issue 115
DESCRIPTION
A weekly online magazine to the timber and forestry industryTRANSCRIPT
Advertising: Tel +61 7 3256 1779 Email: [email protected] 1issuE 115 | 08.03.10 | PAgE
By JIM BOWDEN
THE 8.8 mega-thrust earthquake off the coast of Chile has devastated the wood products industry in the republic, a catastrophe that will have far-reaching affects on markets in Australia and New Zealand more than 11,900 km away.Several sawmilling and wood processing operations owned by Forestal Arauco, Empresas, CMPC and Norske Skog, all within a 160-km radius of the quake’s epicentre, have been ‘flattened’ and export links such as rail tracks, bridges and port facilities have been completely
destroyed.The earthquake occurred off the coast of the Maule Region of
Chile on February 27, at 03:34 local time, rating a magnitude of
Quake splintersChile wood trade
Exports at standstill as ports, rail tracksdisappear under massive tsunami wave
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6403
Cont Page 3
Welcome signs up for industry bus tour• Hard job finding those hardwood specs• Boosting frame and truss know-how• Housing flags solid growth for MDF• Tasmanian industry welcomes $8.4m forest policy
THis issue• inaugural Gottstein forest scholarships• Area under forest certification grows
All at sea .. Chile’s freight export shipping grounded.
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A DRY run of the Queensland timber industry’s bus tour of Northern NSW found welcome signs up at all stops on the itinerary.The tour from March 15 to 17 has reached maximum capacity – 50 representatives of all industry sectors – forestry, sawmilling, manufacturing, wholesale merchants, specifiers and engineers – plus two guides in a pilot vehicle travelling ahead of the bus.Tour ‘captains’ Don Towerton and Norm Forbes who have just returned from a visit to the region say all host companies are ready for the visitors.The tour, which departs Gunnersens, Rocklea, promptly at 6.45 am on Monday, March 15, will visit Ford Timbers, Urbenville, Boral Timber, Murwillumbah and Grafton, Coffs Harbour Hardwoods, Glenrae, Tarmac Pine, Rappville, Big River Timbers, Grafton, Koppers Wood Products, Grafton, and Forest Enterprises Australia,The international flavour of the tour has been spiced up with Ingo Wallocha of Brunner-Hildebrand, Hanover, Germany, joining international participants from New Zealand and Sweden.Brunner-Hildebrand manufactures
high-capacity drying kilns and has installed more than 15,000 lumber dry kiln installations worldwide since 1950.Mr Wallocha Hans Jansson, managing director of UJ Trading, Gusselby, Sweden, and New Zealanders Jonathan McLachlan of Skookum Technology, Auckland, and Norm Agnew of electronics firm Jaymor Industries, Hamilton, will join participants from Victoria, New South Wales and Queensland on the tour.Coach ‘captains’ for the tour include Colin MacKenzie, Timber Queensland’s timber application and use manager, Bill Kranenburg, formerly of Kranenburg International Timber Training, John Macgregor-Skinner, Private Forestry and Resources Industry and Investment NSW, Don Towerton of Thora Wholesale Timbers, Norm Forbes, formerly of Hyne, Karen Johnston, TABMA Queensland, John Muller, formerly of Tasbeam, and Jim Bowden, Timber&Forestry e-news.The tour supports Brisbane Hoo-Hoo Club 218 children’s charity projects and has been supported again this year by TABMA Queensland and Timber Queensland.
Welcome signs upas bus tour gainsinternational flavor
across Australia’sforest and forest
products industry.. since 1940
Makinganimpact ..
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 your overheads and
on-costs to a minimum.
Call Melanie at TABMA on (02) 9277 3100 to inquire about our very attractive
membership rate.
Evan and Allan Ford of Ford Timbers pictured during the 2009 industry tour. They will be hosts when the tour visits their Urbvenville, NSW, hardwood sawmill this year.
