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ISSUE 292 | 21.10.13 | PAGE 1
Slimmer, simpler standards model
THIS ISSUE
Consolidation puts committees in line with international process
A NEW simplified structure for standards development in Australia is expected to be approved at an industry forum in Melbourne next month. Standards Australia has progressed proposals put at a forum it convened in August which was linked to about 50 stakeholders representing timber committees and the timber industry from around Australia and New Zealand. The goal was to review the structure for developing timber material standards to see whether the proposition to simplify the structure, in line with that of
TABMA awards fitting climax to Sydney forums • Worthy award recognises service by Bob Frost • ron adams re-elected chair of FWPA • timber benefits from low-carbon living • industry guidelines protect koalas • Precision silviculture field day
Raising the standard .. Standards Australia has a policy of ‘adoption, wherever possible, of international standards prepared by ISO and IEC’.
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Australia
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a
policy of ‘adoption, wherever possible, of international Cont Page 2
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www.osmose.com.au Call: 1800 088 809 ISSUE 292 | 21.10.13 | PAGE 1
industry news
Standards will align with needs of timber markets From Page 1
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standards prepared by ISO and IEC, as Australian (AS), or joint Australian/New Zealand Standards (AS/NZS)’]. There are currently more then 260 Standards Australia timber publications, eight timber committees and one timber standards coordination group. The proposal at the August forum was to consolidate the eight timber committees and standards coordination group into three committees. A transition to the new structure by Standard Australia at the Melbourne meeting in late November is seen as “a sure thing”. ”We’re always looking for ways to be proactive in terms of simplifying the processes of developing standards so they are more representative of market needs,” the head of stakeholder engagement, Standards Australia, Adam Stingemore said. “It’s good to be able to consult with industry and we are considering the important feedback from the forum, particularly in relation to international alignment as we finalise the new structure.” This was a positive sentiment echoed by Boris Iskra, standards manager at Forest and Wood Products Australia. “It is our role to ensure that standards align with the needs of the marketplace for both the suppliers and users of wood and wood products,” Mr Iskra said. “Simplifying the standards approval process is one step towards this.”
Boris Iskra .. simplifying the standards approval process is a step forward.
Adam Stingemore .. new structure more representative of market needs.
Standards Australia is the nation’s peak non-government standards organisation, charged by the federal government to meet Australia’s need for contemporary, internationally aligned standards and related
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PAgE 2 | issuE 292 | 21.10.13
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industry news
Industry ‘out of wilderness’ at collaborative value chain talks
Spirit of new confidence at Sydney seminar By JIM BOWDEN
A SPIRT of confidence in the future growth of the timber industry and a feeling that the forest sector is no longer ‘lost in the wilderness’ by government permeated discussions by more than 130 delegates attending the Building Stronger Value Chains seminar in Sydney. Observing the mood of the seminar, Australian Forest Products Association CEO Ross Hampton remarked: “One of the most important things we can do to program the growth of an industry coming through some very difficult times is to collaborate – to talk to each other – and organise our efforts so that if we are not singing with one voice then we are in the same opera.” Most industry leaders agreed, observing the new evidence of a positive response at a political level to the industry’s coordinated ‘ask’ in research and development. Delegates were encouraged by the attendance and contribution by Senator Richard Colbeck, Parliamentary Secretary for Agriculture and federal forestry spokesman, who joined in the round of industry forums on October 10 and 11 from start to finish – a rare but welcome imitative by a high-profile politician. Senator Colbeck said he was impressed with the sense of industry unity at the conference – a willingness to back good
Re-elected chairman of Forest and Wood Products Australia Ron Adams (left) welcomes keynote speakers NSW Minister for Primary Industries Katrina Hodgkinson and Federal Parliamentary Secretary for Agriculture Senator Richard Colbeck to the Building Stronger Values Chain seminar in Sydney on October 11. More than 130 forest industry leaders and VIP guests attending the seminar, a joint venture between Forest and Wood Products Australia, the Australian Timber Importers Federation and the Timber and Building Materials Association.
ideas no matter where they came from. “The introduction of a CEO panel was a useful segment and putting us up there was a powerful show of unity – something that didn’t go unnoticed by the senator,” Ross Hampton said. The senator from Tasmania certainly deserves an industry that makes sure he gets support in the cabinet; that
empowers him with space to move in the Prime Ministers’ office and among other senior ministers. His heart is in the right place. The Coalition’s policy for forestry is investing $15 million to make the sector more productive and competitive. It will also benefit from the government’s $100 million increase in research and development expenditure. Then value chain seminar was
‘The seminar reflected an improved level of confidence and positivity about where the industry is headed – much more so than we have experienced in the last couple of years’ – John Simon
part of a round of industry meetings in Sydney that included the annual general meeting of Forest and Wood Products Australia, an FWPAhosted industry dinner, R&D seminar, ATIF board meeting and the TABMA Australia dinner and awards night. FWPA managing director Ric Sinclair appreciated the air of collaboration at the seminar, but said it had to achieve a purpose and transform to deliver better outcomes for industry and more profit. “It’s also about international competitiveness and growing the market, and collaboration is a tool that can achieve that. “There is no doubt the industry is starting to lift its head.”
Seminar presentations at www.fwpa.com.au In a seminar summary, FWPA director John Simon said key industry issues were well addressed. “There was a good turn-up of industry players and we were impressed that Senator Colbeck stayed through every session,” he said. “The seminar reflected an improved level of confidence and positivity about where the industry is headed – much more so than we have experienced in the last couple of years.”
FWPA has new investment priorities INDUSTRY research and development body Forest and Wood Products Australia had clearly established systems and strong corporate governance since it was established six
years ago, managing director Ric Sinclair said at the annual general meeting in Sydney. He said federal government funding had been secured for the next five years, together
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with the opportunity to secure matching funds for voluntary contributions. “There has been a realignment of investment priorities, details of which are in the new five-year
strategic plan that had been approved by the board,” Mr Sinclair said. “Our expenditure is now Cont Page 4
issue 292 | 21.10.13 | Page 3
industry news
ron adams back as chair of FWPA
Well attended AGM in Sydney From Page 3
Queensland leads housing recovery What do the next 12 months promise for timber industry? Australia’s housing sector remains on track to recovery. Queensland was the best performer, with housing approvals up 12.2% for the year.
