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issue 119 | 05.04.10 | Page 1

Hungry for wood Asia glutton for New Zealand radiata as demand drives up prices for processors A MASSIVE appetite in Asia for timber, particularly noticeable in wood-hungry China, is pushing timber prices higher for local processors, according to the New Zealand Pine Manufacturers Association. Chief executive Lawrie Halkett says this is a significant and rapid development for the industry. In the case of China, the falloff of other suppliers, notably Russia, has meant greater demand for New Zealand wood, especially logs and lumber, and therefore higher wood prices for international and local players. “Over the past year, China imported more than half of the logs we exported, and nearly a quarter of our export lumber,” Mr Halkett said. “In addition to the more

This Issue • Roundtable examines timeline on RFAs • Nils Koren takes helm for timber importers

 Nostalgia:

China’s big appetite .. for New Zealand Wood.

traditional industrial end uses, Chinese manufacturers are now using our radiata pine for veneer, plywood and many other high-end value-added uses.”

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This potentially systemic shift in sourcing patterns from China is being exacerbated by mounting demand in other Pacific Rim

The unforgettable 90th HHI convention • Bids narrow for Queensland plantations • Tasmanian forest industry ‘in the balance’ • Japanese buyers seek FSC wood

Cont Page 2

issue 119 | 05.04.10 | Page 1


industry news

Price movements Making causing tension in an the supply chain impact .. The Victorian Association of Forest Industries wishes to thank the following organisations for their support in our industry-wide representation at the 2009 Victorian Bushfires Royal Commission.

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 119 | 05.04.10

across Australia’s forest and forest products industry .. since 1940

From Page 1

markets such as Korea, Vietnam and the US. Adding to pressure on supply is the earthquake in Chile, removing a major supplier into these same markets for a period of time. “Increased international demand does impact on domestic prices for timber,” Mr Halkett asserts. “This impact is already being seen, as sawmillers pass on log cost increases they have to pay to secure supply to their mills. Likewise, manufacturers need to pay sawmillers for increases in lumber prices. “Normally this is not an issue, but the speed with which prices are moving is causing tension in the supply chain resulting in minimal time for manufacturers to negotiate increases with upline customers. “It is uncertain to what extent New Zealand forest owners will divert domestic supplies to meet the growing international demand, but according to Mr Halkett forest owners appreciate the need to sustain a strong domestic market for wood. “It is of strategic importance to have a strong domestic processing and manufacturing base,” Mr Halkett said. “Our home market provides much needed stability, especially in times when commodity cycles experience a fall-off in international demand.” So what forces are at play in the Asia-Pacific region that have brought about this relatively sudden situation? One needs look no further than China to get a feel for reasons driving these changes. The

Lawrie Halkett .. increased international demand impacts on domestic prices for timber.

impact of global economic recession saw the Chinese Government take swift action in late 2008 to stimulate economic activity in the form of a $US730 billion stimulus package. These measures are now having an impact as Chinese domestic production as exports resume growth. Chinese manufacturers are successfully using radiata pine from New Zealand for veneer, plywood and an array of other high-end value added uses

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 Melanie at TABMA on (02) 9277 3100 to inquire about our very attractive membership rate.

This stimulus, and a modest improvement in the global economy, is creating strong demand for wood fibre and in a country that is seriously short of harvestable forests, Chinese manufacturers must look to imports for raw material. The China Society for Forestry estimates that by 2015 China’s wood fibre demand in roundwood equivalent (RWE) will reach 350 million cub m, with domestic supply RWE output Cont Page 3

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industry news

Suppies from across China’s borders reducing as Russia raises export taxes From Page 2

expected to meet just 200 million cub m – meaning a short fall of 150 million cub m (RWG) in 2015. Much of this demand was until very recent times being met by Russia. However, supplies from across China’s northern borders are reducing due to increasing Russian taxes on log exports, uncertainty over Russian government export legislation, some sawmilling operations relocating from northern border to the eastern seaboard and harvesting operations moving to more intractable terrain. As a result, says Lawrie Halkett, the Chinese manufacturers are successfully using radiata pine from New Zealand for veneer, plywood and an array of other high-end value added uses. This in itself may provide the

Peter Berg .. confident about wood supply.

basis for a systemic shift in sourcing patterns from China for New Zealand’s forest product exports. As a log exporter to China, New Zealand is still becoming a significant player; logs to China this year are estimated to total 5 million cub m.

NZ sawmillers selling into China are also experiencing unprecedented demand for kiln-dried sawn lumber, and the importers are paying higher prices. The result in New Zealand is that China has emerged as a benchmark for pricing logs and lumber. Meanwhile, the NZ forestry sector is confident it has got the wood supply to meet surging demand for logs, mainly from China. The Forest Owners Association thinks the industry will be able to plug any future gap caused by the fall-off in planting in recent years. NZ log exports to China have lifted by 20% since November last year and export prices, which started to pick up almost a year ago, are still rising. President Peter Berg says the current drive in demand looks to be sustained. He says the wood from 30 years of largescale planting will meet that demand, even with the lack of plantation renewal that has been a feature of the past few years. Mr Berg says there has been a resurgence of interest in planting and that needs to be built on. The latest projections indicate the area planted in forest could increase by about 18,000 ha in the next three years.

Arauco gets busy

ARAUCO will reopen the Horcones II sawmill in Chile, providing 200 new jobs, a contribution to employment in an area seriously affected by the February 27 earthquake. Monthly production capacity will be about 14,500 cu m. An emergency home construction facility is operating within Arauco’s El Cruce sawmill in Constitución. The challenge is to build 3750 homes in two months.

