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issue 222 | 21.05.12 | Page 1
Foresters fed up with green myths
This issue • Syndicate buys Heyfield mill for $28m • Slim chance for Tasmanian forestry deal
Some can’t handle the felling of a tree, while others find it hard to kill a chook
Throwing light on forest myths.
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EWPs driving trade in US, Japan • Solid wood now certified as engineered product • The ‘chains’ of CoC: a merchant’s view • Locking up forests not an option • BC forest industry rolls with the punches
Cont Page 12
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Mr Clarke said. He said logging was not widespread and occurred on a needs basis. “It amazes all the IFA members how much fuss is being made of the about 0.5% of total forest mass which is harvested each year.” Mr Clarke said logged forests were regenerated and protestors needed to understand what little was logged was done to produce products humans needed. “I guess it is just that some people cannot handle a tree being felled, just like some people find it hard to witness or
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PROFESSIONAL foresters are fed up with the “myth-making” by conservation activists and protesters in the debate around forest management. “This debate is simply unnecessary,” says professional forester John Clarke who is chairman of the West Australian division of the Institute of Foresters. He says the IFA is not part of any government agenda and works purely for the health and wellbeing of forests. “There are 2.4 million ha of native forest in the state’s southwest. About 65% cannot be harvested, which leaves 35% available for timber production on a sustainable basis,”
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Visit: www.osmose.com.au or phone: 1800 088 809 Osmose® and MicroPro® are registered trademarks of Osmose, Inc. or its subsidiaries. A Better Earth Idea from Osmose sm and Treated Wood Just Got Greener sm are slogan marks of Osmose Inc and its subsidiaries. MicroPro timber products are produced by independently owned and operated wood preserving facilities. GREENGUARD® is a registered trademark of GREENGUARD Environmental Institute. * See MicroPro fastener and hardware information sheet. © 2011 Osmose, Inc.
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issuE 222 | 21.05.12 | PAgE 1
INDUSTRY NEWS
Victorian mountain ash loaded and ready for processing at the Heyfield sawmill.
Mebourne syndicate buys gunns’ Heyfield Victoria mill for $28m TASMANIAN timber company Gunns Ltd has sold its Heyfield sawmill in southeast Victoria to a Melbourne consortium for $28 million, completing the company’s planned exit from native forest wood supply operations. The new owner, Australian Sustainable Hardwoods, says no jobs will be lost as a result of the takeover. The sale is expected to be finalised by the end of May. Clinton Tilley from the Hermal investment group said the consortium had a long history in timber production. “We’re extraordinarily excited and can’t wait to get in there and work with the existing management team and to make the mill better for its prosperity, the mill and its staff and the longterm longevity of the town,” Mr Tilly said. “The existing management team are all staying, which we are all delighted about. “In terms of operational, there will be improvements made to the plant over the coming 48 months to assist in its productivity.”
Page 2 | issue 222 | 21.05.12
Mr Tilley added: Everyone is of the same opinion that this is an asset they want to own for many years to come, in terms of decades and potentially for generations of families. Not in terms of three or four years and then flicking it to someone for a higher price.” Gunns said in a statement last Tuesday that completion of the transaction would finalise the exit of the company from operations based on native forest wood supply. Gunns stopped processing native forest woods in Tasmania in June last year and has since sold its mainland-based operations in Western Australia and Victoria. It has also received offers for its export woodchip operations, including the Port of Portland facility in western Victoria. The company has asked the stock exchange to continue its 10-week share trading halt while it negotiates a $400 million capital raising for its Tamar Valley pulp mill project. Gunns’ plantation operations are continually expanding; deCont Page 3
ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system
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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 5006 Tel: (08) 8219 9028 Email: michelle@forestworks.com.au
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INDUSTRY NEWS
FWPA calls for director nominations Providing direction on strategy, performance and risk management
FOREST and Wood Products Australia Limited is seeking to appoint up to four directors to its board, including at least one independent director. FWPA is an unlisted public company, limited by guarantee, that provides national, integrated promotion, research and development services for the Australian forest and wood products industry. It is committed to helping the industry be collaborative, innovative, sustainable and competitive. FWPA is jointly funded by the Australian forest and wood products industry and the Australian government through the collection of industry levies on a range of primary products
and matched by the government on a one-to-one basis for R&D, tech transfer and education. The role of the FWPA board is to provide direction to the management of the company, including strategy development, financial performance and risk management. To ensure a balanced, skillbased board, an independent director selection committee, established under the compa-
ny’s constitution, will consider proposals for candidates and recommend to the FWPA board persons for nomination for appointment as a director. Information about FWPA and the process for appointing directors is set out in FWPA’s constitution, available from the company’s website at www. fwpa.com.au All candidates should: provide sufficient information to allow the director selection commit-
tee to fully consider the candidate’s nomination; include specific information about the candidate’s ability to meet one or more of the requisite skills and experience nominated in FWPA’s constitution (clause 13.13); and include a statement that the proposed candidate is aware of his or her nomination and is willing to accept appointment as a director of FWPA if elected. Applications will only be received by email and should be sent to the secretary, director selection committee, at rob. lockwood@fwpa.com.au Closing date for applications is Friday, June 29.
$110m shot-in-arm for Forestry Tasmania From Page 2
velopment of a 200,000 ha plantation estate over the past 25 five years will ensure a sustainable, forest products business into the future. In 2007, Gunns acquired the Auspine business which significantly increased Gunns’ plantation resource base and provided growth opportunities for the groups’ forestry and manufacturing activities. Recent acquisitions have ex-
tended forest products activities from Tasmania to include mainland Australia, predominantly in the Green Triangle (South Australia/Victoria) and Western Australia through the Auspine softwood plantations and Great Southern eucalyptus plantations. Meanwhile, the Tasmanian government will spend $110 million over four years bailing out Forestry Tasmania as it determines how the government business
enterprise should look in the future. Budget papers have revealed that a draft review of Forestry Tasmania’s operations shows it is facing a cash deficit due to low woodchip sales and the closure of mills. A final report is due in the coming weeks and it may suggest some of FT’s functions be taken over to ensure the business is sustainable. The Premier Lara Giddings
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says the $110 million injection is based on a no-change scenario and is in response to market pressures. “When I talk to people involved in the forest industry and they tell me about the pain that their own businesses are going through right now in forestry, I assure them that I understand that pain because I too have a business that is involved in forestry and it happens to be Forestry Tasmania,” she said.
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issuE 222 | 21.05.12 | PAgE 3
INDUSTRY SERVICE
Solid wood now certified as an engineered product by EWPAA Scheme ‘adds value’ to Australian sawmills
SOLID wood producers have widely accepted a certification system that will give consumers the confidence that structural timber is a true and reliable engineered product. The Plantation Timber Certification System is a voluntary certification program for MGP and F graded timber administered by the Engineered Wood Products Association of Australasia and accredited by JASANZ. It is an ISO-type 5 product certification system that incorporates in-mill process control and batch verification, six-monthly audits of the QC system in the mill, independent
Value for money .,. solid structural timber can now be part of a rigorous JAS-ANZ accredited product certification scheme.
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Andy McNaught .. giving consumers the confidence to consider solid wood as a true engineered product.
