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CHH sawmill rises quickly from ashes
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Caboolture likely to re-start softwood The operations just a few weeks after fire NATIONAL
WHERE there’s smoke there’s fire – unconfirmed reports suggest Carter Holt Harvey’s Caboolture softwood sawmill will re-open within a matter of weeks, recovering from a blaze on September 28 that ignited a shed filled with sawdust used to fuel boilers. CHH management was unavailable for comment on this development. However, logging contractors have been advised to stand by and be ready to resume operations. The start-up decision, if confirmed, will be good news for the Queensland timber industry and the housing sector, keeping the state’s second largest sawmill in production and providing solid competition in the market in the state’s southeast. Fire crews, called to the mill at Henzell Road
voice for
about 3.30pm on Sunday, September 28, arrived to see smoke billowing from the top of a large shed. They brought the blaze under control about 5 pm and remained on to extinguish the fire. A fire service spokesman said the flammable material made extinguishing the fire completely very difficult. “Anywhere there’s a large stockpile of material such as sawdust there’s going to be issues with ventilation and getting access to the deepest Cont P 8
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OCTOBER 6, 2014 | PAGE 1
INDUSTRY NEWS
Gold Coast talks focus on global dynamics of EWPs
Innovation and emerging new markets
Innovation Skills and practices that work
25 March 2015 Canberra
Save the Date The 7th Annual Industry Development Conference followed by the AFPA and ForestWorks Gala Dinner at Parliament House.
www.forestworks.com.au
INNOVATION in new products and emerging new markets will be presented by international and local experts at the ‘Engineered Wood Products – from Here to the Future’ seminar on the Gold Coast on November 13 and 14. The day and a half seminar is intended for senior management and industry leaders in forestry, timber processing, wood products supply and distribution, and others interested to hear about future trends that will have impact on the forest and wood products sector. Global changes are now under way in engineered wood products resulting from new technologies and products, new market applications, and shifts in global supply dynamics that will have a major influence on the Australasian market.
Leading world experts from North America Leading world experts from North America presenting at the seminar will be Art Schmon of Forest Economic Advisors, Professor Chip Frazier of Virginia Tech, and Professor Fred Kamke of Oregon State University. Their topics will cover the current supply and demand in North America and the potential future supply situation, industry and university cooperative research programs, and modified
Art Schmon
Chip Frazier
wood products for new market opportunities. Key local speakers include Andrew Nieland, head of Timber Solutions at Lend Lease, who spearheaded the ‘Forte’ development in Melbourne Docklands, Australia’s first 10 storey timber apartment building and the tallest in the world. Other experts are Owen Griffiths of TimberLab Solutions, provider of innovative, and customised engineered timber solutions, and George Goroyias of Poyry Management, consultants to the entire wood products value chain. Presenters also include Peter Torreele of META, a network to help transform Australia’s manufacturing sector into a globally integrated and competitive industry, and Tai Hollingsbee of GHD, an international technical services consultancy for clean and renewable energy projects, sustainable built environments, and low carbon buildings. The speakers program is guaranteed to be thought-
Fred Kamke
provoking and to deliver information that can help business by awareness of growth opportunities, both now and in the future. Hosted by the Engineered Wood Products Association of Australasia and Forest and Wood Products Australia Ltd, the seminar will be held in conjunction with the FWPA annual general meeting at the Surfers Paradise Marriott Resort.
Speakers look at entire wood products chain During the program, key political leaders Senator Richard Colbeck, Parliamentary Secretary to for Agriculture, and the Deputy Prime Minister, Warren Truss will address attendees. For more information on this important seminar and other activities in the event program, visit the website www.fwpa.com. au/news-and-events/upcomingevents
Liberal senator special guest at TABMA dinner
This program has been produced with the assistance of funding provided by the Australian Government through the Department of Industry. ABN: 39 946 785 543
LIBERAL senator for New South Wales Bill Heffernan will be a special guest at the TABMA Australia industry dinner to be held at Dockside, Cockle Bay, Sydney, on Friday. October 10. Mr Heffernan joined the Liberal Party in 1985 and in 1993 became the second rural-
PAGE 2 | OCTOBER 6, 2014
based president of the NSW division in the history of the Party. He was appointed to the Senate in 1996 and has held the positions of Deputy Government Whip, Parliamentary Secretary to Cabinet, and chair of Senate Standing Committee on Rural
and Regional Affairs and Transport. The TABMA dinner follows the Timber NSW forum to be held from 10 am-2 pm at the National Maritime Museum, Darling Harbour. TABMA dinner inquiries can be directed to (02) 9277 3100.
INDUSTRY NEWS
November 30: industry gears for illegal logging regulations Government releases ‘country specific’ guidelines
AS the commencement date of November 30 for the Illegal Logging Prohibition Regulation gets closer, importers, domestic processors and the federal government are gearing up for its introduction. The government has just released two more ‘country specific’ guidelines for Canada and Finland. In addition to the one for Solomon Islands released in May this year, these guidelines are meant to provide clear and easy-to-follow advice on how to comply with the due diligence requirements of the regulation for importers of timber harvested in those countries. The Canadian guideline is particularly simple in that it states that, “There is no single document that demonstrates legality of timber or timber products sourced from Canada. However, Canada’s legislative framework provides assurances that timber products from Canadian forests are of low risk of being illegal”.
