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IssuE 256 | 11.02.13 | PAgE 1
ThIs IssuE
When the going gets tough the tough get going
• Timber Queensland helps with rebuild after floods • Forester Michelle Victoria’s Rural Woman of the Year
Thinking big .. the Heyfield dry processing plant alone stands on 38 ha. The log yards and green mill are 2 km away on the other side of town.
Hey, it’s all happening for Heyfield hardwood THE CEO of Victoria’s largest hardwood sawmill – expanding after a $650,000 support package from the state government – says the industry’s future must be about innovation,
new technology, and “taking control of things we can control”. Australian Sustainable Hardwoods at Heyfield, 206 km east of Melbourne, a mill bought by a group of investors for $28 million from Gunns Ltd last year,
Cont Page 3 Just Go t ood W
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issue 256 | 11.02.13 | Page 1
INDUSTRY NEWS
Timber Queensland offers helping hand in rebuilding efforts High-set solution to flooded areas By JIM BOWDEN
QUEENSLAND guru in durability design and building standards Colin MacKenzie leaves for flood-ravaged Bundaberg this week to contribute to reconstruction seminars in the city initiated by the state government. “We’re more than pleased to assist in any rebuilding program and will be emphasing the need for authorities to again consider high-rise timber housing as the sensible option against water overflows,” Timber Queensland CEO Rod McInnes said. “Colin, our timber application and use manager, will especially outline the advantages of the high-rise ‘Queenslander’ style of housing.” Mr MacKenzie has been active in timber engineering and design for the past 30 years, especially in durability design and the development of Australian standards and building codes. Local government leaders in Queensland have backed Premier Campbell Newman’s call for flood roads and other infrastructure to be rebuilt to higher standards after seeing recently completed projects torn apart in the Australia Day deluge. Mr Newman is concerned that national disaster relief and recovery arrangements have limited scope for improvement and mostly allowed only for infrastructure to be rebuilt to the same standard. He described it as “insanity” to do the “same wrong thing time and time again”. Reports from building authorities show more than
Improving our industry’s capacity to develop and maintain a skilled workforce ............................
Colin MacKenzie .. technical knowledge helping reconstruction after floods.
200 Brisbane homes have been raised since the January 2011 floods, triggering renewed interest from home owners in the traditional ‘Queenslander’ home. Brisbane City Council statistics show 144 homes in floodaffected suburbs have either been lifted or are under assessment to be raised since January 2011. Archicentre Queensland general manager Ian Agnew says there is renewed genuine interest from flood-affected residents in the advantages of the high-set Queenslander. Mr Agnew said ‘updated Queenslander’ designs came back from Archicentre’s architects in a post-flood house competition to help floodaffected residents. “We ran a competition for houses to be built in potentially flood-affected areas or in areas that could be affected by floods,” he said. “Most of the house designs were either on stumps or piers, to be honest because they are
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‘It’s an insanity to do the same wrong thing time and time again – Campbell Newman Page 2 | issue 256 | 11.02.13
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INDUSTRY NEWS
Heyfield mill developing as an ‘import replacement’ company From Page 1
million towards value adding and expansion, with the state government contributing $650,000. The funding will be provided through Regional Development, which includes $500,000 from the Latrobe Valley Industry and Infrastructure Fund. “We have taken the view that we must take control of the things we can control,” CEO Vince Hurley said. “A lot of it is outside our control – interest rates, the high Australian dollar and demand. “But I often reflect on a comment by senior industry identity Ken Last: ‘Vince, they still build houses in a recession – you’ve just got to make sure your products are going in there’.” Mr Hurley said Australian Sustainable Hardwoods was spending a lot of time with specifiers pushing the industry’s sustainability message. “We’re really connecting with them, telling them we are large, sustainable, and innovative and not to get bamboozled by ‘greenspeak’ – and, hey, look at us.” Mr Hurley said the hardwood mill was developing as an ‘import replacement’ company. “We are producing top-of-therange set length, profile sanded components in Victorian ash – windows, doors and staircases – competing largely against imported meranti. “A lot of the competition is finger-joined laminated meranti. Using off cuts, our finger-joined laminated structural grade products can stand toe to toe with LVL.” Announcing the government’s support of $650,000, the Minister for Regional and Rural Development Peter Ryan said the Australian Sustainable Hardwood value adding and
Project support from three levels of government .. Vince Hurley, CEO Australian Sustainable Hardwoods (second from right) with Darren Chester, federal Member for Gippsland, Peter Ryan, Deputy Premier and Minister for Regional and Rural Development, Scott Rosetti , Mayor of Wellington Shire, and Tim Bull, state Member for East Gippsland.