The major national event for engineered timber and building pre-fabrication
HURRY & save $100 Early bird ends MONDAY www.frameaustralia.com Page 4 | issue 222 | 21.05.12
third-party testing of the structural properties of product and market-place surveillance testing. “This is the same level of scrutiny given other engineered wood products such as LVL, Ibeams and plywood,” said Any McNaught, EWPAA technical manager, who is directing the program. “Uptake of the certification scheme has been excellent with seven of the 11 major mill
sites in Australia now using it.” Since the Australian Forest Products Association’s quality certification program was moved across to EWPAA – ending a long association with NCS International, one of Australia’s largest third-party certification bodies – AFPA believes the scheme has added value to its member mills. Membership of the Plantation Timber Certification Scheme entitles mills to have their AFS chain of custody certification and Australian wood packaging certification completed at no extra cost. Audits for the three certification schemes are integrated to minimise disruption to mill staff and production. Also, members receive technical assistance on grading and other issues as part of the certification cost ‘What we’ve done is to pitch it at exactly the same level as our LVL and plywood programs so users can be totally confident that the material they are buying is an engineered product – and the EWPAA brand confirms this’ – Andy McNaught
“This means EWPAA now provides technical and general input on behalf of the industry to standards development,” Andy McNaught said. “The bottom line is that producers of solid structural timber can now be part of a rigorous JAS-ANZ accredited product certification scheme that gives consumers the confidence to consider MGP and F graded timber as a true engineered product.” Cont Page 11
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events
WHAT’S ON? MAY 22: Knowledge Tree Series – Introduction to Green Star and FSC project certification. Hurleys Arkaba Hotel, 150 Glen Osmond Road, Fullerton, SA. Speakers: Natalie Reynolds, CEO, FSC Australia; Nick Capobianco, senior lead auditor, Scientific Certification Systems; Joshua Bruce, sustainability manager, ISIS. RSVP is essential for catering purposes at ww.trybooking.com/BIRY 31: National wood products forum and workshop on the future of certification in Australia Dockside, Darling Harbour. The forum will explore strategies to increase the awareness and uptake of certification and identify impediments to its adoption. Presented by Planet Ark’s Make It Wood campaign. Bookings: certificationforum.eventbrite. com.au Visit MakeItWood. org/CertificationForum JUNE 18-19: Frame Australia 2012 conference and exhibition – Park Hyatt, Melbourne. Major national event for engineered timber and building pre-fabrication. The expanded program will include a focus on building and construction with increased dialogue and information exchange on residential and commercial building trends, and awareness of new BIM digital
model technology. Delegate registration available online. Visit www.frameaustralia.com (save $100 with early bird registration before May 21). JULY 20: National Carpenters Day. Tel: (03) 9597 0948. Fax: (03) 9597 0958. Email: info@carpentersday.com.au AUGUST 22-23: Carbon Forestry 2012. Auckland NZ. Forestry is New Zealand’s largest potential carbon sink and, as the ETS continues to grow in importance to NZ businesses, so does its investment future. A raft of new legislation, a dramatic drop-off in carbon trading and pricing during 2011, the banning of some international emissions units and uncertainty around the future alignment of New Zealand and Australia’s trading schemes has changed the landscape significantly. It’s led to uncertainty in the marketplace about the immediate future and opportunities that exist in carbon forestry. Visit www.carbonforestryevents.com OCTOBER 10-11 (Rotorua) and 16-17 (Melbourne). Improving international cost competitiveness through smart science, research and technology. New Zealand and Australian forest products companies
face increasing competition from low cost producers, and from lower cost, better performing non-wood products. Low costs and high fibre recovery, achieved through process innovation, are prerequisites to competing in today’s global forest product markets. This Australasian technology event will provide local forest products, wood processing and manufacturing companies with a unique opportunity. Visit www.woodinnovationsevents.com NOVEMBER 3: Queensland Timber Industry Awards Night – Victoria Park Function Centre, Brisbane. 28-29: ForestTech 2012 – Improving Wood Transport and Logistics. Melbourne and Rotorua December 4-5. Focus on improving transport and logistics in the forestry sector. It will build on the excellent program designed by the Forest Industry Engineering Association along with forestry companies and logistics specialists. The program will target key decision makers from forestry and wood products companies. It will provide long overdue and practical updates on innovations, strategies and technologies that are being used by forest products companies to improve planning, logistics and operations within the wood supply chain. Visit www.foresttechevents.com
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Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association. The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI). AFPA was established to cover all aspects of Australia’s forest industry: - Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting. For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.
issue 222 | 21.05.12 | Page 5
INDUSTRY NEWS
Slim chance for forestry deal
Giddings, Gillard last believers standing THE Tasmanian Intergovernmental Agreement on the forestry peace process will probably fail, independent verification group chairman Jonathan West says. Professor West told a Legislative Council inquiry he believed an agreement would probably not be reached. “I think we will probably lose our [forestry] industry and in response we will probably go down a path of cutting down the remaining forest,” he said. “I think we are trying to fight global public opinion and will probably lose that fight. My view is we have a small chance of resolving the matter and we should take it, and the alternative is probably disaster for both sides.” Coalition forestry spokesman Richard Colbeck says Tasmanian Premier Lara Giddings and Prime Minister Julia Gillard appear the last two people in
Australia who still believe the Tasmanian forestry intergovernmental agreement can succeed. “I don’t agree with Professor Jonathan West’s assessment that Tasmanian forests are being harvested at unsustainable rates, but I do agree with his view that an agreement will not be reached and the issues will not be resolved,” Senator Colbeck said. “I also agree with his report’s finding that the supply agreements Ms Giddings promised to honour cannot be met if any further forest is locked up. “The reason the IGA is doomed to fail is that the environment groups are not interested in peace. If they were genuine, we would not be seeing ongoing disruptive protest actions in Tasmania and corporate sabotage in our international markets. “The only thing environment
Jonathan West .. little faith in forestry deal succeeding.
groups are serious about is the total destruction of Tasmania’s forest industry – at whatever cost to our forest communities and our state’s economy. Professor West’s advice comes off the back of warnings delivered by retiring Labor Senator Nick Sherry and AWU secretary Paul Howes in recent days. “How much longer will the state and federal governments stubbornly push on with this sham process?”
Senator Colbeck asked. “The federal Coalition has consistently maintained that the intergovernmental greement and the political mechanism that have produced it are a sham. “We are no closer to peace in the forests than when this process commenced in 2010, and there is no logical basis for any more of Tasmania’s forest resources to be locked up.” Professor West is reported as saying he expects the response to the industry closing will likely be a renewed commitment from government to try to rebuild the industry. He said repeated efforts had been made to try to resolve the forest impasse with 10 inquiries, and they failed the same way. This latest process was different because it was initiated by the forestry industry and with the main environment groups taking part.
Planet Ark’s ‘Make It Wood‘ campaign on tour in UK PLANET Ark’s ‘Make It Wood‘ campaign manager Chris Philpot has embarked on a field trip of some of the UK’s most innovative and interesting timber projects.
Page 6 | issue 222 | 21.05.12
The tour, organised by WoodSolutions, provides an opportunity to discover the latest in timber design, engineering and construction. The tour group will hear from the architects
and builders themselves who have used innovative wood construction techniques to build. Mr Philpot will provide case studies, photos and interviews
of key architects and homebuilders about why they have chosen to use wood in their construction. Visit: blog.makeitwood.org/
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TIMBER PRESERVATION
Online testing portal gives treaters assurance standards are being met Service monitors and refines plant performance
AN online timber testing portal that provides timber preservation plant operators – and their customers – with assurance that relevant industry standards are being met has been launched in Australia. The testing portal offered by Independent Verification Services Australia Ltd will help timber treatment plants to meet new consumer expectations and allow them to submit samples for testing. “Since the recent introduction of a raft of changes to consumer protection legislation relating to issues such as guarantees and warranties, retailers and end-consumers purchasing timber products are demanding assurance that treated timber meets the relevant Australian Standards, such as AS1604,” explains Tim Evans, IVS Australian business development manager, based in Queensland.
Tim Evans .. complete assurance that timber samples are tested correctly.
