6459
AFS/01-10-01 www.forestrystandard.org.au
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issue 124 | 10.05.10 | Page 1
Net must snare all illegal wood
This Issue • Hancock frontrunner for plantations • Forest schemes gain credit from architects
‘Unfair disadvantage’ if timber components are not included in federal action on imports
and Door Industry Council (WADIC). Ms Foord has approached the Minister for Forestry Tony Burke on the issue with support of allied associations representing the timber merchant and secondary wood processing sectors. These include the Timber and Building Materials Association, the Timber Merchants Association and the Decorative Wood Veneers Association. The Department of Agriculture,
By JIM BOWDEN
A NATIONAL association allied to one of Australia’s largest manufacturing sectors employing more than 800,000 people is demanding the federal government recognise all imported timber products in any action it takes on illegal logging issues. “It is important that all imports containing timber are treated in a similar way to any illegal logging controls that may be introduced by the government,” says Bronwyn Foord, general manager of the Window
Casting a wider net on illegal wood imports.
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Cont Page 3
particleboard production jumps • Bio-energy under the microscope • Changes in MGP standards • NZ stance on ETS will force mill closures
Global
www.timberawards.com.au
issue 124 | 10.05.10 | Page 1
industry news
New focus on Making bio-energy: an impact .. fact or fiction?
The Victorian Association of Forest Industries, representing the interests of the Victorian timber Industry
Victorian Association of Forest Industries Level 2, 2 Market Street Melbourne 3000 Tel: +61 3 9611 9000 Fax: +61 3 9611 9011 Email: info@vafi.org.au Web: www.vafi.org.au
Page 2 | issue 124 | 10.05.10
THERE are emerging technologies and opportunities for the timber industry to participate in the bio-energy sector. Apart from opportunities for added income from the sale of residue or value added char or energy products, there are opportunities for the production of power to offset rapidly rising electricity costs. However, there are a huge array of technologies out there, and even more companies trying to sign businesses up to the ‘deal of a lifetime’. To help make sense of this emerging industry, Timber Queensland has organised a seminar – Bioenergy Under the Microscope: Fact or Fiction? – in Brisbane on July 1. Chief executive Rod McInnes says the seminar will deliver answers to the who, what, where and why regarding bio-energy products and opportunities, provide an overview of Queensland Government policies relating to bio-energy and help businesses evaluate which bio-energy products could make a difference to their bottom line. “We know timber businesses are looking for ways to add income from the sale of residue or produce power to offset rising electricity costs,” Mr McInnes said. “We’ve organised this event so our members and others across industry can hear from the leaders in the bio-energy market and position themselves to capitalise on the emerging opportunities for the timber industry.” High profile speakers include Dr Stephen Schuck, manager, Bioenergy Australia, Greg Nielsen, director, Office of Clean
across Australia’s forest and forest products industry .. since 1940
Greg Nielsen .. clean energy.
Energy, Matthew Warnken, director, Crucible Carbon, Tony Moxon, chairman, Moxon Timbers, Terry McConnell, business and industry relationship manager, Energex, and Ray Ferdinand, managing director, GS Energy. Timber Queensland has welcomed GS Energy and Visadamax as supporters of the event. The seminar agenda will be published and registrations accepted online late next week at www.timberqueensland. com.au (tickets $50 members; $90 non-members). More information is available from Timber Queensland’s communications manager Clarissa Brandt on (07) 3358 7906 or email clarissa@ timbequeensland.com.au [Ethanol produced from biomass grown in plantations can be blended with gasoline to create E85, a blend of 85% ethanol and 15% gasoline. CSIRO studies show trees planted over the next 50 years could produce enough methanol, an alternative wood alcohol, to replace, over time, liquid fuels currently produced from crude oill and its derivatives].
The Timber & Building Materials Association is Australia’s most progressive timber association and the only true national timber association. TABMA keeps abreast of all commercial, legislative or bureaucratic issues that impact on our industry and keeps members informed. The services and benefits offered to members are extensive and assist in keeping overheads and on-costs to a minimum. Call Nicolette at TABMA on (02) 9277 3100 to inquire about our very attractive membership rate.
www.tabma.com.au
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industry news
Australia should follow Lacey Act and the proposed EU regulations on illegal timber From Page 1
Fisheries and Forestry (DAFF) is preparing a final illegal logging Regulation Impact Statement (RIS) for presentation to the minister. Ms Foord says if imported finished products, such as furniture, flat-packs and fitouts, and timber components come into Australia without similar legality controls as those placed on imported timber, it is highly unlikely there will be any impact on reducing imports of illegal wood. “All that would happen is that any illegal wood identified in timber imports would simply be substituted by illegal timber within increased imports of prefabricated timber products and components,” Ms Foord said.
“Additionally, unless imported finished products and components have similar controls as those placed on imported timber, Australian secondary wood processors and timber merchants will experience compliance and supply restriction costs not experienced by overseas manufacturers and their importers. “This would unfairly disadvantage Australian wood processing businesses.” Ms Foord said this situation would threaten business viability, jobs and apprenticeships in the Australian joinery, cabinetmaking, furniture, timber merchant and panel pressing industries. Preliminary research indicated
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Tough stance .. Bronwyn Foord of WADIC.
