Issue 247 Tmber & Forestry

6895

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issue 247 | 12.11.12 | Page 1

Bombala upgrade good Korea move Dongwah invests $84m in computer sawmilling technology from Finland

400,000 tonnes of sawn logs a year.

At this time, Bombala will be one of the largest production facilities of plantation-based landscaping products in the world.

The sawmill technology, built around HewSaw machines imported directly from Veisto Oy’s family-owned factory in the heart of Finland’s lake district, will be the most modern in the southern hemisphere and staffed by fewer than 10 people.

One piece of equipment – a HewSaw SL 250 trio high-

Turning the sod .. Dongwah has big plans for the Bombala radiata mill.

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•A dam good idea: grow plantations • Alliance supports $31bn industry

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GLOBAL wood manufacturer Dongwha has invested more than $84 million in a fullyautomated upgrade of its softwood sawmill at Bombala in the NSW Monaro region.

The development was revealed to industry at a special inspection of the Sandy Lane site, located 485 km south of Sydney, last week.

A 20-year wood supply agreement to access plantation softwoods across southern New South Wales and fareastern Victoria underpins the development which is expected to test-produce logs before Christmas and be fully operational by next February with capacity to process up to

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issue 247 | 12.11.12 | Page 1

INDUSTRY NEWS

World-first building an emblem for the future of timber

THE world’s tallest wooden apartment tower in Melbourne should serve as an emblem for the future of the nation’s forest and timber industries. Coalition forestry spokesman Senator Richard Colbeck said.

Using cross-laminated timber, Lend Lease is constructing the $11 million Forte building 30% faster and cheaper than would be possible using conventional construction.

“In no small way, this building represents a possible future for the forest and timber industries in Australia,” Senator Colbeck said after a tour of the building.

“This is a stunning example of why it is completely wrong to see timber as a sunset industry, despite the challenges it has ahead.

“I was particularly heartened by a quote from Alex de Rijke, a renowned London architect, that if the 19th century was of steel and the 20th century of concrete, then the 21st century is about engineered timber.

“To see a project of this scale and cost in Australia really does excite me, but we still don’t have the manufacturing processes here to create these sorts of materials and, partly, because we haven’t created the demand.”

Senator Colbeck said Australia had the material, skills and expertise to realise the industry’s vast potential.

There were, however, changes required in policy settings such as a greater commitment to research and development, and providing certainty around timber supply.

He also said the timber and forest industries needed to find new ways to communicate the

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Learning Skills Research Advice Innovation

Inspection .. Richard Colbeck looks over the Forte CLT building in Melbourne.

value of the industry – both in financial and environmental terms – to the broader public.

Australian hardwoods were well positioned to provide the next level of advancement in the technology around CLT timber panels.

“We need to create an environment in which people have the confidence to invest in innovation,” Senator Colbeck said.

“There is a bright future there to be realised, but the policy settings are not right.

“A Coalition government will create the right environment for research and development, will foster innovation, cut red tape and guarantee supply.”

Australian hardwoods are well positioned to provide the next level of advancement in the technology around CLT timber panels Page 2 | issue 247 | 12.11.12

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

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

SOUTH AUSTRALIA

Level 2, 32 South Terrace, Adelaide SA 5000 Tel: (08) 8219 9028 Email: michelle@forestworks.com.au

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INDUSTRY NEWS

A dam good idea: use the land for timber plantations

Traveston region a solution to wood shortfall

RATHER than sell off bits and pieces of land acquired by the previous government for the proposed Traveston Crossing dam in the Mary Valley, 160 km north Brisbane, and incur substantial losses due to current market prices, the state should consider leasing the land to grow timber plantations.

The chief executive of Timber Queensland Rod McInnes said leasing the land to plantation growers for a 99-year lease would provide immediate financial returns while preserving the land in state ownership for potential sale in the future.

[The Traveston dam was a proposed water project initiated by the government in 2006 as a result of prolonged drought.

The project was cancelled in November 2009 after being refused approval by federal Environment Minister Peter Garrett].

The state government has released a six-year plan for the management and sale of land it bought for dam.

The previous Bligh Labor government bought 474 properties and sold five back to previous owners when the project was scrapped in 2009.

The state is now selling three properties on the open market.

The government says it does not want to flood the market with these properties.

Coordinator-general Keith Davies says more land will be listed over the next 12 months.

“Plantation trials have been done before so we know that you can successfully develop a plantation industry in the area,” Rod McInnes said.

“Not only would this provide extra jobs for the region in plantation establishment,

Traveston dam site in the Mary Valley .. state should consider leasing the land to grow timber plantations.

management and sawmilling, it would enable the land to be used for other industries that work effectively in concert with plantations, for example grazing, bee-keeping and recreation,” he said.

Mr McInnes said Queensland was currently unable to meet its timber needs from local production and that forecasts predicted consumption would double by 2040.

“Establishing plantations in this area will allow production of much needed timber resource for Queensland’s future

‘Every cubic metre of timber we can grow locally, rather than fuelling ships and trucks to bring wood to Queensland, will store carbon emissions from the nearby major transport corridor’ – Rod McInnes

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Rod McInnes .. growing and processing timber would deliver the state considerable environmental benefits.

Greg Hunt .. forestry, beef, dairying, ginger, mangoes and avocados still viable industries in the Mary Valley region.

requirements,” he said.

“It can then be processed in the Gympie region, already the centre of timber production and where all necessary infrastructures exist.”

Timber Queensland points out that growing and processing timber in the area would also deliver the state considerable environmental benefits.

“Every cubic metre of timber we can grow locally, rather than fuelling ships and trucks to bring wood to Queensland, will store carbon emissions from the nearby major transport corridor,” Mr McInnes said.

“We estimate there is about 7000 ha of land suitable for plantations in the area, which would permanently store 1.4 million tonnes of carbon in the plantations and the wood products manufactured from the 85,000 cub m of sawn timber that could be harvested for Queensland’s use each year.

“It’s is a win, win, win, win situation – the state gets an income from the land use while retaining it for future use consideration, the land can support other uses while the trees are growing, jobs will be established and the environment benefits.