Peter Webb .. complementing preservation quality assurance program.
industry standards. “The financial and reputational consequences of non-compliance are now higher than ever before,” he said. The new online portal allows companies to log in to the IVS secure site, input their samples for testing, track samples through the process, read results online, and track treatment trends based on sample history. Cont Page 9
‘The financial and reputational consequences of noncompliance are now higher than ever before’ – Tim Evans “Owners and operators in the processing, importing, and distribution chain also have heightened awareness of their responsibility to produce products that are fit for purpose. “The Durability of Buildings document, prepared by the Australian Building Codes Board, is another benchmark manufacturers are looking to meet. This document suggests minimum design life for buildings and components.” Mr Evans said these consumer protection changes put the liability back onto treatment plants to ensure treatment methods were robust and met
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issuE 222 | 21.05.12 | PAgE 7
INDUSTRYEDGE REPORT
The paper trail: buyers get best guidance on products and risks Framework for businesses to make their own decisions EVERY week, leading Australian paper industry consultant IndustryEdge is asked to advise which paper products are the most sustainable and free of particular risks. “It’s an impossible question because it assumes there is only one answer,” says Robert Eastment, managing director of IndustryEdge. “It really depends on the individual company, its situation and what it considers is most important.” To assist paper buyers to ensure the paper they buy delivers what it promises, IndustryEdge is currently developing an independent Australian Sustainable Paper Procurement Guide. “All too often, genuine efforts to purchase paper that is sustainable comes unstuck because the advice provided is not independent and is intended to drive the buyer down one path or another,” Mr Eastment said. ‘Companies have to look beyond certification and be certain themselves that they are meeting their obligations. You can’t outsource your legal responsibilities’ – Robert Eastment
“This guide will provide the framework for businesses to make their own determinations about what is sustainable and what is not.” Australia consumes around 390 million tonnes of office and wiring papers every year and just less than half is imported. The total value of that production is estimated by IndustryEdge to be in the vicinity of $470 million every year, with almost half be-
Page 8 | issue 222 | 21.05.12
Paper buyers .. does the paper they buy deliver what it promises?
ing imported. When newsprint and catalogue grades of paper are added, the total consumption of paper for communications is worth significantly more than $1 billion per annum. In many respects it seems that we take our paper products for granted because there is paper in pretty much every aspect of our lives. But with a total national use of paper that is so substantial, it is little wonder that companies want to be assured that they are getting their paper buying right. There is an important risk management aspect to professional guidance on detailed topics like working out what is and what is not sustainable in paper products. With all of the pressures that companies face from their shareholders and clients, not to mention the ever present concerns about environmental groups, it’s important to get major purchasing decisions right. Recently IndustryEdge published a critical analysis into
Robert Eastment .. big risks for companies that have their own brands to support and protect.
imports of copy paper into Australia that demonstrated sustainability risks with some imports. Importantly, the issues went well beyond environmental matters – although as IndustryEdge points out, there were also environmental issues present. Issues and business risks identified in the IndustryEdge Special Report included prices that have at time been so low they
may be lower than the cost of supplying them in the home country and a lack of trade transparency and trans-shipments of paper through nonmanufacturing countries. The report can still be downloaded for free from the IndustryEdge website. “There are big risks for companies that have their own brands to support and protect. No one wants to be accused of aiding dumping, supporting trade where the country of origin is masked from scrutiny or where the treatment of local communities and employees is below international minimum standards,” says Robert Eastment. “This is even more critical with the illegal logging legislation on its way. Companies have to look beyond certification and be certain themselves that they are meeting their obligations. You can’t outsource your legal responsibilities. “That’s what makes the procurement guide so important and, we think, so timely.” IndustryEdge will jointly publish the independent Australian Sustainable Paper Procurement Guide with established sustainability consulting firm Equilibrium. “Like us, Equilibrium has a very close and intimate understanding of the paper products sector and they are regularly involved in providing sustainability advice into other sectors as well,” Mr Eastment said. “We already work well together and they’re perfect co-partners for this project.” IndustryEdge can be contacted on (03) 6231 5677 or through www.industryedge.com.au
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TIMBER PRESERVATION
Program involves audit of processes in treatment plants From Page 7
“Customers we’ve introduced to the site especially like the ability of being able to look at the history of samples,” Mr Evans said. “Through the portal, they will be able to monitor and refine plant performance on a timely basis. It is also possible, via the provision of secure access codes, for a third party to have access to specific test results where a client requires evidence of ongoing quality assurance.” IVS has joined forces with what has been recognised as one of Australasia’s foremost analytical testing labs, Hill Laboratories of New Zealand. All samples are shipped to Hill Labs IANZ-accredited timber testing facility in Hamilton on New Zealand’s North Island. “In 2011, we began working with Hill Laboratories and launched a timber treatment testing service in New Zealand which has been operating successfully for about a year,” Mr Evans said. “Over that time, the Hill Labs/ IVS team has become experts in timber treatment and have put a great deal of research and development resource into optimising testing methods for this niche industry. Our partnership has been extremely successful in New Zealand, with several of the country’s leading timber companies choosing to do their testing with us. “The success of our New Zealand service is what led us to develop the online portal and launch it into the Australian market.” Mr Evans believes there is no other provider in Australia offering the industry knowledge that IVS provides its clients. “IVS specialises in timber and we understand the standards,
inside and out. There are a lot of labs out there testing timber who are good at testing, but who don’t understand the relevant standards,” he said. That’s what makes IVS unique in this market. “Add to that Hills’ intimate knowledge of timber testing methods and we can confidently say we’re the only company in the Australian industry with this level of knowledge and expertise. “What that means for our customers is they can have complete assurance that their timber samples are being tested correctly by an independent party and the results they receive are fully reliable. With the new, robust consumer protection legislation now in place, having this confidence is critical.” IVS chief executive Peter Webb said the IVS online timber treatment portal complemented the company’s Timber Preservation Quality Assurance Program, which involved auditing timber treatment plants’ processes and systems.
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 6700 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 CONSULTING EDITOR Jim Bowden Tel: +61 7 3266 1429 Mob: 0401 312 087 timberandforestnews@bigpond.com ADVERTISING Tel: +61 7 3266 1429 timberandforestnews@bigpond.com
‘With the new, robust consumer protection legislation now in place, having this confidence is critical’ IVS has operated its QA program in Australia for 12 months. Customers are provided with access to an Australia Post account that permits economical, speedy and trackable sample delivery to the Hamilton, New Zealand, laboratory. Results are reported on within four days from receipt of timber samples. Information about the IVS’ online timber treatment portal is available on www.ivsltd.com.au or telephone 1800 812 498.
PRODUCTION MANAGER Kerri Michael kerri@mycustompublishing.com.au
Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising. The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.