Representingthe interestsof the forest
industriesnationally atthe Victorian
BushfiresRoyal
Commission
Representingthe interestsof the forest
industriesnationally atthe Victorian
BushfiresRoyal
Commission
Victorian Association ofForest Industries
Level 2, 2 Market StreetMelbourne 3000
Tel: +61 3 9611 9000 Fax: +61 3 9611 9011
Email: [email protected]: www.vafi.org.au
events
Advertising: Tel +61 7 3256 1779 Email: [email protected] 3issuE 115 | 08.03.10 | PAgE
8.8 on the moment magnitude scale and lasting for about three minutes.A subsequent 2.34 m tsunami wave hit the central coast wiping out many port facilities used for wood export. The back-to-back disaster lifted boats out of the water at the port of Talcahuano and left 80% of the city’s residents homeless.Managing director of Gunnersen Ltd Nils Koren who was visiting the region reports damage to the wood processing industry in Chile is far greater than first reported. He had safely arrived in Buenos Aires, Argentine, and was about to board a plane for Brazil when I spoke with him last Wednesday.“We were right amongst it, but thankfully we were in
Santiago and not in the quake’s epicentre,” Mr Koren said.“It was a very scary experience.” An understatement as government scientists estimate the earthquake moved the earth off its axis by about 7.5 cm.Mr Koren and Gunnersens
import manager Ray Boettcher were visiting Arauco’s head office in Santiago when the quake struck.“It all happened so quickly and the industry here is still only guessing at the extent of the damage,” he said. “Anything near the coast is certainly wiped out, but we’re not so sure about facilities further inland.“No matter what condition sawmills are in after the quake, all of Chile’s wood industry will be at a standstill because of the devastation at the main ports.”Mr Koren returned to Melbourne on Sunday and expects to receive more detailed reports on the extent of the damage to industry in Chile.Arauco, Latin America’s biggest producer with production capacity of 3.4 million cub m of sawn timber from 14 sawmills, is the major wood producer in the southern hemisphere. Twelve of these mills are in Chile.In 2008, plantation harvests carried out in a forestry area of 37,700 ha in Chile, Argentina, Brazil and Uruguay generated 26.6 million cub m of raw material for the company’s production of pulp, panels and sawn timber.All of the plantation forests in Chile are privately owned, and with high industry concentration. The wood processing industry is efficient, but fragmented. There are about 1500 mills spread across Chile, most of which are very small and use outdated equipment. A majority of the production is carried out by 12 large international firms.Arauco late last week said it was still unable to communicate with its operations in areas affected by the earthquake.“Even we don’t know the full situation at some of our facilities,
From Page 1
industry news
Nils Koren .. Chile’s wood exports in turmoil.
industry still only guessingat the extent of the damage
Cont Page 10
ForestWorks performs a range of industry
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and the Australian Vocational Education
and Training (VET) system.
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AN increasingly positive global economic outlook and strong growth in housing demand will drive renewed growth for medium density fibreboard (MDF) over the next four years, according to economic forecaster and industry analyst BIS Shrapnel.BIS Shrapnel’s Medium Density Fibreboard in the Pacific Rim and Europe, 2009-2013 report forecasts strong growth in the key end-use sectors for MDF – housing construction and furniture manufacturing.Senior manger Bernie Neufeld says the downturn in housing construction in the US reached the bottom of the cycle in 2009 and is expected to move into a rapid upswing from 2010 to 2013.BIS Shrapnel is forecasting consumption of MDF to grow at an average rate of about 5% a year over the five-year
period 2009 to 2013. This rate of growth is about the same as the forecasts for production and should result in a reasonably balanced global market.Production, therefore, is expected to increase from 60.9 million cub m in 2009 to 76 million cub m in 2013, based on current expansion plans and estimated capacity utilisation
rates. By 2013, North Asia will be producing 45% of the world’s MDF, and China alone will be producing 41%.“The US recovery will drive economic growth not only in that region but also in many of its key trading partners around the world,” Mr Neufeld said.“It will also drive improved demand for furniture, and ultimately demand for MDF. Housing construction in other key regions such as Europe and Asia will also drive up demand for MDF from 2010 to 2013.”However, BIS Shrapnel notes a seismic shift in MDF markets over the past decade.“MDF markets are now more mature, and much more price competitive, which has driven producers to improve quality and develop new products and markets,” Mr Neufeld said.“There has also been a significant change in ownership structure. Production has shifted from North America and Europe to China and Asia, and over the forecast period this will continue.“The effects of the global financial crisis will continue to limit new production facilities in North America and Western Europe but developing regions such as China, India, South America and Southeast Asia will expand rapidly.”