this was one of Australia’s largest manufacturing sectors, directly employing more than 80,000 people – at least as large as the forest, sawmill, plantation, pulp and paper sectors. Ms Foord admitted it might be more difficult to control the illegal timber within imported finished products and components than just for raw timber, but this was no reason to apply a double-standard. She said the revised US Lacey Act and the proposed EU regulations applied to both imported timber and finished products/components, so it should be possible for Australia to do the same. [Under an amended American law, all importers of timber products to the US must declare the names of the wood used in a product and its origin. US agencies will have the right to seize the commodities and ships, impose fines and arrest people who violate the Lacey Act]. “A comparison can be made to that of illegal doping in sport. Just because some drugs may be hard to detect or are included in other products, it doesn’t mean they should simply be placed in the ‘too hard basket’,” Ms Foord said. “Surely it goes without saying
that all materials and products containing illegal wood should receive equal treatment under the law.” The Forest and Wood Products Council, chaired by Tony Burke, discussed illegal logging policy at its April 19 meeting in Sydney. The council confirmed that four projects being undertaken in support of the government’s illegal logging election commitment have been completed, and, subject to further consideration by the minister, are likely to be publicly released soon. The council was advised that the project reports, as well as stakeholder feedback and the initiatives being pursued by the US and European Union, will be used by the Department of Agriculture, Fisheries and Forestry (DAFF) to prepare the final illegal logging Regulation Impact Statement (RIS). The final RIS will recommend a preferred option to the government for identifying illegally-logged timber products and restricting their import into Australia, and providing disclosure of country of origin (harvest), species and certification needs. Meanwhile, forest communities in the developing world ravaged by the effects of illegal logging have won the backing of the European Parliament after members voted in favour of tough new legislation which could pave the way for an EU-wide ban on illegal timber imports. The result saw members of the European Parliament (MEPs) from across the political spectrum overwhelmingly agree to adopt new measures to help curb the illegal timber trade, worth an estimated £7.5 billion annually in lost assets and revenue.
issue 124 | 10.05.10 | Page 3
industry news
Hancock frontrunner for plantations INDUSTRY observers are betting on Boston-based Hancock Timber Resource Group to win the auction of Forest Plantations Queensland. All bids are in on the 99-year lease of the 203,000 ha estate of softwoods and hardwoods and two international companies have made the final cut, one being Hancock. The final offers will be presented to Cabinet in June and the assets are expected to fetch more than $500 million. Whichever way the hammer falls, the sale will give an anxious Queensland processing industry an indication of what the future holds for the timber resource; the final bid to Hancock is seen as the preferred option for industry. The Hancock Timber Resource Group, based in Boston, Massachusetts, USA, acts as overseeing manager on behalf of investors. The Melbourne-
All bids in on Forest Plantations Queensland. - DERM photo
based Hancock Victoria Plantations is Australia’s largest private timber plantation company with more than $800 million in assets. The company is owned jointly by Australian and US superannuation and investment funds. HVP manages around 245,000 ha of land across Victoria, including 50,000 ha of native
vegetation for conservation. It annually supplies three million tonnes of softwood (pine) and 300,000 tonnes of hardwood (eucalypt) to sawmillers, panel producers and pulp and paper mills in Australia and overseas. The company supplies around 1.5 million tonnes a year of sawlogs and pulpwood to sawmills in Victoria’s Gippsland region, including Australian
Paper’s Maryvale pulp and paper mill. Through a joint venture business, Softwood Plantation Exporters (SPE) in Geelong, which processes plantation pine thinnings and sawmill residues for export, HVP also contributes to Australia’s export performance in expanding overseas markets. Chief executive of Timber Queensland Rod McInnes said a meeting with the government on May 17 would hopefully make clear the state’s intentions on the South East Queensland Forestry Agreement of 1999 and the more recent Western Hardwoods Agreement. These agreements between the timber industry, conservation movement and the state government allowed for the hardwood industry to exit crown native hardwood forests for Cont Page 6
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Page 4 | issue 124 | 10.05.10
AUSTRALIA TimTech Chemicals Pty Ltd 7/12 Discovery Drive, North Lakes, Qld 4509. PO Box 522, North Lakes , Brisbane Qld 4509, Australia. Tel:+61 7 3480 5802 Fax:+61 7 3491 7983 australia@timtech.info
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events
WHAT’S ON?
18: Victorian Timber Industry Supply Chain Seminar: Connecting the Pieces for Business Success. Radisson Hotel, 380 William Street, Melbourne. Contact: Peter Roberts, Timber Merchants Association on (03) 9875 5000 or John Halkett, Australian Timber Importers Federation on (02) 9356 3826. 19-20: Wood Supply Chain Optimisation 2010. Bayview Eden Melbourne. Technical seminar details successful strategies that have been adopted to improve planning, logistics and operations through the wood supply chain. Contact FIEA +64 3 470 1902. www.woodsupplychain.com 21-23: Timber and Working with Wood Expo, Brisbane Showgrounds, Fortitude Valley. 24-25: Wood Supply Chain Optimisation 2010, Rotorua, NZ. www.vafi.org.au
JUNE 2010 3-4: AFCA Conference and Trade Expo, Novotel Resort, Coffs Harbor, NSW. www.afca.asn.au 18-20: Timber and Working with Wood Expo, Sydney Entertainment Centre, Sydney. 21-22: Frame Australia 2010 Conference: Housing Construction and Sustainability. Sofitel Melbourne. The major national event for engineered timber and pre-fabrication. View: www.frameaustralia.com.au 21-22: Skills Tasmania Conference, Hobart. Showcasing workforce development and planning.
June 28-July 2: 18th Commonwealth Forestry Conference, Edinburgh, Scotland. www.cfc2010.org
JULY 2010 14-18: Interforest 2010 Trade Fair for Forestry Technology Munich, Germany. www.interfrost.de 21-22: Wood Energy 2010 reducing energy costs and improving energy efficiencies. Rotorua, NZ. 21-22: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Rotorua, NZ. www. scantechevents.com 26-27: ScanTECH 2010 Sawmill Scanning & Optimisation Technologies. Melbourne. www. scantechevents.com 26-27: Wood Energy 2010 (World Reducing Energy Costs & Improving Energy Efficiencies) Melbourne. 26-29: Combined workshop. ATTA / FIAPS / ForestWorks combined annual workshop Hobart. Details: www.atta.org.au
SEPTEMBER 2010 3-5: Canberra Timber & Working With Wood Expo, Exhibition Park in Canberra. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 6-12: Landcare Week. www.landcareonline.com 7-9: Wood Manufacturing 2010. Profitable Wood Manufacturing: Tooling, Technology & Design. Rotorua, NZ. www. woodmanufacturingevents.com 8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.org
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13-15: Wood Manufacturing 2010. Profitable Wood Manufacturing: Tooling, Technology & Design. Melbourne. www.woodmanufacturingevents.com
SUSTAINABLE. sustainable. responsible. . RESPONSIBLE
15-16: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design, Melbourne.