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issue 222 | 21.05.12 | Page 9
GLOBAL EWP STUDY
Engineered wood products driving investment and trade in us, Japan
Rapid expansion of LVL, glulam and I-beams AN increasing acceptance of structural engineered wood products for use in heavy structural building applications such as floor bearers, floor joists, headers and beams, is driving demand and leading to an expansion of investment and trade in these products in the US, Europe, Japan. The rapid growth in consumption is also driving new product development. “Building systems using these products have the potential to revolutionise the building industry, with wood based products replacing or used in conjunction with other materials such as steel, brick and
InSurAnce.. It’S All In the SelectIon
Kingsdale school music and sports building in London .. crosslaminated timber used in both the structure and the finish
concrete in residential and nonresidential construction,” says
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Page 10 | issue 222 | 21.05.12
Bernie Neufeld, senior manager of BIS Shrapnel, in a global multi-client study of structural engineered wood in the Pacific Rim and Europe scheduled for publication in later this year. “In this environment it is important that producers, potential investors, users and distributors are aware of changing market conditions, cost structures and competitor activity.” Manufacturers worldwide are facing increasing pressure to provide better quality forest products at a lower cost, while declining log quality is making the production of high performance solid wood products more difficult The study aims to determine current and future trends in consumption, production, trade and prices in laminated veneer lumber, I-joists, glue laminated beams, laminated strand lumber and cross-laminated timber (CLT). Manufacturers worldwide are facing increasing pressure to provide better quality forest products at a lower cost, while
declining log quality is making the production of high performance solid wood products more difficult. Non-wood substitutes are gaining prominence due to factors such as stability, uniformity and guaranteed performance. Wood product manufacturers have responded by using lamination of veneers, wood fibre strands or solid wood to engineer high performance products. The result has been the rapidly expanding production and consumption of LVL laminated strand lumber, glulam CLT and I-beams in Europe, North America, north and southeast Asia and Australasia. In a very short time these products have developed a strong presence in the US where LVL, LSL and I-beams represent 35% of the material used for floor bearers and joists. Similarly, glulam has developed a strong presence in Japan, where it represents more than 60% of the materials used in posts and beams of traditional Japanese housing. Glulam is also used extensity in Europe and more recently LVL and I-joists have penetrated the market. “These levels of market penetration in the US, Europe and Japan have not yet been matched in any other country, which suggests that there is considerable scope for market expansion,” says Bernie Neufeld. He said cross-laminated timber, although a relatively new product developed in Europe, had rapidly grown to annual consumption levels of 300,000 cub m and would soon be produced in other regions for Cont Page 12
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INDUSTRY NEWS
5-year forecasts focus on construction trends From Page 10
use in residential and non-residential construction, including multi-storey buildings. Large dimension solid lumber, which has traditionally been used for heavy structural applications, is increasingly being replaced by laminated products, which are recognised as having superior performance. Where defect-free wood is required, lamination can often provide a solution. Qualities such as strength and stability are inherent advantages. Separate chapters of the report – Structural Engineered Wood Products in the Pacific Rim and Europe: 2012-2016 – provide a detailed profile and forecasts for key countries in the major producing and consuming regions.
Each chapter includes an economic overview, an overview of the forest industry and resource base, details of production facilities, capacities and the location of producers, price forecasts for five years, details of variable production costs and market conditions. Five-year forecasts for each country are also given for building construction, the main enduse sector for structural engineered wood products. The focus of the report will be on the major producing and consuming countries in each of the key regions, including North America, the US, Canada, Europe, Asia, Japan, China, Indonesia, Malaysia, and India. There is also strong focus on Australia and New Zealand and their competitors Brazil and Chile.
EWPs that tick ALL the boxes Engineered wood products manufactured by EWPAA member companies top the list
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Certification scheme adds value Mr McNaught said the plywood and LVL industries had always valued the services of EWPAA and the value of the EWPAA brand was something the solid timber industry wanted to embrace. “Users of the program appreciate the value of EWPAA’s input, both at an audit level and a technical representation level and they see this as value for money,” he said. “And it’s an obvious extension to the EWPAA certification program which now provides certification services to every timber product, except glulam. “Previously, the degree of rigour associated with product certification didn’t extend to solid timber. “What we’ve done is to pitch it at exactly the same level as our LVL and plywood programs so users can be totally confident that the material they are buying is an engineered product – and the EWPAA
brand confirms this.” Certified mills for the time being will retain the former ‘PTAA’ brand for certified sawn timber products. However, in product distribution and promotion and on member company websites the engineered certification by EWPAA will be recognised. “After 12 months we are ‘bedding down’ the program while the subject of specific branding is under review,” Mr McNaught said. JAS-ANZ accreditation was established in 1991 by the Australian and New Zealand governments to strengthen the trading relationship between the two countries and with other countries. Known as the JAS-ANZ Treaty, it operates as a joint accreditation system to deliver on four goals relating to integrity and confidence; trade support; linkage; and international acceptance.
LOWEST emissions Structurally SOUND and SAFE Wood from 100% LEGAL, CERTIFIED forests GUARANTEED to Australasian Standards JOBS security
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Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Street, Newstead 4006, Queensland, Australia Tel: 61 7 3250 3700 Fax: 61 7 3252 4769 Email: inbox@ewp.asn.au Web: www.ewp.asn.au
* Independently tested to the highest standard; guaranteed to comply with Australian standards; certified under JAS-ANZ accredited product certification scheme; guaranteed to be safe and to carry the designated design load; complies with the Building Code of Australia; meets safety and quality requirements accepted by unions; meets all Workplace Health & Safety requirements.
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issuE 222 | 21.05.12 | PAgE 11
INDUSTRY NEWS
Locking up forests not an option
Sustainable management is self-evident as Graphite, Wattle, Giblett and Shannon spring to mind. In every case, despite cries to “save” those forests from “destruction”, areas harvested are now displaying healthy, productive regrowth which will be available for harvesting again in the future.
By JOHN CLARKE Chairman WA division Institute of Foresters of Australia
AFTER 35 years working in the state’s forests and plantations, I never tire of standing on the edge of Caves Road not far from Margaret River, admiring the majesty of the Boranup karri forest, its tall trees gleaming in the dappled sunlight, the rich smell of the undergrowth, birds twittering. Many people standing at that spot might thus be pleased to know that all of Western Australia’s old growth native forests are reserved from timber harvesting. But the Boranup forest, now a national park, isn’t old growth. The forest we admire today is 100% regrowth. Clear-felled late in the 19th century, it is testament to the regenerative power of our native forests. Many areas of forest are similar. Consider the karri regeneration
The forest we admire today is 100% regrowth. Clear-felled late in the 19th century, it is testament to the regenerative power of our native forests John Clarke .. West Australians should be proud of their timber heritage.
at Big Brook and Treen Brook forest blocks near Pemberton, arguably that area’s most popular tourist destination. Consider the magnificent jarrah regrowth forests stretching from Dwellingup through Harvey and Collie, Kirup and Balingup, Bridgetown and Nannup. These forests have been harvested for timber on more than one occasion. They stand today as fine examples of regrowth forest yet
they continue to attract protestors who are often prepared to step outside the law in their bid to disrupt sustainable harvesting. Ironically, areas of forest which are totally dug up for mineral wealth receive no such attention. Some people might remember past protests and blockades, especially in the 1980s and 90s. Forest block names such
Our forests have evolved over millennia and readily cope with disturbance. Moreover, fauna and flora are highly adaptable to change. There is little wonder that monitoring the effects of harvesting has shown that biodiversity is under no threat from sustainable harvesting. In fact, scientific data suggests that our forests are thriving. The long-term project ForestCheck managed by the Department of Environment and Conservation Cont Page 13
Foxes, cats the predators, not chainsaws From Page 1
think about cattle, pigs, chooks or fish being killed.” He said Western Australians were rightly pleased much of the old growth was reserved from timber harvesting. However, he said many of the forest now much admired by residents and tourists were not all old growth. “The Boranup forest, now a national park, isn’t old growth,” he said. “The forest we admire is 100% regrowth. “It was clear-felled late in the
Page 12 | issue 222 | 21.05.12
19th century, a testament to the regenerative power of our native forests. “Many areas of forest are similar. Consider the magnificent jarrah regrowth forests stretching through Kirup and Balingup, Bridgetown and Nannup. “These forests have been harvested for timber on more than one occasion.” Mr Clarke argued fauna and flora were adaptable to change. Despite what conservationists said about the threats to endangered species such as numbats and cockatoos, he
said no species had been lost. “Plots examined 40 years after disturbance show biodiversity is indistinguishable from virgin forest.” He said 5000 people were employed in the social and economic fabric generated by the timber industry. He refuted threats to species in forests sectionally logged such as Warrup, Hester, Yabberup and Arcadia. “The real threats to our species are well known,” Mr Clarke said. “Habitat loss happens when forest is permanently
cleared, not when it is sustainably harvested. “Foxes and cats are the predators, not chainsaws.” He said the real issue was climate change and everyone should focus on this. “The option of doing nothing in the face of climate change will be a death sentence to many of our unique species,” he said. He said protestors needed to drop the ‘antics’ and engage in conversation. “The mantra needs to be commonsense alongside good science,” he said.