Importers use guidelines to justify decision Importers can use this guideline to justify a decision to assess Canadian timber products as low risk. Therefore – besides some basic information gathering and simple documentation – no other due diligence steps will be needed, and importers can proceed as normal. It is hoped guidelines for other low risk countries are as straightforward. All ‘country specific’ guidelines are available at www.daff.gov.au/illegallogging The government has also announced it has agreed to
Ticks all the ‘yes’ boxes .. GoodWood brand timber products from Australian Sustainable Hardwoods in Victoria are fully PEFC certified by the Australian Forestry Standard.
have to answer after November 30 has also been finalised. The final question will be, “Has the importer complied with the due diligence requirements of the illegal logging prohibition
act 2012 and associated regulations?” [If product is exempt or does not contain timber, the answer is yes]. Customs brokers were introduced to the question at a webinar to more than 160 members of one of the peak industry associations representing customs brokers – the Customs Brokers and Forwarders Council of Australia (CBFCA) on September 24. Importers should note that the department has said that there will be an 18-month transition period to the new requirements and regardless of their answer to the question, goods will not be held up at the border. Cont P 4
By STEPHEN MITCHELL
Sustainability Program Manager, Timber Development Association
add FSC and PEFC chain-ofcustody certification to the list of recognised timber legality frameworks. Basically, timber products covered by FSC or PEFC CoC (including Australian Forestry Standard CoC) will be deemed low risk of being illegally logged. This will allow importers (and domestic processors) to ‘fast-track’ their due diligence arrangements for these products. The listing of FSC and PEFC COC will be formalised in the regulation before November 30. The additional ‘community protection’ question importers of most timber products will
www.certisource.com.au
OCTOBER 6, 2014 | PAGE 3
INDUSTRY NEWS
Promoting timber products and light weight construction to Architects, Designers and the Building Industry in Western Australia. Expos ■ Information Seminars ■ Product Launches ■ Architect Supplier Presentations ■ Recruitment ■ Training ■
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www.jazcorpaustralia.com.au PAGE 4 | OCTOBER 6, 2014
Industry ‘comfortable’ on hardwood supply A KEY meeting of Queensland hardwood sawmillers and processors in Gympie last week left no doubt that the industry has a strong future in the state. The meeting about future supply, organised by Timber Queensland at the request of the state government, gained confidence from confirmation that state forests will continue to provide the volumes from native forests that it has done over the last 10 years. “Everyone was comfortable about future supply,” Timber Queensland CEO Rod McInnes said. “The previous government was on a ‘cut out-get out’ program, supposedly working to a transition to plantation hardwoods by 2025. “This policy has been abandoned by the current government and we’re now
looking at continued access to native forests on a sustainable basis.” Mr McInnes said allocations were in place and assessments would be made in the future about what timber was available for existing millers and where there were opportunities to extend supply agreements. “But for sure, there will likely be additional wood coming on the market from state forests that will go to a tender process,” he said. Private growers are Queensland’s biggest suppliers of hardwood timbers – about a 60-40 against Crown forests. “State government has initiated a code of practice for private harvesting and everyone is comfortable with that – retaining the ecological integrity of the forest through systems such as chain of custody,” Mr McInnes said.
Training and seminars for domestic processors From P 3
However a ‘no’ answer may lead to follow-up inquiries by the department. Many customs brokers are now briefing their timber product importing clients on the regulation and assisting them to comply so they can answer ‘yes’. A large number have accessed the tools and additional industry information freely available at www. timberduediligence.com. au that TDA developed with support from Forest and Wood Products Australia. A large number of importers have also recently downloaded the tools and are using them to work with their suppliers to comply. The Timber Development Association will be holding a second round of training seminars for importers this
month. These seminars provide practical assistance on how to meet the due diligence requirements. The training in Melbourne on Wednesday, October 8, is already booked out. Other dates with places still available are Perth – Friday, October 10; Brisbane – Tuesday, October 14; and Sydney – October 16. More information and bookings are available at www. timberduediligence.com.au Training and seminars for domestic processors will be looked at after the release of each ‘state specific’ guideline later this year. The Department of Agriculture will be holding brief information sessions around Australia on the new illegal logging due diligence requirements throughout October and November. More information at www.daff.gov. au/illegallogging
2014 AROUND THE CIRCUIT
OCTOBER
10: Forum for the Future: The Timber Industry in NSW. 10 am-2 pm at National Maritime Museum, Darling Harbour, Sydney. Speakers include Mark Bouris, chairman of Yellow Brick Road and executive chairman of US-based technology company TZ Ltd; Daryl Patterson, head of operational excellence, Lend Lease’s property business; Ken McBryde, Australian architect, Hassells Architecture; Ross Hampton, CEO, Australian Forest Products Association. Cost: $140 p.p. includes lunch. Booking and inquiries: fpa@nswfpa.com.au 16: Chile Wood Expo – Lake Room, Waterview Conference Centre, Bicentennial Drive, Sydney Olympic Park, Homebush Bay, Sydney. Free entry for wholesalers, trade agents, timber merchants, resellers, retailers, manufacturers, builders, technical experts and trade association representatives. Registration brochure available soon. Inquiries to Nicolas Birrell (02) 9262 2326 or nbirrell@ prochile.gob.cl or John Halkett 0417 421 187 or john.halkett@ bigpond.com 19-20: ForestTECH 2014: Remote Sensing - Field Inventory - Forest Estate Planning. Rotorua, NZ. Visit www. foresttech2014.com 17: VAFI annual dinner – Park Hyatt, Melbourne. Theme: ‘Securing the Future”. Speakers include MPs Peter Walsh and Jacinta Allan. MC radio presenter, comedian and author Ian Cover. Inquiries to Jillian Roscoe at jroscoe@vafi.org.au 24: Australian Forest Contractors Association AGM, forum and gala dinner. Bayview Eden Hotel, 6 Queens Road, Melbourne. Industry forum – ‘What happens when the boat’s full?’ – from 12.30 pm to 4 pm (lunch provided). Cost AFCA members $40 p.p; non-members