“This is an idea that needs serious consideration.”

During a tour of the Mary Valley federal Shadow Environment Minister Greg Hunt said Traveston was about the worst example of a possible dam site in Australia.

He said the valley ought to be a food bowl, not an evaporative pond, listing forestry, beef, dairying, ginger, mangoes and avocados as still viable industries in the region.

issue 247 | 12.11.12 | Page 3

INDUSTRY NEWS

Broad community interest in development of mill’s potential

From Page 1

production sawline – will be operated completely by computer.

The imported machinery includes a log sorting line, sawmill in-feed system (line speed 150 m/minute) and ground floor handling system with chip screens and offline chipper provided by Nordautomation Oy as well as a VK8000HD-Combi-3R debarker by Valon Kone Oy. HewSaw’s turnkey delivery also includes automation and the log scanning equipment. The automation will be delivered

by TUI Technology from New Zealand and the log scanning equipment and optimising will be provided by Prologic+ from Canada. Kit-Sell Oy has separately agreed to the

The sawmill in-feed system provided by Nordautomation Oy, Finland.

delivery of a dimension sorting plant and a stacking plant, which will be turnkey deliveries.

Bombala has a green mill, drying kilns, impregnation plant

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and planer and production is expected to increase to 150,000 cub m a year of sawn lumber in a single shift by 2015.

The value of the Finnish machine deliveries is estimated at almost $25 million which makes it one of the biggest exported Finnish sawmill machinery deliveries to date.

The Bombala sawmill originally operated as a 50:50 joint venture of Dongwha Australian Holdings Pty Ltd and Willmott Forests Ltd. Dongwha secured the sawmill after acquiring Willmott in 2011 after the MIS plantation company went into receivership, owing around $120 million to its bankers.

Dongwha Holdings, founded in

1948 as a sawmilling company in Wangsipri, Seoul, has a wood materials turnover in excess of $800 million and processing operations in Korea, Malaysia, Indonesia and New Zealand, and last year reported sales of $US396.7 million.

The NSW government has approved an environment protection licence for the Bombala sawmill which met 60 conditions relating to issues ranging from site contamination, dust and noise reduction, emissions monitoring, roads, traffic, bridge management and upgrade.

The federal member for EdenMonaro Mike Kelly says there are federal programs planned for the district that involve environmental and water projects that could be incentives to development of the Bombala mill.

“There is broad community interest in the potential for development at Bombala,” he said.

Dongwha’s global operations took off when it started MDF manufacturing in Malaysia in 2003. Since then, it has aggressively expanded its MDF business in the region with four MDF lines, two MFB lines, one LPM line and one resin factory to become the largest MDF company in Malaysia.

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Page 4 | issue 247 | 12.11.12

Dongwha has aggressively expanded its MDF business in the Malaysian region.

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EVENTS

WHAT’S ON?

NOVEMBER

9: ALCAS (Australian Life Cycle Assessment Society) roundtable – MLC Centre, Level 47, 19 Martin Place, Sydney, 9am-1pm. German Experiences in Timber Assessment and Building Sustainability Rating Tools and Directions for Australia. Keynote speaker is visiting international scientist Sebastian Rüter from Germany’s Johann Heinrich von ThünenInstitute. He will present the results of a recent LCA project of German forest products in the context of Environmental Product Declarations (EPD).

His presentation will focus on sustainable building certification schemes in Germany. The roundtable is a ‘free’ event for ALCAS members and invited guests ($50 for non-members) or join ALCAS for 2012-13 at $99 and attend for free). Agenda (and log-in details will be emailed to registrants. Email: roundtable@ alcas.asn.au 13: VAFI annual dinner – Grand Ballroom, Park Hyatt, 1 Parliament Square, Melbourne.

6:30-11:30pm. The dinner presents an opportunity for members and stakeholders of Victoria’s forest and wood products industry to network and showcase the industry, and its achievements, in a relaxed atmosphere. Special guest speaker Peter Walsh, Minister for Agriculture and Food Security and Minister for Water. Masters of ceremonies Nick Duigan and

Andrew Hart from the TV series Going Bush. Contact Jillian Roscoe on (03) 9611 9002 or jroscoe@vafi.org.au for bookings.

26: FSC Australia 6th Annual Excellence awards, Melbourne This year sees a redesign of the awards, and the introduction of three new awards categories.

Visit www.fscaustralia.org 28-29: ForestTech 2012 – Improving Wood Transport and Logistics.

Melbourne and Rotorua

30: NSW Forest Products Association annual conference and timber industry dinner.

Parkview Room, Doltone House, Darling Island Wharf, 48 Pirrama Rd, Pyrmont. Conference 9am3.30pm. Theme: Community Engagement for the Forestry Industry. Keynote speaker Troy Grant, Parliamentary Secretary Natural Resources. AGM for FPA members at 4pm. Dinner starts at Doltone House, Jones Bay Wharf, Pirrama Rd, Pyrmont, at 6.30pm. RSVP: November 2. Tel: (02) 9279 2344. Email: fpa@nswfpa.asn.au. Web www. nswfpa.asn.au

APRIL 2013

7-10: 6th International Woodfibre Resources andTrade Conference, Istanbul, Turkey.

‘Woodchips and Biomass for Global and Regional Markets’.

Hilton Istanbul Hotel. Discounted rooms for conference delegates if booked via the online process.

Book before November 2, 2012 to ensure a room. Visit www.

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woodfibreconference.com

Residues-to-Revenues 2013 Conference and CleanTECH Expo Wood energy and ‘cleantech’ industry developments.

Crowne Plaza Hotel, Auckland, April 10-11, 2013; Bayview Eden Hotel, Melbourne, April 15-16, 2013. Event website: www. woodresiduesevents.com

April 28-May 12: EuroWOOD 13 study tour to LIGNA Hannover (May 6-10). Study tour and tourist visits to Austria and Germany, starting in Vienna and finishing at LIGNA, Hannover, Germany. Add-on tour options to Finland and UK and European destinations. The 15-day tour is supported by the Engineered Wood Products Association of Australasia (EWPAA), in collaboration with other industry bodies and companies.