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TIMBER CERTIFICATION
Opportunity to protect some of the forests from climate change From Page 12
monitors 48 plots across the breadth of the forest, comparing biodiversity in harvested areas to undisturbed areas. No species has been “lost”. Plots harvested in the 1990s have rapidly recovered, so much so that after less than 20 years in many cases biodiversity is similar to undisturbed forest. Plots examined 40 years after disturbance show that biodiversity is indistinguishable from virgin forest. West Australians should be proud of their timber heritage, but also thankful there is a profession known as ‘forestry’. The first settlers who came to this state worked hard to clear patches of our native jarrah, karri and wandoo to create farmland and build houses and infrastructure. They had little concern for conservation or sustainable forest management. However, they quickly discovered that our jarrah timber was a valuable, much sought-after commodity and ranked among WA’s first exports. Timber harvesting was not managed until Charles Lane Poole, an intelligent and dogged young English forester drafted the first Forests Act in 1918. That resulted in some 2 million ha of southwest native forests being reserved from clearing for agriculture and the establishment of the Forests Department to protect and manage the forests and oversee the associated timber industry. Those forests and that timber industry are still going strong. They play an integral role in fostering the social and economic fabric of the southwest by employing more than 5000 people directly and providing timber products that we all value.
We often hear the cry to save the “last” remaining patch of forest as if it were an island in the midst of desolation. These calls to stop harvesting are unfounded. We should ask why these forests and the full range of animals and plants have survived after 150 years of harvesting and burning. The reality is the scale of harvesting is within the natural levels of disturbance. A tiny 0.5% of the forest is harvested each year. Another threat that is often promoted as a reason to “lock up” our forests is climate change. Unfortunately, climate change will affect all forest, whether in a national park or not. Thinking you can protect a forest by changing its name to national park is like King Canute trying to stop the tide. The real threats to our mammal species are well known. Habitat loss happens when forest is permanently cleared, not when it is sustainably harvested. Foxes and cats are the predators, not chainsaws. Similarly, black cockatoos are vulnerable to permanent clearing, competition for nest sites by feral bees and other parrots and irregular seeding cycles exacerbated by drought, not sustainable harvesting with retention of thousands of habitat trees. The option of doing nothing in the face of climate change will be a death sentence to many of our unique species. Large areas of forest will likely collapse from reduced rainfall, with the most vulnerable areas being forest streams, wetlands and rock outcrops; all areas where species richness is high. Water tables in the northern jarrah forest have already fallen by 10 m since the 1990s, and projections by the Water Corporation suggest they will continue to fall in coming decades.
A large karri tree in Boranup forest, Western Australia
This will see our perennial forest streams turn into pools and eventually the pools into dust. Vegetation surrounding these
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streams will die out as will dependent species such as the quokka, quenda and red-eared firetail finch. It is very possible our dams will become near- empty white elephants. Perth will need to find an additional 90 gigalitres of water from expensive and greenhouse unfriendly sources like desalination plants. There is, however, an opportunity to protect some of the forests from climate change and at the same time to sustain a low-cost public water supply from our forests. The northern jarrah forests should be thinned where there is sufficient rainfall to promote runoff for both environmental and public benefit.
issue 222 | 21.05.12 | Page 13
LETTER TO THE EDITOR
The ‘chains’ of chain of custody
A timber merchant gives his point of view I WRITE as a timber merchant of 51 years’ experience, and have owned and operated timber merchant, roof truss and frame and joinery manufacturing operations. The commentators in the T&F e news article ‘Exponents of chain of custody debunk theories on high cost’ (May 14) suggest that the cost of certification is low, only $5000 for the audit plus $2000 to be registered, and every five years another audit. This may seem cheap to a big business, but it’s clearly significant for a small business and even more significant for the ‘timber sector’ as a whole. If we took all of the six or seven industry sectors and said 10,000 of them had chain of custody, that’s 10,000 x $5000 = $50,000,000 (every five years), and 10,000 x $2000 = $20,000,000 annually going out of the downstream sector of the industry. Assume half this number or even a quarter and it is still a significant additional cost to the timber sector to sell wood. Clearly though, that is not the only cost to the business. Further costs exist in extra stock holding, upgraded stock control systems, the day-to-day handling of the product which must be kept separate from not only that nasty stuff, uncertified timber, but also from each other. The two competing certifying businesses, AFS and FSC, won’t allow a single mutual chain of custody approach. One also needs to remember it actually adds to the cost every time a pack is moved, broken open, altered, re-bundled and put back in the rack, or block stacked if room is tight. These costs are well known by all wholesalers, merchants, truss and frame manufacturers, cabinet makers and joinery compa-
Page 14 | issue 222 | 21.05.12
Heavy load .. “chain of custody actually adds to the cost every time a pack is moved, broken open or the pack tally is altered”.
nies. Having to keep stock segregated (uncertified from AFS from FSC) is a major logistical issue for many merchants. More space means having to rent or buy additional property – and at what cost? I’ll tell you – $50,000+ a year, plus new racking. And that means I only need to sell another $1,500,000 plus of certified product to get my net profit after tax back. And to those who have never had to live off the NET profit, or where the money comes from as an owner-operator, well, this is what we get for employing staff, investing all we have in the business and guaranteeing banks and creditors with our personal assets. Any extra costs always reduce that return, and affect this item. It is called THE bottom line. And speaking of costs, we now have the carbon tax which will increase energy costs 20%. Who knows how high? Increases in taxes for operating trucks, 3% increase in superannuation, increase in waste disposal, plus increases in insurance, and now we have certification. And what are we certifying? Plantation timber! Yep, the same stuff
we have been selling for the past 50 years – pine and native hardwoods. What were we selling before, that now it has to be certified? Illegal timber? Certification is here to stay and it is big business. Here are some simple calculations to demonstrate the cheapest part, just the costs of auditing ($5000), a minimum of five between audits and the yearly costs to be registered for chain of custody ($2000). If we took ‘Don’t get me wrong, as a marketing tool it is good, but others with hidden agendas see it as a way of shutting down the industry, lining pockets and having the industry pay for the privilege’
all of the six or seven industry sectors and said 10,000 of them had audits and had chain of custody, 10,000 x $5000 = $50,000,000. Every five years, and more often if the auditors decide you must have one at any time they choose, and 10,000 x $2000 = $20,000,000 annually going out of the downstream sector of the industry.