$50. AFCA AGM from 4 pm to 5pm. AFCA gala dinner from 6 pm until late. Cost for AFCA members $150 p.p. (dinner only); $175 for dinner and forum. Non-members $175 for dinner only, $205 for dinner and forum. Forum speakers include Simon Gatt, general manager, Gippsland region for HVP Plantations, Tony Price of Australian Bluegum Plantations, Peter Ryan, an independent industrial relations consultant, and Dallas Frost on money management implications. The dinner includes inductions into the AFCA Hall of Fame, speakers on industry growth strategies and an update on AUSTimber 2016. Booking details are available from Denise DeBattista at denise@afca. asn.au. 26-29: Australian Forest Growers 2014 Biennial Conference. Trees: The Future Crop for Changing Climates. Southern Cross University, Lismore, NSW. More than 40 presentations from leading forest researchers and practitioners, a day of field trips, featuring local forestry initiatives, along with icebreaker and dinner events complete a full conference program. Speakers include Australian Farm Institute executive director Mick Keogh, former Governor-General Major General Michael Jeffery, Andrew Campbell, Charles Darwin University, Prof. Jerry Vanclay, Southern Cross University, and Rob de Fegely, president. Institute of Foresters Australia. Contact Mark Wright, AFG 2014 conference convenor. Email: agconference@afg.asn.au
NOVEMBER
13-14: Engineered Wood Products – From Here to the Future. Australian timber industry seminar. Surfers Paradise Marriott Resort, Gold Coast. Co-hosted by the Engineered Wood Products Association of Australasia and Forest and Wood Products Australia. Australian and
international speakers. Contact Eileen Newbury, marketing manager, Forest and Wood Products Australia.Tel +61 (3) 9927 3212. Mob: +61 (0) 41931 3163. Email: eileen.newbury@ fwpa.com.au or visit www.fwpa. com.au for registration and accommodation details. 25-26: ForestTECH 2014: Remote Sensing - Field Inventory - Forest Estate Planning. Melbourne. Visit www. foresttech2014.com
DECEMBER
2: Bioenergy Australia 2014 conference. Stamford Grand hotel, Glenelg, Adelaide. Technical tour December 3. Visit www. bioenergyaustralia.org
THE AUSTRALIAN FOREST PRODUCTS ASSOCIATION The lead voice in Canberra on policy affecting forest, wood and paper products industries. AFPA strives to deliver benefits for the complete industry value chain including those involved in:
2015 FEBRUARY
15-20: Gottstein Forest Science Course. Creswick, Vic. Contact Silvia Pongracic 0418 764 954 or www. gottsteintrust.org
MARCH
EVENTS
25: ForestWorks annual industry conference and dinner Canberra. Flagship event for the forest, wood, paper and timber products industries. Joining with the Australian Forest Products Association to co-host the popular networking industry dinner at Parliament House. Conference will look beyond the innovative technologies in industry and focus on the people, exploring how they can help to bring about innovation. Further details will be announced in the coming months, including the conference theme, speakers and venue. Contact forestworks@ forestworks.com.au
• Forest growing • Harvest and haulage • Sawmilling and other wood processing • Pulp and paper processing • Forest product exporting
Join us today and share the benefits Call (02) 6285 3833
OCTOBER 6, 2014 | PAGE 5
INDUSTRY NEWS
Taskforce backs calls for selective red gum logging Real need for thinning in national parks: Colless
THE NSW Forest Industries Taskforce is backing calls for selective logging to resume in red gum national parks. The group was set up by the state government to monitor the economic viability of the timber industry and management of forested land. Newly-appointed taskforce chairman MLC Rick Colless says irrespective of land tenure, forests need to be maintained. “Let’s have a look at what the needs of the land are primarily, as the main determining factor for what sort of management regime is imposed on it,” Mr Colless said in an ABC interview. “If there’s a need for thinning, then that should be done on a commercial basis.”
Future role is being reviewed The taskforce has reached the end of its two-year term and its future role is being reviewed by the NSW Primary Industries Minister Katrina Hodgkinson, The committee plans to hold its next meeting in Deniliquin in December.
“When the parks took them over, they’re saying it’s got to be an ecological thinning program. “They’re just not working out. “We want commercial thinning back in the forest, run by industry.” River red gum (Eucalyptus camaldulensis) is so named for its brilliant red wood, which can range from a light pink through to almost black, depending
River red gum subjected to regular flooding River red gum .. recognised as fine furniture timber and so named for its brilliant red wood, which can range from a light pink through to almost black, depending on the age and weathering. It is now recognised in a craft furniture for its spectacular deep red colour and typical fiddleback figure.
Meanwhile, a committee of Riverina and Murray councils, residents and timber workers has reformed its red gum taskforce. Former Deniliquin logger and chairman of the group Russell Douglas says it’s pushing for representation on the NSW Forest Industries Taskforce. It’s also recommending targeted harvesting of red gums in the Millewa, Gulpa and Moira National Parks.
PAGE 6 | OCTOBER 6, 2014
Katrina Hodgkinson
Rick Colless
“We’ve been thinning these forests for 150 years and the benefits are there,” Mr Douglas said.
on the age and weathering. It is now recognised in a craft furniture for its spectacular deep red colour and typical fiddleback figure The species is found along the banks of watercourses, as well as the flood plains of those watercourses. Due to the proximity to these watercourses, river red gum is subject to regular flooding in its natural habitat. The trees not only rely on rainfall but also on regular flooding, since flooding recharges the sub-soil with water.
INDUSTRY NEWS
Wood industry to drive EU growth Sector to create 80,000 new jobs by 2020
WOOD industry leaders across Europe are calling on members of the European parliament to develop a clear framework of actions and priorities to support growth in the sector. The industry has set a target to increase its total annual output by 4%, which it says will boost the EU economy by more than $3 billion every year, creating 80,000 new jobs by 2020. It is claimed that the projected growth will also support the EU in meeting its climate change targets, reducing CO2 emissions by 150m tonnes every year. The call is being led by the European Panel Federation, the European Organisation of the Sawmill Industry, and thee European Confederation of Woodworking Industries. During a two-day event at the European parliament in Brussels on September 22, the group unveiled a manifesto which they believe will lay the foundation for collaboration in the next five years. Key policy recommendations included encouraging the increased use of wood in construction, prolonging the life cycle of wood and optimising the use of wood to foster a resource-efficient biobased economy, as well as reWood Protection
®
organising incentives to improve the total supply of wood as a raw material. Alastair Kerr, director general of the UK-based Wood Panel Industries Federation, is chair of the event steering committee. “The wood sector has the potential to jump-start growth in Europe and support the EU in meeting CO2 reduction targets,” he said. “However, it is vital that we have the backing of MEPs to define a clear framework of actions and priorities to allow the sector to develop and contribute to European industry.”
