I n c o r p o r a t i n g A U S T R A L A S I A N F O R E S T L O G G E R & S AW M I L L E R APRIL 2015 • P: (03) 9888 4834 • www.timberbiz.com.au
GM hits the ground running
Lasers, drones and tree climbers
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Innovative solution to sorting page 12
Think Forico for future fibre!
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AUNCESTON-BASED Forico only started trading in Tasmania in its own right last September with a business model that would be a step change for plantation forestry in Tasmania and now manages almost half of all hardwood eucalyptus plantations in Tasmania at around 100,000 nett hectares. “Currently about 65% of all wood fibre harvested in Tasmania is coming from privately managed plantations. When Forico completes processing capacity upgrades and harvest and haul restructuring in 2015-16 that proportion will increase closer to 80% of all wood fibre produced in
Tasmania,” said Forico chief executive officer Bryan Hayes. Bryan said plantations really were the engine room of the Tasmanian forestry sector and that ref lected what was happening right around the world. Currently Forico is exporting around two woodchip vessels per month into north Asia from the two export facilities at Burnie in northwest Tasmania and Long Reach on the Tamar River. “Favourable foreign exchange movements should enable stronger financial performance than predicted by the middle of 2015,” he said. Major capital expenditure of almost $9 million is
being invested to revamp the Surrey Hills Mill which was temporarily placed into care and maintenance at the end of 2010. The mill will resume woodchip processing in July this year which will enable Forico to more than double its export capacity through Burnie. “Additional capital expenditure is planned to upgrade the Long Reach woodchip mill during 2015-16 which will increase capacity at that site to 1 million gmt per annum,” Bryan said. That mill was originally built in 1970-71 and subsequently suspended mill production in mid 2011 only to reopen in receivership during 2013. Forico has resumed eucalyptus seedling
Forico Surrey Hills mill upgrade log deck supports
Recognition of the role of forests
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ENATOR RICHARD Colbeck, Parliamentary Secretary to the Minister for Agriculture, described International Day of Forests as an opportunity to recognise the contribution that forests make to our everyday lives. March 21 was International Day of Forests, which is a United Nations initiative to celebrate the importance of forests for livelihoods, fuel, food and medicine. Senator Colbeck said the forestry industry is an important provider of employment, especially in regional areas, and makes a significant contribution to the Australian economy. “Since the Coalition won office in 2013 we have seen employment in the forestry industry increase by 10,000 jobs, which is a great show of confidence in the future of the industry,” he said. “The forestry industry not only provides employment for tens of thousands of Australians, but also has significant environmental benefits especially when you consider that wood-based
construction consumes less energy than concrete or steel and has benefits for carbon storage. “Timber is the building material of the 21st century and provides a win-win situation for the environment, for the industry and for our local communities. “We are entering an exciting period of innovation in the use of forest produce to replace products previously obtained from the fossil fuel industry and the Coalition wants to create an environment where Australia is at the forefront of developing and utilising these types of products.” Senator Colbeck said the Coalition recognised the importance of forests to Australia’s landscape and biodiversity and was promoting sustainable use of production forests, such that there is little difference between production forests and forests in reserves. “We also recognise the important contributions that planted forests can play in absorbing carbon from the atmosphere, while also contributing to the forest products industry,” he said.
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production at its Somerset nursery to support the replanting of fallow land and newly harvested areas on its estate. Around 1250 hectares was planted in spring 2014 with 3,600 hectares to be planted in 2015 and 6,000 hectares in 2016. Bryan said seven new forestry and mill staff had been employed to add to the 36 at commencement and added that additional direct employment of mill staff would occur during this year. On the research side, Bryan explained that there were plans to “increase our R&D capacity at our Ridgley FibreTechnology and Research Centre that will create a path of continual
improvement in the genetics and productivity of our plantation growing stock over time”. Some of the immediate challenges for Forico have included consolidating Eucalyptus nitens as a preferred fibre in the north Asia markets; achieving FSC Forest Management certification of its 180,000 hectare land and forest estate; improving the health and growing condition of existing plantations that have been adversely impacted by the demise of the former owner; and diversifying into higher value products and markets. continued on page 6