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20-21: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design Rotorua, NZ. 30-2 October: The Future of Forestry and Forest Science Conference. Celebrating the centenary of forestry education in Australia. Sydney Myer Asia Centre Carrillo Gantner Theatre, Melbourne University. Contact: Event Planners Australia forestry. Email: 2010@eventplanners.com.au
OCTOBER 2010 10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000. 15-17: Melbourne Timber and Working with Wood Expo, Melbourne Showground, Melbourne. Contact: (02) 9974 1393. Fax: (02)9974 3426
2010
MAY 2010
Email: info@eee.net.au
19-20: MTC Global Woodmart: Gateway to International Wood Markets. The first ‘one-stop’ selling and buying platform for all suppliers and buyers of wood and wood products. Early bird discount 5%. Organised by the Malaysian Timber Council at the Kuala Lumpur Convention Centre, Malaysia. Contact: Malaysian Timber Council. Tel: +60 3 9281 1999. Fax: +60 3 9289 8999. Email: council@mtc.com.my
federal governments to support interestsis of to its NAFI’sthemission members while the same represent theatinterests time improving industry of members by standards and practices, promoting the promoting sustainable environmental forestry management and educating the broader sustainability and community on theof the prosperity economic, environment Australian forest and social benefits of industries. a strong sustainable forest industry. National Association of The National Association Forest Industries Ltd of Forest Industries (Est. 1987) Ltd (EST.1987) PO Box 239, PO Box 239, Deakin ACT 2600 Deakin, ACT 2600 Tel: (02) 6285 3833. Tel: (02) 6285 3833 Fax: (02) 6285 3855 Fax: (02) 6285 3855 Web: www.nafi.com.au www.nafi.com.au Web:
issue 124 | 10.05.10 | Page 5
industry news
Battleline drawn on western Qld forest agreement From Page 4
plantations over a transitional time frame. The government agreed to plant 20,000 ha of new hardwood plantation by 2015 (commencing in 2000) so industry could begin the transition by 2025, or earlier, if the plantation was ready. To facilitate the sale of the plantation asset, the government wants to extend the planting time frame by 10 years to 2025 and, more significantly, as most of the hardwood plantation is on freehold land, will allow the new plantation owner to sell off freehold land acquired from the sale. The industry is bitterly disappointed that after the government has spent more than $100 million implementing these agreements and championing them as ‘win-win’ situations for both conservation and industry, that it is prepared
to walk away from them for short-term financial gain. “The government appears to have welched on the deal,” Mr McInnes said. “We hope to find out if the agreements are going to stand up. We’re prepared to go into battle again on this but we’ll listen to the government’s proposal and then consider our position after that.” The Bligh government’s privatisation agenda has come under heavy attack from unions and the state opposition, which say the plans were not revealed before the March 2009 election. The Queensland Council of Unions argues economic conditions have improved since the government announced plans to sell parts of Queensland Rail along with Queensland Motorways, Forestry Plantations Queensland and state-owned ports.
Forests NSW acquires 7000 ha of plantations THE NSW government has bought up 7000 ha of plantation forest across the state to help secure forestry jobs and reduce carbon emissions. State forest resources minister Ian Macdonald announced the acquisition of TEPCO Forests Australia’s NSW operations, including plantations on the state’s north coast, southwest and central west slopes. “Forests NSW will manage the forests which will provide many benefit, including carbon sequestration and timber, and providing valuable regional employment,” Mr Macdonald said.
Page 6 | issue 124 | 10.05.10
“Because they are young forests, aged from one to 10 years old, they are also rapidly sequestering carbon.” The plantations purchased are a mix of hardwood and softwood species and are strategically located in three forestry regions. The hardwoods are located on the NSW North Coast and comprise five eucalypt species including spotted gum, coastal blackbutt, Dunn’s white gum, flooded gum and Gympie messmate. The softwoods include radiata pine located on the South West and Central West Slopes and southern pine.
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INDUSTRY NEWS
The Green Building Council’s acceptance of both AFS and FSC accreditation has widened the alternatives for wood suppliers to tender for green building projects.
Forest schemes gain credit from green architects ACCEPTANCE by the green building industry of all accredited forest management schemes has been lauded by some of Australia’s top ‘green architects’. A survey by the Engineered Wood Products Association of Australasia shows leading project designers have welcomed an opportunity to expand the specification and use of sustainable Australasian timbers. The Green Building Council of Australia in January announced changes in its timber credit to recognise all timber in the building and construction sectors certified by the Program for the Endorsement of Forest Certification (PEFC) or FSC International. All forestry schemes must satisfy five ‘essential’ criteria to be eligible. This provides one Green Star point to timber certified by any scheme. FSC Australia is the Australian provider of FSC International certification, while the Australian Forest Certification Scheme
Michael Lavery .. educating clients about the aceptance of AFS and FSC-accredited wood into green building projects.
