6857
The last shot Gunns under administration after Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 1
Complete solid timber processing systems
more than a century in sawmilling
By JIM BOWDEN
Design awards PAY homage to wood
A SPECIAL REPORT
A dream lost .. former Gunns boss John Gay.
analyst Matthew Torenius says the administrator will determine whether Gunns can continue operating. “If not, you’re looking at a sale of assets and essentially a wind-up of the company,”
Just Go t ood W
r sm
A Better Earth Idea from Osmose
sm ®
®
Cont Page 2
ne ree
®
he said. Mr Torenius said it may well be the end of the company “as we know it”. The fall of Gunns, although not
G
MicroPro
Treated
WITH its original roots going back more than 100 years, Tasmanian timber company Gunns Ltd has gone into voluntary administration. The decision ends a desperate effort by the company to recapitalise and restructure in the face of losses of almost $1 billion and debts of more than $500 million. The company informed the Australian Securities Exchange that it was unable to continue trading and in a statement said it had been in talks with lenders (led by the ANZ Banking Group) seeking support for its plans for a capital raising or restructure – but those lenders were unwilling to provide further funds. Shadforth Financial Group
Ph 02 9609 5911
MicroPro
®
Copper Quat
A p N A pro o lu v w Co m e nt ini d F ac um or t*
MicroPro is GREENGUARD® Children and Schools Certified Greenguard® Children and Schools Certification indicates that a product has undergone rigorous testing and has met stringent standards for VOC emissions. In the USA, products certified to this criteria are suitable for use in schools, offices, and other sensitive environments.
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.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 1
INDUSTRY NEWS
Matthew Torenius
Michael O’Connor
Lara Giddings
Nick McKim
‘We hope the forest industry doesn’t get spooked over this’
unexpected by many in the timber sector, has nevertheless left a sour feeling in the stomaches of industry leaders. It has certainly shocked timber workers and forest contractors and hundreds of jobs are threatened. “However, we hope the industry doesn’t get spooked over the Gunns’ decision and then starts tightening the screws on credit leniency which would put further pressure on a depressed sector,” was the concern of one industry executive. Others reckon the final stake has been driven into the heart of the $2.3 billion Tamar Valley pulp mill project designed to produce 1.1 million tonnes a year using plantation-grown eucalyptus feed stock. Gunns wrote down its $255 million pulp mill investment to $38 million, a move it said was an “indication of decreased confidence from the company that it has the ability to influence the pulp mill project proceeding”. Construction of the mill was supported by the Tasmanian and federal governments and fiercely opposed by conservationists. Statecommissioned research showed the project would have generated $6.7 billion in spending over 25 years and would have created up to 1600 temporary jobs during the construction phase. Consultants engaged by Gunns estimated the pulp mill would have created about 3100 extra
Page 2 | issue 241 | 01.10.12
long-term jobs in Tasmania. Gunns manages more than 275,000 ha of freehold land with 200,000 ha under plantation forests. The estate includes about 150,000 ha of eucalyptus plantations in Tasmania and 50,000 ha of radiata pine plantations in the Green Triangle region (South Australia and Victoria). This plantation estate on Gunns freehold land represents an attractive asset if offered to
Australian and international markets. The pulp mill was the longheld dream of former Gunns chairman John Gay, who was a key, combative figure in Tasmania’s timber industry until his departure, and was credited by many in the industry with almost single-handedly building the former Gunns empire after joining the company in 1974.
Cont Page 3
5th Annual
INDUSTRY DEVELOPMENT CONFERENCE
Forest, Wood, Paper & Timber Products Industry
30 – 31 October 2012 Hotel Hyatt & Parliament House, Canberra Join together Discover & build opportunities to step up the value chain PRESENTED BY
REGISTRATION & QUERIES: Tel: 1800 177 001 Email: cday@forestworks.com.au www.forestworks.com.au/conference2012
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
INDUSTRY NEWS
Pulp mill was a long-held dream of former Gunns chief John Gay
go back more than 100 years. Gunns was founded in 1875 by brothers John and Thomas Gunn. Gunns entered the timber producing industry in the 1890s and its first sawmill was erected near the Tamar River at Henty’s Wharf. Gunns became a public company in 1986 after 115 years of private ownership by the Gunn family. The development of a plantation estate has been part of Gunns’ strategic vision for the past 50 years. The company started planting softwoods for paper supply to the Burnie pulp and paper mill in northwest Tasmania in the 1940s. • Timeline .. the rise and fall of Gunns, Pages 17-18
From Page 2
Along with the Bell Bay softwood sawmill – bought by Gunns from Forest Enterprises Australia for $47 million in December 2010 – the company’s woodchipping and woodchip export facilities are also worthy assets. In a statement, the company said it was disappointed that it would not be able to pursue the restructuring transaction, which it considered would have delivered a better outcome for the people who had a stake in the company’s past and future. “The company is very grateful to all those people, especially employees, past and present, who worked hard to support the company’s strategy,” the statement said. “This is a disappointment for them and those associated with the restructure of Gunns’ business to a plantation-based manufacturing industry in Tasmania.” In the Gunns fallout, the CFMEU says it will do everything within its power as a forest union to ensure that 50 Gunns’ workers employed at the company’s Launceston site are paid their full entitlements either by the administrator or Gunns’ bank, the ANZ. “Some of these employees have been with the company for decades, sticking with Gunns through thick and thin,” CFMEU national secretary Michael O’Connor said. “These workers should be the company’s top priority. We expect either the administrator or the ANZ to ensure they are immediately paid their entitlements. “If the administrator or the ANZ attempt to avoid their obligations we will hold them to account and fight to ensure employee entitlements come first.”
Sounding the death knell .. protesters like these are helping to destroy a sustainable forest industry in Tasmania and contributed to the demise of the Tamar Vallley pulp mill.
The union remains hopeful that a buyer can be found for the Gunns Bell Bay site in Tasmania, where about 120 workers are employed and for the Tarpeena sawmill, north of Mount Gambier in South Australia, which has 200 employees. Tasmanian Premier Lara Giddings told parliament last week it was “a sad day” for the company. “This shows that the pressure on the [Tasmanian] forestry industry is real,” she said “This does not mean the pulp mill project is dead. I would urge people not to dance on the pulp mill’s grave.” Liberal leader Will Hodgman countered Ms Giddings’ comments, saying: “No doubt your cabinet colleagues will be celebrating long and hard.” State Greens leader Nick McKim said it was the pulp mill that “brought the company to its knees”. Gunns has been in a trading halt for more than six months. The company’s original roots
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
ENGINEERS STANDING BY Choosing the wrong propeller can cost an operator thousands of dollars each year. That's why only Smithco offers engineering support for every propeller we sell. So when profits are on the line, call Smithco. For the optimum cost/benefit backed by two decades of engineering excellence, put Smithco to work for you. • 100% reversibility for uniform drying • Precision hubs with stainless steel
cycles and maximum through-put • Permanent mold S-profile aluminum blades and hubs, heat-treated for longest life in kiln environment
hardware, balanced for low-noise, vibration-free operation • Fast, accurate blade pitch angle setting with Smithco’s exclusive Degree Gauge
7911 N.E. 33rd Dr. • Portland, OR 97211 503-295-6590 • Fax 503-295-6822 www.smithcomfg.com • sales@smithcomfg.com
issue 241 | 01.10.12 | Page 3
INDUSTRY NEWS
A renewable future: AFPA releases policy roadmap for forest industry Visionary approach needed in low carbon economy
THE Australian Forest Products Association has released its national policy roadmap for development of the industry over the next five years. Chief executive David Pollard said the forest, wood and paper products industries were well placed to help the Australian economy transition to a sustainable, lower emissions future. “This roadmap shows how governments can assist, through key measures to promote these opportunities,” said Dr Pollard who released the policy roadmap last Wednesday. ‘With a growing population and higher demand for a range of building, paper and energy products, the sector can help satisfy this demand with a renewable resource,” he said. “It can also provide significant economic development and regional jobs. The forest, wood and paper products industries presently have a gross value of turnover of $22 billion, supporting around 120,000 direct jobs nationally.