Aim to lift economy by $3bn a year He said wood was naturally renewable, re-usable and recyclable, and could be used for a multitude of applications that had both environmental and economic advantages. “We are therefore calling upon the EU institutions to encourage the increased use of wood products, particularly in construction, as a means to mitigate climate change and encourage member states to implement ‘wood first’ policies,”
Alastair Kerr .. the wood sector has the potential to jump-start growth in Europe.
Mr Kerr said. “Further to this, there is a need to elaborate upon a European strategy that targets the higher mobilisation and efficient use of wood across all sectors.” Mr Kerr added that MEPs would also be urged to argue for the refocusing of renewables subsidies. “While we support specific,
selected fractions of woody biomass as a source of renewable energy, subsidies and promotion measures applied to bio-energy production should not distort the wood markets by giving energy producers an unfair advantage in the procurement of wood that could also be suitable for material use,” he said. “Recent environmental studies have also demonstrated that the initial premise that burning wood biomass was ‘neutral’ is a flawed argument. “We have been making this case to energy decision makers for a number of years and are now calling upon governments across Europe to review their policies towards these distorting and environmentally damaging subsidies, which lead to increased wood costs and jeopardise the competitiveness of Europe’s woodworking industries.”
Daylight saving: moving forward one hour AUSTRALIA has had daylight saving in various forms since the early 1900s. Arguments for and against it often become headed as people are passionate on both sides. Queensland has been considering splitting the state
in half – one part participating and the other not. Clocks in ACT, Victoria, Tasmania, NSW and South Australia will be put forward onr hour on Sunday October 5 and turned back again on April 5.
Tanalith® Ti Insecticide H2F protection for all softwoods Utilising one of the most widely used insecticides in the world, Tanalith® Ti has been proven to be effective against wood destroying insects at low concentrations. What does this mean for you? Cost effective protection Applied using dip or spray No discernable odour No need to seal cut ends To find out more phone: 1300 650 636
OCTOBER 6, 2014 | PAGE 7
EVENTS
Australia flies flag at HHI convention
FORUM FOR THE FUTURE
THE TIMBER INDUSTRY Does it have a future? Will it be the same in ten years?
MINNEAPOLIS, USA, building materials supplier Mary Beth O’Meara Moynihan has become the first woman to head HooHoo International, a fraternal forest industries order with origins dating back to 1892. Mary was elected ‘Snark of the Universe’ at the 122nd HHI convention in Santa Rosa, California, last month. She is a member (#96820) of Twin Cities Hoo-Hoo Club. She is CEO of J. B. O’Meara Co, a family-owned timber products supplier since 1946. • James Clark of Leschenaultia Hoo-Hoo Club 237 in Western Australia is pictured carrying the Australian flag in the international flag ceremony at the HHI Convention in Santa Rosa.
If and who will be buying timber? Will the product mix change? Is bigger, better and fewer healthier?
The convention, hosted by Black Bart Hoo-Hoo Club Cont P 9
Caboolture fire second in less than 24 months
10 October 2014, 10am – 2pm National Maritime Museum, Darling Harbour
From P 1
parts of the fire,” he said. The buildings were all interconnected. Hear from a select high level presenters that have an insight “That was where they did into the future timber industry. The Forum will be opened such a good job .. in isolating all by NSW Minister for Finance Hon. Dominic Perrottet. these manufacturing processes $140 including lunch from the fire,” the fire command Mr Ross Hampton RSVP by 2 October (seating is limited) superintendent said. For booking and enquiries email: fpa@nswfpa.com.au CHIEF EXECUTIVE OFFICER “They contained it to the one building, which was a great effort.” Crews used a sky-lift to target hotspots in the building Head of Operational Excellence | Property | Lend Lease Australia butt weren’t able to finish the job until a structural engineer gave the all-clear to enter the SPEAKERS (L-R): MARK BOURIS Chairman of Yellow Brick Road, badly damaged building. KEN MCBRYDE Lead design at HASSELL Sydney studio, DARYL PATTERSON Head of Operational Excellence, Carter Holt Harvey workers Lend Lease Property, ROSS HAMPTON CEO of the Australian were then able to get inside and Forest Products Association remove the flammable sawdust while a fire crew watched on closely for any flare-ups. HOSTED BY: A fire investigation unit and TIMBER NSW, TDA, TABMA police at the scene said the fire “didn’t look suspicious”.
A MUST ATTEND EVENT!
AUSTRALIAN FOREST PRODUCTS ASSOCIATION
Mr Ross Hampton was appointed CEO of the Australian Forest Products Association in May 2013. Mr Hampton is a veteran of the policy and political scene having worked, at various times, as a reporter, adviser and policy advocate for the last twenty-five years in Australia and overseas.
Mr Hampton has a long exposure and association with the issues confronting the Forest and Forest Products sector including water policy, climate change policy, trade policy, industrial relations policy and environment protection.
As Chief of Staff to the Australian Government Minister for the Environment in the mid 2000’s, Mr Hampton played a key role in the development of forestry policy as well as policies which impact forestry industries. During this period Mr Hampton was one of the lead advisers in the Australian Government’s international climate change negotiations at United Nations’, and associated, meetings in Washington, New York, London, Buenos Aires and Zurich.