Participants will have the option to attend the full LIGNA program in Hannover and join selected visits to surrounding wood manufacturing factories and a university outside LIGNA for one or two days, allowing three full days at LIGNA. Internet site available soon. Costs, program and itinerary available at eurowood13@bigpond.com

MAY 2013

8: Global Softwood Log & Lumber Conference Sheraton Wall Centre Hotel, Vancouver, BC. Sponsor opportunities available. Contact: info@ woodmarkets.com or call 1-604801-5996.

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 247 | 12.11.12 | Page 5

5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

Industry alliance supports $31bn furniture, cabinet, joinery sector

SEVEN core industry associations have formed an alliance that has a vision to make the Australian furniture, cabinets and joinery sectors design focused and recognised globally.

Delegates at the ForestWorks industry development conference in Canberra learned how the FCJ Alliance was based on world-class management, attracting the best workforce and producing high value-added products.

The industry is a significant sector of Australian manufacturing, employing around 113,000 people and contributing $31 billion a year to the domestic economy.

General manger of the Furnishing Industry Association of Australia (Victoria and Tasmania) Rohan Wright said the industry was an economically fragmented sector characterised by a

Consumer campaign is getting exciting results.

preponderance of small, familyowned businesses.

“The furniture, cabinets and joinery sectors are under considerable restructuring pressure, competing against low-cost imports in a high-cost environment. This was further compounded by the high

Australian dollar.

During 2010-11, FCJ manufacturing revenue grew by only 3% while imports grew by 5%. Exports fell by 6% and wages and salaries grew by 2% despite employment levels remaining relatively stable.

The FCJ Alliance has identified strategic objectives to underscore the industry’s ongoing development: • Maximise share of the domestic market.

• Develop an export culture and progressively grow export markets.

• Capitalise on and adopt latest technological developments.

• Attract highly skilled, highly trained workers.

• Embody the latest management practices, reflecting world’s best practice in business management.

• Be an integral player in the global FCJ supply chain.

• Seek a level playing field with imports.

• Develop labour skills and training that offer a productive and innovative work force.

• Create a supply chain that minimises cost and shares profits fairly.

• Develop cost effective avenues to make consumers understand why ‘Australian Made’ has real advantages and points of difference to imports.

“The Australian Furniture Association has started running a consumer campaign that is getting exciting results at this early stage,” Mr Wright said.

“We don’t have the finances to run TV campaigns of a reach and frequency that would change buying behaviour and hence market share. But collectively we do have a strong presence on shop floors in better quality retailers.”

Study confirms agriculture major driver of global deforestation

A NEW study concludes that agriculture is the main driver of deforestation, accounting for up to 80% of global levels.

The findings are the latest in a growing body of scientific

Page 6 | issue 247 | 12.11.12

work which discredits NGO assertions that commercial forestry is the primary driver of global deforestation.

The report says commercial

agriculture is responsible for around one-third of deforestation in subtropical Asia and Africa and twothirds of deforestation in Latin America.

Encroachment,

smallholder

agriculture

and

unsustainable harvests were

found to be some of the direct drivers

of

deforestation

tropical Asian countries.

in

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INDUSTRY NEWS

Further rate cuts needed to underpin Australia’s housing market recovery

DESPITE a rise in the September building approvals figures released by the Australian Bureau of Statistics, the short-term outlook remains fragile for residential builders.

Nationally, total dwelling units approved increased 78% , primarily due to a 17.9% increase in residential apartments, seasonally adjusted. The more important indicator, private sector housing, rose only 1.2%, seasonally adjusted.

Master Builders Australia chief executive Wilhelm Harnisch said the September increase in the total number of building approvals did not accurately reflect industry conditions.

“Builders continue to report that activity is low and that the outlook remains poor in the short term,” he said.

“The 7.8% increase in the total number of dwelling units approved dramatically masks the ongoing sluggish housing sector recovery.

“The more telling statistic is the private sector housing figure, which only increased by 1.2%. The overall figure is masked by a 17.9% increase in residential apartments, which is still recovering from a 40% decrease from July.

Mr Harnisch said while there were welcome increases in New South Wales, Queensland and Victoria, overall the housing picture was one of a sluggish recovery, despite the cumulative cuts in interest rates.

Master Builders September quarter National Survey revealed low consumer confidence is the major factor holding back what should be a more sustained and stronger housing recovery at this stage of the housing cycle.

Wilhelm Harnisch .. outlook remains fragile for residential builders.

“The ABS figures indicate another 50 basis point interest rate cut by the Reserve Bank of Australia is warranted to underpin the fragile and fledgling signs of a housing recovery,” Mr Harnisch added.

Koppers increases WA poles business KOPPERS Wood Products Pty Ltd, a subsidiary of Koppers Holdings Inc., has announced an agreement to acquire the Western Poles business from Ridolfo Forestry Products Pty Ltd for an undisclosed purchase price.

The deal is expected to be completed by the end of this month.

Western Poles conducts business mainly in Western Australia procuring and processing timber for the state’s utility pole market.

Their primary customer is Western Power, which maintains about 660,000 utility poles in its system.

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issue 247 | 12.11.12 | Page 7

INDUSTRY NEWS

Sarawak forests challenged by new regulations set by consumer markets

SARAWAK, a major producer of tropical timber, has expressed concerns on some emerging market requirements many of which are backed by legislation by certain major consumer markets.

For example, complying with the different standards required by importing countries would have some impact on timber production and trade in terms spiralling transaction costs.

“Sarawak has been observing the ever-evolving definitions of legality and sustainability

Page 8 | issue 247 | 12.11.12

by various international organisations and consumer countries,” Chief Minister Pehin Sri Abdul Taib Mahmud said at the opening of the 48th session of the International Tropical Timber Council in Tokyo last week.

“All of these are challenges facing the industry.”

He added that the problems were further complicated by each consumer country having its own sets of requirements that were extremely challenging to meet on a global scale.