“Australia should capitalise on the strengths of its renewable forest-based industries in a world of growing population and materials demand. A visionary approach is needed to reposition the industry at the forefront of the new low carbon economy.” Dr Pollard said the potential benefits of getting these policies right were huge. “The pulp and paper industry strategy group identified that full implementation of its recommendations could contribute as much as $38.7 billion to the national economy, with a further 3500 jobs by 2020,” he said. “The industry also has the potential to contribute 3000 Gwh of renewable energy per year by 2020, or around 7% of Australia’s renewable energy target. AFPA has identified eight key priorities for government and industry: • Recognise the environmental and economic value to the Australian community of a vibrant forest products
GENERAL manager of NK Collins Industries Sean Gribble is to leave the Toowoombabased cypress sawmiller to take up a senior position with Amerind Forest Products, a division of the Naja David group of companies. Mr Gribble, who has been chairman of Timber Queensland 2011-12, will be Amerind’s Queensland state manager, based at Yatala near the Gold Coast, and brings more than 30 years of local and international experience to the company. The decision follows a
restructure of NK Collins and Amerind’s desire for additional leadership, product expansion and overall growth in the Queensland market. The Naja David group has substantial investment in plant and resource development in Ghana, one of the largest manufacturers and exporters of wood-based products in the West African sub region. The group contributes nearly 20% of Ghana’s wood production and export trade and has a total workforce of more than 4500. It has its own
• Deliver competitive and efficient (low cost) energy networks for wood and paper manufacturing users, including affordable gas and associated gas infrastructure.
Dr David Pollard .. potential benefits are huge.
industry and plan for expanded contribution of the industry to a low carbon economy. • Deliver a better regulatory environment and a new program of direct action for the commercialisation of carbon sequestration in forests and forest products through payments for carbon storage and greater use of biomass for renewable energy. • Stimulate capital investment for new softwood and hardwood plantations and support the regional forest agreements to provide long term wood supply from sustainably managed forests.
• Deliver fast and effective anti-dumping action, support certification, address illegally sourced imports of wood and paper products and recognise the environmental advantages of wood through building codes and energy rating schemes. • Promote the benefits of sustainable forest management and recognise the renewability of products derived from wood through public communications activities. • Facilitate investment comparable to other countries, by reducing sovereign risk, transparent planning processes and incentives for investment. • Develop better infrastructure, promote skills and resume funding of R&D in sustainable forest industries.
Sean Gribble joins Amerind in Queensland
Page 4 | issue 241 | 01.10.12
plywood sales and distribution outlet in Kumasi which caters for the right standard of products on the domestic market and other West African countries. Naja David is affiliated to Amerind Pty Ltd Australia, Amerind Ltd UK and Timb-Mak Export GmbH in Germany.
Sean Gribble .. changing course.
Amerind operates four manufacturing facilities in Australia at Glenroy, Victoria, Ingelburn, NSW, Perth and Yatala in Queensland.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
WHAT’S ON?
OCTOBER
2-4: Future Build 2012. Melbourne Exhibition Centre. Contact Australian Exhibitions and Conferences (03) 8672 1200 or email: mail@aec.net.au
3-4: Joint ISCs and Skills Australia conference: The Future of Work In 2011, Australia’s 11 industry skills councils and Skills Australia held their inaugural joint conference. Join MC Kerry O’Brien, Q&A panel moderator Tony Jones and a range of industry identities to explore the future of work, and its implications for building Australia’s human capital. Sydney Convention and Exhibition Centre, Darling Drive, Darling Harbour, NSW.
4-6: Malaysian Timber Council’s (MTC) Global WoodMart 2012, Kuala Lumpur Convention Centre, Malaysia. For further information go to www.globalwoodmart.my. For information about complimentary hotel accommodation and other assistance, including sponsorship invitation and application forms contact John Halkett at john.halkett@bigpond. com or +61 (0)2 9356 3826. Wood Innovations 2012. 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. Visit www. woodinnovationsevents.com
14-17: Australian Forest Growers conference. Gympie Civic Centre, Gympie, Qld. More than 50 speakers will present at 20 sessions. Three concurrent streams will feature growing, products and markets and integration. The middle day will feature six field trips heading in all directions from Gympie to examine local growing and processing in action. This will be followed by the presentation of the national Tree Farmer of the Year Award at the conference dinner. Visit www.afg.asn.au for further information or contact Terry Greaves on (02) 6162 9000 or email terry.greaves@afg.asn. au
18: AFS Ltd certification seminar, Brisbane. An update update on development in certification. Topics include a general introduction to forest management and chain of custody certification; an international context to certification; linkages between certification and GBCA green star, government and company procurement policies, and illegal logging legislation; and general information on how to achieve chain of custody certification. Contact Richard Stanton on (02) 6122 9000 or email richard. stanton@forestrystandard.org.au 25: Australian Forestry
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
EVENTS
Standard Ltd annual general meeting and certification seminar, Melbourne. The seminar will provide members and interested stakeholders with an update on developments in certification and a report on progress in the review of the forestry management standard AS4708. Contact Richard Stanton on (02) 6122 9000 or email richard.stanton@ forestrystandard.org.au
30-31: ForestWorks and First Super 5th annual Industry Development Conference In 2011, Hyatt Hotel and Parliament House. Canberra. This is an important opportunity for all current and aspiring leaders of the forest, wood, paper and timber industry to engage in strategic and political debate on critical issues affecting the whole industry in Australia. This year’s conference will consider the future opportunities and challenges for manufacturing timber, wood and paper products in an advanced and multi-speed economy. The conference has been specifically scheduled to coincide with parliamentary sitting week, providing a great chance for industry players, union representatives, policy makers and MPs to gather, network and share ideas on positive future directions for the industry. Registration inquiries contact: The Events Manager at cday@forestworks.com.au or phone (03) 9321 3500.For further information, including announcements of speakers and topics, visit www.forestworks. com.au/conference2012
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 241 | 01.10.12 | Page 5
INDUSTRY NEWS
‘Watered down’ NZ emissions trading scheme becoming a farce: Jan Wright Proposed government changes will hit forestry, taxpayers
THE New Zealand government’s latest move to water down the country’s emissions trading scheme will hit forestry and taxpayers hard, Kyoto Forestry Association spokesman Roger Dickie says. Mr Dickie’s New Zealand forestry interests stretch from his office in Waverley to 28,000 ha of forest across the North Island. The government move, which he believed was led by the Act Party, made him label John Key’s National government as “the most environmentally unfriendly government New Zealand has ever seen”. When the National-led government came into power in 2007, it said it would encourage the planting of 600,000 to 800,000 ha of hill country in new forest. That would have prevented erosion and stored carbon, helping meet New Zealand’s commitment to the Kyoto Protocol and limit climate change. Politicians of all stripes have agreed that 20,000 ha of new planting is needed each year. That is not happening. Last year there was 18,600 ha fewer
Page 6 | issue 241 | 01.10.12
Nick Smith .. New Zealand’s Climate Change Miniser.