expansion project would create more than 40 direct and indirect jobs, high-quality timber products and secure the business against future market changes. “The company is well-known for developing a range of high quality manufactured timber products, such as window and door frames, door stiles and flooring – products which have great potential to replace those which are currently imported,” Mr Ryan said. “However, in order to take advantage of these opportunities, a more efficient and expanded production is required and this is what the project sets out to deliver.” The project includes extension of the finger joining and laminating facility, establishment of a hard stand site and the purchase of a new horizontal finger joiner and new equipment for the joiner line. “This project not only presents the company with the opportunity to replace current imported products with locallymade products, but provides the opportunity to join the export
market, allowing for further growth into the future,” Mr Ryan said. As the primary recipient of high quality logs in Gippsland, the ongoing operations at the Heyfield mill are critical to the viability of the forest industry. Vince Hurley said the forest resource was secure. The government had made a commitment this term and legislation would be going to the autumn session of parliament. “We’ve been given some pretty good guarantees about the resource and future contracts,” he said. “Most of the contracts we have go to 2018 but they will be extended and water-tight up to 2030. “The only way this industry will grow is to have the security to invest and this government is putting some pretty good security measures around the industry.” The Victorian Association of Forest Industries has welcomed the government’s $650,000 investment in the Heyfield mill
‘The project not only presents the company with the opportunity to replace current imported products with locally-made products, but provides the opportunity to join the export market’ – Peter Ryan
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CEO Lisa Marty said this investment, part of a $2.62 million expansion of the Heyfield mill, would increase the local production of high-value timber products during a period where all manufacturing industries were being pressured by weak international markets, a high Australian dollar and cheap imports. “Through this investment one of Australia’s most efficient timber manufacturing businesses will be able to expand its value adding processes and remain internationally competitive,” Ms Marty said. “It will help secure an extension to the existing finger joining and laminating facility and the purchase of a new horizontal finger joiner and equipment for the joiner line, allowing for the more productive use of lower value timbers.” Ms Marty said these new investments would not only help secure the jobs of the mill’s 200 existing employees, but would also create 20 construction jobs during the expansion, 15 ongoing full-time equivalent jobs and six indirect jobs. “The forest and wood products industry is one of the most important employers in Gippsland, on its own supporting more than half the Heyfield workforce,” she said. “The products these workers make store carbon and are completely renewable. They are the environmental choice and this is an investment in the future of Australian manufacturing using one of the most sustainable resources we have: wood.” Vince Hurley said products from the Heyfield mill were all 100% PEFC certified, accredited with the AS/NZS Safety Management Standard 4801 and the international Environmental Management System ISO 14001.
issue 256 | 11.02.13 | Page 3
INDusTRY NEWs
Home owners are learning that ‘Queenslanders’ were put on stumps for several reasons, all of which had advantages over the house on a slab From Page 2
a way of potentially mitigating the problem.” Mr Agnew said home owners were re-learning that Queenslanders were put on stumps for several reasons, all of which had advantages over ‘house-on-slab’ homes. “Flood is one of the main reasons, but you also get the cool breezes underneath them and you have a definitive number of inspection points because termites are a major problem in Queensland,” he said. Mr Agnew said a house on 20 stumps, as an example, provided simple termite protection. “For a start you have 20 points where they can enter,” he said.
“With a slab-on-ground house, you don’t know where they are coming in.” Mr Agnew said there were many things that made sense about a ‘Queenslander’, particularly in flood-affected areas, so the architects had designed what was effectively an updated version of the house. “So we are seeing more inquiries about them and they are as relevant today as they were 100 years ago,” he said. Brisbane’s Lord Mayor Graham Quirk said the council last year allowed homes to be raised by 9.5 m, up from the 8.5 m maximum before the floods. Rod McInnes said timber industry operations after the recent floods were fortunate that they were spared the disasters that had wrecked
Rod McInnes .. briefing government and building authorities on timber industry plan.
other rural industries – some totally. “There has been some young plantation damage in the WideBay Burnett region, but nothing significant, and road closures and power outages have
disrupted some timber supplies from moving around the state,” Mr McInnes said. “The processing industry in and around Maryborough fared the worst with the DTM Timber truss plant on the Mary River completely washed away and the dry mill damaged. “Timber Queensland is assisting the company in negotiations with government on any disaster funding that might flow through and help to rebuild the plant in a less floodprone area.” Mr McInnes said the flood damage to housing this year underlined the significance of the Timber Industry Plan and the need to focus on the right type of reconstruction. Cont Page 14
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WHAT’S ON? MARCH 2013 5-6: ABARES National Outlook 2013 conference – National Convention Centre, Canberra. . Australia’s leading event to debate the issues for the agricultural, forestry, fisheries and food sectors. Outlook 2013 will examine the leading issues for the sectors; understand the long term outlook for a range of commodities, explore industry issues so markets will be informed and access the many opportunities for conversations, meetings and networking with fellow delegates. Leading national and international speakers will provide their unique perspectives. Email the ABARES events team at conferences@ daff.gov.au or phone 02 6272 2303 or 02 6272 3051. 12: Sydney Hoo-Hoo Club 215 50th anniversary dinner. Rydges
Parramatta, 116-118 James Ruse Drive Rosehill, Paramatta, Sydney. Contact Heather Gattone on (02) 9660 7133 or Don Martin on 0417 763 838.
APRIL 2013 7-10: 6th international Woodfibre Resources and Trade Conference, Istanbul, Turkey. ‘Woodchips and Biomass for Global and Regional Markets’. Hilton Istanbul Hotel. Included in the program is a pre- and postconference field trip, two days of conference and the opportunity to visit Gallipoli. Visit www.woodfibreconference. com to register.
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 7-11: Institute of Foresters of Australia conference – Canberra Rex Hotel, Canberra. Managing Our Forests into the 21st Century. Australian and international speakers will address delegates on both international and local issues that will face foresters and forest managers in the century, such as politics, policy and perceptions. Contact IFA, PO Box 7002 Yarralumla ACT 2600. Tel: (02) 6281 3992. Web: www. forestryconference.org.au 18-19: Inaugural Local Government Forest and Timber Industry Conference – Bayview on Eden, Melbourne Aimed at both local government and timber industry professionals from across Australia. The program will have a focus on socio-economic issues and the relationship between local government and the timber industry, and will feature presentations, discussions, workshops and opportunities to learn from and share experiences. Contact: Municipal Association of Victoria. Tel: (03) 9667 5529. Visit www.ntct.org.au April 28-May 12: EuroWOOD 2013 study tour to LigNA Hannover (May 6-10). Study tour and visits to Austria and
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EVENTS Germany, starting in Vienna and finishing at LIGNA, Hannover, Germany. Add-on tour options to Finland and UK and European destinations. The 16-day tour is supported by the Engineered Wood Products Association of Australasia (EWPAA, in collaboration with other industry bodies and companies. Costs: $7550* (+gst) p.p. or $9370* (+gst) single with an option for single participants to twin share. Price includes all airfares, ground travel and most meals, including entry to the famous LIGNAHannover Fair from May 6-10. For a full itinerary and registration details, contact the EuroWOOD 2013 Secretariat, PO Box 330, Hamilton Central Q 4007 or email eurowood13@ bigpond.com * Tax deductible industry tour
MAY 8: Global Softwood Log & Lumber Conference Sheraton Wall Centre Hotel, Vancouver, BC. Sponsor opportunities available. Contact: info@ woodmarkets.com or call 1-604801-5996.