For example, he said the entries of tropical timbers into some importing countries had to go through third party verification and certification that contributed towards the escalation of costs without corresponding increases in their prices; nor had there been any increase in demand to meet the escalating costs.

“There must be legal prudence and pragmatism to appreciate the realities on the ground,” Pehin said.

“If the requirements are too

stringent, probably not many exporting countries could comply with them; if they are too ‘soft’ they will not be meaningful.”

He said there must be some flexibility or protocol between the two extremes as the way to move forward.

“These were issues which ITTO must help to resolve to achieve the main objectives of the ITTA (International Tropical Timber Agreement) 2006.”

ITTO should engage the producers and importers to work in tandem to harmonise and streamline the requirements to ensure sustainability of tropical timber trade and ultimately sustainability of the tropical forests.

Sarawak is embarking strongly in pursuit of sustainable forest management, with certification in some forest management units within its sight.

The ITTO Mission made a historic visit to Sarawak in 1989-1990 to assess the status of the conservation, sustainable management and utilisation of forest resources.

The independent mission was unprecedented in international forestry cooperation.

The members could visit any parts of the state and meet anyone they considered necessary to gather relevant information.

Sarawak had already invited the Food and Agricultural Organisation to assess forest resources and make recommendations for their sustainable management, conservation and research.

The ITTO’s recommendations for Sarawak were for it to increase permanent forest estates in the mixed dipterocarp forest to 6 million ha including 1 million ha of industrial tree plantation.

This contributes to 58% of Sarawak’s land mass of 12.2 million ha.

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INDUSTRY NEWS

Housing neglected in US election but it was always there

THE most glaring absence during the hard-fought campaign between President Barack Obama and Mitt Romney was any offer of substance regarding the US housing market.

It was, after all, a housing bubble-driven financial crisis that helped propel Obama to victory in 2008 and recent improvements in the housing market that perhaps helped secure his re-election last Tuesday night.

“So housing policy was always there, even if only in the background,” says Mark Calabria, director of financial regulations studies at the Cato Institute, a public policy research organisation.

“Obama’s victory means that Federal Reserve chairman Ben Bernanke will keep his job, at least until the end of his term in 2014. That means the Fed’s policy to hold interest rates at record lows will continue,” Mr Calabria said.

“While mortgage spreads over Treasuries have been elevated, mortgages overall will likely hover near historic lows over the next year, providing some upward pressure on housing prices.”

Mr Calabria said regardless of whoever won the election, the primary driver of housing policy would be the housing market.

With home prices recovering in many areas and foreclosures on a slow but steady decline – due in part to rising prices and an improving labour market – Obama was likely not to introduce new foreclosure prevention programs in his second term.

“With Republicans maintaining their control of the House, legislative efforts to force broad-based reductions in underwater mortgage balances

Improvements in the US housing market helped secure Obama re-election.

are essentially dead,” Mr Calabria said.

With Obama’s victory and modest Democrat gains in the Senate, the president will likely renew attempts to put in place key appointments.

These will not only influence the modifications efforts (or lack thereof) of Fannie Mae and Freddie Mac, they will also give the administration a larger voice in Congressional debates over the future of the governmentbacked mortgage giants.

Mr Calabria says given the significant differences between House Republicans, Senate Democrats and the White House on reform of Fannie and Freddie, both companies will likely still be in their conservatorship limbo at the end of Obama’s second term.

“The Senate is also likely to act on a permanent housing commissioner to administer the Federal Housing Administration.

Such an appointment will become all the more critical as FHA will require some amount of taxpayer assistance in the years ahead.

“If such amounts exceed $10 billion, which I believe they will, then legislative reform of FHA becomes a strong possibility with a focus on reducing taxpayer losses.”

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dennis@industrye-news.com

issue 247 | 12.11.12 | Page 9

INDUSTRY NEWS

Engineered wood sales gain from US housing market lifts

THE engineered wood industry in the US says things are looking up and points to the forecast increase in housing starts.

“We believe we have hit or are very close to hitting the bottom of the housing market and are forecasting a 20% increase in US housing starts this year compared with 2011,” the president of the APA Engineered Wood Association Dennis Hardman said.

“Looking further ahead, we think US single-family and multi-family starts could reach 1.4 million by 2016. The problem right now is the continuing high inventory of unsold existing homes, including the millions

InSurAnce..

It’S All In the SelectIon

that are in foreclosure. We also need to see stabilisation and then increases in home values in order to renew consumer confidence and investment,” Mr Hardman said.

Asked about what dealers might expect in engineered wood product supply as the US climbs out of the recession, Mr Hardman predicted a gradual recovery would minimise problems with availability.

“Right now, because of significant production curtailments throughout the industry, supply and demand are pretty well balanced.

Because the housing recovery is still forecast to be sluggish, it should allow curtailed mills

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Dennis Hardman .. working to gain fairer treatment of wood products.

to bring production back in an orderly fashion and avoid some of the product shortages experienced coming out of past recessions that had much steeper recovery curves,” he said.

But the supply is growing.

APA is forecasting US and Canadian plywood and OSB production to rise this year by about 176 million sq m, and to continue to increase next

‘Right now, because of significant production curtailments throughout the industry, supply and demand are pretty well balanced’ – Dennis Hardman

year and beyond. By 2016, US and Canadian structural wood panel production is expected to be back at around 3.5 billion sq m, or about a 40% increase from 2011.

The association also expects glulam, wood I-joists and laminated veneer lumber to experience strengthening demand as the economy in general, and the housing market in particular, improve.

Production of I-joists looks especially promising, almost doubling by 2016 from the 2011 volume.

“There is a little more life to engineered wood demand this year. Last year, we were just treading water,” APA’s market research director Craig Adair said.

“This year, we’re expecting demand to pick up from 4% to 11% depending on the product.”

APA marketing executive Ed Elias said a lot of LVL and I-joists were tied to housing so as house starts lifted, so would demand for these products.

He said membership of the APA was increasing with close to 70% of the industry under the association’s trade mark.