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ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system. Core services: • Skill Standards • Material Development • Networks • Strategic Skills Planning • Project Management • Data Collection • Research • Industry Advice • Career Advice • Adult Learning Expertise

VICTORIA PO Box 612, North Melbourne 3051 Tel: (03)9321 3500 Email: forestworks@forestworks.com.au NEW SOUTH WALES PO Box 486, Parramatta 2124 Tel: (02)8898 6990 Email: smukherjee@forestworks.com.au TASMANIA PO Box 2146, Launceston 7250 Tel: (03)6331 6077 Email: wfoss@forestworks.com.au BRISBANE PO Box 2014 Fortitude Valley 4006 Tel: (07)3358 5169 Email: bharle@forestworks.com.au

issue 119 | 05.04.10 | Page 3


industry news

Roundtable examines timeline on RFAs INDUSTRY stakeholders will develop a number of key industry principles and policies to assist in the renewal process of Regional Forest Agreements. This follows an industry-initiated roundtable in Canberra on the importance and future of the 20-year RFAs and diminishing timeline and investment horizon of the current RFAs. The RFAs, agreed between the state and federal governments for 10 forest regions across Australia, were designed to provide for conservation and industry development outcomes. The RFAs have represented a cornerstone of native forest policy but their ability to address emerging changes in wood supply and provide ongoing resource and investment security for industry are of increasing concern. Industry representatives from

each of the RFA states attended the roundtable organised by the National Association of Forest Industries. Representatives of harvesting contractors, Timber Communities Australia and unions through the CFMEU, as well as state and federal officials involved in RFA policy and implementation attended the meeting. Other issues discussed included the five-yearly reviews of the current RFAs and implications of the recent Hawke review for improvements to RFA monitoring and reporting; the relationships between the RFAs and broader industry development and growth, including links to downstream processing and plantations; and the need to act now in partnership with governments and establish a policy framework for RFA renewal such as evergreen RFA arrangements.

production; the pressing need for strategic wood supply assessments at a regional level to assist with industry development planning and processing options; and improved monitoring and reporting on protected forest area management.

Mick Stephens .. marketing opportunities for climate-friendly wood products.

Development of key industry principles and policies will include a recognition of the significant cost borne by industry and timber communities in the original RFAs through the establishment of a world-class reserve system and withdrawal of forest areas previously available for wood

NAFI deputy CEO and chair of the roundtable Mick Stephens was pleased with the degree of engagement from industry representatives and officials. “The next stage of the process will be to take these policies to state and national governments as part of the RFA renewal process to better reflect contemporary wood resource and marketing opportunities, such as the use of climatefriendly wood products and biomass for green energy,” Mr Stephens said.

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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? 7-10: Australian Trucking Convention. Gold Coast Convention and Exhibition Centre. Tel: (02) 6253 6900. Email: ata@ atatruck.net.au Download full program from www.ataevents.net.au 8: TABMA NSW Chain of Custody Breakfast. 7.15 am for 7.30 am. Rydges Hotel, Parramatta, Sydney. Guest speakers from AFS (Kayt Watts). FSC (Michael Spencer), EWPAA (Simon Dorries), Green Building Council of Australia (Robin Mellon). Already the number of attendees is approaching 70 with acceptances from Queensland, Paddy Manning of the Sydney Morning Herald, representatives of Woolworths/Lowes, TDA NSW, Hudsons Building Supplies, Western Forest Products, Boral, Gunnersen, Tilling Timber, Swan Le Messurier and Oceania. Cost: $50 pp (includes full breakfast). Contact Melanie on (02) 9277 3177. 15-18: 40th annual J1V HooHoo Convention – The Next Decade: A Vision for Hoo-Hoo. Rydges Melbourne Hotel. HooHoo business day, industry tour, sponsors’ dinner, convention dinner and entertainment, farewell breakfast. Convention program and registration details: www.hoo-hoojiv.org.au 15: Dubai International Wood and Wood Machinery Show Dubai. www.dubaiwoodshow.com 16: National Carpenters Day. Celebration of carpenters and their work throughout Australia. Highlights include presentations, barbecues, entertainment, Carpenter of the Year Award and Apprentice Carpenter of the Year

competition. Entries close March 24. Visit www.carpentersday.com.au 18-21: APPITA Annual Conference and Exhibition/Pan Pacific Conference Melbourne. www.appita.com.au 22-24:designEX. Australia’s premier trade-only design and architecture event, showcasing more than 300 local and international brands and boutique suppliers. Sydney Convention and Exhibition Centre. Contact: designEX (02) 9267 0834. Email: designex@divexhibitions.com. au or Selena O’Hare, Whispr Communications (03) 9534 8600. Email: sohare@whispr.com.au

MAY 2010 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

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JUNE 2010 3-4: AFCA Conference and Trade Expo, Novotel Resort, Coffs Harbor, NSW. www.afca.asn.au

SUSTAINABLE. sustainable. responsible. . RESPONSIBLE

18-20: Timber and Working with Wood Expo, Sydney Entertainment Centre, Sydney.

The National The National Association of of Forest Association Industries (NAFI) Forest Industries (NAFI) represents is striving for an Australian companies, ecologically sustainable individualssociety and Australian organisations involved achieved through in thedynamic, forestry and forest products internationally industries. competitive forest industries. NAFI works with state and

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. 26-27: Wood Energy 2010 (World Reducing Energy Costs & Improving Energy Efficiencies) Melbourne.