(AFCS) is the PEFC accredited provider. A second point, for ‘significant’ criteria, will only be available once the GBCA has undertaken a further round of stakeholder engagement with its members, environmental groups, the timber industry and certification schemes. Green Star projects already registered will either be able to get one point for documenting
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that their timber is certified by a recognised forestry scheme, such as FSC or AFS. Projects can continue to get two points in the traditional way if the timber is certified by FSC, has already been specified FSC timber or if timber is re-used. New projects will only have the option of achieving one point for the time being. “These revisions will give green building projects a wider choice of materials certified to world sustainability standards that at the same time can be used in an ecologically conscious manner,” Sydney architect Jocelyn Jackson said. Ms Jackson, a director of Tanner Architects, which has won awards in urban and architectural design, said it was good news that sustainable forests were enjoying success in the green building scene. “I know it’s all about points chasing, but in the end it comes down to a regenerative process in our building efforts.” Brisbane architect Michael Abel, who helped achieve
Queensland’s first 6-star office design rated building, said the acceptance by the GBCA of AFS certified timber would “pull back” large project builders from using non-sustainable materials such as steel and plastic for formwork and interior fit-outs. “It seemed incredible that standards designed to promote sustainable development in the property industry were actually working against the reasons they were established,” Mr Abel said. “Until the GBCA acceptance of AFS, we just couldn’t reach all the Green Star ratings on timber specifications because of an FSC product shortfall, and there were huge penalties if we didn’t meet contractual requirements for this. “Builders at the big end of town have already lost millions of dollars because they couldn’t meet the code specifications. Developments that cost $100 million just for the base Cont Page 8
issue 124 | 10.05.10 | Page 7
industry news
Certification gives designers greater supply and choice From Page 7
building, without fit-out, will benefit tremendously from this sensible outcome.” Mr Abel said the ability to select product from both certifications – FSC and AFS – offered wood designers greater supply and choice. Architects say durability is the most important attribute for a “green” building product. The GBCA has determined that the best way to approach its Mat8 Sustainable Timber credit is to specify a set of leading best practice criteria under which a submission from a particular project can be assessed. The council believes this would drive market demand for sustainable timber practices. General manger of the EWPAA Simon Dorries said this interim arrangement gave AFS and FSC an equal opportunity going forward to review their schemes to maximise the credit points they could achieve. He said engineered wood products had the ability to gain up to three Green Star rating points – one point for forest certification, one point for low formaldehyde emissions (E0 or E1) and an extra point in office fit out for super E0 (average 0.3 milligrams to a maximum of 0.4 milligrams emissions). “All Australasian manufacturers of EWPs can meet the specification of EO or E1 certified under a JAS-ANZ,” Mr Dorries said. Peter Scott, national sustainability committee chair at the Australian Institute of Architects, says the certification issue is an interesting development. “The Green Building Council has responded to calls from stakeholders to modify its assessment criteria for timber
Page 8 | issue 124 | 10.05.10
credits to accommodate concerns,” he said. “But there is clearly some way to go if timber is to be recognised as the renewable resource that it is.” Carey Lyons, adjunct professor at the School of Architecture and Design at Melbourne’s RMIT University, and founding director of design practice Lyons, says the architectural sector appreciates the GBCA decision on AFS. “We are very comfortable with the acceptance,” he said. ‘I know it’s all about points chasing, but in the end it comes down to a regenerative process in our building efforts’ – Jocelyn Jackson “There’s now greater clarity about timber products that can attain the one point in the best practices criteria, although the jury is still out on the second point,” he said. Mr Lyons, who represents the Australian Institute of Architects on the Green Building Council of Australia, says it is not the job of the GBCA to differentiate between Australian and international standards. “The council’s role is to set up the right principles in terms of what is best practice criteria and it’s up to the timber industry to demonstrate it can indeed provide best practice around this criteria.” Mr Lyons said the timber expert reference panel established by the GBCA went through the process last year. “The simple principle is that the first five criteria put into the ratings tool can be met by both AFS and FSC certifications. “Now we must see whether
Cont Page 16
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INDUSTRY NEWS
Receivers put Bell Bay timber mill on market
THE Bell Bay sawmill owned by Tasmanian timber company Forest Enterprises Australia is on the market. The company’s receivers, Deloitte Touche Tohmatsu, have told the stock exchange that FEA and its plantation business were unsustainable but the mill was a valuable asset and would be sold separately. They said the sawmilling and timber processing business relied on management investment schemes and there had been an 80% fall in sales last year. The receivers said management had been unable to submit a satisfactory restructure plan. The $72 million sawmill processes 290,000 tonnes a year of pine marketed as BassPine and hardwood sold as Eco Ash. The mill employs 120 workers. The receivers laid off 28 staff from FEA’s head offices in Lismore, Launceston and Hobart last month. FEA was placed in voluntary administration with debts of $216 million, owed to the ANZ Bank and the Commonwealth Bank. FEA Plantations is the only part of the company that is not in receivership.
FEA opened the Bell Bay mill in northern Tasmania in February 2008. Specialist Canadian technology was chosen to process logs at speeds of up to 150 meters/min. Following commissioning of the mill, with ability to cut small diameter plantation eucalypt as well as standard plantation pine products, management announced capacity would be 450,000 tonnes a year log input in the first year, ramping up to 650,000 tonne in 2011. FEA was formed in 1985 and established eucalyptus plantations in Tasmania and on mainland Australia. FEA Plantations Ltd, a wholly owned subsidiary of FEA, commenced its first managed investment scheme in 1993. FEA had expanded its sawn timber products, EcoAsh and BassPine, as well as export woodchips under the SmartFibre brand. In 2008, FEA had about 52,000 ha of plantation under management for about 9000 growers. FEA’s administrators BRI Ferriers are managing 72,000 ha of plantations in New South Wales, Queensland and Tasmania.
Helping hand for WoodMart 2010
MALAYSIA’S Global WoodMart 2010 took a high profile at the recent DesignEx event in Sydney. More than 300 brochures were distributed from the stand. Helping out was FWPA’s marketing coordinator Amarjot Kaur. WoodMart 2010 will be held in Kuala Lumpur on October 19 and 20. See Page 17.
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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 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3256 1779 cancon@bigpond.net.au PRODUCTION MANAGER Leigh Macready Tel: +61 7 3392 9810 production@industryenews.com.au
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issue 124 | 10.05.10 | Page 9
INDUSTRY news
Global particleboard production jumps US housing upswing figures in renewed demand THE rapid upswing in US housing construction expected from 2010 to 2013 will drive renewed demand for furniture, and ultimately for particleboard and MDF, says a report by industry analyst BIS Shrapnel. Global production of particleboard is forecast to increase from 69.9 million cub m in 2009 to 84.1 million cub m in 2013, based on current expansion plans and estimated capacity utilisation rates. BIS Shrapnel says production of particleboard in Asia has been growing rapidly over the past decade, but greater Europe, including Russia and Turkey, remains the dominant particleboard producing region. The increase in production of particleboard is being driven by strong growth in the key end-use sectors of the product – housing construction and furniture manufacturing. “The downturn in housing construction in the US reached the bottom of the cycle in 2009, and is expected to move into a rapid upswing from 2010 to 2013. This will drive economic growth not only in the US, but in many of its key trading partners around the world,” says Bernie Neufeld, BIS Shrapnel senior manager. Housing construction in other
particleboard will amount to 6.4 million cub m by 2013. There have been announcements for several new plants in key producing regions, including one known plant planned for Malaysia, two each for Russia, India, Indonesia and Vietnam, three for Brazil, and seven for Turkey. This ultra-thin MDF plant with a capacity of 800 cub m is typical of new plants coming on stream in South America, South Asia and Eastern Europe.
key regions such as Europe and Asia will also drive an upward phase in the demand for particleboard and MDF over the forecast period. In 2009, Europe produced 62% of the world’s particleboard, North Asia 14%, North America 9%, South Asia 8%, South America 6% and Australia 1%. Production of particleboard in Europe is forecast to drop slightly to 60% by 2013. Over the same period, production in North America and South Asia is expected to increase slightly to 9% and in South America to 7%. Production will remain unchanged in North Asia and in Australasia. “Europe, North America and South Asia have been the key particleboard producing regions,” says Bernie Neufeld.