AUGUST 31: The Cat Goes Gold. Brisbane Hoo-Hoo Club 218 50th anniversary celebration. Victoria Park Golf Complex.
December 4-5. Focus on improving transport and logistics in the forestry sector. It will build on the excellent program designed by the Forest Industry Engineering Association. Visit www.foresttechevents.com
Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association. The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI). 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 256 | 11.02.13 | Page 5
EVENTS
Climate change: IFA conference confronts threat to urban forests
Canberra sessions address politics, policy and perceptions DELEGATES to the Institute of Foresters of Australia biennial conference in Canberra in April have an opportunity to learn and inspect many aspect of urban forestry and contemplate the threats of climate change and urbanisation. The conference, with the theme Managing Our Forests into the 21st Century, will be held at the Canberra Rex Hotel from April 7 to 11. Australian and international speakers will address delegates on both international and local issues that will face foresters and forest managers in the century, such as politics, policy and perceptions. The impact of a long period of drought has brought to the attention of city councils across Australia the fact that they are custodians of thousands of trees in streets, parks and gardens, many of which are aged and due to stress are in decline. These trees define our cities, making them some of the most liveable in the world. Canberra itself is often referred to as the ‘city of trees’, having had more resources invested per capita
Page 6 | issue 256 | 11.02.13
in its forests than any other city in the world. The conference presentations on April 9 will focus on urban forestry on a different scale – city, community and individuals. The City of Melbourne’s Urban Forestry strategy could be a case study for any Australian city. Ian Shears, manager Urban Landscapes, looks after the city’s 60,000 council-owned trees, worth around $650 million, and expects to lose more than 40% of these in the next 20 years unless they are managed to cope with climate change and urban growth. Forestry consultant Jim Shirley will describe first-hand how Canberra residents worked with the ACT government to improve a small suburban woodland. Whether they succeed in improving the amenity value of the parkland and restore its original grassywoodland character, while recognising the constraints imposed by its size, available management resources and its
Lohr says trees have been associated with reduced stress and improved health in people. She will draw on her own research and that of others to discuss how and why people respond to plants, and why we even respond differently to different plants.
Canberra-based forestry consultant Jim Shirley undertakes trial measurements of P. strobus at the Bendora arboretum.
suburban location, is a critical issue. At the personal level, Virginia
Conference presentations focus on urban forestry on a different scale – city, community and individuals
George Dashwood, ACT urban forester and contractor, will lead a one-day field tour of the development and management of one of the best urban forests in the world, visiting the newly opened National Arboretum at Mount Ainslie, the nursery at Yarralumla and historic Weston Park. There will be displays of the maintenance of established street trees, and a tour of the School of Horticulture, Landscape Construction, Arboreal Culture and Landscapes Design at CIT. Conference early-bird registration, representing a saving of $110, closes on February 10. Contact IFA at PO Box 7002 Yarralumla ACT 2600. Tel: (02) 6281 3992. Web: www.forestryconference.org.au
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inustry news
Appointment of three new federal ministers ‘critically important’ to the building industry Master Builders Australia has welcomed the appointment of three new federal ministers, saying their portfolios are critically important to the building and construction industry. The ministers – Chris Bowen (Tertiary Education, Skills, Science and Research and Small Business), Brendan O’Connor (Immigration and Citizenship) and Mark Butler (Housing and Homelessness) were sworn in by the Governor General Quentin Bryce last week. Master Builders CEO Wilhelm Harnisch said the industry looks forward to working with the new ministers and building on the very good work of their predecessors. “Chrisr Bowen, in his role as Minister for Immigration and Citizenship made a positive contribution to the building industry’s skill requirement through the skilled migration program,” Mr Harnisch said. “He will bring a wealth of experience to the skills portfolio, which will be vital to help develop the next generation of young Australians into rewarding building trades and in securing future skills needs.” Mr Harnisch said Brendan O’Connor as the previous minister for Housing and Homelessness and Small Business made an important contribution to tackling Australia’s housing affordability issues for low and middle income households and measures to help reduce red tape for small business. “We also congratulate Mark Butler on his promotion to the Housing and Homelessness portfolio and we look forward to working with him to continue to build on the good work of Brendan O’Connor,” he said. On the housing front, the December 2012 Queensland and regional building approvals just released by the Australian
Bureau of Statistics reveal strong Queensland figures. Master Builders director of housing policy Paul Bidwell said that the figures were welcome news for the industry, with total dwelling unit approvals for Queensland rising 7.9% from 2256 in November last year to 2435 in December, seasonally adjusted. “Queensland has bucked the national trend, which saw total dwellings approved fall by 4.4% for the same period,” Mr Bidwell said. Another positive from these
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figures is that over the 12 month period to December 2012 there was an improvement on the previous 12 months, with total dwelling unit approvals 3.8% higher, rising from 26,526 in 2011 to 27,527 in 2012.
Mark Butler .. new Minister for Housing.