AUGUST 2010 25-28: International Woodworking Machinery and Furniture Supply Fair (IWF) 2010 Atlanta, Georgia, USA. www.iwfatlanta.com

2010

APRIL 2010

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

8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.org

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 119 | 05.04.10 | Page 5


industry news

Bids narrow for Qld plantations

Forest buffer zones for sale KEEN bidders for Queensland’s forest plantation estate have narrowed after two prospective buyers failed to make the cut. It has been reported that Integrated Tree Cropping (the Elders timber arm) missed out as well as a major international player. ITC bid for a small parcel out of the 203,000 ha of softwood and hardwood plantations so it won’t front the auction as the state government does not want to split the asset. The remaining four parties shortlisted are now undertaking due diligence, and one group has a team of 20 people combing through sensitive documents. Binding bids are due by the end of this month with the

Page 6 | issue 119 | 05.04.10

sale process to be finalised by financial year end. The assets are likely to fetch more than $500 million. The FPQ sales include 33,000 ha of freehold land, but not the Crown land, says an ABC radio report. “What we’ve put into the public arena at the time of announcing the sale is that there are some parts of this estate which are freehold land – they generally relate to buffer zones,” Treasurer Andrew Fraser said. Mr Fraser says that land which is sold will still have to be used for forestry business. FPQ has a skilled and experienced management and workforce of 400 staff.

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australian timber design awards

Industry best to nominate entries in design awards People’s prize in new category

THE Australian Timber Design Awards, now entering the 11th year of competition, are open and the organisers are looking for the very best uses of timber to reward architects, designers and builders. “It is the timber industry itself that can help make the design awards this year the very best,” Andrew Dunn, chief executive of the Timber Development Association (NSW), said. “Timber merchants and wood producers know where all the timber goes so they are the best to point out projects that should be involved. “We want all members of the industry to be on the look out for that eye-catching project, set by the mountain or the sea, where they have supplied local or imported material – and where the finished result just has to been seen to be believed. We want to know about it.” How can industry help? Tell your job contact about the competition; get them to download an entry form from www.timberawards.com.au; send an email to the awards committee info@timberawards. com.au; pay the $275 entry fee for them; and assist in gathering the certification and photos. Mr Dunn said that apart from

Andrew Dunn

Overall winner of the Timber Design Awards in 2001 .. Cox Grieve Gillett for the National Wine Centre.

the architectural rewards for the winning entrants, the industry stood to benefit greatly from the level of exposure generated through magazines and industry

The 2002 overall winner .. Robert Morris-Nunn for the Forest EcoCentre

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promotion. The awards this year involve seven primary entry categories, all building related, including a new category, interior fit-out – residential, and two divisions for sustainable design, catering for both residential and commercial projects. There have been some changes made to the entry format for the best-use product categories. The eight individual awards now include a new category for recycled timber and an extra special category for best timber joinery or furniture element. Along with these traditional timber use categories, a people’s choice award has been added, which will be decided by a popular vote from the projects presented on the design awards web site, and an international projects award for Australian residents working overseas. Regional presentations will again be made in Sydney, Melbourne, Brisbane and Perth, where all regional and product category winners, depending on the number of individual

regional entries received, will be announced. National winners will be presented with their awards at a gala timber industry event in Sydney on Friday, October 29. The competition is open to most sectors of the industry including architects, building designers, builders and engineers, in fact anyone who has a principal interest in the design and construction of a building that heavily features timber, either structurally or aesthetically. The design awards are a joint partnership of the Timber Development Association (NSW) and Forest and Wood Products Australia which provides the major sponsorship through the Wood. Naturally Better campaign, designed to increase education and awareness in the customer and construction communities to position wood as their preferred material of choice. More details, an entry format and conditions of entry are available at www.timberawards. com.au

issue 119 | 05.04.10 | Page 7


industry news

Tasmanian forest industry ‘in the balance’ THE Liberal Party is poised to govern Tasmania after lawyer Elise Archer claimed the seat of Denison. Ms Archer won by a tiny margin of 315 votes over independent candidate Andrew Wilkie in the Hobart-based electorate. The victory delivers the Liberal Opposition its crucial 10th seat following the knife-edge March 20 state election. “But which ever way you cut it, it’s going to be another lengthy period of instability for the industry, the chief executive of the Forest Industries Association of Tasmanian Terry Edwards told T&F enews. “The Greens will hold the balance of power with five seats while the major parties will each hold 10 seats,” he said. “This makes life very difficult.” Mr Edwards said after statements by the Greens that they would cooperate with

Terry Edwards .. another lengthy period of instability for the industry.

both parties, he wrote them a challenge asking whether they had the maturity to soften their anti-forestry agenda to assist in stability for the government. “This will be the test to find out if they’re fair dinkum about cooperating with the government. There has been no response.”

Elise Archer .. delivers crucial 10th seat for Liberals.