Bernie Neufeld .. Australasian consumption of particleboard increasing.
“These regions will continue to be the main growth areas over the forecast period, with considerable additional production coming on stream in South America as well.” Confirmed new capacity for
“In South America, some new plants are being rebranded as medium-density particleboard (MDP), presumably to promote the ability to substitute MDF with particleboard,” says Mr Neufeld. He says it is a mixed bag for trade in particleboard over the forecast period. The US, Japan, South Korea, India, Vietnam and other key developing regions are expected to be the most significant net importing regions over the forecast period. Australasia also imports small amounts of particleboard, and this is projected to increase over the forecast period as consumption expands while production capacity declines. While India and Vietnam are noted net importers, South Asia as a region is a net exporter of more than 1.6 million cub m.
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Page 10 | issue 124 | 10.05.10
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industry news
Industry reference group seeks to reform codes and standards THIRTEEN industry members have been appointed to the FWPA standards reference group, formed to deliver a timelier and cost effective standards procedure. This follows endorsement of the industry codes and standards strategy by the Forest and Wood Products Australia board, a key element for more effective communication and consultation with industry. The reference panel comprises Kim Harris, Carter Holt Harvey Woodproducts; David Marlay, Hyne; Simon Dorries, Engineered Wood Products Association of Australasia; Peter Juniper, Australian Plantation Products and Paper Industry Council; Rod McInnes, Timber Queensland; Craig Kay, Tilling Timber; Richard Schaffner, Wespine; Peter Robson, Boral Timber; Gary Demby, McCormack Demby; John Harrison, Harrison’s Timber: Frank Moretti, Gunnersens; Vince Corlett, Nannup Timber Processing; and David Gover, Gunns Timber Products. The reference group will be chaired by FWPA managing director, Ric Sinclair with standards and codes manager
Ric Sinclair
Neil Evans
Peter Juniper
Neil Evans coordinating the development process. Mr Sinclair said FWPA was looking forward to providing this value-added service to the industry.
process,” Mr Sinclair said. “Standards will play an important role in the coming years and discussion between FWPA and Standards Australia will include finding ways to deliver more timely and cost effective standards. The next part of the strategy seeks to streamline existing processes.“ Following discussions with industry and prior to the development of the discussion paper, it became apparent the issue of timber standards was very much broader than first anticipated. Meetings with Standards Australia have been very positive but Standards Australia admits that the high
number of standards on timber (150) is not sustainable and a system is needed to prioritise the workload. The Strategy Paper for the coordination of timber standards and codes for the forest and wood products sector can be found on the FWPA website under corporate publications. The first meeting of the SRG later this month will discuss the objectives of the group and develop a work program for the development of new codes and standards for the next 12 months.
‘FWPA needs feedback on standards development to improve performance and market growth of forest and wood products’ – Neil Evans “Since the outcome of the standards workshop held in July 2009, the board and management have prioritised the industry’s view that FWPA should take a greater role in the standards development
Cont Page 14
If it’s your timber, make sure it’s in the competition. Ring the architect, builder or owner; pay the fee; organise the photos. The 2010 Australian Timber Design Awards is your chance to have your timber products showcased. If you’ve supplied timber or timber products to an eye-catching house, office block or resort development, make sure your contact knows about the Timber Design Awards. Let us know about the project by email at info@timberawards.com.au
ENTRY FORMS AND INFO AVAILABLE AT
www.timberawards.com.au Entries close 16 July
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issue 124 | 10.05.10 | Page 11
industry news
NZ stance on ETS will force mill closures THE failure of government to honour previously made promises that they would not lead the world in the introduction of an ETS will disadvantage the New Zealand wood processing sector, says Wood Processors Association of New Zealand chairman Rob Davies.
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non-Kyoto countries. From an environmental perspective any reduction in the approximately 75% domestic processing of New Zealand’s forest output means increased log exports, many going to country’s with no formal greenhouse gas reduction targets.”
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Page 12 | issue 124 | 10.05.10
Mr Davies says that it is likely that logs processed in overseas markets would lead to an overall increase in net greenhouse gas emissions from transport and energy production, as compared to processing that same volume of wood domestically. He questions the claim by some forest owners that the current ETS is needed to increase forest planting.
“New Zealand must improve its productivity in order to have a strong economy and you can’t have that without real jobs across our country,” Mr Davies said. “It is death by a thousand cuts as the ETS is the most recent addition to a long list of costs imposed on all NZ manufacturers. “About 30 sawmills have closed in the last two years and if wood processors continue to be unfairly disadvantaged there may be more to go yet. We support planting forests but it’s hard to see how exporting logs rather than processing them is good for New Zealand. “Government needs to urgently rethink the entry of NZ businesses into the ETS, scheduled for the July 1, if it wants to protect the very industry that could mitigate the impacts of climate change.”
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events
Chain reaction to supply seminar
Australian, international speakers for Melbourne event WITH registrations now exceeding 70, only limited seating remains for the timber supply chain seminar to be held in Melbourne on May 18. Australian delegates will be joined by representatives of industry in New Zealand, Canada and Singapore. The seminar, jointly hosted by the Timber Merchants Association, the Australian Timber Importers Federation and the Windows and Door Industry Council, will include leading timber supply chain experts, marketing specialists, technology providers and regulatory authorities. Fifteen speakers will address a busy program that will allow for audience participation. “Experts and specialists will cover a range of topics,
Complexities of timber supply chain to be debated at Melbourne seminar.
including the changing nature of housing construction and the timber industry; product innovation and marketing activity, the ‘drivers’ for change
and the emerging factors that will impact on future timber supply chain business performance,” ATIF technical manager John Halkett said.
