA’s website has undergone a facelift and will now be better suited to take the association forward after the initial transition
period. The site provides a home for AFPA media releases, the association’s Twitter feed, submissions and other documents and outlines AFPA projects. Take a look at www. ausfpa.com.au
issue 203 | 12.12.11 | Page 11
TIMBER DESIGN
Forest fund to pay $156m for plantation estate in Tasmania FOREST investor the Australia New Zealand Forest Fund has agreed to pay $156 million for 46,000 ha of softwood plantations in northern Tasmania. The estate was a joint venture between Forestry Tasmania and global timber investment manager GMO Renewable Resources. The state will maintain ownership of the land. The forest fund manger Sydney-based New Forests Pty Ltd lodged an application with the Foreign Investment Review Board and the transaction is scheduled to be completed in January. The sale of rights of Forestry Tasmania’s joint venture softwood plantations will assist the business manage its way through restructuring of the state’s timber industry – Bryan Green Managing director David Brand said New Forests was pleased to acquire this attractive forestry estate, an important component of the sustainable plantation timber industry in Tasmania.
Bryan Green .. a very good outcome for Forestry Tasmania.
Bob Gordon .. logical extension of decision for joint venture.
The plantations are on generally flat to rolling terrain, with good rainfall and a history of good management. “The estate makes for a highquality, long-term investment opportunity,” Mr Brand said. New Forests currently manages more than 275,000 ha of timberland properties across Australia on behalf of its institutional investment clients. Tasmania’s deputy premier Bryan Green said the sale of rights of Forestry Tasmania’s joint venture softwood plantations would assist the business manage its way through restructuring of the
state’s timber industry. “New Forests will have the right to establish, maintain and harvest the 46,000 ha plantation estate until the forestry rights expire in 2069,” Mr Green said. While the trees will change hands, the land remains owned by Forestry Tasmania, and the new owners will continue to supply the sawmill at Bell Bay, Norske Skog’s pulp mill at Boyer, as well as several smaller timber processors. Mr Green said he welcomed Forestry Tasmania’s decision to use its share of the proceeds primarily to retire debt to help manage its business through the
restructuring of the industry. “This is a very good outcome for Forestry Tasmania and the wider forest industry,” he said. “I would emphasise that while the government has been kept fully informed, the decision to sell the 50% share in the joint venture was made entirely by the Forestry Tasmania board. “The sale is a sign of confidence in the future of the Tasmanian timber industry, by New Forests, which already holds significant forest assets around Australia.” Taswood Growers appointed investment bank Morgan Stanley to advise on a competitive sale process. The price achieved was within the fair value range appraised by independent expert James W. Sewall Company in June this year. Forestry Tasmania’s managing director Bob Gordon said the sale was a logical extension of FT’s decision in 1999 to enter into the joint venture arrangement with GMO Renewable Resources. “We have also been mindful of the recommendations of the Cont Page 13
Wood Protection Patent For Sale Australia Patent No. 2006312410 LOSP Boron for flame retardant, termite protection and outside cladding. Contact: tina.ivan@orcon.net.nz
Page 12 | issue 203 | 12.12.11
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TIMBER design
Sale sign of confidence in timber industry future From Page 12
Auditor General,” Mr Gordon said. “Through this strategic sale, FT intends to reduce debt, improve cash flow and address the lack of working capital.” The transaction is based on acquiring the plantations via a Forestry Right on Crown Land, which provides for ongoing
operations through 2069. The forest currently produces more than 550,000 cub m of softwood timber a year largely under contract to local processing facilities. With a diversified age class structure across the estate there will be a steady and growing cash yield over time.
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issue 203 | 12.12.11 | Page 13
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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