“Looking closely at the regional figures, it is clear that regional Queensland has fared much better than southeast Queensland and is currently driving the emerging resurgence in the housing sector,” Mr Bidwell said.
issue 256 | 11.02.13 | Page 7
ENgINEERED WOOD
Engineered wood gains from us economy lift and housing starts
Global team develops CLT applications handbook By JIM BOWDEN
THE market for engineered wood products in the US is “on the up and up” as new housing starts climb in a better economy, says APAEngineered Wood Association vice-president and corporate secretary Ed Elias Speaking from Seattle in the US state of Washington, Mr Elias said the industry was “consciously optimistic” as house starts reached 900,000 in January. “But we’ve got a long way to go to catch up to the good years; we’re still around 1.8 million house starts shy of the figures pre-economic downturn.” Mr Elias said the bright light on
On the up and up .. engineered wood in demand as US housing lifts.
the horizon was the way the nation’s builders had captured engineered wood technology; a lot of new projects are swinging more to I-beam and glulam
systems, although LVL was dragging at the heels. He said the industry had never been in such a strong position and engineered wood now
represented more than 80% of the market share. “APA, too, is keeping pace with this and has a strong and growing membership with Weyerhaeuser rejoining and Boise Cascade bringing with it all its I-joist, glulam and LVL products.” Mr Elias remarked on the growing interest in crosslaminated timber construction in North America; APA had written most of the CLT standards for the US and Canada, fine-tuning the Standard for Performance Rated Cross-Laminated Timber PRG 320. Meanwhile, Canadian researcher FPInnovations, Cont Page 11
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PAgE 8 | issuE 256 | 11.02.13
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AWARDS
Applauded .. Victoria’s 2013 Rural Woman of the Year Michelle Freeman (centre) pictured at the ForestWorks national industry conference in Canberra last October with Jane Bartier, deputy CEO, ForestWorks, and Alison Carmichael, CEO, Institute of Foresters of Australia.
Good one, Michelle Forester Victoria’s 2013 rural woman of the year FORESTERS everywhere are celebrating the news that Michelle Freeman has won the state’s 2013 Rural Women’s Award. Michelle, a forester from Alexandra, 130 km northeast of Melbourne, is director of youth and women on the Institute of Foresters of Australia board. She claimed the honour last week ahead of three other finalists and was acknowledged for her commitment to better engaging and supporting young people and women to help them become leaders in the forestry profession. Ms Freeman will now contend for the national award, which will be announced in October by the Rural Industries and Research Development Corporation. She also received a $10,000 bursary to support her leadership development. Victoria’s Agriculture Minister Peter Walsh congratulated Ms Freeman on her achievement. “The RIRDC Rural Women’s Award honours and recognises the hard work, perseverance and dedication of rural women to their industries and communities,” Mr Walsh said. “The award pays tribute to
women with a strong, positive vision for the future of the farm sector and who demonstrate a significant contribution to shaping that future.” Michelle said she would use the award to better understand the wants and needs of young professional foresters across Australia, and to conduct workshops, field trips and other engagement opportunities to help young foresters feel more empowered and connected to each other, and to other more experienced foresters. “One particularly important element to this will be effectively and actively using social media as a communication tool,” she said. “The award pays tribute to women with a strong, positive vision for the future of the farm sector and who demonstrate a significant contribution to shaping that future,” Mr Walsh added.
dennis@industrye-news.com
A better understanding of the wants and needs of young professional foresters across Australia
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issue 256 | 11.02.13 | Page 9
PRODUCT SAFETY
CO2 Australia paves the way for carbon farming initiative projects CO2 Australia, a division of ther CO2 Group, has achieved a Carbon Farming Initiative (CFI) Methodology Determination for its reforestation and afforestation methodology from the Domestic Offsets Integrity Committee (DOIC). CO2 Australia can now register almost 30,000 ha of reforestation carbon projects that it manages under the CFI and commence the production of Australian Carbon Credit Units (ACCUs), which are tradable under the Australian carbon pricing mechanism. “This is a hugely exciting and commercially significant outcome for CO2 Group,” CEO Andrew Grant said. CO2 Australia is the leading developer of reforestation carbon projects within
Andrew Grant .. commercially significant outcome for CO2 Group.
Dr James Bulinski .. confirms solid expertise in the carbon space.
Australia; it has established forests across four states on behalf of major corporations and government agencies seeking to manage their greenhouse gas emissions. “Now that we have the determination, it’s ‘game-on’
for registering projects under the CFI and we are looking forward to getting on with the business of generating ACCUs for our clients,” Mr Grant said. CO2 Australia’s reforestation and afforestation methodology determination is the first privately developed methodology in the forest sector to reach the determination stage and the first to apply in-field carbon accounting approaches. “This is a highly complex and technical piece of work that leverages CO2 Group’s 10year investment in developing commercial-scale, carbon accounting systems,” CO2 Australia director Dr James Bulinski said. “After 18 months of working through the DOIC’s rigorous review process, we are tremendously proud to have achieved this milestone which confirms our solid expertise in the carbon space.” This achievement continues CO2 Group’s diversification strategy across all areas of the carbon market, following the company’s successful expansion into the carbon
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advisory services sector and the launch of several international carbon projects over the past 12 months. “This is a great outcome for the CFI because it demonstrates that it is possible for credentialed private sector players to successfully enter the CFI at a commercially significant scale,” Dr Bulinksi said. “We can expect to see the registration of forest carbon projects and the pace of ACCU generation to speed up over the next few months.” The methodology determination was signed off by the Parliamentary Secretary for Climate Change and Energy Efficiency Mark Dreyfus and formally came into effect as a legal instrument last week. Under the rules of the CFI, the accounting approach detailed in the determination cannot be challenged for 15 years, which provides considerable investment certainty to anyone looking to fund a forest carbon project. The CO2 Group hopes to expand the use of its methodology determination to other strategic partners and actively encourages anyone who is interested in developing projects, or methodologies, under the CFI, to contact them to discuss partnership opportunities. CO2 Australia is the country’s largest developer of reforestation-based carbon projects; it has developed more than 26,400 ha – or 39 million trees – of dedicated carbon plantings in Australia.