Darren Thomas, managing director of Singaporebased Double Helix Tracking Technologies (DHTT) is pleased to be networking at the seminar. DHTT uses DNA tests to verify the origins of wood products. Mr Thomas says essentially it is the same technology used in criminal forensics and paternity testing. “Only DHTT has adapted it specifically for wood,” he said. “What we’ve done is to develop a very creative solution that builds upon existing scientific techniques and applies them to the timber industry.” In addition to its timber tracking service, DHTT is developing a timber origin service that involves the creation of a genetic database from a Cont Page 16
Connecting the pieces Industry supply chain seminar
Radisson Hotel, Melbourne, Tuesday, May 18
REGISTER NOW: Free entry to members of TMA (Vic), ATIF and WADIC This special one-day seminar will cover key aspects of the timber industry supply chain, together with wider aspects of the timber industry’s business environment, wood-based product marketing and matters related to company-level business success. Top field of speakers representing federal government, FWPA, HIA, transporters, the Canadian and New Zealand forest products industries and many other sectors associated with the timber supply chain. Seminar speakers will include leading timber supply chain experts, marketing specialists, technology providers and regulatory authorities. Registration forms available at www.timber.asn.au www.atif.asn.au or www.wadic.org.au ‘The seminar will appeal to the broad cross-section of companies and organisations in the timber supply chain, their suppliers,supporters and related businesses and interests. Leading experts and specialists will cover a range of topics, including the changing nature of housing construction and the
timber industry; product innovation and marketing activity; the ‘drivers’ for change; and the emerging factors that will impact on future timber supply chain business performance’ Peter Roberts, CEO, Timber Merchants Association. Registration inquiries: Ingrida Matulis on (03) 9875 5000 Email: ingridam@timber.asn.au
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issue 124 | 10.05.10 | Page 13
industry news
Standards work program likely soon
Rod McInnes
Simon Dorries
From Page 11
standards development to improve performance and market growth of forest and wood products,” Neil Evans said. Those wishing to participate can register for the network by contacting Lorraine Reyes on (03) 9927 3222 or email lorraine. reyes@fwpa.com.au.
Outcomes of the meetings will be circulated to those that expressed interest in being part of the industry network. The network will be the engine room for proposing work activities and the SRG will assist FWPA in prioritising the work program. “FWPA needs feedback on
Eden woodchips top $2bn THE loading of the woodchip carrier Sweet Brier last week has taken total export revenues from the South East Fibre Exports plant in Eden, NSW, past the $2 billion mark since the Twofold Bay based export business started in 1971. SEFE corporate affairs manager Vince Phillips said the milestone was a tribute to the efforts of several thousand people over a 40-year period. “It is remarkable that such export revenue has been earned out of Eden, a small town that was very much a fishing village,” Mr Phillips said. The company had further cause to celebrate; in the same week it had a visit from the sales team that represents SEFE in northern Asia. “They are seeking increased volumes out of Eden in both hardwood and softwood so market prospects hit by the global financial crisis are improving in line with increased demand in Asia for other commodity market resources,”
Page 14 | issue 124 | 10.05.10
Mr Phillips said. The improved market outlook is good news for the planned SEFE biomass power project which will drawn fuel sources from mill waste products from both hardwood and softwood processing and higher processing volumes will lead to greater volumes of fuel for the project being available in the local region. Mr Phillips said that pine log deliveries had now resumed to SEFE after the severe market downturn stopped softwood chip export flows in 2009 and the export of softwood chips is set to resume in June. . The achievement, Mr Phillips said, for SEFE and its employees but one shared by all local communities and the forest related investors, employees and community supporters who had made some pretty tough tasks seem little more than routine. It also represented long term overseas customer support for the region.
David Marlay
Frank Moretti
Building approvals bounce back again NATIONAL monthly building approvals grew by a healthy 15.3% in March, driven by a massive 51.2% increase in units and semi-detached approvals. Housing Industry Association senior economist Ben Phillips said the result bucked the recent trend of lower approvals numbers and a host of other poor leading indicator figures such as land sales, new housing loans and new home sales. Through the March quarter, total building approvals were up 4%, with detached housing up 0.9% and coming off a poor base, while “other dwellings” were up 11.6%. Compared to 12 months ago, approvals for the March quarter were up a healthy 47%. “The strong result supports HIA’s forecast that housing construction will be much stronger over 2010 with housing starts expected to be up 18% on a very weak 2009,” Mr Phillips said. “The healthy state of building approvals reflects a stronger economy, record population growth, the federal
Ben Phillips .. housing starts on the rise.
government’s social housing stimulus and the low interest rate environment through 2009.” But HIA is concerned that further interest rate increases through 2010 will see building approval numbers fall and housing activity drop back later in 2010 and 2011. Mr Phillips said as solid as the approvals numbers are for the first three months of 2010, population growth dictates that even stronger numbers are required to start eating into the housing shortage of nearly 200,000 estimated by the federal Housing Supply Council.