(Half the number, or quarter, it is still big business). Don’t get me wrong, ‘forest certification’ is important in demonstrating responsible sustainable forestry and as a marketing tool it is good. The Australian timber industry has responded strongly to this desire and today virtually all of the commercial forests in Australia are certified. There is, however, still a major frustration that FSC and its stakeholders still refuse to recognise or certify our Australian native hardwood forests. FSC should clearly explain why, despite the fact that 63.47% of FSC certificates by global forest area are native forest, they do not except Australia’s arguably world’s-best standard practices. And while ‘forest certification’ is desirable, what benefit does ‘chain of custody certification’ provide the industry, the specifier or the public? The benefit of CoC certification is that if you are concerned about ‘illegal timber’ you can trace it back to it source. What benefit is this for Australian-grown timber where effectively all the commercial forests are ‘legal’? Little value one could argue when compared with the vast additional cost to industry. There is a simple method of showing the public that the timber being sold comes from an Australian certified forest – a simple stamp on each piece as is done with pine and hardwood stress grading. This method would cover 90% of the timber produced in Australia. As it stands, no one can tell when the timber is on site or if it is the same piece that was really certified as there is only a piece of paper to say so. But no, too easy, and those nasty timber people could now be dragged Cont Page 15
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EVENTSt
Heavy bookings for Wood Mart display at KL convention centre Strong debut showing by Sarawak producers
From MICHAEL BUCKLEY FOLLOWING a highly successful debut in 2010 in Kuala Lumpur, the MTC Global Wood Mart will again take centre-stage at the Kuala Lumpur Convention Centre from October 4 to 6. The event will provide a premier one-stop selling, buying and networking platform for local and international temperate, boreal and tropical timber suppliers and buyers. Products featured include logs, sawn timber, plywood and panel products, wooden flooring, wooden decking, doors and windows, mouldings and furniture components. The American Hardwood Export Council and FrenchTimber are partner organisations for the show. Products featured include logs, sawn timber, plywood and panel products, wooden flooring, wooden decking, doors and windows, mouldings and furniture components. AHEC has increased the size of its booth from 36 sq m in 2010 to 126 sq m for MGW 2012. Members participating include Baillie, Bridgewell Resources LLC, Graf Brothers, HSEG, Nina Company LLC, Northland Corporation, Robinson Lum-
Returning .. Global Wood Mart 2012 will have many repeat exhibitors.
ber Company, Snowbelt Hardwoods Inc, Somerset Wood Products, Sonoking Corporation and Missouri Walnut. In fact, AHEC now has a waiting list for the space that it has booked at MGW 2012. The US-based International Wood Products Association will also be participating under the AHEC banner. FrenchTimber – which has increased its booth size from 36 sq m to 54 sq m – has confirmed the display will include Eurochene, Ducerf, Groupe Lefebvre and SaintLoubert. Malaysian entities that will repeat their presence at MGW 2012 include Ah Hai Industries Sdn Bhd, APP Timber Sdn Bhd, Java Berhad, Lionex (M) Sdn Bhd, Low Fatt Wood Industries Sdn Bhd, Malaysian
Timber Certification Council, Professional Surfaces Sdn Bhd, Victory Enterprise Sdn Bhd, Vin-Forest Industries Sdn Bhd, Kronoloc Industries Sdn Bhd and the Malaysian Timber Industry Board. There will also be representation from the Malaysian Wood Industries Association, Timber Exporters Association of Malaysia and the Malaysian Timber Association. Sarawak will make a strong showing with key players such as Samling, Shin Yang, Subur Tiasa and Ta Ann. The first-ever Sarawak pavilion at MGW 2012, with a confirmed space of 108 sq m, will be coordinated by the Sarawak Timber Industry Development Corporation and the Sarawak Timber Association. The Program for the Endorse-
ment of Certification (PEFC) scheme will also be exhibiting for the first time. MGW 2012 is set to repeat the success of its debut show in 2010: • Almost 110 exhibitors from more than 20 countries, including Australia, Brazil, Canada, China, France, Germany, India, New Zealand, South Korea, the UAE, UK and USA. • More than 2000 trade buyers from 50 countries with sizeable representations from Japan, the Netherlands, China, India, Singapore, Thailand and the UAE. • 84% of the visitors were in management, decision-making roles, purchasing, planning, production and sales. • 82% of exhibitors rated the MGW as good/excellent compared to other trade shows. • 92% of the exhibitors rated the quality and quantity of trade visitors met/exceeded their expectations Apart from facilitating business among local and overseas suppliers, agents, distributors, importers, manufacturers, wholesalers and others in the supply chain, the MGW 2012 also aims to promote and encourage the wider application and use of timber from Malaysian and international sources. Visit www.globalwoodmart.my
How much extra will certified timber cost?
From Page 14
to court and shut down by the vested interests, unless there is a paper trail called chain of custody, when as many as four, five or six companies all handle the same piece of timber and ask for the same proof from each other. It makes no sense.
If the requirements for chain of custody timber become the norm, how much extra will certified timber cost to the enduser and will more timber be sold? All indications are that the end-users will not pay any extra for the additional handling costs expended.
Why is the industry voluntarily making it harder for merchants and retailers to sell timber – the only real green building product – while our competitors steel, concrete and aluminium, the big polluting products, are doing everything they can as we go into a carbon tax to make
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their products more attractive? It just doesn’t make sense and it certainly needs a far more considered approach, particularly by timber merchants, fabricators and retailers. – RON CADDY, chairman, Lamcal Builders Supplies, Melbourne.
issue 222 | 21.05.12 | Page 15
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FORESTS AND FOREST MACHINERY
‘Beggar state’ fire sale must work
Process has put forest industry families, particularly harvest and haul contractors with sustainable jobs, on the scrap heap WELL hello – will someone please tell me what is going on in Tasmania? Seems that the current chief executive of Gunns has sold off most of the farm, the family silver, the kitchen sink, the photos of mum and the kids – the list goes on! I have followed the fire sale saga via the Financial Review and it has seemed somewhat surreal, especially with the former chief executive buying back some sawmills and other assets! If seems a sorry litany for the once mighty Tassie forestry company that was lauded as one of the outstanding industry performers in the country. And as I understand it – although I may well be wrong – this selling of the company’s assets is all in pursuit of building the Bell Bay pulp mill. Talk about a high risk strategy.
If it wasn’t for the great GST rort that requires mainland states to fund Tasmania, the place would sit among a number of African nations in terms of its economic performance and prospects for helping itself The Financial Review continues to report on Gunns asset selling spree that recently included their Heyfield sawmill in Victoria. Softwood and hardwood plantations, a woodchip export ship and export woodchip terminal are also all up for grabs. We have to hope and pray that burning all their bridges and
Overload .. Tasmania is now a very large burden that other states have to carry on their backs.
the difficulties it has presented for the native forest-based industry right across the country works for Gunns. Otherwise dismantling of this once great Tassie company will all have been for nothing. I have previously mentioned the hurt and distress the current process has brought to Tasmanian forest industry families, particularly harvest and haul contractors – hardworking and true with valuable, sustainable jobs now on the scrap heap. Even the very enthusiastic cheer leader for the forest industry in Tasmania Senator Richard Colbeck told an industry dinner in Sydney recently that while he remains hopeful that the pulp mill will be built, as each day passes and performance and planning deadlines loom, even he is getting worried. The truly amazing thing about Tasmania – with apologies to those who live and work hard
Deep in the Woods with ..
fund Tasmania, the place would sit among a number of African nations in terms of its economic performance and prospects for helping itself. With about 90% of the funding circulation in the Tasmanian economy being generated either directly or indirectly by governments it seems that a big chunk of the Tasmanian community and the government is happy just to continue sponging off the rest of the country. West Australian premier Colin Barnett says Tasmania has become the beggar state operating as Australia’s national park and it should not be able to take GST revenue from other states while it rejects economic development. ‘Tasmania has become the beggar state operating as Australia’s national park and it should not be able to take GST revenue from other states while it rejects economic development’ – Colin Barnett
Cheryle Forrester there – is that the place is an economic basket-case. If it wasn’t for the great GST rort that requires mainland states to
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“If they continue to reject any sort of development, well what right is there to simply take some of the spoils of the hard work in other states?” Mr Barnett suggests Western Australia will simply just engage with Asia and its relationship with the rest of Australia will diminish. His call that his state and others are being bled to prop-up Tasmania because Cont Page 18
issue 222 | 21.05.12 | Page 17
FORESTS AND FOREST MACHINERY
Forest industry families have made an unnecessary severe economic sacrifice From Page 17
they don’t have the intestinal fortitude to do it for themselves is starting to resonate around the country. A staggering thing is that the Tasmanian government is sending out completely confusing messages about its enthusiasm and willingness to accept dollars from prospective investors and developers. Senior member of the Tasmania cabinet in the form of Greens leader Nick McKim, who is the Minister for Education, Corrections, Consumer Protection and Transport, has been actively campaigning against the Labor-Greens coalition government-approved pulp mill. In a recent media release, he again railed against the pulp mill saying it was not going to be economic. “In fact, it would destroy local businesses and economies in the Tamar Valley and damage Tasmania’s lucrative clean green clever brand.” Mr McKim’s continuing oppo-
Regrowth forest ... native forest-based industry right across the country put at risk by Gunns gamble on building a pulp mill.