‘This is a highly complex and technical piece of work that leverages CO2 Group’s 10-year investment in developing commercial-scale, carbon accounting systems – James Bulinski Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
engineered wood
Engineered wood projects help APA gain new access to regulatory bodies From Page 8
in collaboration with APA, the American Wood Council and the US Forest Products Laboratory, has published a guide to CLT applications in the US. Developed for building professionals, the publication provides technical information and illustrates CLT applications adapted to current codes and standards. The multi-disciplinary, peerreviewed handbook, released this month, is designed to provide technical information for the design, construction, and implementation of CLT systems, encouraging adoption and selection of woodbased solutions in general in residential, non-residential, and multi-storey construction. The CLT handbook was developed by a team of more
than 40 experts from across the globe with funding assistance from three North America-based CLT manufacturers – Nordic Engineered Wood, Structurlam, and CLT Canada. On the glulam front, numbers are not big but North American producers are quietly cultivating a foothold in the Asian market that one day might well pay significant dividends. Glulam exports totalled less than 5% of North America’s 470 million board feet of production last year, but virtually all of that volume went to Asia. There are growing numbers of ‘window of opportunity’ projects in Japan,
China and Taiwan, and those projects collectively are opening eyes – and doors – in those countries. The projects are being undertaken under the auspices of the American Softwoods program, the joint effort of the APA-Engineered Wood Association, the Softwood Export Council, and the Southern Pine Council, with funding support from the USDA Foreign Agricultural Service (AFS). In Gumma Prefecture in Japan an elementary school used almost $460,000 worth of US glulam. The activity was the
‘The industry has never been in such a strong position and engineered wood now represents more than 80% of the market share’ – Ed Elias
direct result of several FASsponsored activities, including promotion of a winning design – the Kibi Kogen Elementary School – in the American Wood Design Award program. Both projects used the same architect and structural engineer, the latter of whom has participated in APA trade missions to the US, served as a speaker at an American Softwood seminar, and was the engineer for APA’s ‘super house’ demonstration project in the early 1990s. “These projects,” explains Ed Elias, “help us gain access to regulatory bodies, put us in touch with those countries’ design and construction communities, and in many other ways aid in our foreign market development trade servicing goals.”
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issue 256 | 11.02.13 | Page 11
INDUSTRY NEWS
Modelling delay ‘a stunt’
Anger in Tasmania over extra forest protection SIGNATORIES to Tasmania’s forest peace deal were kept in the dark about the final size of a wilderness world heritage area nomination. According to an ABC report, the key industry and environmental groups wanted an extra 124,000 ha added as part of an agreement to end the state’s forest wars. But Federal Environment Minister Tony Burke a fortnight ago submitted a nomination to increase the heritage area by 170,000 ha. Timber Communities Australia CEO Jim Adams has told an Upper House inquiry the figure was a surprise. “Right up until the day that was done we believed it was 124,000 ha,” he said. “We weren’t aware the nomination had been increased beyond that. “It’s our understanding that the increase in the nomination takes in a range of other areas which were otherwise already in reserves of one form or another.” The ABC story reported that Nelson MLC Jim Wilkinson had expressed frustration with the change. “It seems to be a bit of a moving feast,” he said. “You entered into this, first there was the agreement that was entered into; then after the agreement there were the negotiations that have changed that. “Now, of course, this seems to be yet another change. Yet the Legislative Council has been
Jim Adams .. examining impacts of having no deal.
Richard Colbeck .. nothing more than a stunt.
Jim Wilkinson .. it seems a bit of a moving feast.
told ‘look, if you make any changes at all the deal’s off’.” A long-awaited socio-economic study into Tasmania’s forest peace deal has been delayed. The commonwealthcommissioned study was supposed to be completed last month. But the inquiry has been told the project’s scope has been widened. Jim Adams says it is now also examining the impacts of having no deal. “Initially it was set up to assess the impacts of the proposal,” he said. “What they now are also trying to do is say ‘well ok, what would the impact be of doing nothing?’ “That means they’ve now had to go back and do some additional work in terms of
how, you’ve got to make some assumptions about that.” Coalition Forestry spokesman Senator Richard Colbeck says the Labor-Green government’s ‘do nothing’ modelling is nothing more than a stunt and misuse of public funds. He was responding to news last week that socio-economic modelling had been delayed because those doing the research had been asked to consider a ‘do-nothing’ scenario in the event the IGA plan does not proceed. “Doing nothing has never been an option and the Coalition addressed this in our policy at the 2010 election. We’ve been speaking about it since,” Senator Colbeck said. “There have been many, however, who have not been
prepared to listen, often too invested in the current sham process. “Admittedly industry players have been captured by the process and it is a bit hard to consider the future when you are fighting for your life. “There are obvious alternatives to the disaster – that is the IGA that will give industry, environmental, social and community benefits, and the government should consider them. “If the government does not do this, it shows this study is not about delivering information to the community, it is just an expensive taxpayer-funded stunt. “I also wonder if it is possible to factor in the prospect of a government that stands up for forestry and counters greens misinformation, instead of being perpetually missing in action like Minister Joe Ludwig and his parliamentary secretary Sid Sidebottom.”