Housing IndustryAustralia’s Association’s ExecutiveExecutive Housing Industry Queensland
Director WARWICK TEMBY will address a special Timber United Group all-industry dinner in Brisbane THURSDAY,
OCTOBER 24, 2013
River Room, Hamilton Hotel 442 Kingsford Smith Drive (cnr Racecourse Road), Hamilton
Networking starts at 5.30 pm
Pre-dinner drinks compliments of Brisbane Hoo-Hoo Club 218.
Cost per person: $59:00. Payable to Brisbane Hoo-Hoo Club 218, PO Box 3236, Sunnybank South Q 4109 .. or at the door.
Early registration recommended. R.S.V.P. October 16 Contact: Alfred Chapple on 0417 746 522, Jim Burgess on 0438 199 670, or Don Towerton on 0428 745 455 Email: chapples2@bigpond.com PAgE 4 | issuE 292 | 21.10.13
balanced with income and that has led to a 33% reduction in activities. This situation will continue until our levy payers and members are supportive of increased funding for collaborative activities.” The AGM, attended by Senator Richard Colbeck, Parliamentary Secretary for Agriculture, brought together a record number company members and stakeholders. The meeting on October 11 was the cornerstone of several events in Sydney that reflected a growing confidence in the industry. The meeting saw the re-election of Ron Adams, managing director, Wespine Industries, as FWPA chairman, and Craig Taylor, director and principal of The Fifth Estate, a Sydney based consulting firm, installed as a new independent director. Mr Taylor has previously held management and executive roles with State Forests of NSW, Boral Timber, Wesfi and Jaakko Pöyry Consulting. He has a BSc (Forestry) from the Australian National University and is currently a director of P.F. Olsen Australia. “It is an honour to be voted in as an independent director by FWPA members,” Mr Taylor said. “I look forward to working with my fellow directors to build upon FWPA’s successes and to take the company to the next level.” Ric Sinclair said that all
Craig Taylor .. new independent director at FWPA.
resolutions, including a special resolution to make minor amendments to the constitution, were supported by the company membership. At a subsequent meeting of the board of directors, Ron Adams was re-elected chair of the board and John Simon, CEO of Simmonds Lumber, was reelected deputy chair. The AGM was held in conjunction with an R&D forum. Presenters included Mark Dewsbury, University of Tasmania (research into the optimisation of the thermal performance of timber building components in housing design); Paul England, EFT Consulting (potential for increased timber markets based on a modernisation of the fire safety components within the national building code); and Andrew Dunn, TDA NSW (emerging wood-based construction systems used around the world).
Gunn’s estate portfolios for sale GLOBAL interest is being fielded in the sale of the AFPT and AFPT 2 timberland portfolios, formerly part of the greater Gunn’s estate. CBRE Agribusiness is steering the sale of the Tasmanian portfolios, offered on behalf
of Peter Anderson and Shaun Fraser of McGrathNicol as joint and several receivers and managers of the Australian Forestry Plantations Trust (AFPT) and the Australian Forestry Plantations Trust Number 2 (AFPT 2).
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EVENTS
WHAT’S ON?
2013 oCtoBer
24: Timber United Group dinner – Queensland housing industry trends. River Room, Hamilton Hotel, 442 Kingsford Smith Drive (cnr Racecourse Road), Hamilton. Networking starts at 5.30pm. Cost: $59 p.p. Speaker: Warwick Temby, executive director Queensland, Housing Industry Association. Pre-dinner drinks compliments Brisbane Hoo-Hoo Club 218. Early registration recommended. R.S.V.P. October 16. Contact: Alfred Chapple on 0417 746 522, Jim Burgess on 0438 199 670, or Don Towerton on 0428 745 455. Email: chapples2@bigpond.com
noVeMBer 1: Building with timber, managing fire risk industry networking breakfast. 7.30-9.30 am Bruce County, 445 Blackburn Road, Mount Waverley. Speakers: Mark Grouis, Carter Holt Harvey; Boris Iskra, FWPA and Wood Products Victoria; and Nick Vlahandreas, Alpine Shire Council. Contact: Ingrida Matulis, Timber Merchants Association. Tel: (03) 9875 5000. Fax: (03) 9877 6663. www.timber. asn.au 7: IFA 2013 AGM events. Cliftons, Level 1, 440 Collins Street, Melbourne. 12 noon: Lunch. 1-4.30 pm: Innovation forum supported by Forestworks. 5-6 pm: IFA AGM. 6.30 onwards: IFA annual dinner. Speaker: Graham Wilkinson, chief forest practices officer, Tas Forest Practices Authority. Presentation of
IFA honorary membership to Alan Brown. RSVP October 31 to Alison Carmichael Institute of Foresters of Australia, PO Box 7002, Yarralumla ACT 2600. Tel: (02) 6281 3992. Mob: 0414 287 079. Email: ifa@ forestry.org.au 8: 50th Anniversary of the Tasmanian Forest Contractors Association. Country Club Casino, Country Club Avenue, Prospect. 6.30pm till late. Cost: $900 per table or $100 p.p. The TFCA is one of the oldest employer organisations that represent primary industries in Australia. Presentations from industry leaders throughout the evening will take us back through the many achievements of the TFCA over the last half a century. Numbers limited – bookings essential. RSVP to Denise DeBattista on (03) 6343 3398 or admin@tfca.com.au 8: Forest Valuation Seminar. Venue: Cliftons, 444 Collins Street, Melbourne, 10 am-4 pm. Institute of Foresters of Australia, in conjunction with Pöyry Management Consulting (Australia) Pty Ltd, presents a one-day seminar on commercial forest valuation covering valuing natural forests and plantations for financial management, investment and reporting. Unique opportunity to meet with skilled practitioners to discuss compliant approaches to forest valuation. Fee: $550 non-members; $275 IFA members. Contact: Institute of Foresters of Australia, PO Box 7002, Yarralumla ACT 2600. Tel: (02) 6281 3992. Mob: 0414 287 079. Email: ifa@ forestry.org.au Web: www.forestry. org.au
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23: TABMA Queensland timber industry gala dinner. Moda Events Portside Level 2, Portside Wharf Hamilton. Contact Alicia on (07) 3254 3166 or alicia@tabma. com.au 26-27: ForestTech 2013 (including the forest industry safety summit and steep slope wood harvesting conference – Rotorua, NZ. www.foresttech2013. com
2014 FeBruary 2014
17-21: Gottstein Wood Science Course, Melbourne. Inquiries to Dr Silvia Pongracic (Gottstein Trust), 0418 764 954 or secretary@ gottsteintrust.org or www. gottsteintrust.org