Liberal leader Will Hodgman has called on Labor caretaker premier David Bartlett to deliver on his earlier promises to relinquish power to a new incoming Liberal government. Mr Bartlett previously said he was willing to retreat to the Opposition benches if the Liberals secured the same

number of seats as Labor at the state poll but won more overall primary votes. Meanwhile, former Labor powerbroker Graham Richardson says David Bartlett would be “pretty silly” not to negotiate with the Greens. “If anyone’s going to work with the Greens it’s Labor,” Mr Richardson said. Otherwise, it would be a Liberal government with Labor support and “that can’t last”, he said. “Tasmanians are looking to a pretty difficult future until someone sits down with the Greens.” Terry Edwards said both Labor and the Liberals had come out with strong statements in favour of the Gunns pulp mill proceeding. “They are likely to vote together on the floor of the house to Cont Page 10

The International Order of Hoo-Hoo

Melbourne Club 217 Through Hoo-Hoo a United Forest Products Industry

The Next Decade A vision for Hoo-Hoo

40th Annual JIV Hoo-Hoo Convention Thursday April 15 to Sunday April 18, 2010 Rydges Melbourne Hotel Thursday Hoo-Hoo Convention Golf Day Convention welcome reception

Saturday Hoo-Hoo Convention business day Convention dinner & entertainment

Friday Industry facilities day tour Timber industry & Sponsors dinner

Sunday Farewell breakfast and closing

Details of the convention program will be regularly updated on the JIV website www.hoo-hoo-jiv.org.au

Page 8 | issue 119 | 05.04.10

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passages

Mary remembered by many friends in timber industry 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 6,000 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!

Commercial Hotel .. popular meeting place for cypress sawmillers. By CHARLES ACHILLES

THE “boys in cypress” will be saddened by the passing of friendly and charming Mary Teresa Barry, MBE, who warmly welcomed many a timber merchant to her hotel on Cunningham Street in Dalby on Queensland’s northern Darling Downs. The Commercial Hotel was a regular meeting place for sawmillers, merchants and forestry and timber industry leaders. All of them were happy to be referred to as “my boys” by Miss Barry. The hotel was home for this grand lady for many years and she died there on March 20, aged 91, surrounded by her friends and loving staff. Many important industry decisions were voted on at ‘Mary’s Place’ in the back meeting room over the years, concerning the Queensland Timber Board, Cypress Pine Association and TRADAC. All were watched over by an extremely large-framed original painting by the late Hugh Sawrey, a noted artist and founding member of the Stockman’s Hall of Fame

HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia Tel: +61 7 3392 9810 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

Mary Barry .. always a welcome for “her boys” in the timber industry.

at Longreach in western Queensland. At the conclusion of the meetings, members would share a tasty counter lunch for which western hotels are famous and the Commercial Hotel always lived up to that tradition. Mary was laid to rest with a service at Myall Remembrance Park after a requiem mass at St Joseph’s Catholic Church in Cunningham Street. An aunt and great aunt, she is survived by her sister Eunice and brother Barry.

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PRODUCTION MANAGER Leigh Macready Tel: +61 7 3392 9810 production@industryenews.com.au

Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising. The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.

issue 119 | 05.04.10 | Page 9


industry news

Nils Koren takes helm for timber importers

New board members elected at ATIF Sydney meeting

Incoming ATIF chairman Nils Koren (second from left) with retiring board members David Eldridge and Bob Frost and past chairman Norm Long (right).

Joining new board member Michael Swan (left) at the ATIF AGM are Matthew Wood, managing director, Stora Enso, and David Meyer, managing director, Meyer Timber.

WELL-KNOWN timber industry identity Nils Koren is the new chairman of the Australian Timber Importers Federation. Mr Koren, managing director of Gunnsersen, was elected at the ATIF annual general meeting in Sydney. He joins new faces on the board Michael Swan, managing director, Swan Le Messurier, Sydney, Robert

member David Eldridge, managing director, Ridgewood Timber, have retired from the board. In accepting the position of ATIF chairman, Mr Koren thanked Norm Long, Bob Frost and David Eldridge for their service to the board and to the timber importing sector generally. Mr Koren remarked that the

Cairns, state manager, Tasman KB, Melbourne, and Lou Boffo, national sales manager, Le Messurier, Adelaide. Outgoing chairman Norm Long, managing director, Oceania (Aust), will continue on the board as deputy chairman. Respected industry identity Bob Frost, chairman of Tasman KB and long-serving board

Labor Party meeting supports David Bartlett as Premier From Page 8

support anything relating to the pulp mill,” he said. “On the other hand, the Greens have said they will rescind the existing pulp mill approval, which basically will start the whole process over again.” Mr Edwards said such indecisions were costing the

pulp project millions of dollars “and not a sod of earth has been turned yet.” Latest as T&F news goes to delivery: A Labor Party meeting on April 1 threw its support behind leader David Bartlett. All 13 Labor members in the Tasmanian parliament – including its four new politicians

elected only in the past few days – met in Hobart to decide if they agree with Mr Bartlett’s pledge to cede the reins of government after the state election to the Liberal opposition. Mr Bartlett may be forced to renege on his commitment not to seek to govern for another term in a minority.

new board represented a “new generation of timber importers and wholesalers”. He also stressed the need for the federation to continue to be seen as relevant and important for the business success of timber importing and wholesaling companies. ATIF has been established for more than 20 years and represents the interests of the timber importer and wholesaler sector of the national timber industry. The federation coordinates the state activities of timber importers and wholesalers, represents this sector at the FWPA market knowledge advisory group and develops market development programs that benefit imported timber products.