‘The Labor-Green government’s ‘do nothing’ modelling is nothing more than a stunt and misuse of public funds – Senator Richard Colbeck
Forest peace deal: furniture designers, boat builders face ruin BUSINESSES that rely on speciality timbers say Tasmanian industry could be wiped out within a decade if the forest peace deal goes ahead. Furniture designers and boat builders are among the businesses that rely on rare
Page 12 | issue 256 | 11.02.13
timbers like Huon pine and blackwood. They have lobbied for a proposed law to be changed. Fifth-generation furniture designer and manufacturer Craig Howard predicted his business would close if all the
forests earmarked under the deal were protected. He urged the Legislative Council to amend the legislation before state parliament, so protection of forests containing speciality timbers was delayed until more research was done.
Boat builder Andrew Denman said creating more reserves would starve businesses like his of necessary material when demand for such products was rising. – The Examiner.
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industry news
$500m paper recyle mill biggest single investment for Amcor Ltd THE NSW Premier Barry O’Farrell has opened Amcor’s new recycling plant at Botany, Sydney, the largest single capital investment in the packaging group’s 144-year history. Construction on the $500 million mill began in 2011, creating 800 jobs during the build and 150 ongoing positions. The mill centres on the only machine of its kind in Australia, a 330-metre long line that produces 1.6 km of paper every minute. The B9 machine, manufactured by Finnish group Metso, will produce 400,000 tonnes of paper a year, in reels that weigh up to 47 tonnes. Amcor Australasia managing director Nigel Garrard talked up the B9’s environmental
Recyclers .. inspecting the new Amcor plant at Botany are Sonny Coleiro, group general manager, Amcor Paper and Recycling, Ken MacKenzie, managing director and CEO, Amcor Ltd, Barry O’Farrell, NSW Premier, Nigel Garrard, managing director, Amcor Australasia and Packaging Distribution, and Bruce Notley-Smith, MP Coogee.
‘“The new mill will significantly improve environmental impact’ – Nigel Garrard
credentials. “The new mill will significantly improve environmental impact. Recycled and bore water will be used in the production process with minimal use of town water for backup purposes,” he said. “This state-of-the-art recycled paper machine replaces three older machines aged between 43-52 years, reducing water consumption by 26%, energy usage by 34% and the amount of waste sent to landfill by 75%.” Metso in Finland is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. The company operates with more than 30,000 professionals based in over 50 countries.
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issue 256 | 11.02.13 | Page 13
NORTH AMERICA
Canadian lumber turns the corner But skilled sawmill workers have moved to oil fields SURGING demand and prices for lumber – as the US housing market finally recovers and as exports to China expand – are giving a boost to Canada’s beleaguered forestry sector. “Demand has picked up, and it doesn’t take much pickup to create a quite tight market,” says Patricia Mohr, a Scotiabank economist who tracks the prices of lumber and related products to compile the firm’s monthly Commodity Price Index. The bounce-back comes after the permanent closure of about 140 major sawmills in the US and Canada – closures that represented about an 11% decline in capacity for the industry. Ms Mohr expects new sawmills to built in Canada’s west coast province of British Columbia, or shuttered ones to come back online, to accommodate the renewed demand. And that will bring jobs, she says, at sawmills and elsewhere. “There had been quite a loss of employment, not just at
Canadian lumber industry bounces back.
sawmills but also logging contractors, and in the trucking business. A lot of this is going to come back.” In early January, prices for lumber and oriented strand board reached levels not seen since 2005, when the US housing market was at its peak. That year, annualised US housing starts were at 2.05 million units. Compare that with
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tel: +61 32661429 Cont Page 16
last year’s 954,000 units. Ms Mohr said lumber and OSB prices had improved dramatically from levels seen in 2011 and, though they could be
very volatile, she expects them to continue moving higher at least until the end of next year. “It is a multiple-year story of recovery,” she said. Ms Mohr said she hasn’t tried to gauge how many jobs a recovered lumber industry could create. But she did say employment needs are already top-of-mind among some in the industry. “One of the big sources of worry for the industry is where they are going to find the labour, and what the wage rates are going to be,” she said. One reason for the concern: after the sawmills closed, many skilled workers moved from the lumber-heavy province of British Columbia inland, to the booming oil-and-gasproducing province of Alberta. – Wall street journal
Driving new demand for timber From Page 4
A key point in the plan – expected to be presented to Cabinet in early April – is to sustain existing markets and drive new demand for timber and wood products promoting application and use, and removing any unreasonable barriers to that use.
Mr McInnes has been a familiar figure in the halls of government and in the offices of various departments such as public works, state development and DAFF as he explains the timber industry plan and briefs ministers on the role authorities can play as the plan rolls out.
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Page 14 | issue 256 | 11.02.13
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OVERsEAs BuILDINg TRENDs
Build American campaign marches through 40 states in battle for sales
180 companies join forces to promote local products MORE than 180 companies in 40 states have joined a ‘We Build American’ initiative after its launch at the National Association of Homebuilders Show in Las Vegas last month. The idea was put to the convention by 84 Lumber, the largest private building materials supply chain in the US operating more than 250 stores and wood product shops employing 4900 people. The initiative is supported by builders who have discovered that American-made homes can be cost-competitive with homes built using foreign lumber, nails, fasteners or other building materials and supplies such as adhesives and caulking. “Indeed, with reduced labour costs resulting from the use of quality American-made building products, the true cost of building American can often be less than building with foreign-made materials,” president and owner of 84 Lumber Maggie Magerko said. “This initiative is designed to spread the word that you can build homes with about 95% American-made materials and products, have a higher quality
Building on an idea .. Marnie Oursler with Delaware Governor Jack Markell and Economic Secretary Alan Levin, supporters of the American-built home.