MarCH 2014 19: ForestWood 2014. Politics, Policies and Business Impacts. Pan-industry conference jointly hosted by Forest Owners Association, Wood Processors Association, Pine Manufacturers Association, Forest Industry Contractors Association, and supported by Woodco, NZ Farm Forestry Association and the Frame and Truss Manufacturers Association. Museum of New Zealand Te Papa Tongarewa, Wellington. Registration opens October 2013. Contact conference organisers Paardekooper and Associates on +64 4 562 8259 or email info@forestwood.org.nz Visit www.forestwood.org.nz
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 292 | 21.10.13 | PAGE 5
sydney seMinar: BuildinG stronGer Value CHains
Timber stands to benefit from new shift to low-carbon living All drivers point to a need for more housing TIMBER stands to benefit greatly from Australia’s shift to low carbon living. Speaking at the value chain seminar in Sydney, Professor Sue Holliday, managing director of the National Housing Supply Council, said there was a huge underlying demand for homes right across Australia. “Our cities are growing and we urgently need affordable homes in the right locations. That is the foundation of a strong industry base,” she said. “If innovation is the future competitive edge in a global world, then timber needs to be part of that. “I hope your members join with colleagues and collaborate with industry partners who want to research and innovate timber solutions for the modest affordable home or apartment. Prof. Holliday said joining the CRC for Low Carbon Living might get a project going, one that might put timber on an equal footing with steel for modular units. She asks: “Is it possible for innovative products like recycled timber, plantation
PAgE 6 | issuE 292 | 21.10.13
timber or new timber composites to become the norm in modular, affordable, homes and apartments? That is the future that I’d like the industry to debate and then research.” She said initial NHSC research streams were particularly relevant to the timber industry: building low-carbon lifecycle building construction components and materials; and integrated design, energy rating and reduction methodolgies. “These outputs target next generation construction practices, where step-change emission cuts are required. New design tools, rating frameworks and Australian standards will underpin and stimulate the market for low carbon buildings, products and services.” Prof. Holliday said building fabric represented around 15% of building lifecycle greenhouse gas emissions, a significant opportunity for carbon reduction. “The building fabric is currently a problem in carbon footprint terms, but innovative use of fabric materials and
Professor Sue Holliday .. if innovation is the future competitive edge in a global world, then timber needs to be part of that.
design provides a significant opportunity for incorporating passive and active renewable energy solutions,” she said. “The potential is evident from the scale of roof area in Australian cities, which receives enough sunlight to power all of Australia’s built environment needs. The challenge of this program is to re-envision Australian building materials, construction practices and appliance technologies as integrated low carbon and
renewable energy systems. “However, unfortunately, timber is not yet central to this. Forest and Wood Products Australia and the Timber Development Association have both applied to be members of the CRC for Low Carbon Living, and so I am hopeful that this will expand the opportunities to experiment in new timber technology.” Prof. Holliday said Australia had one of the highest population growth rates in the OECD; around half this comes from net overseas migration. Since the average growth of major cities was slightly above the national rate, this indicates many Australian cities had some of the highest growth rates in the developed world. In the 2011–12 year, the larger capitals grew almost 50% faster than the rest of the country. Over the last five years, the previously high population growth rates in regional Queensland’s major cities had moderated. Growth rates in Darwin and Perth have remained particularly strong. “There are large differences in Cont Page 7
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sydney seMinar: BuildinG stronGer Value CHains
An ambitious target for metropolitan Sydney: 545,000 new houses by 2031 From Page 6
the age and gender of those moving to and from individual capital cities,” Prof. Holliday said. “Canberra, Darwin, Perth and to a lesser extent Brisbane are attracting high numbers of mainly male 15–24 year olds. Sydney is losing significant numbers of residents across all age groups but overseas migrants are taking their place at a rate that keeps Sydney growing, albeit below the national average.” Sydney’s population grew by 7.6% between 2006 and 2011, to 4,605,992. The historic patterns of Sydney’s growth are projected to continue into the future. By 2016, the population may have increased by half a million people, reaching five million by 2021. This means a city of 5.6 million by 2031. The biggest demographic challenge was the aging population. In 2008, the proportion of Sydney’s population aged 65 and over was 12% below the national average of 13.3% but, in line with national trends, it is projected to nearly double by 2056 (to 20.5%-22.6%). “That means that there will be an increase of people aged 65 and over from 500,000 to almost a million by 2031. That’s the same number as the number of under 15 year olds. And almost 30% of them are one-person households, and well over 50% are in twoperson households. “But what does it mean for
the housing industry? From 2006-2011, only 3600 new dwellings were constructed in the western region of Sydney, and the housing stock across the city grew by only 5% - well below the population growth. “This continues the all-time low production over the last 10 years. The latest Metropolitan Plan for Sydney sets an ambitious target of at least 545,000 new houses across Sydney by 2031 – one new dwelling for every two people. “However, because household
formation is higher than in the past, if people continue to live in households in the same way they do now, 650,000 dwellings will be required. This will leave a shortage of housing. “So all the drivers point to a need for more housing. But our cities cannot sprawl ever outwards. So the highest proportion of dwellings being built, and indeed needed, are smaller dwellings for smaller households in locations accessible to public transport and other facilities.
“The Australian dream may still be to own your own house, but now its location that’s driving the dream not the brand new little house in the outer suburb.” Prof.
Holliday
“Andrew
concluded:
Gutheridge,
talk summed it up when he said: ‘Timber is the warmth, the tactile, the real, the humane, the
sustainable.
Really
unthinkable not to use it’.”