Jan Wright .. turning ET scheme into a farce.
forests in New Zealand overall, not 20,000 ha more. The government’s Climate Change Response (Emissions Trading and Other Matters) Amendment Bill is set to continue that trend. If passed it will allow carbon emitters such as energy companies to buy cheap international carbon credits to offset their emissions. It will also
continue a taxpayer subsidy to the biggest carbon emitters, a subsidy likely to cost New Zealand taxpayers $330 million over the next four years to make up the difference. The Bill faces a storm of opposition from foresters, Maori and environmentalists. Parliamentary Commissioner for the Environment Dr Jan Wright said enacting it would
‘It would allow emitters to buy cheap ‘junk’ carbon credits from overseas. Hundreds of millions of them are available from eastern Europe, one example being Hungarian forestry units’
turn the emissions trading scheme into a farce. It would allow emitters to buy cheap “junk” carbon credits from overseas. Hundreds of millions of them are available from eastern Europe, one example being Hungarian forestry units. Mr Dickie said there was no procedure in Hungary to prove it had even planted the trees. Australia, China, the US, the European Union and Japan either ban the use of those credits, or allow them in limited numbers. New Zealand would be open to 100% use of them to make up for the 16 million tonnes of carbon it emits and needs to offset. Under the combined influence of the European financial meltdown and the availability of these cheap international units, the cost of carbon credits in New Zealand has dropped to less than $3. At $12 a credit, new forestry plantings would be somewhat encouraged. At $25 a credit they would be greatly encouraged. At $3 they were discouraged, Mr Dickie said, and investors were cancelling planned plantings.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
INDUSTRY NEWS
Who wins in the games Greens play?
COALITION forestry spokesman Richard Colbeck says the demise of Gunns gave reason for Tasmanians to ask serious questions about the future. He said while the collapse of the once billion-dollar company was complex, the Greens were central to the whole sorry saga. “Who wins today?” Senator Colbeck asked. “This will have a profound effect through the Tasmanian economy. “At the kitchen table our thoughts are with the workers, their families, contractors and shareholders across the state. “And at the boardroom table there’s a clear message as well – a message about investing in Tasmania.” Senator Colbeck said Gunns’ reputation was shredded by a concerted, unrelenting Greens campaign into local communities, national and international markets. “We are seeing a stark example of Greens policy at work,” he said. “It was the deal with the Greens that saw Gunns go out of native forests. “It was the Greens and the state Labor government that brought about the sham which is the intergovernmental agreement. “It was the Greens that chased away the Chandler Corporation. “It’s a hard reality, but this is what the world looks like when the Greens get some control.” Senator Colbeck said wider public opinion was starting to turn against the Greens. “No wonder people are starting to see through this antidevelopment, anti-everything outfit,” Senator Colbeck said. “Tim Morris [MP Lyons] is on the record saying the Greens want to de-industrialise Tasmania. “We’re seeing the fruits of their labour. “We demand Premier Lara Giddings take action, remove the Green cancer from her cabinet and restore some confidence for those
considering investment in this great state.” Tasmania’s Opposition leader Will Hodgman also blames Gunns’ position on prolonged Greens campaigning. He said it was terrible that the “once-great Tasmanian company” has ended up in this position. Ed Vincent, executive officer of the Tasmanian Forest Contractors Association, says a combination of market pressures is to blame for the company’s financial woes. “[There’s been] the high exchange rate, the issue with export chips coming from a
Richard Colbeck .. stark example of Greens policy at work.
number of other countries and also a large volume of
woodchips coming out of plantations within Australia which have all contributed to increasing competition and lowering prices and financial viability across the whole industry,” Mr Vincent said. Federal Greens leader Christine Milne believes Gunns’ pulp mill is dead. “There will be no pulp mill in the Tamar Valley. It’s wrong to roll out false hope to the people who wanted the pulp mill or to punish those who don’t want the pulp mill by suggesting there is any hope this pulp mill project will be revived,” she said.
www.tanalised.com
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 7
AUSTRALIAN TIMBER DESIGN AWARDS
Awards pay homage to wood
Library-in-a-hill building takes cream of timber design prizes at Sydney judging
By JIM BOWDEN
MORE than 180 architects, engineers and designers applauded “the magnificence of wood” at the judging of the Australian Timber Design Awards in Sydney last Thursday. They gathered with timber industry leaders at the Museum of Contemporary Art in Circular Quay as winners were announced from a record 118 entries. “This is just such an incredible acceptance of wood’s superior sustainability and ability to work in complex designs that challenge other building materials for lightness and strength – rigid enough to replace steel and concrete as structural elements in bigger buildings,” said Andrew Dunn, chief executive of the Timber Development Association which organised the 13th annual competition. “Structures such as the 10-storey CLT Forte building in Melbourne have broken the ‘timber ceiling’ garnering wider acceptance of engineered wood by designers over alternative materials.” “This is the way we ought to be building,” says Melbourne architect Paul Haar who came away with five awards on the night, including the event’s crowning achievement – the 2012 overall Australian Timber Design Award, sponsored by Wood Solutions. “You have to love timber,” said Mr Haar whose winning entry the CandleBark school library built into the side of a hill at the foothills of Victoria’s Macedon Ranges and covered with 600 mm of soil pushed the envelope for wood design. The entry also captured
Page 8 | issue 241 | 01.10.12
Worthy winner .. Ric Sinclair, managing director of Forest and Wood Products Australia (left) presents the Australian Timber Design Award for 2012 on behalf of Wood Solutions to Melbourne architect Paul Haar (second from right) for his Candlebark School Library entry. Looking on are the library’s building foreman and carpenter Russel Benzie and chief executive of the Timber Development Association Andrew Dunn.