“Prices have been on a high roller coaster and we expect this to carry through spring,” he told Timber&Forestry enews from APA’s offices in Tacoma, in the Pacific north-west state of Washington.

Dennis Hardman referred to the ongoing challenge of safeguarding industry interests in codes and standards.

“Recently, for example, we’ve been working to gain fairer treatment of wood products in the International Energy Conservation Code. In addition, the industry faces numerous regulatory challenges, such Cont Page 11

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INDUSTRY NEWS

ARE YOU

SURE SAFE?

Raised wood floor foundation system using I-joist and rim board.

– APA photo

Safeguarding industry interests in codes and standards a challenge

From Page 10

as ever more stringent formaldehyde emissions limits and growing green building requirements, among others.”

Although the Great Recession in the US ended in mid-2009, the recovery has been uneven, and only now is the economy showing signs of sustainable growth.

Craig Adair noted that singlefamily housing is still plagued with several obstacles, including banks that are reluctant to lend and more foreclosures are on the way.

Single-family construction is expected to improve in 2012, but it should have a more meaningful recovery in 2013.

“It may not be a lack of consumer demand that’s holding housing back; it’s more likely a financial system that currently doesn’t freely accommodate residential mortgages, and it could take years to repair and reorganise the system,” Mr Adair said.

Meanwhile, the demand for rental housing is so great that apartment construction has picked up along with a wave of investment in existing singlefamily rental housing.

the timber product you are buying is

Be sure, safe – and satisfied – that the plywood, wood panel or furniture you choose meets Australian and New Zealand standards.

All products manufactured by members of the Engineered Wood Products Association of Australasia are guaranteed to comply with these standards and are BELOW formaldehyde levels recommended by health authorities.

EWPAA products are certified

EO and E1

New industry plan in forest peace deal THE Forest Industries Association of Tasmania has put forward a new plan to achieve peace in the state’s forests.

Chief executive Terry Edwards said he had developed new demands for wood contracts and had offered them to environment groups through the forestry union.

“That document does substantially modify our position in respect to wood supply by considerably lowering the bar in what we have been seeking and,

equally, we have offered to the environment movement very, very considerable conservation outcomes from an agreement,” Mr Edwards said.

“It is substantially below what we think is an appropriate level of wood supply but we are putting it forward in a genuine attempt to reach a compromise outcome.

“The onus now falls to the other side. We’ve moved - it is now their turn.”

The Wilderness Society has welcomed the association’s revised position.

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under strict JAS-ANZ rules.

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Specify EWPAA products stamped with the approved certification.

www.ewp.asn.au issue 247 | 12.11.12 | Page 11

QUEENSLAND TIMBER INDUSTRY AWARDS

Awards well earned at TABMA presentation dinner in Brisbane More than 300 applaud timber industry presentations

By JIM BOWDEN

EXCELLENCE and innovation in merchandising, manufacturing, distribution, training and forestry science in the timber industry were recognised at a gala dinner and presentation night at the Victoria Park Functions Centre in Brisbane last Saturday.

A room packed with 313 representatives of the timber and forest industry applauded winners in the Queensland Timber Industry Awards, an occasion that won an award itself for the best-ever event of its kind.

“The awards provided a platform to celebrate our industry, our state and recognise our top performers,” Alicia Oelkers state manager of TABMA Queensland said.

TABMA Australia chief executive Colin Fitzpatrick said the event reflected not only the high standard performance of TABMA members but the progress the organisation was making in Queensland.

He said the state organisation now under the national umbrella of TABMA Australia had recorded its first profit in three years.

“This has been a good turnaround and TABMA Queensland continues to trade profitably despite the industry downturn,” Mr Fitzpatrick said.

“Our goal, and the goal of the directors, is to operate as a truly national organisation.

We are represented in every state except Victoria but we are confident about our approach to work with the Timber Merchants Association in Victoria.”

Mr Fitzpatrick and Alicia Oelkers travelled thousands of kilometres throughout Queensland to visit entrants

Page 12 | issue 247 | 12.11.12

THE TABMA team celebrate the successful Queensland Timber Industry Awards in Brisbane .. from left, Chris Atkinson, field officer, Kathryn Tylera, administrator, Michael Gaske, chairman, TABMA Queensland, Alicia Oelkers, state manager, and Colin Fitzpatrick, chief executive, TABMA Australia, based in Sydney.

Wood best career choice for Mia

WOMEN working in the forestry and timber industry were recognised at the Queensland Timber Industry Awards when Mia Cassidy of HQPlantations received a special presentation from TABMA Queensland chairman Michael Gaske.

Mia is project officer, resource training, at HQPlantations, now based at the estate development of North Lakes, north of Brisbane. An honours graduate, she is now completing her PhD through the School of Forestry at Southern Cross University. Her studies in sustainable forestry have seen her work published internationally.

Mia is undergoing training in biometrics (the science and technology of measuring and analysing biological data) and growth modelling.

Before joining HQPlantations, Mia was researching and developing forest products at BIL Technologies in Lismore, NSW, a bio-industrial company offering services in the utilisation of woody or lignocellulosic materials.

“I chose a career in wood simply because I like it,” Mia said.

“I started a natural resource management degree and right away could see the reasons behind good forest management.”

HQPlantations manages 343,000 ha of forests, of which 212,000 ha is utilised for hardwood and softwood plantation production.

and assess their entries.

This took them to areas as

far north as Cairns, west to Roma and Emerald, south

to Stanthorpe and the state border, in and around Brisbane and to both the Sunshine Coast and Gold Coast.

The 2012 winners are: Specialist Timber Best Merchant: Tradeware Building Supplied.

Best Building Materials Centre (metro): Versace Timbers.

Best Building Materials Centre (regional): Porters.

Best Timber Wholesale Operation: TillingTimber.

Specialist Service Best Operation: 5 Star Timbers.

Best Frame & Truss Operation (metro): Northside Trusses & Frames.

Best Frame & Truss Operation (regional): Howard & Sons.

Best Timber Manufacturing Operation: PanelBUILD. Best Sawmilling Operation: DTM Timber.