Over the past few years there have been a wide range of new uses developed for MDF. Japan has been a leader in finding many innovative end-use applications for MDF, which are now spreading to other Asian countries, and European countries have lead the way in developing laminate flooring. Mr Neufeld says many developing markets will also expand along these lines.“Over the next five years producers will need to respond during the upturn with improvements in quality, and the development of new products and new markets,” he says. “There is potential for MDF to be used more extensively in many applications such as flooring, zero-rated formaldehyde emission MDF, MDF panels in place of plywood panels, and applications requiring fire and water rated MDF.”It is, perhaps, ironic that North Asia, the largest producing region for many forest products in the world, is facing a shortage of forest resources, which will only become more severe over the forecast period. The tropical hardwood resources in Southeast Asia, Brazil, and other tropical forest regions, which have been a major source of supply for North Asia, will be restricted in the future as a result of deforestation and forest degradation.
MDF .. North Asia and China dominate market growth
Housing flags solid growth for MDFindustry news
Markets much more mature and price competitive
Bernie Neufeld .. wide range of new uses for MDF
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MARCH 20109: sydney Timber industry institute and TABMA golf day. Arthur Clegg Timber Trade Cup. Muirfield Golf Club, Perry St, North Rocks (off Barclay Road). Golfers $90 p.p., includes sausage sizzle, light lunch, buffet dinner and presentation. Diners $45 p.p., includes buffet dinner and presentation. RSVP February 26. Contact: Maurie Parsons. Tel: (02) 9871 1219
15-17: industry bus tour of Northern New south Wales. Contact: Karen Johnston at TABMA Queensland. Tel: (07) 3254 3166. Email: [email protected]
16-17: 4th Global Wood Fibre Trade Conference, Sao Paulo, Brazil. Visit www.pulpwoodconference.com
17: NsW Hardwood Log supply and Hardwood Flooring: Myths and Legends. Hosted by Sydney Hoo-Hoo Club 215. Speaker: Peter Sykes, Forests NSW timber inspector. Meeting will interest anyone involved in producing, marketing or using NSW hardwoods for structural, joinery and flooring purposes. Venue: Prosperos Restaurant, 310 Church Sreet, Parramatta – 6.30 pm for 7 pm start. Cost (including dinner): $40 pp for members; $45 non members. RSVP by Monday, March 15 or contact Chris White on 0411 293646 or Ian Ramsay on 0414 746992.
21: World Forestry Day
22: World Water Day
24-26: international Wood Products Association annual convention Miami Beach, Florida,
USA www.iwpawood.org
25: Annual Timber Merchants Association charity dinner supporting the Burns unit of the Royal Childrens Hospital. Keynote speaker: Joe Helper, Minister for
Agriculture and Forestry. Venue: River Room at the Crown Casino, Southbank, Melbourne. Cost (GST inc) including pre-dinner drink, 3-course meal and beverages: $165 pp (members); $175 (non-members). Payment no later than February 25.
Non-members who book a table of 10 will be eligible for member pricing of $1650. Bookings to Ingrida Matulis on (03) 9875 5000 or email [email protected]
31: international wood composites symposium and technical workshop 2010 Seattle, Washington, USA. www.woodsymposium.wsu.edu
APRiL 20107-10: Australian Trucking Convention. Gold Coast Convention and Exhibition Centre. Tel: (02) 6253 6900. Email: [email protected] 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. FSC, EWPAA, Green Building Council of Australia. Cost: $50 pp (includes full breakfast). Contact Melanie on (02) 9277 3177.