the coveted 6th Geoffrey Sanderson Trophy – a perpetual award presented by the Engineered Wood Products Association of Australasia for excellence in LVL, plywood and wood panels design; the People’s Choice Award (judged on-line by the public and sponsored by Intergrain / Cabot’s Australia); excellence in timber design of a public or commercial building (sponsor Briggs Veneers); excellence in the use of engineered timber products (sponsor Hyne); and excellence in timber design, best southern region (sponsor Boral Timber). Recalling the fatal Ash Wednesday bushfires that
‘I am always keen to design and build in timber rather than concrete and steel. Apart from the carbon-neutral benefits, wood is so easy to work’ – Paul Haar
Juel Briggs of Briggs Veneer, Sydney, presents the Office Fitout (featuring veneers) Award to John Andreas of WMK Architecture. The Briggs group of companies is a fourth generation Australian family business established in 1908, in sawmilling, and later veneer and then plywood manufacturing.
swept though Mount Macedon in 1983, Candlebark was also designed as a wildfire refuge for students, the timber structure and soil ‘roof’ helping to contain temperatures below 29 deg. “I am always keen to design and build in timber rather than
concrete and steel. Apart from the carbon-neutral benefits, wood is so easy to work with and we can use local trades people rather than bring specialists in pre-stressed concrete and engineered steel from the city which is a huge saving,” Paul Haar said. “The building came in 15% under budget.” Mr Haar said he knew a lot about the advantages of LVL construction .. “so using F17plus LVL along with structural plywood made a lot of sense. We needed something incredibly strong to carry half a metre of soil.” LVL was transported in 12 m x 1.2 m lengths from Wesbeam’s $100 million purpose-built manufacturing plant at Neerabup, north of Perth, to the building site. The large billets of the maritime pine (Pinus pinaster) laminated veneer lumber was profiled and vertically screw-laminated into massive portal frames exposed internally to form a visually dramatic and gently warped roof structure. Together with LVL purlins (ripped from portal billet offcuts), New Zealand radiata pine from Carter Holt Harvey was used for the roof membrane and the ceilings are lined with hoop pine plywood and fingerjointed hoop pine trim. The CandleBark project was built with funds from the Building the Education Revolution plan, a key element of the federal government’s $42 billion nation building stimulus package that provided infrastructure to schools and their communities. Paul Haar paid tribute to the
Cont Page 10
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
INDUSTRY NEWS
New FT chief puts it on the line: no further squabbling
THE executive chairman of Tasmania’s freight rail company Tasrail will also take on the role of heading up the Forestry Tasmania board. Cabinet has approved the appointment of Bob Annells, after the shock resignation of Miles Hampton. After only three weeks in the job, Mr Hampton quit in protest at the government’s plans to restructure Forestry Tasmania. Mr Annells is a qualified land valuer and town planner and, in an extensive public sector career, has held several head of department positions including director-general of the Department of Lands Parks and Wildlife in Tasmania, at age 35, the youngest department head in history. He was chief executive of the Melbourne Docklands Authority. He established his own consultancy business in 1999 before joining the Veolia Transport Group as executive chairman of Connex Melbourne, the operator of the Melbourne metropolitan rail franchise. He was appointed executive chairman of Tasrail in 2009. Mr Annells says he is under no illusions about how difficult the job will be at Forestry Tasmania. “We can’t afford the luxury of squabbling among ourselves; the challenges that confront Forestry Tasmania are very significant.” Mr Annells says he will not
Bob Annells .. no illusions about Forestry Tasmania.
tolerate the recent behaviour of some staff. Meanwhile, Forestry Tasmania has called on the state government to change its mind on restructuring the company. More than 300 employees of the state-owned business have signed a petition, tabled in parliament, asking the government to let Forestry Tasmania retain control of production forests. Acting Premier Bryan Green has proposed creating a new statutory authority to take over control. About 65 Forestry Tasmania staff packed parliament’s public gallery to watch the clerk of the House of Assembly read the petition to MPs. “In each case, the undersigned no longer have confidence in that the actions being contemplated by the government are in the best interests of the people,” he read.
dennis@industrye-news.com
Forestry Tasmania has called on the state government to change its mind on restructuring the company
editorial inquiries
tel:
+61 3266 1429
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 9
AUSTRALIAN TIMBER DESIGN AWARDS
Treated pine, ironbark house wins Australian Certified Timber Award
From Page 8
project’s building foreman Russel Benzie (“incredibly efficient”) and school principal Matthew Kibble “who had faith in the project from the very start.” The important Australian Certified Timber Award, sponsored by Australian Forestry Standards Ltd, was won by Sanctum Design Architects in Neutral Bay, for the Glenworth Valley house, north of Sydney – a combination of grey and red ironbark for the main joinery material and structural treated pine for the primary framework and roof trusses. The architects chose timber to reduce transportation and
InSurAnce.. It’S All In the SelectIon
Australian certified timber award winner .. Glenworth House exemplifies rugged beauty of wood.
labour costs associated with alternative structural products.
Selecting the right equipment to maximise your production output is similar to selecting the right people to maximise your insurance protection.
They said the timber provided insulating, termite resistant and bushfire resisting properties and reduced the embodied energy and renewability of the raw material.
National secretary of Australian Forestry Standard Ltd Richard Stanton (right) presents the Australian Certified Timber Award to James Cooper of Sanctum Design for the Glenworth Valley House.
• All the winners, Page 18 Further reports on the awards will appear in the next issue of Timber&Forestry enews.
Austbrokers Premier has been working with the timber industry for over 25 years and we know what insurance best suits your industry and risks. Whether it’s a complicated business interruption loss or a burnt out frontend loader we work hard to get you the right outcome. You can expect superior outcomes from Austbrokers Premier in the following key areas: • Focus on premium value and insurer security • Expert advice for Business Interruption • Premiums + claims + deductibles – self insurance option analysis • Committed claims management & settlement negotiations. • On-going service and advice, not just at renewal time. Call Alan Jones 0419 754 681 or Scott Hastings 0406 382 582 today.
Freecall 1800 803 180 ABN 95 010 576 324 AFSL 238123
Insuring it all stacks up.
Marketing manager for Weathertex Jay Bolton (left) presents the Solid Timber Cladding Award to Peter Dredge of NH Architecture for the Saltwater Coast Lifestyle Centre.
Page 10 | issue 241 | 01.10.12
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
AUSTRALIAN TIMBER DESIGN AWARDS
Robert Breda of APR Joinery representing the Timber Veneer Association of Australisa presents the Timber Veener Award to Graeme Hadenham of Group GSA Architects for Credit Suisse.
Andrew Hurford, chairman of the NSW Forest Products Association presents the award for Residential Class 1 new buildings to Fergus Scott, representing Fergus Scott Architects and Peter Stuchbury Architecture for the Cliff Face House. The award was a joint presentation by FPA and the Victorian Association of Forest Industries.
Chris White of Moxons presents the award for interior fitout (residential) in a category supported the American Hardwood Export Council. Accepting the award is Daniel Korman of Dankor Architecture, Melbourne, for the Red Hill House fitout. Hoop pine plywood panels lined the timber frame, offset with 5 mm shadow-lines, which run continuously along wall and ceiling. An array of interlocking plywood waves, beneath the kitchen’s stone bench top, creates an organic feature of the plywood and timber wine boxes, suspended from the ceiling, are recycled into pendant lights.
In a category sponsored by the American Hardwood Export Council for interior fitout (commercial), Chris White of Moxons presents the award to Tom Sharp of McGlashan Everist for the Ormond College Academic Centre.