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Page 10 | issue 119 | 05.04.10

Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)

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industry news

Wood certification battle rages in US AS many as one in every five new homes and a quarter of municipal buildings and office towers in the US are expected to qualify as ‘green’ buildings two years from now. But there is no single standard. Instead, a broad array of organisations has emerged to certify the “sustainability” of everything from component parts (such as windows and rain gutters) to entire houses and offices. Right now, there is intense competition between these ‘green building’ logo programs to determine which will gain market preeminence. The stakes are high not just for the country’s environmental future, but for the construction industry. Green building, which represented just 2% of the construction market in 2005, will comprise as much as 20% of the residential construction starts and 25% of commercial starts by 2013, according to McGraw-Hill Construction’s Green Outlook 2009 market intelligence report. By then, green building will be worth between $93 billion and $140 billion a year, estimates McGraw-Hill. With so much money riding on green building, one of the most heated fights is taking place in the logging industry, where a long-running rivalry between the country’s two most successful forest certification bodies erupted in 2009. Wood is used in 90% of the homes built in the US. It takes the equivalent of 0.405 ha of clear-cut forest to build a single 158 sq m woodframed home. The Forest Stewardship Council (FSC), founded in 1993, is the oldest and most widely respected of halfdozen or so sustainable forest certifiers in the country. But

EWPs that tick ALL the boxes Engineered wood products manufactured by EWPAA member companies top the list

Cathy Abusow .. all efforts to protect world’s forests should be welcomed.

FSC has not had as much success expanding the number of hectares bearing its label as its chief rival, the Sustainable Forestry Initiative, or SFI, launched by the American Forest and Paper Association in 1995. After decades as a satellite outfit of the timber industry’s largest trade organisation, SFI became independent in 2007 and has poured millions of dollars into advertising its pine tree-and-leaf logo. SFI president and CEO Kathy Abusow is fond of comparing the difference between her organisation and FSC to a sort of “Coke vs. Pepsi” debate. She points out that only 10% of the world’s forests are certified, so all efforts to protect them should be welcomed. More than three-quarters of North American certified forests are certified to SFI, ATFS or CSA, while FSC certified forests account for less than one quarter. [Under extreme pressure from governments and industry, the Green Building Council of Australia in January revised its timber credit to allow equal consideration of the AFS and FSC schemes].

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issue 119 | 05.04.10 | Page 11


industry news

FOR SALE Magnificent timber block

$880,000

Located Jimna area – Queensland Area: 243.5 hectares. Elevation 600 metres Normal rainfall 45 in. Top pole production country with high quality iron bark, grey gum and hoop pine. Sunday Creek Rd to Kenilworth on southern boundary. Eastern and western boundaries are Conondale National Park. Bitumen road frontage. Permanent flow in Six Mile Creek. Great views. Power on property. An assessment of the standing timber, product range and approximate value was undertaken on the western portion 107 LX 2421 in March last year. In preparation for the assessment, aerial photos were procured, the regional ecosystems overlayed, proposed strip lines considered and their GPS points down loaded to gain a representative sample of various forest types. Data collected includes species, diameter at breast height (cm), potential product and its length, and whether the tree would be harvested, retained or chemically treated. Management units were identified and mapped by assessing the consistency of the forest in relation to species mix and productivity. The strip data was then extrapolated to give a per hectare figure of available volume and extrapolated over the unit area. Professional report indicates value of timber at $307,000 as at February 09, rising to $788,000 in 8-9 years. All inquiries and requests for detailed assessment data and aerial photographs should be directed to: Richard Long – Rent-A-Stand Pty Ltd, PO Box 37 Greenslopes 4120 Brisbane, Qld, Australia Tel: Fax: Mob: Email:

+617 33241288 +617 33970914. 0408 884 979 sales@rent-a-stand.com.au

Page 12 | issue 119 | 05.04.10

Consultation as Japanese buyers seek FSC wood FSC Australia has facilitated a two-day stakeholder consultation session on behalf of four Japanese paper companies interested in sourcing FSC-controlled wood from Tasmania. Controlled wood is not FSC certified, however; it must be mixed with FSC wood in a labelled product that excludes wood from areas where forest management activities endanger high conservation values and from areas where forest is being converted to plantations or other non-forest uses. Exclusion also applies to areas of social conflict and from genetically modified trees. The FSC Australia ‘controlled wood risk matrix’ requires that a formal process be undertaken to verify that wood from areas of endangered high conservation values and (in Tasmania) conversion are excluded. Nine groups participated in the consultation, including forestry organisations, community groups, environment groups and a union. FSC Australia has engaged Pina Gervassi as a special adviser on policy and standards issues. Her appointment will provide a boost to the organisation’s ability to progress work on an Australian FSC forest management standard as well as projects such as the High Conservation Value Assessment Framework. Ms Gervassi will provide FSC Australia with independent advice on these issues. She has more than four years’ experience as a policy and standards manger at FSC International in Bonn and previous experience

Pina Gervassi .. special adviser on FSC standards issues.

as general manager of the FSC national organisation in Peru and as a forest officer with FSC in Argentina. Ms Gervassi has a Masters degree in environmental management and a Bachelors degree in forestry. Her position is supported by private trusts and foundations interested in seeing FSC Australia progress this important work. The FSC Australia board of directors has approved 11 new members. New economic chamber members include Australian Bluegum Plantations, Australian Recycled Timber, and the National Association of Forest Industries. New environment chamber members include the North East Forest Alliance and Environment Tasmania Inc. The FSC building certification workshops will be held in Melbourne on April 28 and 29. Participants will include architects, builders, developers and suppliers. The half-day workshop will be led by Sarah McKay from the US, one of the authors of the Project Certification standard.