Best Training Organisation: Parkside Group.

Trainee of the Year: Tim Facoory, Versace Timbers.

Best Wholesale Sales Representative: Debbie Payne, Tilling Timber Recognising Women in the Forestry and Timber Industry: Mia Cassidy, HQ Plantations

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QUEENSLAND TIMBER INDUSTRY AWARDS

Enjoying the evening at Victoria Park are Andrew and Cathy Morrison, Sandy and Hedley Steel, and Cathy Shervey, all representing Chermside Building Supplies.

A night out for Ray and Suzie Russell, Trade Builders Supplies, Geebung.

Enjoying pre-dinner refreshments are Willy Ferguson, Carol Norman and Natasha Norman from Wayne Norman Timber and Ply, Logan Village.

Bruce Harle, training consultant, Timber Queensland with his wife, Erna, and Denise and Steve Phillips, representing Tilling Timber.

TABMA Australia congratulates all entrants in the Queensland Timber Industry Awards ‘The awards reflect not only the high standard performance of TABMA members but also the progress the association is making throughout Queensland’ – Colin Fitzpatrick, CEO TABMA Australia TABMA especially appreciates the strong support given to the awards by all sponsors.

They made it happen!

Winners and presenters in the 2012 Queensland Timber Industry Awards.

TABMA Queensland, 500 Brunswick Street, PO Box 532, Fortitude Valley Qld 4006

Tel: (07) 3254 3166.

Fax: (07) 3254 4599.

Visit www.tabma.com.au

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issue 247 | 12.11.12 | Page 13

QUEENSLAND TIMBER INDUSTRY AWARDS

Celebrating PanelBUILD’s award for Best Timber Manufacturing Operation are John Cannard, operations manger and wife Ange, Merran Sanger, office administration, and Mark Dindas, managing director.

Joining in the fun of the awards night are Susan and Stephen Burchard representing Multi-Nail, Brisbane.

Russell Bacon and Sue Landesmann and Nicole and Alex Young, representing VSH Timbers, Virginia, Brisbane.

Representing Chermside Building Centre, Brisbane, are David Wagstaff and Debbie Hailey, and Eddy and Alethea Proietti.

Best Sawmilling Operation (Tiaro) in the 2012 Queensland Timber Industry Awards

DTM Timber has been in operation since 1988.

From humble beginnings we have expanded rapidly to the large logging, sawmilling, timber treatment and structural quality timber distribution and sales business that exists today.

Our primary focus is on the hardwood structural grade market, and we have successfully established a wholesale customer base throughout Queensland which now includes all the major hardware chains, timber outlets and landscape yards.

DTM’s site manager at the Tiaro mill Nigel Martin is presented with the award for Best Sawmilling Operation in Queensland

by TABMA chairman Michael Gaske.

Page 14 | issue 247 | 12.11.12

Head Office: 1521-153 Kent Street, Maryborough Qld 4650 PO Box 432, Maryborough Qld 4650 Tel: (07) 4122 7222. Fax: (07) 4121 7666 Visit www.dtmtimber.com.au Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

QUEENSLAND TIMBER INDUSTRY AWARDS

Lorraine Fitzpatrick, wife of TABMA Australia CEO Colin Fitzpatrick, Colin MacKenzie, timber application and use manager, Timber Queensland, and his wife Christine.

State manager TABMA Queensland Alicia Oelkers with Roger Healy of Simmonds Lumber.

Representing Tradeware Building Supplies, Capalaba, at the TABMA awards dinner are Jim Douglas and Allison Kerr and Leonie and Mitch O’Mara.

Carol and Wayne Norman of Wayne Norman Timber and Ply, Logan Village.

Best Timber Manufacturing Operation in the 2012 Queensland Timber Industry Awards

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PanelBUILD Pty Ltd, PO Box 3262, Darra Qld 4076 Our manufacturing facility is located at 44 Bernoulli Street, Darra Tel: (07) 3713 5555. Fax: (07) 3713 5599 Web: www.panelbuild.com.au Email: info@panelbuild.com.au Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

Managing Director of panelBUILD Mark Dindas (right) accepts the award for Best Timber Manufacturing Operation in Queensland from TABMA Queensland chairman Michael Gaske. issue 247 | 12.11.12 | Page 15

QUEENSLAND TIMBER INDUSTRY AWARDS

Woodcraft raises $1130 for charity

Settling in to the atmosphere at the TABMA awards dinner are Jacinta Colley, Simmonds Lumber, Sam Vickery and Jodie McPhie of Virginia Building Supplies, and Sandy Steel of Chermside Building Centre.

Preparing for the Hoo-Hoo raffle at the Queensland Timber Industry Awards are Jim Bowden (Brisbane Club 218 vice-president), Tim Isaacs, Fitec Australia, Don Towerton, Thora Wholesale Timbers (club treasurer), and Alan Jones (Club 218 president).

The raffle raised more than $1130 for children’s charities and was supported by prizes donated by members of the Blackall Range Woodcrafting Guild, a group of more than 160 ‘woody’ members from all occupations and walks of life.

The Blackall Range dominates the hinterland area of Queensland’s Sunshine Coast.

First prize in the raffle was a miniature timber truck crafted from Camphor laurel (Cinnamomum camphora), coachwood or scented satinwood (Ceratopetalum apetalum) and budgeroo (lysicarpus angustifolious) – also known as Tom Russell’s mahogany – by Hugh McKenna.

Winner was Tony Findlay of 5 Star Timbers, Yatala.

Happy couple at the TABMA event .. Karen and Brett Martin, representing Mitre 10.

Second prize was a tea caddy crafted from rosewood (Pterocarpus indicus) and Queensland red cedar (Toona ciliata) and donated by Ron Fishwick of the woodcrafting guild.

In odds greater than winning the Melbourne Cup, Mr Findlay presented the winning ticket for this prize also but graciously re-donated the caddy for a re-draw which was won by Bruce and Wendy Wise of Simmonds Lumber.

Other raffle prizes of wine packages were well distributed among the tables.