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issue 292 | 21.10.13 | Page 7
it’s
industry news
Illegal logging talks in Thailand: a country of diminishing forests Speakers from 7 countries focus on FLEGT SPEAKERS from seven countries addressed a timber trade workshop in Bangkok last week, focusing on illegal wood issues, better governance and the EU’s action plan on Forest Law Enforcement, Governance and Trade (FLEGT). Thailand is the latest of five Asian countries to develop a voluntary partnership agreement (VAP) within FLEGT, following Indonesia, Malaysia, Vietnam and Laos. Indonesia, which concluded negotiations in May last year, is expected to sign its VPA soon. Delegates at the workshop on October 16 and 17 represented Australia, China, the European Union, India, Japan, South Korea and the US. Australia was represented by John Halkett, general manager, Australian Timber Industry Federation, who gave an overview of the Logging Prohibition Act which will be on the agenda of the new Abbott government when parliament sits in November. The ultimate objective of VPA is to ensure, through a licensing scheme, that only legal timber is imported into the EU. Each VPA is dependent on the development and implementation of a Legality Assurance System (LAS) which includes a definition of legal timber, a verification system, a licensing system and an independent audit. The EU Timber Regulation, introduced in March last year, prohibits entry of illegal timber and timber products. The US and Australia have adopted similar legislation, completing a significant demand side incentive to enhance efforts to address illegal logging in supplier and processing countries. China, Japan and South
PAgE 8 | issuE 292 | 21.10.13
Clearing the way .. more than 4.9 million ha of forests has been cleared in Thailand for irrigation projects such as dams and reservoirs and other infrastructure projects.
John Halkett .. the Australian position.
Korea are contemplating the further development of policy instruments, including legal procedures, to curb the trade in illegal timber and timber products. The workshop in Bangkok coincides with the release of a study last week on the forest industry in Thailand
by the forest management division of Kasetsart University, the country’s internationally respected research and learning facility. The study shows forest areas in Thailand have been shrinking at an alarming rate; between 1973 and 2009, 4.9 million ha of land was cleared of trees. Various destructive factors have contributed to the loss. The study puts the spotlight on certain predictable projects, mostly irrigation plants including dams, manmade canals and watergates managed by the government. Other top destroyers include road and highway construction, as well as less familiar activities such as rock blasting and petrochemical pipelines. The study took all available data from all implemented projects and concessions to find out how much forest land has been cleared, but it stressed
The Thai government has a policy to increase its forest area to 40% of total land, which means it needs to increase it by 3.3 million ha
there were other causes that are wiping out forest areas. These activities just involve the government and reflect the state’s policy. The Thai government has a policy to increase its forest area to 40% of total land, which means it needs to increase it by 3.3 million ha, although state projects such as irrigation require the use of forest land. There is a conflict between policy and practice, says the university report. “Our history of forest consumption says a lot,” says the university’s assistant professor Khwanchai Duangsathaporn. “Thailand has been treating the forest as an export, like rice and tin. Indeed, forests here have been used intensively. “Commercial logging concessions have been given out since the reign of King Rama V of Siam (1868-1910). So, forests have been used for commercial reasons and those who benefit from it have always been the elite, not the poor.”
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industry news
New CEO chosen for BranZ in nZ
Chelydra Percy brings strong skills in science management
Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 7,000 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway loganholme 4129 qld, australia
Chelydra Percy
Helen Anderson
A WOMAN with a strong background in science management and strategic skills has been appointed group chief executive of BRANZ Ltd, the independent research and testing company providing services and resources for the building industry. Chelydra Percy, whose appointment take effect on November 18, comes to BRANZ from Callaghan Innovation where she was general manager for future products and innovation. She will be based at the BRANZ headquarters in Porirua City in the Wellington region of the North Island. Board chair Helen Anderson said BRANZ was fortunate to have secured someone as experienced as Ms Percy. “The board is excited to be working with Chelydra to continue the growth of the organisation,” Ms Anderson said. “With a strong background in science management and strategic skills developed during her time at Scion and as chief executive for the Electricity Supply ITO and Kiwi Star Optics, Chelydra brings an excellent package of leadership skills to BRANZ.” Ms Percy said BRANZ was a
strong and well recognised organisation within New Zealand’s building industry. Address all correspondence to “I am really looking forward PO Box 330, Hamilton Central, Qld 4007 to working with the team to increase the level of quality knowledge and information we deliver for industry benefit,” she dennis@industrye-news.com said. BRANZ’s main activities include PUBLISHER to research and investigate the Dennis Macready construction and design of dennis@industrye-news.com buildings that impact the built environment in New Zealand; and enable the transfer of knowledge from the research community into the commercial building and construction mAnAgIng EDITOR industry. Jim Bowden The organisation is funded Tel: +61 7 3266 1429 by a building research levy, Mob: 0401 312 087 the Ministry of Science cancon@bigpond.net.au and Innovation, and revenues generated through ADVERTISIng commercially contracted Tel: +61 7 3266 1429 research projects for private, cancon@bigpond.net.au government and international clients BRANZ is a registered testing authority in Australia, in terms of Part 1 of the Building Code of Australia, a consequence of the IANZ accreditation it holds for fire, thermal and Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility weather penetration testing. for any damage resulting from inaccuracies in editorial or advertising. This has helped to ensure that The Publisher is therefore indemnified against all actions, suits, claims BRANZ maintains its significant or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing market share in these testing Group. segments.
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issue 292 | 21.10.13 | Page 9
taBMa industry dinner and awards niGHt
Gala night in Sydney marked TABMA awards presentation
International gathering at Doltone House “The building industry has always been cyclical and you have to adjust to the market that you are in,” Don Gynther said. A new company on the construction scene, 5 Star Timbers combines 75 years in managerial and sales knowledge and experience in all facets of the industry including sawmilling, wholesale and trade supply and professional consultation. Located at Stapylton on the booming buiding corridor between Brisbane and the Gold Coast, and at Woodridge, 5 Star Timbers promotes its business as a ‘one-stop construction shop’.