A matter of trust. New Zealand engineered wood products – particleboard, MDF, laminated veneer lumber and plywood – manufactured by member mills of the Engineered Wood Products Association of Australasia They tick all the boxes Made in New Zealand - keeping jobs at home Reliable supply NZ Building Code compliant - 50 year durability for structural plywood with an A-bond All products specify EO or E1 emissions certified under JAS-ANZ All products must pass rigorous testing $10 million product liability insurance Free technical advice from qualified engineers
You pay for what you get. Credentials of NZ wood are unbeatable. Imported wood doesn’t make the cut!
You get what you pay for. Don’t risk it. Trust the home product.
Contacts: CHH Woodproducts New Zealand Email: info@chhwp.co.nz Web: www.chhwoodproducts.co.nz IPL (West Coast) Ltd Email: tuffply@xtra.co.nz Juken New Zealand Ltd Email: Bill@nzwoodproducts.co.nz www.nzwoodproducts.co.nz
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 11
AUSTRALIAN TIMBER DESIGN AWARDS
TDA chairman Paul Michael presents the Small Budget Projects Award won by Tim Spicer Architects for for Little Gore Street Studio. Accepting the award on behalf of Tim Spicer is the project’s builder Gary Dyson.
Strategic marketing manager for Weathertex Dejanne Kadow presents the Sustainability Award to Pouné Mitchell of Pouné Design for Sanura. Renewable and reclaimed Australian hardwood was used for the project, sourced from local suppliers to minimise the impact of transportati
TDA chief executive Andrew Dunn presents the award for best renovation (residential Class 1) on behalf of Wespine. Joint winners are MG Architects for Napoleon Street and Atelier Wagner Architects for East Melbourne residence. Accepting the awards are Maria Gigney of MG Architects and Yvonne Walker for Atelier Wagner.
TDA director Tim Rossiter presents the award for an Australian designed international project to Sahar Koohi, representing FrancisJones Morehen Thorp + Archimedia for the Auckland Art Gallery Toio Tamaki.
Page 12 | issue 241 | 01.10.12
Presenting the award for public or commercial buildings is Juel Briggs of Briggs Veneers. Accepting are Paul Haar and Russel Benzie for the Candlebark School Library.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
AUSTRALIAN TIMBER DESIGN AWARDS
Jeffrey Price, product manager for Design Pine, presents the award for outdoor timber stand-alone structures to Andrew McKinley representing Major Projects Victoria. The entry was the Princes Pier Restoration, the second largest timber piled structure in the Southern Hemisphere.
Director of the Timber Development Association Tim Rossiter presents the furniture and joinery award to Jacqui Collingwood of the EGO Group for The Hive, a project made from Eco-cert golden sassafras veneer on 25 mm MDF board.
TDA chairman Paul Michael presents the Rising Star Award to Ghislain Coulon of DesignInc who accepted the award on behalf of Adrian Doohan for the Australian Red Cross Blood Service Melbourne Processing Centre.
Eileen Newbury, managing director, Leading Edge Events and representing Wood Solutions catches up with Michael Kennedy of Kennedy’s Classic Aged Timbers.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 13
AUSTRALIAN TIMBER DESIGN AWARDS
Enjoying pre-dinner drinks are Jonni Draper and Grant Amon of Grant Amon Architects and Felicity Wheeler of Poune Design. Engineered wood excellence .. Sydney architect Caroline Pidcock presents the perpetual Geoffrey Sanderson Trophy for excellence in LVL, plywood and wood panels design to Melbourne architect Paul Haar for his Candlebark School Library project. The award was presented on behalf of the Engineered Wood Products Association of Australasia. A member of the Pidcock family which owns the Big River timber group at Grafton, Ms Pidcock has pursued environmentally sustainable design principles in her practice for more than 15 years. She was the second ever female president of the NSW chapter of the Australian Institute of Architects and is president of the Australian Sustainable Built Environment Council. Big River has been supplying timber products for more than a century and third and fourth generation members of the founding Pidcock family retain ownership and are actively involved in the running of the company.
All from Toland Design Partners .. Robert Bruce, Mary Ashton and Robert Toland himself.
Charming couple .. Don Martin, southern NSW sales manager, Hyne, and Gai Martin.
Page 14 | issue 241 | 01.10.12
The Weathertex foursome at the timber design awards .. Paul and Michelle Michael and Dejanne Kadow and Jay Bolton.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
AUSTRALIAN TIMBER DESIGN AWARDS
Enjoying the view from the Museum of Contemporary Art are Group GSA architects Tessa Regan, Graeme Hadenham and Emily Moss.
Eighty-two-year-old Gerda Cain is escorted to the awards by her grandson Danny Korman of Danny Korman Architecture, Melbourne.
Graeme Hadenham of Group GSA chats with Frank Luiz, Robert Breda and Rob Mayo of Briggs Veneers.
Old friend catch up.. Allan Lamb of Bates Architecture, Melbourne, and Peter Dredge, principal, NH Architecture, Melbourne.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
Jim Bowden, representing the Engineered Wood Products Association of Australasia (left) presents the Timber Panel Award to Jarrod Lamshed of LAVA Laboratory for Visionary Architects for the Martian Embassy.
issue 241 | 01.10.12 | Page 15
AUSTRALIAN TIMBER DESIGN AWARDS
Design awards – all the winners
Residential Class 1 – new buildings: Cliff Face House – Fergus Scott Architects & Peter Stutchbury Architecture. Sponsor: Victorian Association of Forest Industries and NSW Forest Products Association. Multi residential – new buildings: Ruskin Street Townhouses – Marcus O’Reilly Architects. Sponsor: Victorian Association of Forest Industries and NSW Forest Products Association. Residential Class 1 – best renovation: East Melbourne residence – Atelier Wagner Architects Napoleon Street, MG Architects. Sponsor: Wespine Industries. Public or commercial buildings: Candlebark School Library – Paul Haar Architect. Sponsored by Briggs Veneers. Interior Fitout – residential: Dankor Architecture – Red Hill House fit-out. Interior Fitout – commercial: Ormond College Academic Centre – McGlashan Everist. Sponsor: American Hardwood Export Council. Outdoor timber – standalone structures: Princes Pier Restoration – Major Projects Victoria. Sponsor: Design Pine - ITI Distinction Awards – Sustainability: Sanura Pouné Design. Sponsor: Weathertex. Rising Star Award: Australian Red Cross Blood Service Melbourne Processing Centre – Adrian Doohan of DesignInc Sponsor: Timber Development Association (TDA). Small Budget Projects Award: Little Gore St Studio – Tim Spicer Architects. Sponsor: Timber Development Association (TDA). Recognition Awards Timber Products Australian Certified Timber: Glenworth Valley House – Sanctum Design. Sponsor: Australian Forestry Standards Ltd
Page 16 | issue 241 | 01.10.12
Helen and Cliff Brake of Simon Doring Sustainable Building Design meet up with Juel Briggs of Briggs Veneer, Sydney.