Brisbane Hoo-Hoo Club 218 president Alan Jones told guests that the club had raised more than $1 million in cash and building materials for children’s charities since its formation in 1963.

Promoting the club, Mr Jones said Hoo-Hoo gave contact with energetic and progressive timber and forestry people in all branches of the business.

“Industry knowledge is yours for the asking; you can learn in a brief period what it took others years to acquire,” he said.

“Together with other industry professionals, you have an opportunity to grow and learn. If you have a timber problem, Hoo-Hoo can help you. If you have a sound idea that will benefit the industry, Hoo-Hoo will help you. Hoo-Hoo forges friendships that will last a lifetime.

Ready for anything .. women in timber and forestry are Mia Cassidy, HQ Plantations, Jacinta Colley, Simmonds Lumber, Jenni Day, Versace Timbers, and Michelle Everingham, HQ Plantations.

“The cooperation of many people working together for the betterment of the industry can move a mountain as easily as an individual moves a stone. You can be a part of a century of cooperation that is HooHoo.” Out in force .. the Tilling Timber team at the TABMA dinner, from left, Carol Claffey, Darren Olsson, Ashleigh Henderson, Shane Hicks, Dorreen Wright, Debbie Payne, Matt Colley, John Deering, Dallan Peters, Deann Atkinson, Norm Tilling, Michelle Larsen, and Fiona and Paul Luckey.

Page 16 | issue 247 | 12.11.12

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EVENTS

Down-Under interest generated at US wood products exhibition

AFTER the US housing market and wood products industry hit rock bottom, Portland’s Timber Processing and Energy Expo running in mid-October was a fresh start for both wood processing trade shows and battered wood producers of North America.

The show used to be the largest in the Pacific North West but died a natural death as the forest products industry hit hard times. This year heralded a fresh start – it was a new show held at a new location.

More than 3710 sq m of exhibition space was taken up by 160 exhibitors, the space selling out weeks before the show.

The mood by exhibitors and those attending the show was overwhelmingly upbeat.

Producers and suppliers were talking about key indicators all pointing to a recovery in the US market. July housing starts for example were up 29% over projections from a year ago, projections for new construction looking forward were positive and prices and order files had both picked up markedly in the lead up to the

The mood of exhibitors and those attending the Portland Wood Expo was overwhelmingly upbeat.

show.

Many suppliers said sales for 2012 were expected to be the best in several years and mills were opening their purse strings and looking to upgrade or replace worn or obsolete systems to meet market demand and maintain competitiveness.

The show highlighted the very latest machinery, supplies and services for the primary lumber,

engineered wood products, panel and the wood energy industries in the sector. New product innovations were rolled out, demonstrated and a number of innovations by leading technology providers were unveiled for the first time at the show.

This optimism at Portland was a huge boost to WoodEXPO which runs in both New Zealand and Australia in September

wood and paper products.

• Employee representative organisation members representing the interests of workers in the forestry and forest products industry.

• Community, social and environment members representing the interests of the community at large with respect to forestry and the forest products industry.

The new structure was approved at the AFS annual general meeting in Melbourne last month.

Under transitional arrange-

ments, the current AFS board will continue until the AGM in 2013 when each membership category will nominate one director, except for forest growers who will nominate two.

There is also provision for the appointment of up to three independent directors. The new categories more appropriately represent the nature and interests of AFS members.

Membership is open to any individual or organisation that supports the objects of the company.

The meeting recognised retiring directors Ian Tyson, Malcolm

next year.

The Forest Industry Engineering Association was in Portland in October to discuss opportunities for WoodEXPO 2013 with key technology providers who have been involved in previous FIEA technology events, those that had customers in Australasia or agents representing them.

“With the US market finally picking up, they’re very keen on servicing and working with local wood processing, manufacturing and panels companies,” FIEA director Brent Apthorp said.

“The unique way WoodEXPO 2013 has been designed was also key point for North American companies; it means they will be able to meet and work with both New Zealand and Australian companies at two separate shows – all within a space of under two weeks.

“We’re confident in getting through to WoodEXPO all of the major suppliers of wood processing technologies suited to local operations.”

Full details on the exhibition are on the event website www. woodexpo2013.com

AFS revises membership structure

AUSTRALIAN Forestry Standard Ltd is to revise its membership structure by creating five membership categories: • Forest grower members, substantively engaged in the primary production of forest products.

• Primary processor members engaged in the primary processing of forest primary produce.

• Supply chain members engaged in the secondary processing of forest primary produce or in any subsequent part of the supply chain of

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Tonkin, Jodie Mason and Wayne Hammond and thanked them for heir service and valuable contribution to AFS.

Colin Fitzpatrick, Erica Hansen and David West were appointed directors representing forest and wood products sector members and Alison Carmichael was appointed director representing general members.

National secretary Richard Stanton presented a brief overview of a year of consolidation for AFS Ltd.

issue 247 | 12.11.12 | Page 17

Canadian lumber expects recovery boost after hurricane rebuild in US

Positive signs from gradual improvement in housing starts

THE destructive wrath of Hurricane Sandy will help boost recovery in Canada’s forest products industry next year as communities in New York City area and along the New Jersey coast rebuild.

“When you look at the devastation it’s mind boggling and it’s going to have an impact,” says Richard Garneau chief executive of Resolute Forest Products, a pulp, paper and wood manufacturer headquartered in Montreal, Quebec.

“They’re going to have to rebuild but it always takes some time for the cleanup to be done so I think the impact on demand of wood consumption is probably going to materialise in the second and third quarter of next year with the rebuilding efforts.”

After being battered by the deep recession and financial crisis, the Canadian industry is seeing positive signs from the gradual improvement in US housing starts.

Mr Garneau is optimistic about regular housing demand for lumber and said the additional impact of the hurricane would help to support higher prices, which were expected to be

Houses collapse in the wake of Hurricane Sandy.

pushed up by a decline in wood availability due to the pine beetle epidemic in British Columbia.