DARYL PATTERSON
Daryl Patterson was appointed Head of Operational Excellence to Lend Lease’s Property business in 2012 responsible for overseeing the Property business’s operational improvement, governance and innovation across Australia. Lend Lease’s Property business units span multiple sectors including greenfield subdivision, commercial office towers, high rise apartments, an extensive retirement village portfolio and major mixed use urban redevelopments around Australia. Starting his career in architecture, Daryl progressed into construction management, project management and development management of complex landmark projects. Most recently Daryl has overseen Lend Lease’s investment into delivering Australia’s first
Prior to joining AFPA, Mr constructed Hampton led the and the world’s tallest CLT apartment Cross Laminated Timber building, development theMore Australian sector building of itsof kind. recently public Daryl has lead the formation of a specialist team market for global networking Cisco dedicated to timber engineeringgiant and prefabricated solutions for a wide range of Lend System, is credited with a significant Lease and projects. share of the multi-million dollar growth Cisco enjoyed. Daryl’s experience during his twenty years within Lend Lease has included the
and delivery of major urban renewal projects in capital cities throughout Mr development Hampton grew up in northern NSW. He Australia. These projects are a key competitive differentiator of Lend Lease around the trained as a journalist and spent his early world and typically have multi-billion dollar end values. These projects entail a broad career reporting in the regions and then mix ofcities. asset classes, multiple buildings and substantial civic infrastructure. Daryl’s capital initial attraction to Lend Lease was its long and compelling history of challenging and
Mr improving Hamptonhow hasthings achieved a Masters in Public have been done in the property industry. Carrying that as a Policy, majoring in the environment, personal approach to how we create ourfrom projects and how we operate as a business theDaryl ANUhas Crawford School of Economics sought to challenge the status quoand with the first Australian utilisation of cross Government as well Bachelor degree from operated sustainable central laminated timber andas theaintroduction of commercially Curtin University. precinct utility solutions.
24 Napier Close Deakin ACT PO Box 239 Deakin West ACT 2600 02 6285 3833
enquiries@auspa.com.au
Mr Key Hampton is married to attributes Linda and has three achievements and school- aged children (as well as 600 olive • B.Arch, University Auckland trees and four ancientofLand Rovers). • Forté CLT building, Melbourne, VIC • Jacksons Landing, Sydney, NSW
ausfpa.com.au
• Victoria Harbour, Docklands, VIC
@AFPAonline
• Showground Hill, Brisbane, QLD
PAGE 8 | OCTOBER 6, 2014 TDW1902 8/14
• Green Utilities start-up business • Timber Solutions start-up business • Recipient 2012 Lend Lease Global Award for Excellence in Innovation
The fire was the second in less than 23 months at the pine framing and timber treatment facility, 50 km north of Brisbane. In December 2012, a major fire swept through roofing and the dry mill causing up to $1 million damage. Ten months later, CHH re-opened the mill after extensive renovation during which time the company keep all staff on the payroll through the re-planning stage. The sawmill had been processing up to 200,000 cub m of logs. Carter Holt Harvey Wood Products operates 15 manufacturing sites, and eight distribution and administration/ sales centres in Australia, employing about 2500 staff. Products include particleboard, mouldings, flooring, LPM, LVL, plywood and treated and untreated timber and decorative wood materials.
EVENTS
Some members of the Aussie Hoo-Hoo contingent in Santa Rosa .. Val Fennell, Raylee and Colin Moreland, Ron and Heather Gattone, Harvey Strack, Slim Fennell, Lindsay and Lorraine Morling, Jim and Maureen Clark, Sigrid Howick, Beth and Grant Williams and Ray Lamari and partner Susan.
Snark to join J1V convention cruise in Queensland From P 8
181, attracted more than 150 delegates, including a strong contingent from Australia represented by Mount Gambier Club 214, Sydney 215, Leschenaultia 274, Launceston 239, Melbourne 217, North East Victoria 236 and Far North Queensland 261. Sydney timber merchant Heather Gattone, who was elected the first woman president of Jursidiction 4 of HHI in 2010-12 and will reclaim the title at the next J1V convention in March next year, praised the committee of the Santa Rosa event. “Black Bart Club covered all aspects of a well-organised convention, including a visit to the Sturgon’s Mill restoration project,” Heather said. “The old mill in Sonoma County processed mighty redwoods more than a century ago. “We watched live demonstrations of the steampowered mill and tested our skills in a log camp challenge, which was won by Grant Williams of NE Victoria HooHoo Club 236 and David Kahle of Seattle Club.
“The convention timetable provided many opportunities for business, both Hoo-Hoo and professional and ample time to meet with old friends and make new ones.” JIV members returned with international awards – Brisbane Club 218 and NW Tasmania Club 272 tied for the membership award presented for the greatest percentage increase in club membership. The international Walking Stick Award was presented to JIV president Pieter Verlinden for the Supreme 9 who travelled the most kilometres in the past year. During the business meetings, some changes were made to the HHI constitution and these matters will be discussed with the JIV board at its mid-year meeting in Brisbane on October 11. New Snark of the Universe Mary Moynihan has committed to attending the JIV Convention cruise in April 2015. “Mary is looking forward to meeting as many Hoo-Hoos from Down Under as possible, and is plans to visit many clubs during her time here,” Heather Gattone said.
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OCTOBER 6, 2014 | PAGE 9
INDUSTRY NEWS
Jump in approvals a positive boost for new housing stocks DWELLING approvals are up 14.5% through the year after rising by 3% seasonally adjusted in August. “The jump in building approvals must be seen as a positive in boosting new housing stock to keep a lid on house prices and ensure affordable home ownership,” Master Builders Australia chief economist Peter Jones said.