Bronwyn Foord, Window and Door Industry Council, is the centre of attention for Chris Philpot of Planet Ark and Ric Sinclair of Forest and Wood Products Australia.
Ready for anything .. Ian Halliday, general manager, Harper Timber, Pendle Hill, Jeff Price, product manager, ITI (NSW) Pty Ltd, St Marys, and Joshua Mulders, director, Architecture Interior Landscape Design, Annandale.
Furniture and Joinery: The Hive – EGO Group. Sponsor: Timber Development Association (TDA).
Solid Timber Cladding: Saltwater Coast Lifestyle Centre – NH Architecture. Sponsor: Weathertex.
Timber Flooring: Knox Grammer Great Hall and Aquatic Centre – Jones Sonter Architects. Sponsor: Hurford Hardwood Pty Ltd. Engineered Timber Products: Candlebark School Library – Paul Haar Architect. Sponsor: Hyne. Office Fitout Featuring Veneers: ASX – WMK Architecture. Sponsor: Briggs Veneers. Recycled Timber: Zen House – Zen Architects. Sponsor: Kennedy’s Aged Timber. Treated Pine Residence: Palm Beach – Toland Architectural Design Partners. Sponsor: Design Pine / ITI. Timber Veneers: Credit Suisse – GroupGSA. Sponsor: Timbers Veneers Association Australia. Timber Panels: Martian Embassy – LAVA Laboratory for Visionary Architecture. Sponsor: Engineered Wood Products Association of Australasia. Australian Designed International Project: Auckland Art Gallery Toi o Tamakin – Francis-Jones Morehen Thorp + Archimedia (architects in association). Sponsor: Timber Development Association (TDA). Best Central Region: Fergus Scott Architects and Peter Stuchbury Architecture. Best Northern Region: Pouné Design. Best Southern Region: Paul Haar Architect. Best Western Region: Woods Bagot. All sponsored by Boral Timber. Australian Timber Design Award 2012: Paul Haar Architect, Melbourne. Sponsor: WoodSolutions. People’s Choice Award 2012: Paul Haar Architect. Sponsor: Intergrain High Performance Timber Finishes / Cabot’s Australia
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
OVERVIEW
Timeline: the rise and fall of Gunns 1875: Business started. 2012: voluntary administration
GUNNS has had a long and controversial history. In its golden days, its shares were trading at $4 each and the company was turning an annual profit of $100 million. It was once the biggest hardwood sawmiller in the southern hemisphere, employing 1200 people. It now has about 600 workers and its shares plummeted before a long trading halt. The company’s preliminary financial report for 2011-12 revealed an annual loss of $904 million, with asset devaluation of more than $1 billion. Here’s a potted history of this former timber giant: 1875: Family building business started. Brothers John and Thomas Gunn establish a building business in Launceston, moving to timber production in the 1890s. 1974: Former sawmiller John Gay joins the company to manage the Waverly and Summerhill plants. 1986: Company publicly lists, Mr Gay, appointed managing director, starts the process off expansion, driving timber and hardware acquisitions as Gunns is publicly listed on the stock exchange. 1989: Chairman Edmund Rouse attempts to bribe a Labor MP to cross the floor over the LaborGreen Accord and is later jailed for 18 months. 2001: Company pays $335 million for Tasmania’s biggest woodchip company North Forest Products, making it Australia’s biggest exporter of woodchips 2003: In June, John Gay meets Premier Paul Lennon in a restaurant to discuss plans for a pulp mill in the Tamar Valley. 2004: The company announces plans for a $2.3 billion pulp mill in the Tamar Valley. It says construction will start at Bell Bay in 2006 and the mill
In the wilderness .. Gunns decision a dark day for a timber industry that has existed in Tasmania for more than 100 years.
would be operating in 2008, producing 1.3 million tonnes of pulp. Gunns’ share price spikes to $15.90 but then returns to $4.70. 2005: Gunns files a writ against 20 prominent conservationists, including Australian Greens leader Bob Brown. The company claims millions of dollars in damages, saying the conservationists’ actions cost it jobs and profits. 2006: ‘Gunns 20’ lawsuit dropped. Gunns’ 7500-page pulp mill study is released and found to contain errors and omissions. In November, the company drops some of the damages cases against conservationists. 2007: Pulp mill gets key approvals. In January, Julian
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
Green and Warwick Raverty resign from the pulp mill assessment panel. Gunns withdraws from Tasmania’s independent planning and development assessment process after senior RPDC panel members cited the mill design as ‘critically noncompliant” The former chair of the pulp mill assessment panel and retired Supreme Court judge Christopher Wright, claims the premier Paul Lennon gave him an ultimatum to speed up the assessment of the pulp mill, or be sped up. The attorneygeneral, Steve Kons, refuses to investigate. In March, Paul Lennon recalls parliament and by the end of the month new fast-track pulp
mill assessment legislation passes both houses of the Tasmanian parliament. Labor backbencher Terry Martin votes against the legislation and quits the party. In August, Gunns says every day of delay will cost the company $1 million. In October, federal environment minister Malcolm Turnbull gives separate conditional federal approval. John Gay says building will start by December. 2008: In February, Gunns buys Auspine for $325 million. In May, ANZ abandons its plan to fund the controversial Tamar Valley pulp mill. New Premier David Bartlett draws a ‘line in the sand’, saying no more government help will be provided and Gunns is on its own. An anti-mill protest in Launceston in August draws 5000 people. 2009: Federal Environment Minister Peter Garrett approves most, but not all, of the operating conditions for Gunns’ planned pulp mill. In September, Treasurer Michael Aird flies to Europe to lobby Swedish company Sodra to back the mill. Protests over the pulp mill continue with TV gardener Peter Cundall arrested during a rally outside Parliament House in November. 2010: The man behind the pulp mill dream, 66-year-old John Gay, retires; Greg L’Estrange becomes Gunns’ managing director. After five years, the ‘Gunns 20’ case is finally settled out of court, paying more than $150,000 to the final four defendants. Gunns announces its decision to exit native timber logging. In October, a statement of principles for a forest peace deal is signed. 2011: Company sells assets to fund pulp mill. Earthworks start at the Tamar River pulp mill site to meet licence conditions. Gunns responds to falling
Cont Page 18
issue 241 | 01.10.12 | Page 17
OVERVIEW
Timeline: the rise and fall of Gunns
From Page 17
markets by selling assets. The company withdraws from native forest harvesting, closes sawmills, stops exporting woodchips and sells the Triabunna woodchip mill. The new owners of Triabunna are tourism entrepreneurs Graeme Wood and Jan Cameron, who appoint former Wilderness Society head Alec Marr as manager. 2012: John Gay pleads not guilty to two insider trading charges, as ASIC alleges Mr Gay sold Gunns’ shares in December 2009, a few months before the shock announcement of a 98% halfyear profit slump. NZ billionaire and ‘ethical investor’ Richard Chandler looks at buying a large stake in the company but then
Steering a sinking ship .. Greg L’Estrange, managing director of Gunns since 2010.
pulls the pin after being lobbied by conservationists. Massive write-downs and losses see
shares drop to their lowest point in 30 years. In March, Gunns goes into a trading halt
with shares worth 16 cents. Gunns and Forestry Tasmania are in dispute over $25 million owed to the state-owned business. In June, insolvency experts are called in to look at company books. Disgruntled shareholders begin a multimillion dollar class action against the company. The company sells its Launceston headquarters in July and gets a $65 million tax bill – but proceeds with capital raising plans for the pulp mill. In August, the board says it is unable to form the view that the mill will proceed; the company owes banks $515 million. At the end of the month, Gunns reports a net loss of more than $900 million. On September 25, the company enters voluntary administration.