By JIM BOWDEN
MORE than 320 guests kicked up their heels and enjoyed a night of entertainment, dancing and fine food at the TABMA Australia awards dinner in Sydney staged at the heritagelisted Doltone House on the historic Jones Bay wharf. The guests, representing all sectors of industry from every state and overseas, were welcomed by TABMA Australia CEO Colin Fitzpatrick and MC Tod McKenney, the musical star and judge of Dancing with the Stars. Tod admitted he was hard pressed to pick a winner among the energetic timber types on the dance floor who rocked late into the night. Senator Richard Colbeck, federal Parliamentary Secretary for Forestry, was among many industry leaders tripping the light fantastic. Looking around the room, Mr Fitzpatrick noted guests from New Zealand, Canada and Chile had stamped the awards night “an international event”. Mr Fitzpatrick thanked major awards sponsors Gunnersen, ITI, John Cook & Sons, Meyer Timber, ATS Timber, Mitre 10, Wood Solutions and Tilling Timber. “Without the support of these fine companies plus our silver and bronze sponsors, nights like we all enjoyed would not be possible,” he said. Official proceedings got off to a nostalgic start when TABMA Australia president Peter Hutchison called on veteran timber merchant Bob Frost to accept special recognition by the Australian Timber Importers Federation for his long and dedicated service to industry (see Page, 12).
PAgE 10 | issuE 292 | 21.10.13
A night to remember .. federal Parliamentary Secretary for Agriculture Senator Richard Colbeck (right) congratulates TABMA Australia chief executive Colin Fitzpatrick (left) and TABMA president Peter Hutchison of MiTek Australia Ltd on the successful TABMA dinner and awards night in Sydney on October 11 that attracted more than 320 Australian and international guests.
Richard Colbeck and ATIF chairman Nils Koren were on hand to present Mr Frost with a timber plaque and a wooden cheese dish crafted by wood turners at Maleny in Queensland’s Sunshine Coast hinterland. The awards night was a fitting finale to a round of industry forums and meetings in Sydney on October 10 and 11 – joint ventures by FWPA, ATIF and TABMA. Queensland TABMA members scored key wins in the awards announced during the evening – Northside Trusses & Frames for Best Frame and Truss
Operation, and 5 Star Timbers for Member of the year. Northside Trusses & Frames had its humble beginnings in 1983 in the back yard of a property under some old mango trees in Kallangur on Brisbane’s northside. Just two years later, NTF moved to its own premises and by 1992, had outgrown the site and a moved to the present 5 ha site at Brendale in the Pine Rivers Shire. Growth has been constant, yet the directors, Greg Dummer and Don Gynther, continue to be involved with the day-to-day running and decision making of the company.
‘Without the support of these fine companies plus our silver and bronze sponsors, nights like we all enjoyed would not be possible’ – Colin Fitzpatrick
award winners The TABMA Award winners were: Best Frame & Truss Operation: Northside Trusses & Frames, Qld. Best Timber Merchant: Bone Timber Industries SA. Best Building Materials Centre: NHS Plasterboard & Timber, NSW. wholesaler of the year: ITI, NSW. Most Innovative Member: Programmed Timber Supplies, NSW. Member of the year: 5 Star Timbers, Qld. apprentice of the year: Shane Aitchison, A1 Poly, NSW. trainee of the year: Blake Mulford, Stratco, NSW. Host employer of the year: Prospect Frames & Trusses, NSW. sales representative of the year: Paul Anderton, Swan Le Messurier, NSW.
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taBMa industry dinner and awards niGHt
Timber Queensland CEO Rod McInnes (right) congratulates Northside Trusses and Frames of Brendale, Qld, on winning the Best Frame and Truss Operation Award at the TABMA Australia dinner and awards night in Sydney – from left, Greg and Wendy Dummer and Glenda and Don Gynther.
Dazzling duo at TABMA Australia’s gala dinner and award night at Doltone House at Pyrmont Point in Sydney are Abby Thomas and her mother Vivien Thomas of Freeman Wauchope Pty Ltd, Camden Park, SA. Brian Beecroft, CEO, Timber Trade Industrial Association, Sydney (centre) is caught between two competing bow ties at the TABMA Australia gala dinner in Sydney worn by Jim Bowden, Timber and Forestry enews and Roy Edwards, director, Heyden Frame and Truss, Wyong NSW.
President of TABMA Australia Peter Hutchison (right) presents the TABMA Member of the Year Award to Justin Lanyon, managing director and coowner of 5 Star Timbers, Brisbane, at the gala awards night in Sydney.
✓ ✓ ✓ ✓ ✓ Greg Drummer, principal, Northside Trusses & Frames, Brendale, Qld (left) receives the coveted award for Best Frame and Truss Operation at the TABMA Australia awards dinner in Sydney from Peter Hutchison president of TABMA Australia.
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issue 292 | 21.10.13 | Page 11
taBMa industry dinner and awards niGHt
Worthy award recognises service to industry by veteran Bob Frost RESPECTED timber merchant Bob Frost was honoured with special presentations at the TABMA Australia dinner and awards night to mark his long and dedicated service to industry. • Presenting to Mr Frost at the gala event at Doltone House at Pyrmont Point in Sydney are senator richard Colbeck, federal Parliamentary Secretary for Forestry (left) and Nils Koren, chairman, Australian Timber Importers Federation, and managing director, Gunnersens.
Bob Frost, 79, entered the timber industry in his early 20s working for Allen Taylor at Winda Woppa on the NSW north coast and was soon managing a couple sawmills before moving to Taylors in Sydney. For a short time, Mr Frost
PAgE 12 | issuE 292 | 21.10.13
worked for Harrisons which started Homebush Bay Timbers. In the early 1960s, he worked with Kevin Simmonds and by the 1980s Simmonds was sold to Addington Timber Company of New Zealand. Bob Frost stayed on as CEO until the mid-80s when, together with Ken Bell, he formed KB Timber Marketing with the idea that they could both work fewer days. Mr Frost was approached by Jack Butterworth to form a joint venture company with Fletcher Challenge and specifically its Tasman Lumber mills to import and promote New Zealand timber into Australia. Hence, Mr Frost’s company Tasman KB was born. It continued under the joint venture until 2001 when Mr Frost brought back the company and Tasman
many NZ products including F/J fascia, laminated posts, rougher headed treated pine and pin decking.
KB was once again a family business Bob Frost was a long-time importer from New Zealand sawmills and was instrumental in development of products specifically for the Australian market. He was a pioneer of
He has always been an enthusiastic and energetic supporter of the timber industry and has served on just about every timber industry body. Industry positions have included director of NAFI; member National Timber Development Council, chairman, NSW Timber Importers Association, board member of ATIF, TDA (life member) and TABMA. A strong supporter of industry service organisation Hoo-Hoo International, Mr Frost is a life member (#83454) of Sydney Hoo-Hoo Club 215, and was HHI president of Hoo-Hoo Jurisdiction 4.