Building off to a strong start in 2014-15 “As the RBA says, supply factors are critically important – the supply response determines whether additional demand feeds into higher prices or not,” Mr Jones said. “Alarmist calls by some
commentators for measures to curtail so-called speculative investment in housing need to be treated with caution to ensure they do not stymie the residential building upswing. “There is no need for a knee-jerk reaction; the imperative must be to clear the impediments that are limiting the ability of the building industry to add new housing stock.” Master Builders Eight Point Affordability Plan sets out the urgent reforms needed to free up supply-side constraints. “This is the best solution to address housing affordability concerns,” Mr Jones said. “Fiddling with lending ‘rules’ and or tinkering with particular taxes will do very little if anything to address the core reason behind deteriorating
Peter Jones .. supply factors are critically important
affordability and the downward trend in homeownership – a lack of supply,” he said. “Removing the shackles of poor land release strategies, inefficient developer charges and infrastructure levies, and poor planning and development programs would allow residential builders to
better meet demand, thereby limiting the potential for steep price increases.” Building approvals have got off to a strong start in the 201415 financial year – close to 200,000 compared to 193,617 for same period in 2013/14. The increase in building approvals nationally during August was driven largely by the 15.5% increase in Victoria. Approvals also increased in New South Wales by 2.9%, Queensland by 1.4% and South Australia by 11.3%. Western Australia recorded a decline in approvals of 16.2% after a blockbuster month in July, while Tasmania held steady (down by 0.6%). In trend terms, new home approvals increased by 9% in the Northern Territory and by 13% in the ACT during August.
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INDUSTRY NEWS
Sawmill feeds Asia’s renewable energy needs with wood pellets First 25,000-tonne shipment leaves for South Korea
A QUEENSLAND sawmill is helping supply rising demand for renewable energy in Asian power stations. Late last year, Brisbanebased Altus Renewables commissioned a $25 million plant at the Hyne mill at Tuan, near Maryborough, to compress sawdust and shavings into small wood pellets used to co-fire stations in Korea and Japan. According to an ABC report, the first 25,000-tonne shipment left the Bundaberg Port for South Korea last month in what could signal a new opportunity for the timber sector. Managing director of Altus Renewables Ian Sandeman says demand is rising in other parts of the world and it could soon outstrip supply.
but numbers have dwindled to just four or five in the past decade. Roger Fallon managed the Brooweena sawmill for 16 years before it was recently shut down after 94 years of operation, when owners stated they couldn’t afford safety upgrades.
Wood pellet export provides extra markets
Wood waste .. Altus Renewables targets Asian power stations.
“Well, certainly in Korea and in Japan, they’ve been a little slower than the European markets, but there’s very strong interest .. and forecasts that we’re hearing are suggesting that demand is going to far exceed supply within the next two years.”
Locally, the new facility has created about 16 jobs, and Altus Renewables hopes to soon utilise waste from other sawmills in the region to fill increasing orders. It’s a promising step for the Wide Bay Burnett, where each town used to house a sawmill,
Mr Fallon says the wood pellet exports give local sawmills an extra market, but could mean more cost outlays. “The only cost would be, of course, transport from the sawmill to where they’ve got to go to be processed.”
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OCTOBER 6, 2014 | PAGE 11
INDUSTRY NEWS
Canadian forest industry backs new European trade agreement
AS a broad supporter of free trade, the Forest Products Association of Canada has welcomed the signing of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. The sector will benefit from the eventual elimination of European tariffs on some wood panels such as particleboard, oriented strand board and plywood of up to 10%. [Canadian Prime Minister Stephen Harper helped lay the ground for the Canada-EU trade agreement with European Commission president Jose Manuel Barroso in Brussels in October last year]. “The forest products industry has always relied on exports for its prosperity and growth and we certainly appreciate the federal government’s ongoing
Done deal .. Canadian Prime Minister Stephen Harper (left) and European Commission president Jose Manuel Barrosolaid the ground for the Canada-EU Comprehensive Economic and Trade Agreement in Brussels in October last year.
commitment to free trade,” the president and CEO of FPAC David Lindsay said. “We are working hard to diversify markets and increase our trade to help reach the ambitious goals of our Vision2020 initiative and as part of that we welcome closer trade relations with Europe.” Under Vision2020, Canada’s forest product industry is vying
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to generate an additional $20 billion in new revenue through new products and new markets by the end of the decade. Last year the Canadian forest sector exported more than $1 billion of wood, pulp and paper products to the EU member states. This is 4% of total exports of Canadian forest products making Europe the third largest international market for the sector.
The largest importers of Canadian forest products in Europe are the United Kingdom followed by Italy, Germany, the Netherlands and France. FPAC is also looking forward to learning more about how the specific annex on forest products will help guard against non-tariff barriers to trade. “We are now hoping for speedy ratification of CETA by governments and prompt implementation of this landmark deal,” Mr Lindsay said. The Forest Products Association of Canada provides a voice for the country’s wood, pulp, and paper producers nationally and internationally in government, trade and environmental affairs. The $58-billion-a-year forest products industry represents 2% of Canada’s GDP and is one of Canada’s largest employers.
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INDUSTRY NEWS
Red Stag to build $60m ‘super mill’ in Rotorua for mid-2015 operation
A WORLD-scale sawmill, costing about $NZ60 million, is to be built by Red Stag Timber Ltd on its Waipa site at Rotorua, and will be operational from mid-2016. The ‘super-mill’, to be manufactured by US firm USNR, will have an annual log input capacity of 1.2 million tonnes running on two shifts. The plant will have the latest sawmilling, scanning and optimisation equipment, which will tie into the mill’s current back-end bins and stacker.
Annual output to increase to 700,000 cub m The investment will lift the company’s annual output from 450,000 cub m currently to 700,000 cub m in five
Staggering .. new sawmill will lift annual production at Red Stag Timber to 700,000 cub m.
years’ time with further site investment. Red Stag group CEO Marty Verry said the new sawmilling technology, along with existing kiln drying and treatment technology, was far ahead of anything currently used in New Zealand. “We are seeing continued
opportunity to increase market share during a period of strength in the New Zealand and Australian markets out to 2018,” he said. “After that we expect a period of high competition and contraction of the sawmilling sector, as Christchurch and Auckland’s residential growth
slows and the economy cycles.” Mr Verry said this would be partly offset by increasing wood penetration of the medium rise residential and commercial markets in urban centres, where wood had cost and prefabrication advantages. “We will be looking to increase Red Stag’s share of the New Zealand structural timber market from its current 25% to more than 40%,” he said. An estimated 25 sawmills have closed in New Zealand in the last 10 years, as larger more efficient operations have expanded. “It’s a long term trend that we are determined to stay ahead of,” says Mr Verry. “I think we are probably the lowest cost Cont P 13
Do you import or process timber products? Legislation to promote the trade in legally logged timber is now law. If you are a business importing timber or timber products into Australia or processing domestically grown raw logs, you need to be aware of your new responsibilities.