sition to the pulp mill that offers the prospect of long-term, desperately needed economic development and jobs has completely dumbfounded potential investors. It has eroded business confidence and demonstrated that when it comes to vital economic growth the Tasmanian government is a complete shambles. It certainly reinforces the WA Premier’s contention that Tasmania is now a very large burden that other states have to carry on their backs. So we really have to hope that for the sake of the Tasmanian economy – and for the rest of Australia – and the many forest industry families who have already made an unnecessary severe economic sacrifice, that the high-risk gamble of Gunns does pay off. The alternative scenario for the state doesn’t bear thinking about. A sombre note to finish, but I certainly have my fingers and everything else crossed for Tasmania’s forest industry. See you in a couple of weeks.
New John Deere engine packs some power JOHN Deere added a 9 litre PowerTech-plus 6090H engine to its 700-series tracked feller bunchers and 700-series tracked harvesters (pictured), replacing the existing 8.1 litre engine. The new engine features electronically controlled high-pressure common rail fuel system to provide maximum power and fuel economy. “Tough conditions in the forest call for a powerful, durable engine with proven design and
technology that can be used across multiple product lines,” says Neil Harber, product mar-
keting manage. “The large-displacement engine provides the power loggers need to get the
This section is supported by the Australian Forest Contractors Association Page 18 | issue 222 | 21.05.12
job done quickly and efficiently, while using the least amount of fuel necessary.” The 9 litre engine delivers 241 hp at peak power, giving loggers maximum productivity and uptime, shift after shift. An extended, 500-hour engine oil service cycle, paired with extended filter capabilities, helps to lower daily operating costs. With their large cutting swaths, advanced hydraulic systems and cabs designed for maximum operator productivity, John Deere’s compact 700-series tracked feller bunchers and tracked harvesters are ideal choices for tight or steepsloped logging.
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Battered and bruised, BC forest industry rolls with the punches
Canada now largest supplier of lumber to China IT’S official – Canada has become the world’s largest supplier of lumber to China, sweeping past the Russian Bear with 47% of total market share. That’s a feather in BC foresters’ caps (where most of the product destined for the Middle Kingdom is harvested), especially given the battering the industry has taken in recent years from the mountain pine beetle and a collapse in the US housing market. But you won’t find any forestry executives in Vancouver jumping up for joy. At the recent International Wood Markets Group global log and lumber conference in Vancouver, all eyes were focused on the current slowdown in China and how it will affect the BC industry. The good news: China is still growing. ‘The fact the government is building 36 million houses provides fuel for a more optimistic view’ – Peter Van Leeuwen
The People’s Republic is looking to build 36 million apartments by 2015 to help house an urban population that’s expected to soar by 350 million people in the next 13 years. According to Gerry Van Leeuwen, vice-president at Wood Markets Group in Vancouver, if you add private housing starts into the mix, China could build as many as 10 million new houses each year to 2015.
A slowdown in China’s economic growth coupled with high inventory levels on both sides of the Pacific have cut into earnings for some of British Columbia’s biggest employers.
That means the Middle Kingdom needs a lot of wood. The bad news? China’s government is fending off inflation and soaring home prices, introducing fiscal policies to keep its economy in check and avoid a hard landing. No one knows if it will work. “The housing market in China is full of unsold units and vacancies, which has meant a slowdown in building during the last nine months,” Mr Van Leeuwen said. “Log and lumber inventories also remain above normal.” Despite the gloomy data, Mr Van Leeuwen’s group remains optimistic. “The fact the government is building 36 million houses .. provides fuel for a more optimistic view,” he told conference delegates. But even if China successfully manages its downturn, the road ahead for British Columbia for-
estry companies won’t be easy. For starters, China is still buying construction-grade wood, which commands a lower price on the market. The Middle Kingdom also prefers to buy whole logs to keep its thousands of sawmills running, which produce boards at a fraction of the North American cost. On top of that, China wants specific sizes of lumber and logs, which creates added complexities for producers in Canada. If that weren’t enough, the province has challenges of its own. Two explosions in recent months have raised alarms about safety in sawmills and the impacts that dry beetle-kill wood is having on the production process. China might be important, but as one executive who asked to remain anonymous said, the industry’s number 1 focus now was safety. The tragic explosions at Babine
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Forest Products and Lakeland mills, which claimed four lives and injured many others, have also brought another issue to light: the future of timber supply in British Columbia. Once BC mills are done churning through beetle-kill, what will be left to harvest and feed the mills that support thousands of jobs, towns and exports? No one knows. The government is toying with different ways it can toggle the annual allowable cut to free up timber supply, ideas that already have environmentalists up in arms. Industry veterans know someone will lose in this game; there simply won’t be enough wood to go around, and some mills will have to close or never reopen. But that’s another hard knock in an industry that continues, battered and bruised, to roll with the punches. Someone will lose in this game; there simply won’t be enough wood to go around, and some mills will have to close or never reopen
And with no signs of the US housing market returning to its heyday any time soon, what choice do foresters have but to get up every day, maintain their mills and cut product that, hopefully, can be put on a ship and support a few more jobs in British Columbia? – Business Vancouver
issuE 222 | 21.05.12 | PAgE 19
INTERNATIONAL FOCUS
UK’s ‘wood first’ rule increases speed in building construction Forest-based industries play key role in wider economy
IN the current climate of global warming, the need for the building industry to respond by using sustainable, low-carbon materials in construction is gaining increasing acceptance throughout the world. That raises interesting questions about the ‘Wood First’ rule – the idea that sustainably sourced timber should, where feasible, be considered as the primary construction material in all new build and refurbishment projects. In the United Kingdom, Wood for Good, an organisation set up by the Timber Trade Federation and the Confederation of Forest Industries (Confor), supports such an idea. Accordingly, the industry body has launched a ‘Wood First’ campaign, calling for the rule to be implemented in local planning authority guidance throughout the UK.
Low carbon properties of timber have been documented in a number of scientific and academic reports Wood for Good says the concept of embedding wood as a preferred construction material in planning is already gaining traction. It says that in France, the wood first rule has been implemented as a key element of climate policy, while several boroughs in the UK – including a major London borough – are considering different versions of the rule. Meanwhile, current proposals from the European Commission will enable the carbon stored in harvested wood products to be
build a low-carbon future. Stuart Goodall, chief executive of Confor, agrees. “It is about time we put Wood First in this country,” he says. “The forest-based industries play a vital role in the rural and wider economy in the UK yet they receive little attention or support.” Increasing forest cover is recognised as one of the most effective weapons in the battle against climate change Wood first .. London architect Foster and Partners have completed an academy clad in wood in Berkshire, UK.
taken into account in national carbon budgets. According to David Hopkins, Wood for Good’s head of external affairs, the low carbon properties of timber have been documented in a number of scientific and academic reports. Along with its thermal insulation properties, he says, wood actively mitigates against the effects of climate change by absorbing carbon dioxide and emitting oxygen during the growth process, resulting in carbon being ‘captured’ and stored in timber products. “Increasing forest cover is recognised as one of the most effective weapons we have in the battle against climate change, and the best way to achieve this is to stimulate demand for sustainable timber and wood products,” he says. “The introduction of a Wood First rule will help to make this happen.” Mr Hopkins says such a rule would benefit local authorities
David Hopkins .. driving efficiency as well as creating homes and buildings.
by increasing the speed of construction, thus driving efficiency as well as creating homes and buildings that consume less energy because of timber’s ‘exceptional’ thermal insulation properties. Add in wider economic, biodiversity and community impacts, he says, and it is “obvious” that “to start with wood first” is one of the most effective ways to
But what about negative effects, such as deforestation? Charles Thwaites, the executive director of the Forest Stewardship Council’s UK national office acknowledges that this is a significant issue, but says it reinforces the need for best practice in sustainable forestry. “Deforestation is still a major issue in many parts of the world with devastating impacts on the environment and local communities,” Mr Thwaites says. “Nevertheless the Forest Stewardship Council is convinced that timber harvested in a responsible manner can be environmentally appropriate, beneficial to local peoples and make a fair economic return.” He noted that when timber products are sourced from forests that are properly managed to meet the standards set out by the Forest Stewardship Council, their use in building will provide a massive boost to sustainability. “And this is why we support Wood First,” he says. – Construction News, UK.