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industry news

WoodMart 2010 a ‘first’ for Malaysian timber industries THE Malaysian Timber Council is organising its inaugural MTC Global WoodMart 2010 to provide 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 event to be held at the Kuala Lumpur Convention Centre from October 19 to 20. This is the first time that such an event has been organised in Southeast Asia for international timber suppliers and buyers to meet and conduct business. Apart from facilitating business among local and overseas suppliers, agents, distributors, importers, manufacturers wholesalers and others in the supply chain, the MTC Global WoodMart 2010 will also help to promote and encourage the wider application and use of timber from Malaysia as well as international sources. Chief executive 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.” Cheah said one of MTC’s main objectives was to expand market opportunities for the Malaysian timber industry. “Our mission is to ensure the sustainability of the Malaysian timber industry by improving its competitiveness, enhancing market access and creating trade opportunities,” he added. The event will feature a wide selection of tropical and temperate hardwood and softwood products such as logs, sawn timber, plywood and panel products, wooden flooring, wooden decking, doors and windows, mouldings and furniture components. An MTC trade mission to Australia from June 21 to 30 to promote the event.will meet with industry stakeholders in Sydney and Melbourne and take in the DesignBuild exhibition in Melbourne. A similar mission to New Zealand is expected in late April.

Now in it’s 24th year the Queensland Timber Industry Charity Golf Day is set for:

FRIDAY 28th MAY, 2010 Invite clients for a day of networking to show your appreciation for their support or use it as a team building experience for your staff. Spend a day socialising with industry peers, enjoying a day on the green and raise money for a children's’ charity.

THE DETAILS: Competition is a 4 ball Ambrose, 4 players per team. Prizes awarded to teams for 1st, 2nd & 3rd places as well as the Bradman prize for last place. There is a maximum of 36 teams able to play so get in quick! DATE: COST: VENUE: RSVP:

Friday 28th May, 2010 $600 per team of 4, includes lunch. $165 per individual, includes lunch. Gainsborough Greens Golf Course Yawalpah Road, Pimpama Friday 7 May, 2009

AGENDA FOR THE DAY

8.00am Arrive & register at Gainsborough Greens Golf Course. A hot BBQ breakfast will be served. 9.00am Shotgun start. 2.00pm Return to clubhouse for a hot lunch. Well renowned entertainer, Steve Allison followed by prize presentation.

The beneficiaries will be designated Children's Charities.

A Joint Industry Association Event

PLEASE COMPLETE BELOW BELOW & RETURN BY FAX TO 5483 6179 OR EMAIL MORTY@SPIDERWEB.COM.AU

COMPANY NAME ADDRESS

HooHoo-Hoo Club 218

PLAYER 1

PLAYER 2 PLAYER 3

The MTC Global Woodmart 2010 was launched in Kuala Lumpur last month.

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PLAYER 4

PHONE

issue 119 | 05.04.10 | Page 13


MELBOURNE MEMORIES .. THE BIG HOO-HOO OF 82

The unforgettable 90th HHI convention By JIM BOWDEN (#86504)

WHERE were you in Hoo-Hoo in 1982? Along with about 600 fellow Hoo-Hoos and industry representatives – from six Australian states, 11 US states, Canada, New Zealand and Singapore – I was at the remarkable Hoo-Hoo International Convention and Australian forest products conference and trade exhibition staged from September 11 to 19 that year at Melbourne’s Wentworth Hotel, as it was named then. [You know, the one on Collins Street with the loo with a view over the MCG]. The 90th HHI convention, it was the first held outside North America since the inception of the organisation in 1892. Hosting the convention was a hard-won triumph for Melbourne Club 217. “We competed against Adelaide and Brisbane clubs which both made great submissions,” the 1982 convention chairman Doug Howick remembers. “I took the proposal to the HHI convention in Portland, Oregon, in 1977, and they said come back to us in two years and we’ll consider it. Australia seems a long way away, they said. “Well, we waited the two years then with 90 Australians in tow we converged on the HHI convention in Honolulu. We told the HHI board: now you must realise we are fair dinkum! “We got the go-ahead and went for it before the Americans realised it was in fact the 90th HHI convention, and all HooHoos know the significance of the number nine.” The spirit of Hoo-Hoo is expressed in the nine fundamental values that encourage members to be fraternal, helpful, grateful, friendly, tolerant, progressive, industrious, loyal, and ethical. The Hoo-Hoo emblem is a black cat with its tail curled into the shape of a figure nine.

Page 14 | issue 119 | 05.04.10

Contest: Can you name these Hoo-Hoo delegates to the 90th HHI convention in Melbourne in 1982? Picture taken at the Leonda Restaurant and Function Centre on the Yarra which at the time claimed itself as “the ultimate in international cuisine to the sons and daughters of Early Melburnians, interstate visitors and, in fact, the most discriminating of world travellers”. Set of wooden wine goblets with Hoo-Hoo emblem to the first correct ID, or nearest to the pin. Email: cancon@bigpond.net.au

Doug says when he booked the Wentworth Hotel for the event in 1979 it was just a hole in the ground. “The best God-damn HooHoo convention ever,” was not just a casual throw-away from the Americans attending the convention – they meant it. There were 110 US and Canadian delegates with their wives who mingled with their Aussie and Kiwi mates in an atmosphere that was real timberbiz and showbiz – thanks to people like Kevin Kelly and Doug Howick and their committee. As the 40th annual J1V convention draws near – it will be at Rydges Melbourne Hotel from April 15 to 18 – it is timely to reflect on that blockbuster event 28 years ago. Doug Howick and Kevin Kelly will be in Melbourne next month to embelish my memories. Tasmanian Michael Hodgman, then a minister in the Fraser government (now shadow minister for Veteran Affairs) said it best when he opened the forest product conference, held in conjunction with the HHI convention: “Hoo-Hoo is people”. And we met them, people like – Irish-blooded Kevin Kelly (L-75940J), then 53, who became the first Australian to hold the office of world president (Snark of the Universe) of HooHoo International.