From 30 November 2014, you will need to undertake due diligence to minimise the risk that the timber you are importing or processing has been illegally logged. The department recognises it may take time for some businesses to transition to the new requirements. For this reason, for the 18 months following the regulation’s commencement, the department’s focus will be on helping importers and processors to comply with the regulation requirements. To find out more visit agriculture.gov.au/illegallogging or call 1800 657 313.
OCTOBER 6, 2014 | PAGE 13
EVENTS
Investment in domestic production will be welcomed by New Zealand loggers From P 13
producer in Australasia now, but this investment will mean another step change reduction to our cost base, mainly through scale and getting more recovery and value from logs.” The investment decision is a vote of confidence by the board in the Red Stag management team and staff who have built up the business almost from scratch since 2003, when Red Stag was purchased from receivership.
Increased share of NZ structural timber markets The investment also means more chip residues in the central North Island, which Mr Verry says can either help underpin new investment in
The new plant at Red Stag’s Waipa site will dramatically improve sawmilling, scanning and optimisation operations.
pulp and paper operations or potentially see a new MDF plant or the like further down the line. With volatile pricing and demand in export log markets, the new investment in stable domestic production will be welcomed by log suppliers. This capital program is about
PAGE 14 | OCTOBER 6, 2014
reducing costs and gaining market share, but Mr Verry sees further investment possible in future should the government adopt a ‘wood first’ policy for its procurement. A survey of Wood Processers and Manufacturer’s Association members this year found that such a policy would likely trigger $1.17 billion on investment.
“With the growing awareness of wood’s environmental, thermal, and earthquake properties, as well as the potential for regional employment and export growth, I expect the government to follow Canada, France, Japan and parts of the US in adopting such a policy in due course,” Mr Verry added.
ENGINEERED WOOD
Students get high as tallest wood tower goes 18 storeys Floor area of 14,586 sq m for campus housing project
SUSTAINABILITY and green design are some of the key principles of the new buildings constructed at Canada’s University of British Columbia, but one upcoming project will stand out among the dozens of buildings recently constructed or planned. Over the summer, the university issued an ‘express of interest’ for architectural firms to design a wood-based high-rise tower between 16 to 18 storeys for the Vancouver Point Grey campus. At a height of 53 m, it will be the world’s tallest wooden building of its kind. The project is the first phase of a new 690-bed student timber tower housing complex. The mixed-use housing tower will include new academic space, up to 400 beds for upper year and graduate students, and student amenities – all in a floor area of 14,586 sq m.
Buiding uses laminated lumber beams In lieu of steel and concrete structures, the tall wood buildings will be built out of laminated lumber beams. Proponents of tall wood buildings claim that while a wooden tower may appear to be a fire hazard, such structures are in fact safer than steel as charred wooden surfaces protect the structural wood underneath whereas steel structures are
one of five student housing complexes planned for the campus over the next three years.
Project wins LEED Gold certification
Reaching up .. another contender for tallest wooden building is this 14-storey building under construction in Bergen, Norway.
weakest at the points of where it supports a post. While wooden structures are common for low-rises, it is a highly uncommon form for taller buildings. In 2012, Vancouverbased Michael Green Architecture unveiled a conceptual design of a 30-storey wooden building as part of a feasibility study that “demonstrates that wood is a viable material for tall and large buildings alike.” Tall wooden buildings have also been envisioned in Sweden, Norway and Austria, but only one proposal has been realised – 14-storey, 51 m tall building under construction in Bergen, near Oslo. The current tallest wood building in the world remains Forte, a 10-storey, 32-m tall apartment complex in Melbourne. The University of British Columbia aims to complete its
wooden tower with a minimum LEED Gold certification. The project will cost $30 million and is scheduled for September 2017 occupancy. The Brock Commons is just
This includes the $165.5 million Ponderosa Commons and $127 million Orchard Commons, all mixed-use projects that will add academic and office space, amenities and a combined 2200 student residence beds. Over the long-term, additional student housing complexes are proposed for the site of the Old Armoury and a vacant site adjacent to the Health Sciences building – all in timber.
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OCTOBER 6, 2014 | PAGE 15
INTERNATIONAL FOCUS
Massive timber losses as forest fires sweep province
AN overheated forest fire season in British Columbia resulted in a near-record loss of timber – the third highest total since 1950 when the government started keeping track. Chief provincial fire information officer Kevin Skrepnek said 1424 fires consumed more than 3590 sq km of forest in the Canadian province this season. Mr Skrepnek said an intense province-wide hot weather spell in July, where temperatures soared to 40 deg. C in some areas, dried out forests and contributed to extreme fire conditions that lasted much of the summer. “When you look at the statistics in terms of the number of fires, we’ve had a little over 1400 – 1424 – that’s actually below average in terms of the number of fires,” he said. “So, what we saw this year was a below average number
system that stretched into the Yukon. That was what set the season off.” Mr Skrepnek said cooler temperatures and rain showers are expected to signal the conclusion of the core fire season. The top two British Columbia fire seasons were recorded in 1958 when fires burned 8590 sq km and in 1961 when 4830 sq km of forest land was burned.
Largest fire consumed 1330 sq km
Over-heated .. forest fires near Chelaslie River in British Columbia light up the evening sky.
of fires, but in terms of the area burned, quite above normal.” The largest fire of the year occurred near the Chelaslie River near Burns Lake, consuming 1330 sq km. Last week it was still burning, but 75% contained. “We had a pretty steady
season, nothing spectacular, until the second week in July, and then we had an unseasonably high system come in and add really hot temperatures, recordbreaking temperatures,” Mr Skrepnek said. “We had a high-pressure
Mr Skrepnek says the provincial government spent more than $293 million fighting fires this year, but allocated just $63 million in its budget to cover fire costs. Last year, the province spent $122 million fighting 1857 fires.