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sydney seMinar: BuildinG stronGer Value CHains
State moves to streamline harvest operations in NSW coastal regions DETAILED negotiations are occurring to transform the regulations for the forest industry in NSW coastal regions from being driven by process to being focused on outcomes. Speaking at the Building Strong Value Chains seminar in Sydney, NSW Minister for Primary Industries Katrina Kodgkinson said the review was expected to streamline and simplify the conditions for carrying out harvesting operations, within environmental protection parameters, to enable industry to operate efficiently and make compliance meaningful and worthwhile. “The first stage of consultation with peak groups has commenced and a discussion paper and draft regulations will be made available for public comment in early 2014, with submissions from any
Katrina Hodgkinson confers with Spiro Notaras (left) and former Clarence Nationals MP Steve Cansdell during a visit to the Notaras sawmill in Grafton.
interested community members to be invited at that time,” Ms Hodgkinson said. The minister said NSW foresters and industries operated in one of the most complex regulatory regimes in existence. While the introduction of integrated forestry operations approvals was intended to be comprehensive, it was, in
parts, complex, convoluted and counter-productive. Ms Hodgkinson said there were more than 2000 individual prescriptions that had to be checked-off in the planning and harvesting process – not all of which were practical. “’Breaches’ are common,” she said. “If you don’t tick the not-
applicable box that’s a ‘breach’. “Compliance is fraught, and so are the costs; pre-harvest planning process costs on average are $25,000 per compartment, and takes months to do. “In some cases, the investment in meeting these compliance obligations exceeds the commercial return of the actual forestry operations. “This raises the question: was the motivation behind these rules to create a compliance industry or a forestry industry? It’s almost as if the rules and regulations and restrictions around forestry in NSW were consciously but quietly designed by the former NSW Labor Government to actually undermine the commercial viability of forestry.
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2014 ISSUE 292 | 21.10.13 | PAGE 13
sydney seMinar: BuildinG stronGer Value CHains
$220 million: no quibbles about money for research in Canada CANADA’S forest, paper and wood products sector invested more than $220 million in research and development last year. According to the Forest Products Association of Canada, “business as usual is no longer an option”. “If Canada’s forest sector is to maintain its competitive strength in the global marketplace and set the stage for long-term prosperity, innovation is critical,” Canada’s trade commissioner David Ingham said at the value chain seminar in Sydney. FPInnovations, Canada’s national wood products research institute, has become the world’s largest public– private forest research body employing more than 500
FPInnovations .. robotic manufacturing for the wood processing industry
people. Mr Ingham said FPInnovations was a ‘hub and spoke’ operation; the central organisation (hub) conducted
significant research and played a leadership role in coordinating research of other providers (spokes) in support of industry priorities.
The organisation receives funding of $95 million – 42% from federal/provincial governments; 29% in industry fees; and 29% alliances, joint ventures, services and IP. The $57 billion forest industry in Canada is 93% public owned and has more certified forests than any other country – 148 million ha. More 100 million ha is protected. Canada has more certified forests than any other country with more than 148 million ha certified. By law, all harvested areas in Canada must be regenerated within a specified time frame for planting, natural regeneration and maintenance of species diversity. An average of 600 million seedlings are planted each year.
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PAGE 14 | ISSUE 292 | 21.10.13
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sydney seMinar: BuildinG stronGer Value CHains
Breaking for lunch at the values chain seminar in Sydney are Brian McCarthy, Meyer Timber, Dandenong, Vic, Greg Jensen, commercial and regulatory manager, Lonza Wood Protection (Aust), and Kym Eagleson, national sales manager, Warrnambool Timber Industries, Warrnambool, NSW.
Head-ing the Australian Solar Timbers team from West Kempsey, NSW, at the Sydney value chain seminar are Roy, Lisa and David Head. Roy is sales manager and David handles business development.
Conferring over lunch at the Sydney seminar are Andrew Hurford of Hurford Hardwood, Lismore, NSW, Evan Rolley, executive director, Ta Ann Tasmania, and Ross Hampton, CEO, Australian Forest Products Association.
Taking a break at the value chain seminar at the Novotel Rockford in Sydney are Mal Goatham, managing director, Pacific Wood, Brisbane, Alicia Oelkers, executive officer, TABMA Queensland, Brisbane, and Andrew Koch, SA state manager, TABMA Australia.
Newly-appointed science leader, forestry and bioscience, Queensland Department of Forestry and Fisheries in Brisbane, Vicki Lane, chats with Bill Phillips, recruitment consultant, Winners Recruitment, Brisbane.
Moderator at the Building Stronger Values Chain seminar in Sydney Peter Hutchison, president of TABMA Australia (second from right) with seminar speakers Professor Andy Buchanan, department of civil and natural resources engineering, University of Canterbury, Christchurch, NZ, David Ingham, trade commissioner, Canadian High Commission, and Dr George Goroyias, head of wood products Asia-Pacific management, Poyry Management Consulting.
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issue 292 | 21.10.13 | Page 15
industry news
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PAGE 16 | ISSUE 292 | 21.10.13
FSC Australia selects new standards group FOLLOWING an extensive selection process, FSC Australia has appointed a standards development group. The group has two key functions in the development of FSC Australia policies and standards: • Come to a broad consensus position on behalf of the Australian membership on an FSC Australian National Forestry Standard (FSC ANFS) to be created pursuant to FSC STD 60-006. • Identify consensus and concern about international generic indicators for the revised FSC principles and criteria (FSC-STD-01-001 Version 5) to assist input from the FSC Australia members. The chamber-balanced SDG will be responsible for the content and drafting of the FSC ANFS. The FSC Australia board and FSC international policy and standards unit will provide oversight on all phases of both processes until their final approval by the FSC Australia board of directors and FSC International. Social: Aidan Flanagan,
Suzette Weeding .. environment and sustainability manager, SFM Environmental Solutions.