Maggie Magerko .. true cost of ‘Building American’ can often be less than building with foreignmade materials.
home, and maintain and create American jobs – all with little
impact on overall building costs.” The ‘We Build American’ initiative is the brainchild of Marnie Oursler, a Bethany Beach, Delaware, builder who has found that the cost of using American-made materials is within one-half of one percent of the cost of using foreignmade materials. Based upon a series of custom homes she is constructing in her mid-Atlantic beach community, she approached 84 Lumber with the idea of sharing her experiences and recruiting other builders of all sizes to join an initiative to put more
American-made materials in American homes. In addition to building materials manufacturers and suppliers, 84 Lumber and Marnie Oursler have been joined in their efforts by Bozeman, Montana, builder Jake Lewendal, co-founder of The All American Home. Mr Lewendal and his father Anders, began their effort in 2011, and Jake has been travelling around America spreading the word about buying American-made materials and the positive effects it can have on our economy and job creation. It is estimated that current American homes contain about 65% American-made and sourced products. “With up to nearly 40% of the $295 billion American homebuilding industry relating to product costs, even a small percentage increase in American-made products could create hundreds of thousands of jobs nationwide in the years to come,” Ms Oursler said. This is equally true for the home renovation industry, where it is estimated about $67 billion is spent annually on building materials and supplies.
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.
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
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issue 256 | 11.02.13 | Page 15
China’s log imports from NZ and us gain steam in last half of 2012 LOG imports to China were off to a slow start in 2012 but in the second half of the year, shipments picked up with New Zealand and the US gaining the biggest market shares, reports the Wood Resource Quarterly. The Chinese domestic log market also heated up, with log prices reaching record levels. Demand for imported softwood logs in China increased in the second half of 2012 after declining during the first six months of the year. Total imports in the second half of the year were up 9%, but the increase was not equally distributed between supplying countries. Shipments from New Zealand and the US were up 29% and 20% respectively, while Russian exports to China fell 9% compared to the first half of 2012. WRQ says Log imports for the full year were down 15% from 2011, which was the first yearover-year decline since 2008. From 2008 to 2011, China’s imports increased by as much as 70% to a record 30 million cub m in 2011. Despite the decline in 2012, the total import volume was still the second highest on record. There have never been more logs unloaded in Chinese ports than in the December of 2012. The most dramatic shift in log
supply sources for China over the past few years has been the diminished exports from Russia and the sharp increase in log volumes entering from New Zealand. Just five years ago, China imported as much as 21 million cub m of softwood logs from Russia and only 1.2 million cub m from New Zealand. In the second half of 2012, the two countries shipped about 4.8 million cub m each. The average import value of New Zealand radiata pine in the fourth quarter 2012 was up a few dollars from the previous quarter, reaching the highest level seen since third quarter 2011, while the average value for most other species remained unchanged in the last quarter of 2012.
Surge .. China processing greater quantity of imported logs.
The most dramatic shift in log supply sources for China over the past few years has been the diminished exports from Russia and the sharp increase in log volumes entering from New Zealand
Domestic log prices in China on the other hand continued their upward trend with Chinese fir log prices up 13% from 4Q/11 to 4Q/12 to reach an all-time high, according to the WRQ. Prices for other commonly used species such as Mongolian pine, larch, poplar and birch were also at record high levels during the fourth quarter 2012.
New tax on sawn wood and engineered wood products CALIFORNIA has introduced a 1% tax on the retail price of sawn wood and engineered wood products sold in the US state, according to the International Tropical Timber Organisation.
PAgE 16 | issuE 256 | 11.02.13
The new tax came into effect in January and is expected to raise $US30 million annually. The money will be used for regulatory supervision of forest harvesting in California, thereby shifting the cost burden
from the timber industry to consumers. The new tax is assessed on socalled primary wood products with a wood content of at least 10%, but not on products assembled or processed from
primary wood products. All grades of sawn wood are taxed along with decking, railings and plywood. Products not taxed include furniture, moulding, millwork and hardwood flooring.
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ON THE ROAD
Wooden car strange among fleet of diabolically high-tech vehicles SINCE about the time I learned to walk I’ve been fascinated by cars of all shapes and sizes. I have never lost the excitement some 16-year-olds get when they first set out on the road. Not everyone has a job that involves one of their passions, and I remind myself all the time how lucky I am. Lucky indeed – I have tested more than 2000 cars, utes and trucks over a period of 40 years – vehicles running on petrol, diesel and electricity and made in Australia, America, England, Germany, Italy, Japan, Korea the Czech Republic. .. the list goes on – and so does the technology. Cars have travelled a very long road since their beginning in the late 19th century and one of the greatest revolutions has been electronics. From the creation of electronic fuel injection to the popular global positioning system that’s standard in many cars today, the modern auto industry has changed the way people travel. And now there’s the driverless car, which remains a concept as well as a platform for new technologies to improve safety on the road. At the Consumer Electronics Show in Las Vegas last month, Toyota and Audi showed off their ideas for autonomous vehicles, in the wake of the push by Google on its driverless car. And others may follow suit. Toyota drew considerable attention with its electronically gussied-up Lexus sedan, equipped with a host of sensors and cameras that can detect what is around the vehicle (or around the corner?). “It has the ability to drive itself, but we won’t allow it,” says Jim Pisz, corporate manager at Toyota North America. He says the technology is similar to Google’s with the use of electronics, but that “the
Beauty to behold .. the custom-built wooden car.