Lanky 6ft 4 in. Start StClair (L-78787), then 32, who was settling in as new Australian J1V president and was perhaps the youngest member to hold such an office in the history of Hoo-Hoo. Former CSIRO division of chemical technology entomologist and convention chairman Doug Howick (L80748) whose work for Hoo-Hoo earned him a life membership in the international order and the title of convention organiser without peer. Big, easy-talking logging contractor Dan Brown from Klamath Falls, Oregon, then outgoing HHI world president. [Along with Hoo-Hoo veterans I climbed into a rubber Donald Duck suit in a crazy parade as nine embalmers also dressed in Moomba Festival costumes sent Dan to the House of Ancients as Rameses 74]. Ex-snark Jimmie Jones (Rameses No. 72), his wife Betty and son Dave and his wife Cheryl from Foster Lumber Yard, Vallejo, California, and the famous Black Bart 181 Club. Lorin M. Swift of Sacramento, California (L-34021), who at 92 was older than Hoo-Hoo and hadn’t missed a convention since 1920. Former Chicago Tribune journalist Dr Russel H. McLain, executive secretary of HHI headquartered in the birthplace of Hoo-Hoo – Gurdon,

Arkansas, where he wore the chains of town mayor. The late Sir Billy Snedden, then Speaker for the House of Representatives, who was official guest at the international convention closing banquet. And then there were Car Lindh (73367), Lindsay LeMessurier (73378) and the first Australian J1V president Norton Ladkin (73372). These men helped establish Hoo-Hoo in Australia and formed the first club, Adelaide 212, in 1962. Five former HHI world presidents, each a Rameses, attended the convention. During the event, seven busloads of convention delegates, on their way to a forest products field day at Creswick, stopped off at Melbourne’s Australian Native Plant Garden to see a presentation of a timber gazebo to the city. The gazebo, made entirely of Victorian red gum and red iron bark, was a joint project by Melbourne Hoo-Hoo Club 217 and the Victorian Timber Promotion Council. Another highlight was the presentation to each American delegate of a genuine Australian kangaroo penny by outgoing J1V president Max O’Reilly. The 1962 pennies from Max’s personal collection were minted in the foundation year of HooHoo in Australia. J1V awards presented at the convention included: • Best wood promotion: Newcastle Club 237. • Outstanding club activity: Brisbane Club 218 for Timber Week 82 and the Timber Queen Charity Quest. • Best attendance 1981-82: Perth 240 (75.5%). • President’s report trophy: Bob Klintberg, Mount Gambier. • Lowest J1V Hoo-Hoo number at convention: Carl Lindh (73367), life member. Adelaide 212.

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MELBOURNE MEMORIES .. THE BIG HOO-HOO OF 82

l and rnationa oo Inte elly (centre) -H o o H K of e, Kevin ention by US sident v the offic orld pre New w alian to hold elbourne Con er Co, Long b M str first Au tulated at the r, Capital Lum Blasen and ra ba n, e m s e la L B k is cong David s Chuc . delegate alifornia, and rtland, Oregon C o P , h , c rp o C Bea r e b Lum Blasen

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issue 119 | 05.04.10 | Page 15


MELBOURNE MEMORIES .. THE BIG HOO-HOO OF 82

Page 16 | issue 119 | 05.04.10

Advertising: Tel +61 7 3256 1779 Email: cancon@bigpond.net.au


MELBOURNE MEMORIES .. THE BIG HOO-HOO OF 82

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issue 119 | 05.04.10 | Page 17


on the road

A ‘plug’ for Mitsubishi’s all-electric i-MiEV Zippy performance, very quiet .. and easy on the wallet THERE’S a picture of stuffylooking inventor Thomas Parker sitting behind the wheel of the first electric car on London’s Pall Mall in 1884. The Victorian gent is also credited with electrifying the London Underground and overhead tramways in Liverpool. Parker also had a hand in refining batteries for petrolpowered cars but his electric model never caught on at the time. The resistance was attributed to the fact that electricity was terrifying because it was something you couldn’t see or touch.

But you can feel it and what better way to enjoy such invisible power than at the controls of Mitsubishi’s revolutionary city car – the all-electric four-seater i-MiEV. I was one of a select group of motoring writers able to take it for a spin around Brisbane city last week. The very first thing you notice is the astonishing quietness inside the cabin and no engine vibration at the stop light. It felt pretty zippy and also very ‘finished’ with no real evidence of rough edges or compromises resulting from the conversion to electric drive.

Wooden propellers make the Helicron ‘fly’ at 120 km/hour IN the late 1930s this one-of-akind Helicron was locked in a barn and forgotten. More than 70 years later, this odd lost little gem was rediscovered, rebuilt, and reintroduced to the world. Although the manufacturer is unknown, it is believed the car was built in France in 1932. After World War 1, it was not uncommon for displaced airplane engineers to look towards the automobile industry for employment. As in this example, a few

Page 18 | issue 119 | 05.04.10

entrepreneurs developed propeller-powered cars with the notion that propeller power was an efficient means of moving a vehicle. On this car, when the wooden propeller is spinning at full speed and efficiently, the little 450 kg boat-tailed skiff can hit freeway speeds exceeding 120 km/hour. This is the one and only Helicron in existence, owned by Lane Motor Museum in Nashville, Tennessee, US. (Thanks to Gary Bacon for the info.)