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industry news
MGP standards: the old and the new
Meeting the structural property demands of both A CHANGE in the design properties for machine graded pine (MGP) of structural timber is on the way with the impending release of the revised AS1720.1 and AS1684 which are expected to be published by Standards Australia this month. AS1720.1 (Timber Structures) will contain, among other things, changes to the structural design properties of MGP grades of structural timber and a revision your policy in this regard, in a prominent way, so they can be confident the material they ofcustomers AS1684of(Timber Framing) purchase will be suitable designs and specifications based on both old and new standards. will reflect the changes tofor these properties by way of a revised For companies who would prefer toOn manufacture to eitherinthe old orproperties the new standards separately, we the way .. changes design for MGP structural span tables. suggest that it would be prudent to timber. ensure the timber is clearly marked in a way that will identify its The Australian Building Codes (eg. include “AS1720.1:1997 (superseded)” or “AS1720.1:2010” in suitability for any given application Board says We it will considerthatproducts the marking). also suggest customersmeet are appropriately informed about the such available formeaning use by of designers the structural marks so that they will berevised clear about the standard to which the manufactured meet andthey referencing these and specifiers to should property requirements of timber the is thereby standards be able to avoid incorrect (or supply for incorrect use) of the timber in particular designs (“new”) through the use relevant standards,” A3P’s solid choose to use them when and specifications the potential liability of such action by them. When otherwise describing MGP deemed to satisfyand provisions published. wood manufacturers be manager clear aboutPeter whichJuniper standard the product is manufactured to intimber the products, 2011 Amendment of should said. “This means that manufacturers comply with, so that no confusion arises. the Building Code of Australia “Although the BCA will not will need to give some thought (BCA). be referencing these new as to which standard or “Manufacturers of structural standards until at least the next standards they will comply Structural properties timber products have an amendment In May 2011, the with as the basis for their The structural MGP grades structural timber are be shownmanufacturing in Table 1 as per obligation toproperties ensure fortheir process.” revisedof standards will still AS1720.1:1997 (old standard) and AS1720.1:2010 (new standard) respectively.
MGP structural properties
Table 1: MGP Structural properties Property (MPa) MoE
Bending strength
Tension strength
Compression strength
Shear strength
AS1720.1
MGP10
MGP12
MGP15
1997
10,000
12,700
15,200
2010
10,000
12,700
15,200
1997
16 (19)*
28
41
2010
17
28
39
1997
8
15
23
2010
7.7
12
18
1997
24
29
35
2010
18
24
30
1997
5.0
6.5
9.1
2010
2.6
3.5
4.3
*Forinformation 45 thick material only specifically in relation to MGP grades of structural timber but it may be relevant This is provided to other grades of structural timber as well. The structural property design values for F-grades have also Other products been changed and suppliers are advised to ensure their products meet the appropriate requirements. There are, however, no changes to the span tables of AS1684 for F-grades as the AS1684 design outcomes This information is provided specifically in relation to MGP grades of structural timber but it may be remain the same under the new version of AS1720.1.
Once published, designers and specifiers might nevertheless seek to use the new standards in their building solutions, subject to obtaining relevant accreditation or approvals under the alternative solution pathway in BCA 2010 or in relation to a particular building permit application. “The existence of both old and new standards means that manufacturers of MGP graded products will have no way of controlling or even knowing what standards have been used as the basis of the design or specification for which they are supplying their timber products,” Mr Juniper said. “Manufacturers are still obliged to ensure their timber products are ‘fit for purpose’ for the intended use, and that they are accurate in relation to or when describing or making other representations about their timber. “Where building solutions are designed to comply with the old standards, the supplied timber must also comply with the old standards. Where solutions are designed to comply with the new standards, the supplied timber must also comply with the new standards. “Unfortunately, the structural properties of the MGP grades defined in the old and new standards are not uniformly higher or lower and so direct substitution of one for the other is not feasible.” Mr Juniper said manufacturers would need to make their own assessment of these matters and respond accordingly with respect to both manufacturing and marketing considerations. A3P’s suggestion to manufacturers is that it would, in these circumstances, be prudent to consider ensuring that MGP graded structural timber products supplied by
relevant to other grades of structural timber as well. The structural property design values for FCont Page 16 grades have also been changed and suppliers are advised to ensure their products meet the Advertising:requirements. Tel +61 7 3256 1779are, Email: cancon@bigpond.net.au appropriate There however, no changes to the span tables of AS1684 for F-gradesissue 124 | 10.05.10 | Page 15 as the AS1684 design outcomes remain the same under the new version of AS1720.1.
industry news
MGP standards: avoiding the confusion From Page 15
the manufacturer meet the structural property requirements of both the old and new standards for an appropriate transition period. In this way, products that are marked MGP10, MGP12 or MGP15 will be appropriate for use with either the old or new standards. “We also suggest that it would be prudent to inform customers
about this, in a prominent way, so they can be confident the material they purchase will be suitable for designs and specifications based on both old and new standards,” Mr Juniper said. “For companies that would prefer to manufacture to either the old or the new standards separately, we suggest that it would be prudent to ensure the timber is clearly marked in a way that will identify its suitability for
any given application (eg include “AS1720.1:1997 (superseded)” or “AS1720.1:2010” in the marking). “We also suggest that customers are appropriately informed about the meaning of such marks. They must be clear about the standard to which the timber is manufactured to meet and so avoid incorrect use (or supply for incorrect use) of the timber in particular designs and specifications and the potential
liability of such action by them. “When otherwise describing MGP timber products, manufacturers should also be clear about which standard the product is manufactured to comply with, so that no confusion arises. The structural properties for MGP grades of structural timber (see table, Page 15) show AS1720.1:1997 (old standard) and AS1720.1:2010 (new standard) respectively.
DNA test program tracks timber’s origin From Page 13
variety of different tree species, beginning with the high-profile species merbau. “The timber origin program will be the world’s first practical and affordable system to identify the origin and species of processed wood products using DNA,” Mr Thomas said. He will outline details of the
latest timber tracking and species origin technologies at the seminar. “Of special interest to importers and wholesalers will be the Kiwi pine product launch and a presentation on Canadian timber products. TMA chief executive Peter Roberts says he is delighted at the interest in the seminar and level of support it has received
to date from the industry in Australasia and elsewhere. He drew attention to and thanked seminar sponsors that include the Canadian High Commission, the New Zealand Pine Manufacturers Association, Forest and Wood Products Australia, Forest Works, Wright Forest Products and the Wood Naturally Better program.
Attendance at the seminar is free of charge to company members of the TMA, ATIF and WADIC. A nominal charge will be made for others wishing to attend. Registration inquiries should be directed to Ingrida Matulis at the Timber Merchants Association on (03) 9875 5000 or ingridam@ timber.asn.au.