North American timber harvest up another 3%
TIMBER harvests in North America were up for the fourth consecutive year in 2013, reaching 510 million cub m, based on analysis by Wood Resource International. Despite an annual increase of 3% each of the past four years,
harvest levels in North America are still substantially lower than what they were before the great recession. Ten years ago, the total timber harvest in North America was about 40% higher than in 2013, and the harvest in the
US itself at that time was more than what was logged in all of North America. In 2013, softwood removals in the US were up by 3% from the previous year, primarily as a result of higher log exports to Asia and increased domestic
lumber production. Higher manufacturing of hardwood lumber and of OSB were the main drivers of the increase in hardwood timber harvests last year.
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PAGE 16 | OCTOBER 6, 2014
Engineered Timber Products
INTERNATIONAL FOCUS
Russia running out forests? Logging industry going off the rails
IT seems unfeasible that Russia, which holds a fifth of the planet’s forests, could run out of wood. And yet it is happening, at least with commercially usable forests, environmental analysts say. The Russian logging industry will face lack of harvestable timber in 10 to 20 years, a short time by the standards of an industry naturally tied to slow tree growth cycles, according to their consensus. “We are already past the point of no return,” Konstantin Kobyakov, who oversees the protection of high conservation value forest at WWF Russia, told The Moscow Times. To keep the logging industry on the rails, Russia needs to go from extensive to intensive forest management – from clearing forests once and moving to new territories to replanting them, industry players and officials agree. But the process requires massive reform and multi-billiondollar investment that would take decades to recoup – neither of which is likely to materialise anytime soon, given Russia’s flagging economy and dismally unstable investment climate. “No one needs a crisis, but it looks like that is the only way we’ll learn,” Kobyakov said. Russia had about 8.8 million sq km of forests as of 2010, according to a 2012 study by the UN Food and Agriculture Organization. This is 20% of the world’s total and more than any other country. Brazil is second with some 5.1 million sq km. But Russia only accounted for 4% of the global logging output, the FAO study said. Easily accessible forests in Russia are shrinking rapidly, says a spokesman for Ilim Group, Russia’s biggest papermaker with an annual output of 2.6 million tonnes. The Russian logging industry
Running short .. Russian ash logs for export.
was thriving from the 1940s through the 1970s, mainly on forest reserves in the central European part of the country. But those reserves are long depleted. In the northwestern republic of Karelia, a former hotbed of the industry that housed more than a hundred logging settlements, only two such villages survive. Russia’s main sources of timber now are in Siberia, the Far East and the country’s European North.
Siberia now main source of timber But the cost of shipping timber across hundreds and thousands of kilometers of roadless terrain can be too high to render logging profitable in large parts of those regions. Russia lost about 10% of its remaining virgin forest in 200013, according to a study. Some forests cleared between 1940 and 1970 have actually regrown enough to be cleared again. But those offer mostly aspen or birch, which, despite being considered the archetypal national tree in Russia, is subpar timber compared with many conifers, which are in increasingly short supply, experts say. The Russian logging industry still follows mid-20thcentury templates of extensive management, when loggers
clear a forest and move on. The state-of-the-art practice is intensive forest management, where trees are replanted and only partially harvested, allowing forests to recuperate. Intensive forest management has the added benefit of yielding more timber – up to 5-7 cub m compared with Russia’s current average of 1.5 cub m. Russia in fact replants a lot of forests – 8700 sq km last year, according to official figures. But the replanted forests get almost no maintenance, which is crucial for producing commercially viable timber. Only 3% replanted forests in Russia are maintained. As a result, up to 60% of the country’s trees wither and die. “Without maintenance, we’re just burying the replanting money,” a state forest agency official said. A switch to intensive forest management would be a massive and costly undertaking. Greenpeace estimates the cost for Russia at $US2.6-3 billion. Not even Canada – Russia’s closest comparison by type of forest – has completed the switch to intensive management yet, though it can better afford to delay because it has bigger reserves of commercially available forests than Russia. Regions in Russia where intensive foreign management prevails provided 21 million cub m of timber last year, of 11% of Russia’s total output, according
to WWF data. The wider logging industry also operates on obsolete equipment dating back to Soviet times that requires a revamp – another costly enterprise, given that the cost of a single paper mill is about $1 billion. Lack of qualified personnel is yet another problem, especially since the Kremlin pushed through a new Forestry Code in 2006 that disbanded most of Russia’s 80,000-strong state forester corps. Ilim Group is running its own education program in the Arkhangelsk region, but experts consulted for the story agreed the effort was not enough to supply personnel for the industry nationwide. At least illegal logging is not the serious problem it was often believed to be, experts said. Despite widespread stereotypes, only about 1% of Russia’s timber output is illegal produce, which has a minor impact on the industry. While nobody disputes that Russia must switch to intensive forest management, debate rages about who should foot the bill. The draft state budget for 2015 allots $US850 million to the Federal Forestry Agency, a 3.5% increase from this year – not enough to even offset inflation, already at 7.7% since the start of this year, according to the Central Bank. Moreover, the business climate in Russia is Arctic cold, thanks to a war of sanctions between Russia and the West over Moscow’s meddling in Ukraine and the arrest this month of Vladimir Yevtushenkov, the billionaire owner of oil-totelecoms conglomerate Sistema. The arrest has been widely seen as a Kremlin-endorsed attempt to strip the billionaire of assets, highlighting the lack of guarantees for investors in the country.
OCTOBER 6, 2014 | PAGE 17
TIMBER PRESERVATION
297x210mm Vertical 254x93mm Horizontal 125x190mm Vertical 125x93mm Horizontal 73x190mm Horizontal 73x190mm Vertical 140x44.5mm 110 Vertical 34x44.5mm
297x210mm Vertical 254x93mm Horizontal 125x190mm Vertical 125x93mm Horizontal 51x93mm
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