Quiet eco-power .. Paul Stevenson, Mitsubishi’s vicepresident, corporate strategy, shows off the i-MiEV electric car outside the Quay West Suits in Alice Street, Brisbane, after giving motoring writers a long lunch and a short drive.

The i-MiEV (‘Mitsubishi innovative electric vehicle) is no longer just a design study or a prototype; Mitsubishi has delivered more than 800 of them in Japan for about $US50,000 a unit. This tear-drop shaped aerodynamically designed rear-wheel drive four-door hatchback is powered by a 16kwh lithium-ion battery and a 47-kw motor, the equivalent of 64 horsepower making it 6 hp more powerful than the 57 hp 0.6-litre petrol unit. But it is still capable of 0 to 90 km/hour in a reasonable 13 seconds and has a regulated 130 km/hour top speed. The car offers zero-exhaust emission motoring in the same award-winning design as its tiny 0.6-litre petrol-engined ‘i’ micro-car. Even factoring in the emissions of its manufacture and disposal, Mitsubishi says the i-MIEV offers a CO2 figure about 75% less than an equivalent size petrol-powered vehicle. Externally, the only difference is a socket under the fuel flap instead of a conventional

pipe. The i-MiEV has a range of 140-160 km from a single charge and a full charge from a domestic household power supply will take seven hours Inside, there is a different driver display dominated by a single central dial to show whether the car is charging up or using power, plus digital indicators of speed, selected gear and battery levels to replace conventional analogue dials showing revs, kilometres per hour and the fuel gauge. A large pack of lithium-ion batteries (the same type as used in modern laptops and mobile phones) fits under the floor instead of a fuel tank and stretches most of the way from behind the front wheels to the rear wheels. An electric motor occupies the space near the rear wheels where the conventional version’s petrol engine would otherwise sit. Within limits, the i-MIEV is brilliant. The packaging is amazing in that it fits four large adults with ease and there’s heaps of glass to let in lots of light. Mitsubishi claims the cost per kilometre to drive the car is one-third that of a comparable gasoline vehicle. After Japan they will be introduced to the US and European markets. Australians will have to wait quite a while for the local release.

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Chain of Custody I N F O R M AT I O N S E M I N A R

Brisbane • Thursday, August 20, 2009 433 On Logan Conference Centre 433 Logan Road, Stone’s Corner LIMITED TO 60 SEATS

New POR Briquette System

Chain of Custody

I N and F Otimely R M seminar, A T I O organised N SEM INAR This important by TABMA Queensland, Brisbane • Thursday, 20, of 2009 will help reduce some of the confusionAugust relating to chain custody. It On Logan Conference Centre will ensure the 433 Queensland timber industry has the information required 433 Logan Road, Stone’s Corner for compliance with legislation,Key speakers will present information LIMITED TO 60 SEATS and there will be a question and answer forum. This important and timely seminar, organised by TABMA Queensland, Speakers include: will help reduce some of the confusion relating to chain of custody. It

• Colin MacKenzie, manager,timber timber application andthe use,information Timber Queensland will ensure the Queensland industry has required Simon Dorries, Manager, speakers Engineeredwill Wood Products Association of for•compliance withGeneral legislation,Key present information and Australasia there will be a question and answer forum. • Kayt Watts, chief executive, Australian Forestry Standard Ltd (AFS) Speakers include: • Michael Spencer, chief executive, Forest Stewardship CouncilQueensland (FSC) • Colin MacKenzie, manager, timber application and use, Timber • Simon Dorries, General Manager, Engineered Wood Products Association of Australasia Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast • Kayt Watts, chief executive, Forestry7:45 Standard Ltd (AFS) begin at 8 am. and morning tea. Note: Arrival Australian 7:30am. Breakfast am. Presentations • Michael Spencer, chief Forest Stewardship Council (FSC) RSVP by Friday, August 14,executive, to: Tabma Queensland, PO Box 532, Registration fee: $65 pp (TABMA member) $80 pp (non-member) • Includes hot breakfast 500 Brunswick Street, Fortitude Valley 4006 andTel: morning tea. 3166. Note: Fax: Arrival Breakfast 7:45 am. Presentations begin at 8 am. (07) 3254 (07)7:30am. 3254 4599. RSVP by Friday, August 14, to: Mob: 0438 295 136 Tabma Queensland, PO Box 532, 500 Brunswick Street, Fortitude Valley 4006 Tel: (07) 3254 3166. Fax: (07) 3254 4599. Mob: 0438 295 136

www.tabma.com.au

Description: Super Oscars x 2, oil cooling system, Bagging carosels, 25 m3 live floor hopper to allow for ebbs and flows of sawdust shavings. This is a very neat system. It will reduce your waste by 90% of original size. We have spent a lot of time to develop this machine and are selling due to a change in business model. Machines have done +&- 100hrs Come and look .. you won’t be disappointed!

Timber & Lattice, Port Adelaide SA 5015 Contact:

Mark Tucker 0412 698 956

for sale

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www.tabma.com.au

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issue 119 | 05.04.10 | Page 19


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