COPYRIGHT NOTICE Items provided in this section of Timber & Forestry E news are drawn from a number of sources. The source of the item is quoted, either by publication or organizations in line with the practice of fair reporting.
Page 20 | issue 222 | 21.05.12
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ex of pre i n ss te i o re ns st
eldersre.com.au
Prime Investment Opportunity Timber – A Resource of the Future. An opportunity to purchase (2) developed Softwood Plantations available as a total package or individual properties. “Coolalbin”
“Electra” Duingal QLD
Monduran QLD
• Area 1,291 hectares (3,190 acres) 2 Freehold Titles. • Approx 21 km north of Gin Gin. • Plantation Area – 733 hectares – 2001 & 2005 plantings. • Balance area 558 Hectares utilised for cattle grazing. • Improvements include 2 Bedroom cottage, 3 bay garage, machinery shed, timber cattle yards with vet crush & plunge dip.
• • • • •
Area 936 hectares (2,312 acres) 5 Freehold Titles. Approx 24 km south of Gin Gin. Approx 8 km Burnett River frontage. Plantation area – 224 hectares – 2005 planting. Balance area divided between cattle grazing (438 ha) and open native forest (unfenced 274 ha).
Comments: “Coolalbin & Electra” are well managed Softwood Plantations with good growth vigour ensuring sustainable timber reserves for the future. www.eldersre.com.au
ID
4091445
Expressions of Interest: Close at 5pm Friday 15 June 2012 Details: Information Memorandum available from the Marketing Agents. Baden Lowrie 0427 172 158 Elders Bundaberg 07 4152 6599 John Burke 0428 457 976 Elders Brisbane 07 3840 5503
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Expressions of Interest issue 222 | 21.05.12 | Page 21
Classifieds Expressions of Interest – Chairperson of the Forestry Industry Council FORESTRY INDUSTRY COUNCIL CHAIRPERSON Minister for Employment and Industrial Relations the Hon. Richard Dalla-Riva MLC is seeking expressions of interest from suitably qualified and experienced people for appointment to the position of Chairperson of the Forestry Industry Council. Broadly, the Council seeks to assist small business operators in the forestry industry by providing them with information and support essential to running a successful business. The Owner Drivers and Forestry Contractors Act 2005 establishes the Council, which consists of 10 members. The Act specifies the following Council functions: to advise and make recommendations to the Minister on the content of codes of practice and the information booklet for forestry contractors to advise and make recommendations to the Minister on rates and costs schedules for forestry contractors to develop, publish and promote model haulage and harvesting contracts to advise the Minister on any other matters relevant to haulage and harvesting contracts and commercial practices. The Chairperson will be appointed on the basis of merit, for a period of up to three years. The position calls for an individual who: has high standing in the relevant industry and in the community is (and is regarded as) fair, impartial and objective is an effective communicator with strong skills in dispute resolution is able to provide accurate, considered and balanced advice is able to maintain good working relationships with stakeholders including members of the Council and relevant Government agencies has relevant experience, particularly with regard to the commercial and costing functions conferred on the Council has an ability to think and act strategically.
• More than 6700 deliveries and 15,000 viewers each week
Expressions of interest must include a curriculum vitae and covering letter detailing your capacity to meet the selection criteria and listing two referees. Applications should be forwarded to Marcelle West, Department of Business and Innovation, Private Sector Workplace Relations, GPO Box 4509 Melbourne 3001 or email to marcelle.west@dbi.vic.gov.au by close of business 4 June 2012. Further information about the appointment process can be obtained by contacting Marcelle West on 9651 9781.
editorial inquiries tel: +61 32661429
Page 22 | issue 222 | 21.05.12
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Knowledge Tree Series
Int roduction to Green Sta r¨ and FSC Project Ce rtification Are you in the construction, timber supply, development or contracting industry? Do you want to understand FSC and how to gain competitive advantage? Have you been asked to work on a Green Star¨ job and supply FSC Certified Products? Then come along to our free information breakfast specifically targeted to you to help you grow your FSC Knowledge Tree. Topics - What is FSC & why is it important? GBCA CPD points for - Green Star¨ and the timber credit attendance apply - Steps involved in Chain of Custody Certification - FSC Chain of Custody for Project Certification Speakers: Natalie Reynolds - Acting CEO FSC Australia Nick Capobianco Ð Senior Lead Auditor, Scientific Certification Systems Joshua Bruce Ð Sustainability Manager, ISIS When:
May 22nd, 8Ð 9.30am (Speakers will be available for Q&A, informal discussions and networking until 10.30am) RSVP must be in by 11th May to assure a place
Where:
Hurleys Arkaba Hotel 150 Glen Osmond Road Fullerton, 5063, SA For a map of the location visit http://www.arkabahotel.com.au/contact Parking is available nearby
RSVP:
RSVP is essential for catering purposes at http://www.trybooking.com/BIRY. This event is fully supported by TABMA and therefore is presented at no cost. Donations to support future Knowledge Tree Series are encouraged
Presented with the generous support of TABMA
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issuE 222 | 21.05.12 | PAgE 23
Nominations Excellence :: Recognition :: Celebration The Queensland Timber Industry Awards are an important means of highlighting excellence in our industry and rewarding organisations who are leading the way in terms of service, innovation and commitment to improving both their business and the industry as a whole. The gala evening when these awards are presented is the only event of its kind; it provides a platform to celebrate our industry, our state and recognise our top performers. This evening is set for Saturday 3 November 2012 at Victoria Park Function Centre, Brisbane. To maintain the credibility of these awards and therefore the prestige and honour they represent for finalists and winners, the judging criteria for 2012 have been adjusted to reflect recent ideals and trends as well as give greater weight to operational areas of importance. The criteria for each category is available to view on the website, www.tabma.com.au - Queensland - Information Sheets - 2012 QTI Awards Criteria.
Award Categories 2012
Best Specialist Timber Merchant
Best Frame & Truss Operation (Metro)
Best Building Materials Centre (Metro)
Best Frame & Truss Operation (Regional)
Best Building Materials Centre (Regional)
Best Timber Manufacturing Operation
Best Timber Wholesale Operation
Best Sawmilling Operation
Best Specialist Service Operation
Trainee of the Year
Best Training Culture
Apprentice of the Year
Best Wholesale Sales Representative
Recognising Women In Forest & Timber
If you wish to nominate please visit www.tabma.com.au - Queensland - News and Events - 2012 QLD Timber Industry Awards Nomination Form and complete an entry for each nomination. All nominations will be kept confidential and only be seen by TABMA Queensland management and judges. Nominations close 15 June 2012. Introducing the first Bronze Sponsor’s…
Sponsorship packages are still available.
Page 24 | issue 222 | 21.05.12
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