But he said it’s too early to know the level of impact. Although the hurricane is believed to have caused more than $US50 billion in damages, there are no estimates yet about the value of forest products that will be used in the rebuilding effort.

Resolute Forest Products missed expectations on earnings despite swinging to a profit in the third quarter as it was hurt by downtime at its recently acquired Fibrek pulp

Richard Garneau .. hurricane is believed to have caused more than $US50 billion in damages.

operations and challenges in the newsprint export and lumber businesses.

The company, formerly known as AbitibiBowater, reporting in US dollars, said it earned $31 million or 32c per diluted share on sales of $1.15 billion in the period ended September 30.

That compared with a net loss of $44 million, or 46c per share, on sales of $1.22 billion in the third quarter of 2011. Charges in the 2011 quarter included a currency translation loss of $60 million and an income tax provision of $27 billion.

Adjusting for one-time costs, it earned $7 million or 7c per share and $91 million in pre-tax operating earnings.

Mr Garneau says he’s pleased with the results, considering the quarter’s challenges, including the more extensive maintenance required “to bring our recently acquired St. Felicien mill up to par”.

The company says newsprint demand is expected to remain weak while industry capacity is negatively affected by the restart of a competitor’s mill in Quebec City.

– The Canada Press

Russia’s log industry troubled by rising costs

WOOD Markets has successfully wrapped up its seventh international tour of Russia’s forest industry. Key issues identified during the tour included: • Logging in Russia is in trouble. Costs are rising rapidly and good timberland is getting further away from the mills

Page 18 | issue 247 | 12.11.12

and major transportation networks. The government is not investing in the expansion of a transportation infrastructure for the forest industry.

Logging revenue is seriously impaired due to the lack of a market for coniferous pulp logs and all deciduous timber (except

high-quality deciduous export logs).

• Large harvesting companies have made major capital investments into mechanised harvesting systems to replace high-cost, inefficient, manual labour.

Operation of state-of-the-art logging equipment is a test for

minimal Russian preventative maintenance practices and very cold winter operating conditions.

• The impact of the new log export tax is uncertain at this time. The process is very slow, and the quota allocation procedure is cloaked in secrecy.

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INTERNATIONAL FOCUS

Wood products industry slows in China: US ‘no longer hungry’ ALTHOUGH China continues to drive the global wood products industry and trade, it is apparently slowing down its pace.

Pace slowing may indicate coming faster growth with “positive measures under study to boost the country’s forestry sector”, a senior official in the State Forestry Administration said.

“The authorities are also working out preferential policies to send wood products that are exported to developed economies instead to underdeveloped and developing countries in Africa and Asia, where an increasing demand exists,” Zhang Yanhong, deputy director of the agency’s department of development planning and assets management, said in the proceedings of the 55th International Convention of Society of Wood Science and Technology in Beijing.

In the past, US and Japan were the main countries to which China exported forestry products.

She added proper financial and political support will gradually be granted for the country’s wood products’ trade.

Although no further details were revealed, the coming measures still give many foreign trade business people in the wood industry “a surviving hope”,

China’s wood export switch .. sending wood products to underdeveloped and developing countries in Africa and Asia.

said Wen Huanghao, general manager of Haonan trade company in Fuzhou, Fujian province. His company mainly exports wood products.

In the first half of this year, Wen lost about 20% of orders from his old clients in Europe and America due to the gloomy global market. He now dreams of financial support.

Besides raising money for his business, Wen now makes hundreds of international calls every day to find business opportunities in the market in Asia and Africa because the European and US clients are “no longer hungry”.

“If the authorities don’t give guidance to the wood product trade, many businessmen involved in the import and

export of wood products will suffer badly,” he said, adding he thinks the current market is gloomier than the previous economic crisis in 2008.

Statistics of the State Forestry Administration show the total volume of exports and imports of wood products from January to June were about 3% more than the same period last year, but the growth speed is decreasing dramatically.

Zhang Guolin, chairman of the wooden door committee of the China Timber and Wood Products Distribution Association, said the statistics implied that although the foreign demand for wood products was slowing in growth, especially from US and European countries, the total

However, in these countries governments are investing in construction to bolster growth. Chinese investment in construction has been increasing through 2012 to be well above 2010 and 2011 levels.

House prices are remaining steady in China and leaders are investing in economic stimulus to offset the contraction in growth. The Korean government is loosening restrictions on loans to encourage the housing market and India

export volume remained stable and even a little higher than the same period last year.

“As the impact of the eurozone debt crisis continues, the foreign trade businessmen should shift their trade clients from Europe to Africa and Asia to guarantee the country’s wood products’ sustainable increase because demand in the developing countries is growing rapidly,” Zhang said.

But instead of the foreign market, Ivan Eastin, director of the Centre for International Trade in Forest Products at the School of Environmental and Forest Science, part of the University of Washington, says China’s affordable housing program will be an important driver of the wood products industry.

“Ongoing new home construction, combined with remodelling and expansion projects, will open up tremendous markets for wooden building and home furnishing products,” he added.

In 2005, totals for the import and export of wood products rose to more than $40 billion. By 2011, the figure had increased to more than $120 billion, putting the country second in the global market, according to the SFA’s figures.

– China Daily.

Growth rate contracting for NZ trade partners

GROWTH in New Zealand’s major Asian trading partners is contracting as markets are dependent on exports to Europe, which have slowed with the eurozone’s financial crises.

is investing in its infrastructure sector.

Japanese housing starts are remaining steady. The year to date figures show the number of housing starts virtually unchanged from 2011.

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.

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issue 247 | 12.11.12 | Page 19

CLASSIFIEDS PUBLIC TENDER - SALE #5004665 INSOLVENCY PUBLIC TENDER - FORESTRY EQUIPMENT TO BE OFFERED INDIVIDUALLY OR IN ONE LINE

UNDER INSTRUCTIONS FROM Messrs Morgan Kelly & Ryan Eagle of Ferrier Hodgson

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INSPECTION BY APPOINTMENT

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Please refer to the Tender Document from the website for full terms and conditions.

SOME ITEMS MAY BE WITHDRAWN FROM SALE

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