15-18: 40th annual J1V Hoo-Hoo Convention – The Next Decade: A Vision for Hoo-Hoo. Rydges Melbourne Hotel. Hoo-
Hoo business day, industry tour, sponsors’ dinner, convention dinner and entertainment, farewell breakfast. Convention program and registration details: www.hoo-hoo-jiv.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
MAY 201018: 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
events
WHAT’S ON?
National Association ofForest Industries Ltd
(Est. 1987)PO Box 239,
Deakin ACT 2600Tel: (02) 6285 3833.Fax: (02) 6285 3855
Web: www.nafi.com.au
SUSTAINABLE.RESPONSIBLE.
The NationalAssociation of Forest
Industries (NAFI)is striving for an
ecologically sustainableAustralian societyachieved through
dynamic,internationally
competitive forestindustries.
NAFI’s mission is torepresent the interests
of members bypromoting theenvironmental
sustainability andthe prosperity ofAustralian forest
industries.
sustainable.responsible.
The National Association of
Forest Industries (NAFI) represents
Australian companies, individuals and
organisations involved in the forestry and
forest products industries.
The National Association of Forest industries Ltd
(EST.1987)PO Box 239,
Deakin, ACT 2600Tel: (02) 6285 3833Fax: (02) 6285 3855
Web: www.nafi.com.au
NAFI works with state and federal governments to
support the interests of its members while at the same
time improving industry standards and practices,
promoting sustainable forestry management and
educating the broader community on the
economic, environment and social benefits of a strong sustainable
forest industry.
Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 115 | 08.03.10 6
THE latest Government figures released by the Minister for Forestry Tony Burke confirm the important role the forest industry makes to the economy, regional jobs and the environment.“Reflecting the economic contribution of the industry, the value of economic turnover of Australia’s forest industry in 2008 was $23 billion,” chief executive of the National Association of Forest Industries Allan Hansard said.“The forest growing and wood product industry is also an important employer, supporting 120,000 jobs mostly in rural and regional Australia.”The government report – Australia’s Forests at a Glance 2010 – also shows the growth in the amount of forest that is accredited under internationally recognised certification schemes for sustainable forest management.The area of certified forest in Australia has grown to about 10.4 million ha, in line with growing consumer expectations for environmental standards.Australia has 147.4 million ha
of native forest, with 23 million ha in conservation reserve and 9.4 million ha in public forest where timber harvesting may be permitted subject to environmental regulation. Australia has a further 2 million ha of plantation forests.The total harvest of logs was just over 28 million cub m, with Australians consuming around 1 cub m of wood products per person per year.“From a climate change perspective, Australia’s forests presently store 12 billion tonnes of carbon and continue to remove carbon dioxide from the atmosphere through the management and growth of trees as well as the storage of carbon in harvested wood products,” Mr Hansard said.“Overall, the report shows that the forestry and wood products industry make an important contribution to the economy and the environment and with the right policy settings can make a further significant contribution to the well-being of the nation.”
industry news
Report shows areaunder certificationnow 10.4 million ha
Productive forests meeting growing consumer expectations for environmental standards.
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THE decision of the former NSW premier Nathan Rees to immediately end logging of the Riverina redgums has been reversed by the state government.It has opted for a five-year wind-down of logging, coupled with the establishment of national and regional parks that cover much of the contested area.
But getting the necessary legislation through Parliament is expected to be difficult, with the Coalition, Shooters and Greens parties all indicating opposition.The state government said it would protect 107,000 ha of Riverina redgums and set up an $80 million support package with logging to be wound down
over the next five years.Mr Rees proposed locking up the 42,000 ha of the Millewa forest Riverina redgums in a national park.The Opposition has slammed the new decision, saying that ‘’on face value, we’ll be opposing’’ the legislation because the government has ignored the local communities.
‘’The only reason that the redgums in the Barmah-Millewa area are in a reasonable condition is because they have been actively managed by the forestry industry for the past 150 years,” the opposition spokeswoman on natural resources Katrina Hodgkinson said.