CFMEU convinced Gunns businesses viable
THE union representing Gunns employees remains hopeful the beleaguered timber company’s businesses can survive and jobs can be saved. The Construction, Forestry, Mining and Energy Union says several of Gunns’ concerns, including operations at Bell Bay in Tasmania and Tarpeena in South Australia, are viable and many of its 600 workers can stay employed.
But it has warned an incoming administrator it will leave no stone unturned in seeking to ensure sacked workers’ entitlements are paid. “I would see them as operational and we would want that to be the case for job security,” CFMEU spokesman Danny Murphy told AAP. “Given that the administrator may take a different point of view, the union will once again
pursue every avenue to ensure that our workers are paid their entitlements. “We would want ANZ Bank to give us that assurance.” The CFMEU’s immediate concern was the entitlements of 45 employees due to be made redundant at Gunns’ Launceston headquarters. The union says 200 workers are employed at Tarpeena in South
Australia and around 120 at the Bell Bay sawmill. Bell Bay, in Tasmania’s north, is also the site of the controversial $2.3 billion pulp mill proposed by Gunns that led the company to seek a massive injection of funds. Tasmanian premier Lara Giddings also remained hopeful the mill might proceed, warning against “dancing on [Gunns’] grave”.
Opportunity: new engineered product Project seeks access to on-going timber resource
ThIs engineered product is manufactured from small diameter treated true round plantation logs that would normally be chipped or destroyed. Resource cost is minimal. The production system is low capital cost and can be set up in a minimum of time and at a minimum of cost. Compared with current systems such as LVL, sawn timber etc. this product has unrivalled versatility, fire resistance, projected longevity and sustainability. This product has the ability to lower the costs of floor and wall framing in modern homes, as well as being ideal for low-cost housing The entire buildings can be erected on site using unskilled labour. The product has undergone comprehensive testing at the engineering faculty of the University of Technology Sydney under the guidance of internationally renowned timber engineer Prof. Keith Crews.
Engineered Timber Products
Loggo products have undergone comprehensive testing at the engineering faculty of the university of Technology sydney.
Page 18 | issue 241 | 01.10.12
The project is keen to establish a plant near a guaranteed resource. Contact: (02) 4256 4767 or email pat@loggo.com.au www.loggo.com.au
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
Builders say softwood lumber talks must stay outside Asia-Pacific deal
HOMEBUILDERS don’t want a lumber agreement between the US and Canada to become part of negotiations on an AsiaPacific trade deal. The National Association of Home Builders has called on US trade officials to avoid using the Trans-Pacific Partnership (TPP) as a means of renegotiating the US-Canadian softwood lumber agreement prior to its 2015 expiration, arguing it would undermine the successful negotiation of the trade pact. The talks should not be bogged down “with a centuryold dispute between the United States and Canada on softwood lumber that has yet to achieve a final resolution,” Jerry Howard, chief executive of the NAHB, told US trade officials. “Softwood lumber issues are too important to get lost in the context of a multinational trade negotiation and must be addressed by both countries in a bilateral forum,” he said. Mr Howard expressed concern that any artificial trade barriers on lumber, one of the most important and expensive components of homebuilding, and other materials could have significant economic consequences and weigh on the gradually improving housing market. “Any unnecessary trade restraints that result in price
Nearly a dozen industry associations testified, including
the AFL-CIO, the USA Chamber of Commerce, International Dairy Foods Association and Association of Global Automakers. Groups such as the National Chicken Council, which also testified, have joined with the milk industry in pressing for Canada to remove trade restrictions on their US exports. They argue that Canada has violated the 1994 North American Free Trade Agreement because of its tariffs and other restrictions on imports. They have repeatedly called for Canada to open its market to give US exporters a fair shot at sending their products north and said Canada should agree to those changes to gain entry into TPP talks. “The administration will continue to ensure that we hear from the widest possible range of stakeholders in Washington and from across the country as we move forward in these negotiations,” US Trade representative Ron Kirk said. The nations – the US, Australia, New Zealand, Chile, Peru, Singapore, Vietnam, Malaysia and Brunei – which have been negotiating for more than two years, wrapped up their 14th round of talks this month. They are aiming to complete a deal sometime next year.
The three-month extended review used ground inspections and satellite images. The findings represent trees in rural, forested areas that died from drought, insect infestation or disease due to drought stress.
The 301 million figure does not include trees that died in cities and towns. Experts earlier this year determined another 5.6 million trees in urban areas died as a result of the devastating drought.
Logs head for the Warm Springs Forest Products mill in Central Oregon, USA.
hikes or shortages would harm housing affordability and have a negative effect on the nation’s economy,” he said. Canada and Mexico are the latest countries to take a seat at the TPP, negotiating with nine other nations, including the US, this fall. The US Trade representative
Any artificial trade barriers on lumber and other materials could have significant economic consequences and weigh on the gradually improving housing markett’
Jerry Howard .. concerns on artificial trade barriers on lumber.
held a public hearing last week on issues related to Canada’s participation in the negotiations.
Drought takes severe toll on trees in Texas
AN updated ground and aerial survey indicates about 301 million trees have died in rural Texas, USA, because of the 2011 drought. The Texas A&M Forest Service says the figure comes from an
examination of hundreds of forested plots state-wide. The Texas agency last December announced a preliminary estimate of up to 500 million trees killed by the drought.
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 19
INTERNATIONAL FOCUS
Asia saved BC wood industry But what happens when US housing recovers?