Recognition of all schemes good news for design-build sector From Page 8
one or both of the certification schemes are approved for the second five criteria.” Mr Lyons said there were always going to be opposing views from different groups from different areas. “At least we now have some certainty about the single point and that is a good thing.” Michael Lavery of m3architecture, Brisbane, joint overall winner of last year’s Australian Timber Design Awards, said the Green Building Council’s action on timber credits “widened the alternatives” for wood suppliers to tender for green building projects. “Our clients will benefit from the potential competition and that’s a primary benefit,” Mr Lavery said. “It means they get a competitive advantage
Page 16 | issue 124 | 10.05.10
and we still remain ecologically responsible.” Mr Lavery said he was going through an “educating” process with clients about AFS and FSC wood’s access to green building projects. Hobart-based Vos Construction and Joinery, winner of the EWPAA award for best use of plywood in the 2009 Australian Timber Design Awards for the $75 million Melbourne Recital Centre, has noticed an increasing demand for certified timber products. Joinery manger Tim Rumney said the acceptance of AFS certified timber was a positive development for the company. “Many of our clients have specified FSC wood and they will continue to do so, but we expect new interest now in AFS material, especially from green government projects.”
Project architect for awardwinning Neeson Murcutt Architects in Sydney Amelia Holliday said the decision to expand timber certification to all recognised schemes was refreshing news for the designbuild sector. “We will make sure our clients are aware of the acceptance of both AFS and FSC by the
Green Building Council,” Ms Holliday said. The chief executive of AFS Kayt Watts said the supply of AFS certified wood products was plentiful and high quality and its greater use in the Green Star program would be welcomed by timber producers and designers alike. “Considering that 90% of the world’s forests are not certified to any sustainable forest management systems, rewarding the leaders in this field will promote the uptake of certification, strengthen the supply chain and improve forest management globally. “Architects and specifiers can confidently specify Australian products on projects that require certified timber, knowing that AFS is the only forest certification scheme with an Australian Standard AS 47082007.”
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events
WoodMart magnet for timber importers Malaysian wood products showcase in Kuala Lumpur AUSTRALIAN timber product importers have an opportunity to inspect the most extensive range of timber and woodbased products ever assembled in Southeast Asia at Global WoodMart 2010 in Kuala Lumpur on October 19 and 20. The Malaysian Timber Council describes the exhibition as a premier one-stop selling, buying and networking platform for suppliers and buyers of timber products from Malaysia and around the world. Tropical hardwoods, as well as temperate softwoods and hardwoods will be showcased at the two-day event at the Kuala Lumpur Convention Centre in the heart of the city. “This is certainly a great opportunity for timber product importers to assess the wide and diversified range of solid
wood and other products from Malaysia,” Australian Timber Importers Federation technical manger John Halkett said. “The Malaysian timber certification scheme has now been recognised by PEFC, and the credentials of MTCC certified Malaysian timber products are on a par with Australian Forestry Standard approved products. “Australian timber importers can be confident that they can source a wide range of sold, engineered and value-added timber products from Malaysian producers.” Global Woodmart 2010 offers an opportunity for Australian and NZ companies with current or development export capacity to showcase their products to a worldwide timber industry audience from both traditional
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ATIF’s John Halkett checks out Malaysian certified timber products with Gunung Seraya Wood Products managing director Yen Chin
markets, like the US and Europe and from emerging markets in Asia, India and elsewhere. Chief executive of the Malaysian Timber Council Cheah Kam Huan said the event was expected to be held once every two years and MTC hoped to attract many local and international exhibitors and participants.
“MTC has carried out international marketing efforts through our offices in London, Shanghai and Dubai to bring prospective buyers from our traditional markets in Western Europe, the USA, Japan and Australia, as well as emerging markets such as China, Russia, and countries in Eastern Europe, the Middle East and Latin America to Malaysia,” Cheah said. “Visits to forest areas, timber factories and timber related projects in Malaysia could also be arranged for these buyers and suppliers, as part of our value-added service to trade visitors. “Our mission is to ensure the sustainability of the Malaysian timber industry by improving its competitiveness, enhancing market access and creating trade opportunities.”
issue 124 | 10.05.10 | Page 17
Dual Paul II Series Optimized Docking Line with New Ulti-Vision Colour Scanner
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Page 18 | issue 124 | 10.05.10
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Chain of Custody
BRUKS CHIPPERS FOR SALE
I N F O R M AT I O N S E M I N A R BRUKS 820
Brisbane • Thursday, August 20, 2009
The Chipper C MBruks 820 Drum433 On Logan Conference Centre Produces High Quality Export 433 Logan Road, Stone’s Corner Chips from Slabs and Trim Blocks.
LIMITED TO 60 SEATS
TWO Chippers to Choose from: - This One Refurbished in Sweden important and timely seminar, organised by TABMA Queensland, - will One Very Good Original help reduce some of the confusion relating to chain of custody. It Condition
will ensure the Queensland timber industry has the information required
Technical Data: for compliance with legislation,Key speakers will present information • 30-60 m³ chips/hr there will be a question and answer forum. • 2and knives • Infeed opening – 540mmx365mm(WxH) Speakers include: • Max solid wood thickness – 250mm • Colin MacKenzie, manager, • Chipper drum speed, 720 rpmtimber application and use, Timber Queensland • No. of feedDorries, rollers –General 2/4 (upper/lower) • Simon Manager, Engineered Wood Products Association • Feedwork power rating – 2.2/4 kW Australasia • Main power rating – 110 kW • Kayt Watts, chief executive, Australian Forestry Standard Ltd (AFS) • Weight – 4200kg
of
• Michael Spencer, chief executive, Forest Stewardship Council (FSC)
Also Available: Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast BRUKS 820 CS Drop Feed Drum Chipper and morning tea. Note: Arrival 7:30am. Breakfast 7:45 am. Presentations begin at 8 am. RSVP by Friday, August 14, to: Australia New Zealand Tabma Queensland, PO Box 532, Ph (1800) 600 053 Ph +64 9 276 2402 500 Brunswick Street, Fortitude Valley 4006 (0800) SKOOKUM Tel: (07) 3254 3166. Fax: (07) 3254 4599.Darren Ousey 0407 041 947 John McLachlan Mob: 0438 295 136
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issue 124 | 10.05.10 | Page 19
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