TWO university forest science students have been awarded the first Gottstein forest industry scholarships.Valued at $5000 a year, the scholarships will be used by students to meet living, relocations and education-related expenses.The chairman of the J. W. Gottstein Memorial Trust Fund Peter Gunnersen announced the following winners:sharn Gilmour has completed the second year of her Bachelor of Forest Science and Management course at Southern Cross University in Lismore, NSW, maintaining a distinction average. Sharn’s scholarship will give her financial support for the final two years of her course.
She completed a successful summer internship at ForestrySA during 2008-09 and is a member of the Institute of Foresters of Australia.Dallas Goldspink has completed the first year of his Bachelor of Science (Forestry) degree at the Australian National University in Canberra, obtaining several distinction and credit grades. He will receive financial support for the final three years of his course. Prior to commencing his course, Dallas worked in the forest and sawmilling industry in Tumbarumba. His current position with Willmott Forests was part of a 2009 national program designed to highlight the benefits of plantation forestry jobs for the industry and government organisation,
Plantations for Australia: The 2020 Vision.“The new scholarships recognise the need for constant improvement through increased knowledge and skills development in furthering the industry,” Mr Gunnersen said.“The industry also recognises the efforts of the Gottstein Trust with financial contributions from industry professionals, companies and through donations during annual appeals. Through these contributions, the trust is able to maintain the industry’s high standards.”The scholarships have a value
of $5000 per annum, and may be used by the students to meet living, relocation and education-related expenses.The Joseph William Gottstein Memorial Trust Fund was established in 1971 as a national education trust to promote the development of Australia’s forest products industry. Since then the trust has made a significant contribution to education in the forest industries by granting more than 110 fellowships and several skill awards, and by conducting courses in wood science for those new to the industry.
industry news
students awardedinaugural gottsteinforest scholarships
Sharn GilmourDallas Goldspink
Opponents slam 5-year wind-down plan for Riverina redgums
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FORESTWORKS is working with Timber Training Creswick and Melbourne merchant Dahlsens to trial and promote a flexible traineeship approach for the frame and truss sector.“Project outcomes will result in the development of a model to ensure more employees undertake training in this sector, which should lead to a better skilled workforce,” the executive officer of FTMA Australia Kersten Gentle said.“The model will be supported with a national guide for all manufacturers who employ new trainees or provide training opportunities for existing workers.”Industry has expressed concerns about an apparent lack of knowledge of the
relevant qualifications available for frame and truss workers at Australian apprenticeship centres.Some employers have been encouraged to utilise qualifications not specifically developed for workers in the frame and truss industry. The large number of qualifications available across all industries makes it extremely difficult for representatives from apprenticeship centres to have a high level of expertise within individual industry sectors.“Certificates II and III in Timber Manufactured Projects are qualifications within the Forest andForest Products Industry Training Package developed in consultation with industry,” Ms Gentle said.
AN independent report shows that a cessation of logging in old growth forests currently allowed in a limited way under the Regional Forest Agreement will result in the loss of more than 2000 Tasmanian jobs, cause sawmill closures and dramatically increase the cost of sawn timber.The report, prepared by Symetrics Business Intelligence for the Forest Industries Association of Tasmania, says ceasing the harvest of logs from forest coupes defined as ‘old growth coupes’ and the non-replacement of this lost resource in the hardwood processing chain, would result in an overall 22% reduction in sawmill processing throughput.The reduction in wood from state forests alone would be 40%. This would result in a loss of profitability in sawmilling businesses, leading to closures and reduced investment, as well as significant job losses.The Symetrics Report puts the potential job losses at 2080, with majority in forestry and timber processing. It also predicts that dressed timber costs would rise by more than 27%, industry productivity and timber recovery rates would fall and the capacity of Forestry Tasmania to generate sufficient revenue to manage state forests would be reduced.FIAT says while the scenario examined was inconsistent with the RFA, it was an outcome that anti-forest industry sources were seeking.Chairman Dr Julian Amos said the report only looked at the effect of a halting of harvesting in old growth coupes and did not consider the wider impact of stopping all native forest harvesting as proposed by The Greens and some anti-forestry environmental groups.“The job losses and economic impact of this would be
substantially greater, but that is what the industry opponents are campaigning for,” Dr Amos said.“For this reason, we are launching a campaign outlining the importance of being able to continue to harvest in our sustainable native forests.“The campaign features craftspeople, builders, furniture makers and tradespeople who rely on Tasmania’s high quality native forest timbers for their livelihoods, to create businesses and employment, and to produce the materials and products that all Tasmanians depend on daily.“The first phase of the campaign will run over the next three weeks.”