BRITISH Columbia’s forest products industry is a good example of how to go places and get business. Not long ago it was almost wholly reliant on the United States to buy its goods. But then the US housing market crashed, cutting demand drastically. Since then, demand from China for the Canadian province’s wood has taken off, going from less than $50 million in lumber sales to $1.1 billion annually, according to Minister of Jobs, Tourism and Skills Training Pat Bell. But the process of selling wood to China, and elsewhere started long before the market crashed in the US. The Council of Forest Industries , which represents BC’s interior forest industry, established an
office in Tokyo in 1971 and now has staff working out of Canada Wood Group offices — the Canada-wide woods product overseas lobby — in Shanghai, Beijing, Korea, Taiwan, Europe and the UK. In Japan, BC’s forest industry not only had to convince Japanese builders to switch from post-and-beam techniques to the two-by-four construction BC wood is used for, it also had to create special, higher-quality lumber to satisfy the more demanding Japanese market. But sales in Japan grew steadily and until last year, when it was overtaken by China. Like in Japan, COFI had to introduce Chinese builders to two-by-four construction. That included helping draft a building code and setting up training programs in wood
construction. Now COFI is looking at the possibilities in India. Rather than trying to encourage the use of wood for home building like it did in China and Japan, the BC forest industry is considering how its products can be used in furniture or interior fittings. “You can’t assume each of the new markets are going to embrace the housing style we feed, and you have to look and see what else is appropriate,” says Glen Wilson, president of Interex Forest Products, an export sales and marketing company for five independent BC and Alberta wood products producers. “You also have to see what the alternatives are in a particular market. For example, our success in China was highly influenced by what was
happening in Russia. “For decades, Russia was the largest supplier of timber products to China, but a few years ago they brought in a substantial export tax on their logs and timber. That opened the window for Canada to enter the market.” BC’s forest industry has done so well expanding outside of North America, representatives worry about maintaining business in emerging markets when the US bounces back and demand from south of the border climbs. “It is absolute top of mind for the industry because the benefits of being able to be in a number of different markets in a significant and consistent manner is huge,” Glen Wilson said. – The Vancouver Sun
Invitations are due to be sent out, however you can get in early and book your table or seat at this year’s Queensland Timber Industry Awards Gala Evening. rd The event will be held on Saturday 3 November 2012, at Victoria Park Functions Centre. This prestigious industry event will showcase and recognize our industry’s finest. This is the ONLY event of its kind for the Queensland Timber Industry and it is our chance to recognize those who excel in their chosen field. Tickets are $143 each or a table of 10 is $1,325 GST inclusive. Phone Alicia on 3254 3166 or email alicia@tabma.com.au Tickets includes 3 course meal, 5 hour beverage package and live band. TABMA QLD is proud to be hosting the event, sponsored by a host of businesses including timber industry and commercial entities.
Brisbane Hoo-Hoo Timber Industry Club 218 Inc.
Page 20 | issue 241 | 01.10.12
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
PEOPLE
Former sawmiller now city’s ambassador
TIMBER industry identity Charles Achilles, noted for his contributions to local communities during his involvement with sawmilling and merchandising over a long career in wood, has been named Logan Seniors Ambassador 2013. Logan is a city in southeast Queensland, the hub of the thriving corridor between Brisbane and the Gold Coast. Development in the northern corridor has increased by nearly $720 million over the past year, rising from $5.45 billion last year to $6.174 billion this year. The $6.174 billion in development is planned or under way across 57 projects and more than $3.4 billion, or 55% of the total development spend, is already under construction. The ambassador title was awarded to Mr Achilles by
Top senior .. Charles Achilles, president of Rochedale / Springwood National Seniors (winner) with, from left, Olwyn Cottrell , Crestmead 40+ Club (runner-up), Mayor of Logan City Pam Parker, and Sue Connolly of LACOTA (runner-up) during presentations at the Logan Seniors Expo.
Logan Mayor Pam Parker in front of more than 400 residents at Logan’s Senior Expo. Somewhat taken aback by the honour, Mr Achilles said he was glad he hadn’t worn his stubbies and thongs down to the centre to man his National Seniors information stand. Never one to shy from a task, the new ambassador has agreed to promote Logan city at every opportunity and
thanked those attending for their support. His time in the timber industry included senior positions at the Chinchilla cypress sawmills of Emmerson Brothers (1958 to 1974) and Hyne (1974 to 1984) and at Hyne Rocklea and Browns Plains (1984 to 1997). During his time at Chinchilla, Mr Achilles was involved in many community activities. These
included life membership of the Chinchilla Historical Society, past first principal Chinchilla Royal Arch Chapter, board member of Chinchilla Fire Brigade (government representative), member Chinchilla Railway Centenary Committee (1978) and secretary / treasurer Chinchilla Aero Club. Mr Achilles was a director of Brisbane Hoo- Hoo Club 218 and in October will join fellow club members and foresters at a special function in Brisbane to mark anniversary of the Sunshine AusTIS conference on the Sunshine Coast in 1982. Forester Dr Gary Bacon, incoming Grand Master of Queensland Masons, will welcome the group for an inspection of the United Grand Lodge of Freemasons in Ann Street, Brisbane, before a luncheon at the historic Grand Central Railway Hotel.
07 3266 1429
Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 241 | 01.10.12 | Page 21
Timber & Forestry e news is published by Custom Publishing Group. Timber & Forestry e news is a full colour e magazine emailed every Monday to Decision Makers within the Australian and New Zealand Timber and Forestry sectors. Advertising is booked with a minimum 4 week booking with discounts for 12, 24 and 48 week bookings.
RATES
12 week- 7.5% Discount 24 week- 10% Discount 48 week- 15% Discount Classified ads can be booked in a per issue basis. All advertisements link to customer websites or email address with an option for rich text (flash). BENEFITS:
DIRECT PENETRATION via email. WEEKLY opposed to monthly alternatives. NEWS that is up to date that will ensure readership. COST EFFECTIVE advertising rates.
S
Display Ads
Display Ads Minimum 4 issue booking
Rate per Issue + GST $380 $210 $210 $165 $138 $83 $203 $90
Full Page Bleed Half Page Vertical Half Page Horizontal Third Page Horizontal Quarter Page Vertical Eighth Page Front Page Third Horizonal Front Page Masthead
Size Specifications Height x Width 303mm x 216mm 254mm x 93mm 125mm x 190mm 73mm x 190mm 125mm x 93mm 60mm x 93mm 73mm x 190mm 33mm x 45mm
Classifieds
Classified Ads per week
Half Page Vertical Quarter Page Vertical Eighth Page Horizontal Full Page Bleed
$182 $120 $72 $330
220mm x 93mm 107mm x 93mm 51mm x 93mm 303mm x 216m
Extras: Video Available Video next to front cover $200 per issue. Within the magazine $165 per issue.
Artwork Specifications: Please supply all artwork as High Resolution (300dpi) Pdf’s or jpegs. Send artwork to kerri@mycustompublishing.com.au
DISPLAY DEADLINES Booking – Noon Wednesday for Monday edition. Material – Noon Thursday CLASSIFIED DEADLINES Bookings & Material – Noon Friday Terms: Account Clients- 14 days New Accounts: Payment on Booking All Classifieds- Payment on booking (Credit card preferred)
All prices quoted plus GST and based on Art being supplied. We can create artwork if required – Eighth/Quarter $44 Half $66 which will be billed if complete art is not supplied to our specifications. Video: Maximum 3 meg swf file. Due to the regularity of timber & forestry e news and the tight deadlines no customer proofs can be sent.
Advertising Sales
Banner Ads &
Classified Ad Custom Group Advertising: Tel Publishing +61 7 3266 1429 Email: cancon@bigpond.net.au Page 22 | issue 241 | 01.10.12
Production T: 0439 417Email: 671 203cancon@bigpond.net.au | 12.12.11 | PAGE 15 Advertising: Tel +61 7 3266 1429ISSUE
T: (07) 3266 1429
Sales
e: cancon@bigpond.net.au
e: brett@mycustompublishing.com.au
e: kerri@mycustompublishing.com.au
www.industrye-news.com