Google focus is on software mapping, that’s what they’re really good at. Toyota focuses on safety programs and more integrated systems.” The Japanese automaker maintains that its 2013 Lexus LS, also shown at the expo, already has “the world’s most advanced pre-collision safety system” but its driverless cars are only being used in closed research centres, My favourite? There isn’t one, really. It’s a bit like looking at
On the beach .. the 1947 Standard.
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a bevy of beautiful girls on the beach – they’re all different but you’d be happy with any one of them. That’s Orson Whiels in the black and white picture sent to him by a long-lost cousin. He might be preparing for his first test drive in this 1947 Standard Eight convertible. That’s his mum and faithful hound pictured on the Gold Coast circa 1952. Since those early times, I have owned a Vanguard, Austin Hereford, a blue Ford Zephyr
Six (my early favourite), a Holden HJ, Ford Galaxy station wagon, an MG TF, Toyota Tiara and Honda Integra, to name some. The first Morgan I tested was a brilliant Aero 8 with a 4.8 BMW, automatic transmission and frame built from European ash. In fact, all Morgans created at the Malvern Link factory in Worcestershire, England, are built around ash frames and steel chassis. Surprisingly, research has shown that the frame makes the car safer on impact tests. Cont Page 18
issue 256 | 11.02.13 | Page 17
on the road
Captiva a smooth ride on a road that takes you to the Wobbly Boot TERRY Shelly pulled a frosty at the Wobbly Boot and tinkered with some lines from the Slim Dusty song: Oh, it’s a curse, there ain’t nothin’ worse, makes you feel like a big galoot When you’re standin’ there, full of cheer, and somethin’ goes wrong with your boot You feel like a fool, you try to be cool, but you know it’s no use So you blame it on your wobbly, wobbly, you blame it on your wobbly boot. We had stopped at the pub on a nostalgic return to Boggabilla, a small NSW town sitting on the NSW-Queensland border on the banks of the Macintyre River, 210 km west of Brisbane. The last visit was in 1963, reporting on the Australian Estates whiteface weaner sale for Queensland Country Life. That year we slid off the road in a 1962 Holden EJ and got bogged outside Goondiwidi. Luckily, we were being followed by Waggamba Shire chairman Harold Hungerford who pulled us out. The ride this time in Holden’s new Captiva 7 LX was a lot easier, a lot more comfortable and lot safer – with six airbags and stability control. We missed the flood rains this time, too. A week later we checked with Terry at the Wobbly Boot who said the townsfolk were stranded for three days after a
Captiva 7 .. family safety top priority.
165 mm deluge in one day! If a car-load of standard equipment is your priority, it’s hard to go past the Captiva – touch-screen sat-nav, electric park brake, a fold-flat front seat and 19-in. alloys. Add front and rear parking sensors, roof rails, a fold-away
third-row seat, single-zone climate control, an eight-way power-adjusted driver’s seat, Bluetooth streaming, cruise control, six-CD audio with eight speakers and auxiliary, USB and SD-card compatibility. Holden claims consumption of
the fuel the petrol
Bogged at Boggabilla .. The Hungerfords, Harold and Sheila, pull us out.
Captiva is around 16.4 L/ 100 km in urban or city driving conditions, but on country travel the average is closer to 11.6 L. The seats – and all-leather interior – were comfortable and supportive on the 850 km round trip through Toowoomba on the way and the flatter more fuel saving return by way of Warwick. Second-row space is a bit tight but acceptable for adults. The third row is really more kid-size but an adult could do it at a pinch as the actress said to the bishop. There’s plenty of storage, including an under-seat tray for the front passenger and a huge bin hidden cleverly under the dual cup holders in the centre console. Holden has done a top job of tuning the ride and handling for Australian conditions Steering is light and visibility is good. The Captiva 7 offers a range of engine variants, a 4-cylinder petrol, SIDI direct injection V6 or the powerful 2.2L turbo diesel. The car has everything you need in a family SUV – and there’s the confidence of the best in road safety features. Some good deals right now – a Holden drive-away campaign has reduced the price by about $3000, so the smart 4WD 2012 model is a bargain at around $40,000.
Imagine bending the wood to a perfect shape From Page 17
Mate and forester Gary Bacon sent me the picture and story on the wooden car. This custom-built 2009 beauty is the creation of a furniture builder and car enthusiast. Located in Hickory, North Carolina, USA, the car rides on a 1986 Toyota truck frame
Page 18 | issue 256 | 11.02.13
and gets power from a Chrysler 318 engine. It’s driven by an automatic transmission and has a mere 2980 km on the speedometer. The whole body is made of cedar and its interior is just as over-the-top as the exterior. Imagine bending that wood to a perfect shape. This would have been done using steam heat
and constant pressure which in itself would have taken hours and hours on a perfect form. The interior is fabulous; it would have taken many hours of patience to create the doors and dash alone. We believe the owner turned down just under $10,000 on eBay for this cellulose creation. The distance between North
Carolina and Colorado is 2667 km. So what? Well, it’s a way of introducing the Colorado 7 LTZ SUV, Holden’s new-generation 2.8-litre turbo-diesel, which I take for a test run next week. The name is as far as it goes for any Yank connection .. it was designed and styled in GM’s South American design centre in Sao Caetano do Sul, Brazil.
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events/CLASSIFIEDS
HOPPER FOR SALE
- Filt Air unit – 62 cubic metres, full length hydraulically operated. - Clam shell doors. 50 HP exhaust fan. 16000 CFM @ 13 inches. - 110/3.2 filter bags. Also comes with all switch gear.
Price $25,000 (+gst) Ex Heidelberg West, Victoria
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3-7 Northern Road, Heidelberg West, 3081 Vic. Tel: (03) 9457 4546. Fax: (03) 9459 4994 Email: taswon@bigpond.com Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au
issue 256 | 11.02.13 | Page 19
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