Dr Amos described the campaign to stop all native forest harvesting in Tasmania and to replace it with timber grown in plantations as “totally naive and ill-conceived”.“Plantation timbers can and do play a valuable role, but the high quality timber from our sustainable native forests is
required to produce high-value furniture, joinery and flooring products from signature Tasmanian species such as blackwood, myrtle, sassafras, celery top pine and Tasmanian oak.“These timbers are not grown in plantations, and yet supply local furniture manufacturers, craftsmen, boat builders,
joinery shops and the home-building industry.“These businesses could not survive without access to the unique high-quality timbers sourced from our native forests.”Dr Amos said it must be remembered that as a result of federal/state forest agreements over recent decades, almost 50% of Tasmania’s native forests, including 1 million ha or 80% of old growth forests were already protected in reserves and therefore precluded from harvesting. “Our forest environment is well protected and the Symetrics Report provides a very clear picture of the impact on our economy and community if the forest industry is not afforded similar consideration.“That is the message we are taking to the Tasmanian community,” Dr Amos said.
industry news
Advertising blitz awakens Tasmaniato jobs loss from old-growth closure
Dr Julian Amos .. greens campaign naive and ill-conceived
Tim McDevitt Home builder
I build homes for Tasmanian families and I’m proud to work with high-grade Tasmanian native timbers.
While we can use plantation timber for some work, we need harder, more even and higher quality timber for flooring, weatherboards, window frames, skirtings and the like.
That’s where our native forest timbers come into their own.
I employ Tasmanian tradespeople building homes for Tasmanians using timbers from our native forests. Without it, we’re out of business and out of jobs.
building our world – driving our economy
Authorised by Terry Edwards, Level 1, 38 Montpelier Ret, Battery Point.
ADVERTISEMENT
Tasmania’s native forests
Training approach forframe and truss sector
Advertisements reinforce the Industry message.
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TASMANIA’S peak forest industry body has welcomed the $6.5 million forest policy package announced by Premier David Bartlett.The state government has pledged to lock in old-growth logging until at least 2037. It will immediately begin negotiations with the federal government to renew the RFA, which isn’t due to expire until 2017.Mr Bartlett said sealing a new 20-year agreement early would provide the industry with the security needed for investment and job creation. Forest Industries Association of Tasmania chief executive Terry Edwards said the policy provided a sense of direction for the industry and was focused in providing a measure of long term security for the industry that would promote a positive investment climate.“We are particularly pleased the Labor party has committed to converting the 20-year RFA into a rolling 20-year agreement that would be subject to five-yearly reviews,” Mr Edwards said“The current agreement now only has seven years to run of its original 20-year term and that is affecting investment decisions.
Mr Edwards said the plan provided a longer term strategy to grow the industry through the progressive transition to an increased reliance on regrowth and plantation feed stocks while facilitating the downstream processing of high end use native forest resource for furniture, flooring, craft and joinery products.The industry also welcomes the announcement that Labor will direct resources to supporting the Tasmanian Brand in national and international markets, which will provide an opportunity to redress the significant harm done by extreme anti-forestry groups and The Greens.
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industry news
David Bartlett .. Old-growth logging pledge.
Terry Edwards .. sense of direction for industry.