Institute of Foresters Australia; Tim Anderson, Regional Forrest Communities (individual member); Travis Wacey, union movement (individual member). Economic: Suzette Weeding, SFM Environmental Solutions; Amanda Naismith, New Forests Asset Management; Peter Grist, Australian Forest Products Association. Environmental: Warrick Jordan, The Wilderness Society; Paul Winn, Hunter Community Environment Centre; David Blair, ecologist (individual member).
TCA advertises for national coordinator AS part of the restructure of Timber Communities Australia, the interim board is looking to fill the role of national coordinator and has advertised the position on Seek.com The forest industry has been a strong supporter of TCA and looks forward to it being active in representing communities again by way of the appointment of the coordinator. The position, intended to be Canberra based, will be on a part-time basis for a period of 12 months. Forest-based industries support 200,000 direct and indirect jobs, mainly in rural and regional Australia and make a
significant contribution to the social fabric of many of those communities. Timber Communities Australia is a grass-roots communitybased organisation which has a proud history of furthering the interests of people and communities with a link to forest-based industries. This leadership position is vital to the ability of TCA to continue to represent those communities. General queries about the role can be answered on Seek.com. Applications close on October 25 and should be sent by email to: TimberCommunitiesAust@ gmail.com
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enVironMent
New industry guidelines protect koalas in blue gum plantations
Happy and challenging problem: Institute of Foresters THE plantation industry in Western Victoria and South Australia has adopted new, industry-wide policy and guidelines to protect koalas living in blue gum plantations across the region. Victorian Association of Forest Industries CEO Lisa Marty said the policy and guidelines represented a clear commitment to koala protection in the plantations. The Institute of Foresters of Australia has also welcomed the new management policy. “The koala migration into blue gum plantations, particularly in southwest Victoria, is both a happy and challenging problem,” IFA president Rob de Fégely said. The Policy and Guidelines were sponsored and adopted by the Green Triangle Regional Plantation Committee and its members. “As the blue gum plantation estate has grown in the region in recent years, koalas have moved from native vegetation to blue gum plantations managed for commercial
In their sights .. forestry workers monitor koala habitats in blue gum plantations near Hamilton, Vic.
timber production,” Lisa Marty said. She said there were about 171,000 ha of eucalypt plantations in western Victorian and southeast South Australia, which are managed as a longterm agricultural crop. “The improved, industry-wide policy and guidelines are the result of a strong, coordinated
approach by industry across the region as well as consultation with the Victorian government and local wildlife carers,” she said. The policy and guidelines are now being implemented, with companies upgrading their existing procedures with a focus on planning, identification and protection of koalas, welfare of
‘Our goal is zero harm and an improved approach to koala management across the landscape’ – lisa Marty
koalas on site and monitoring and compliance. “Our goal is zero harm and an improved approach to koala management across the landscape,” Ms Marty said. “There is still much work do. The launch and implementation of the guidelines is a major step in a program of work to support koala welfare and improved wildlife management.” Rob de Fégely said as industry moved to create production systems that more closely mimicked natural systems, these instances of native fauna and flora interacting with production would only increase. ‘Industry, and in particular professional forest managers who oversee these operations, are to be commended for the steps they have taken to date to balance the environmental and ecological needs of the koala with the social requirements of the people employed in the industry and the economic requirements of the companies Cont Page 19
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.
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ISSUE 292 | 21.10.13 | PAGE 17
Forestry
Action! IFA members perform at Beerburrum silviculture field day
Managing forest operations to control the supply chain AFTER a few years in the back woods, the forestry profession in Queensland is going from strength to strength. After attracting 40 foresters and guests to its AGM held in Brisbane in August, the Queensland Division of the IFA recently had 21 foresters roll up on a Saturday morning to participate in the Precision Silviculture in Action field day hosted by HQPlantations among its southern pine plantations located at Beerburrum, just north of Brisbane. HQPlantations is the largest plantation owner in Queensland, holding a 99-year plantation licence for the right to manage, harvest and re-grow plantation timber on state-owned lands. HQPlantations manages 342,334 ha of which 211,850 ha is utilised for softwood and hardwood plantations production. Each year some two million tonnes of wood is made available by HQPlantations for harvesting for sawn timber, plywood, reconstituted panels and woodchip products for use in domestic and international markets. The field day was ably organised and hosted by HQPlantations staff Stephen Husband (planning forester, land use) and Ian Last (science manager) with specialist input from work colleagues Pierre Mare and Travis Paterson. Field day participants comprised 18 Queensland IFA members, including Queensland division committee chair Stephen Walker, and three guests. Several participants recalled strong personal connections with Beerburrum and southern pine silviculture during distinguished
PAgE 18 | issuE 292 | 21.10.13
A mound of foresters three rows high .. top row, Rohan Allen (DAFF Qld), Travis Paterson (HQPlantations), Paul Neilsen, and Ernie Rider; middle row, Robert Allen, Murray Keys, Cliff Raddatz (PFSQ), David Menzies (PFSQ), David Wood (Wood 4 The Trees), Russell Haines (Griffith University), Keith Jennings, Bob Thistlethwaite (Integlan), John Simpson, and Rod Stevens; bottom row, Steve Husband (HQPlantations), Pierre Mare (HQPlantations), Mark Taylor (Taylor Ecology), Dennis Rolfe, Mike Anderson, Ian Last (HQPlantations). – Photo by Stephen Walker (SFM Forest Products).
forestry careers with past state agencies responsible for the establishment of the estate. As described by Stephen Husband, precision silviculture as practiced by HQPlantations is “site-specific forest
management to improve wood product quality and utilisation, reduce waste, improve financial returns, and maintain sound forest stewardship”. During the field day participants discovered that
HQPlantations field day organisers and presenters .. Stephen Husband, Travis Paterson, Pierre Mare and Ian Last.
the evolving discipline of precision silviculture involves using high technology sensing and analytical tools to support site specific decision making, making it possible to manage forest operations and to control the supply chain, from growing through to and including processing, with much higher precision than ever before. Over the course of the morning the group toured three field locations in Beerwah state forest. The field day covered precision silviculture themes that included maximising genetic gain through southern pine open-pollinated family forestry deployment, productivity class mapping using Lidar, low-input approaches to silviculture, and management of natural pine regeneration on low quality Cont Page 19
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Forestry
IUFRO precision forestry symposium next year From Page 18
sites. HQPlantations staff spoke to field day themes at each location and fielded wide-ranging questions and comments about current precision silviculture approaches and practices. The group returned to Beerburrum for a ‘precision sausage sizzle’ lunch sponsored by HQPlantations and served up from the barbecue by chef of the day Stephen Walker, assisted by Beerburrum overseer fire support and logistics Peter Venz. IFA members Jim O’Hehir (IFA
John Simpson, Mark Taylor, Bob Thistlethwaite (Integlan), Russell Haines (Griffith University) and Paul Neilsen.
divisional chair, South Australia) and Mark Brown (Professor of
David Wood (Wood 4 The Trees), Murray Keys and David Menzies (PFSQ).
Forestry Operations, University of the Sunshine Coast) were
members of the organising committee for the IUFRO Precision Forestry in Advance Symposium held in Mount Gambier in March last year. Jim O’Hehir is also on the scientific review committee for the next IUFRO Precision Forestry Symposium titled Precision Forestry: The anchor of your value chain, to be held at the Wallenberg Research Centre, Stellenbosch, South Africa, in March next year. Further details on the symposium are available on the IFA web site: www.forestry.org. au / events / precision-forestrysymposium-2014 – STEPHEN WALKER
Ernie Rider, Keith Jennings, Cliff Raddatz (PFSQ), Rohan Allen (DAFF Qld), Mike Anderson, Dennis Rolfe, Rod Stevens and Robert Allen
Worst bushfire crisis in 10 years scorches NSW HUNDREDS of homes are feared destroyed n the most grave bushfire crisis to hit New South Wales in a decade. One of the worst-hit areas is Springwood, in the Blue
Mountains, where more than 40 homes were known to be lost. Large fires continued to burn with emergency warnings remaining in place for fires near Wyong on the Central Coast and between Lithgow and
Bilpin. Cooler conditions will give firefighters the upper hand but 100 fires continue to burn with 20,000 ha lost to the inferno in the Blue Mountains area.
Elsewhere, thousands of firefighters were struggling against around 100 blazes across the state – now the Central Coast and further north, the Southern Highlands and the south coast.
Whole-of-landscape approach on koala management From Page 16
to maintain supply to export markets,” he said. ‘However, more work needs to be done to develop new operating practices that are
designed to minimise and aim for zero harm to these koalas.’ Mr de Fégely said a wholeof-landscape approach was needed to manage koala populations, as they did not recognise whether trees were
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on public or private land. “Any solution to the challenges requires the involvement of reserve managers, landowners, local government and the community at large,” he said. “We all need to support research
and development to assist in designing operating procedures that are sympathetic to the koalas feeding and perching requirements while ensuring the timber industry can operate.”
issue 292 | 21.10.13 | Page 19
US loggers, environmentalists lock horns over burned trees
New ‘gold rush’ in California’s Sierra Nevada A NEW gold rush may be on in California’s Sierra Nevada mountains, but this time the treasure is burned trees to salvage for lumber. The Rim Fire that charred a more than 100,000 ha of the Stanislaus National Forest and Yosemite National Park over the summer left an estimated one billion board feet of salvageable dead trees—enough to build 63,000 homes. The US logging industry and its supporters are racing to get it, saying such work would provide jobs in the economically downtrodden region. Sierra Pacific Industries Inc. has started felling trees on about 4000 ha of its land that got caught up in the inferno. Now, legislation has been introduced in Congress that would waive environmental regulations so salvage logging can begin quickly on the national forest as well. “If any good can come of this tragedy, it would be the timely salvage of fire-killed timber that could provide employment to local mills and desperately needed economic activity to mountain communities,” say members of the House Committee on Natural Resources. But some ranking Democrat on the committee, say he Bill would be a license to clear-cut
New treasure .. salvaging burnt timber in California’s Sierra Nevada mountains.
the entire burn area. They say they support more limited salvage logging, while some environmental groups back almost none at all, saying it hurts forests by removing trees that provide nutrients for soil and habitat for wildlife. The industry has about a twoyear window to remove the trees before they succumb to rot and insect damage and become commercially worthless, timber officials say. “The first tragedy to the forest has already happened,” says Mike Albrecht, president of
Sierra Resource Management Inc., a logging company in Jamestown, California, now doing salvage work on private lands. “The second tragedy would be not to salvage it,” he said. If approved, the logging would be the biggest salvage-removal job in the Sierra in decades, which the industry says would boost local counties and the state’s timber industry. Mike Albrecht says he would likely have to increase his 10-person logging crew to
The industry has about a two-year window to remove the trees before they succumb to rot and insect damage and become commercially worthless
15, while the total number of salvage loads hauled out of the forest would rise to 250 a day from 160 a day now. Those jobs would go to people like Don Fulton, an 80-year-old who runs a family-owned crew in Tuolumne County. He has had little business in recent years because of environmental rules on logging and other factors, and last year the company worked for just six months. If salvage logging is approved, he will go 24-7 until the salvage is out. For bigger companies like Sierra Pacific, logging healthy trees versus dead ones is more of a wash, according to Mark Luster, spokesman for the Anderson, Calif., timber giant. “We are mainly shifting from green [logging] to salvage,” he said. Another limitation of the economic benefit, other industry officials say, is that there are only enough mills to process about half the available timber, or 500 million board feet of lumber. But officials in the rural counties affected by the fire, which started on August 17 from an undetermined cause and is now about 95% contained, say the logging will give them a boost. – Extracts from the Wall Street Journal.
$1.8bn loan from China to build Sumatra pulp mill ASIA Pulp & Paper has secured a $US1.8 billion loan from the China Development Bank to finance the development of what will be Indonesia’s largest pulp mill.
PAGE 20 | ISSUE 292 | 21.10.13
The total cost of the new mill, located in South Sumatra and run by APP affiliate OKI Pulp & Paper Mills, will be $2.6 billion. It will have an annual capacity of 2 million metric tonnes of pulp and
500,000 tonnes of tissue paper, potentially lifting South Sumatra’s pulp production by 36%. The OKI mill will be subject to APP’s forest conservation policy, which prohibits the use of fibre
sourced by clearing of natural forests and peatlands and requires the company and its affiliates to employ the concept of ‘free prior informed consent’ in dealing with local communities.
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