Tasmanian industrywelcomes Labor’s$8.4m forest policy
NATIONAL contractor Abigroup will be celebrating International Women’s Day on March 8 by encouraging women’s involvement in the construction industry.Abigroup has set up a women’s leadership forum and introduced family friendly policies like paid maternity leave and flexible working practices to encourage more women to enter and remain in the construction industry.
Need for women’sskills in construction
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but it seems AA06 [a company-owned coastal port facility] has disappeared with the tsunami,” an Arauco spokesman said.“Our priority is to find all Arauco’s people and their families. Second, we need to evaluate the damages at all of our sawmills. Third, we need to know the condition of roads and ports. Once we get answers to these points, we should have a clearer picture about how our actual orders could be affected.”But it’s an ill wind .. Chile is considered Australia’s single largest competitor and has helped to drive down prices substantially for plywood and other engineered wood products. Exports from Chile into Australia and New Zealand have increased several-fold in the last two to three years. Now with Chile out of the equation, a lot of these volumes will be diminished for quite some time and much of the price pressure from imports will be alleviatedExports of plywood from Chile to Australia in 2007-2008 were 17,630 cub m compared with 11,024 cub m in 2006-2007.
Total plywood imports for New Zealand in 2007-2008 were 35,949 cub m, compared with 13,963 cub m four years ago, according to NZ forestry statistics.Price, while an extremely important reason for the sharp increase in Brazilian and Chilean plywood and panel exports, is not the sole reason for this export surge. Both the Brazilian and Chilean governments have effectively managed their forest plantations allowing for high harvest rates which are expected to continue to increase over the next few
years. Another important factor is that both countries provide incentives, such as tax breaks, beneficial credit programs, and subsidies, all of which facilitate exporting.The ribbon-like republic of Chile is 4300 km long, averages 175 km wide and is one of South America’s most stable and prosperous nations. Because of this, repairs to damaged cities, towns and infrastructure is expected to be swift.RISI, a market analysis firm, said at least 3.75 million metric tons of Chile’s 4.8 million tons of annual capacity is closed
due to the after-affects of the earthquake.While the human tragedy in Chile will be long-lasting, the impact on the country’s economy is expected to be limited and short-lived.Despite the Chilean quake being stronger than the one in Haiti in January, the difference between the two nations is vast. Haiti is the poorest nation in the Western Hemisphere, while Chile is the world’s 46th richest.More pressingly, Chile is widely regarded as having the best-run economy in the whole of Latin America. And thanks to Chile’s stringent building regulations, far fewer buildings collapsed than in the Caribbean nation.And as both countries rebuild, while Haiti is all but totally dependant upon overseas aid, Chile has the financial clout to recover without recourse to foreign support.Chile’s quake doesn’t have a price tag on it yet, though President Michelle Bachelet mentioned a $US30 billion estimate when she met last week with US Secretary of State Hillary Clinton.
impact on rich Chile’s economy is likely to be limited and short-lived
ndustry news
Trusted brokers to the timber industry since 1985Be SURE about INSURANCE
Contact Alan JonesTel: (07) 3010 1823 Mob: 0419 754 681 Email: [email protected]
(Licence No. 238123)
From Page 3
The map shows the location of Arauco’s facilities – sawmills, pulpmills, panels and ports – and the epicenter of the earthquake.
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IN his work as a sales representative for Moxon Timbers, Chris White is constantly being asked for NSW hardwoods in specifications that just aren’t available anymore.“Whether its 10 cub m of set length 3.6 m 150x50 kiln dried select grade tallowood for screening or 1800 lm of 75x75 dry select grade yellow box for a handrail – or even just someone trying to find one set of stair treads in solid 300x50 ironbark – these specs are very hard to source in the sort of lead time that people expect these days,” Chris told T&F enews.“I don’t know if those specifications were ever available but the likelihood of finding those packages on the ground ready to go is very close to zero I would expect. It’s as if the demand is coming from a different world to the reality of the supply situation.At a recent Sydney Hoo-Hoo Club 215 meeting, Chris, who is club president, was discussing the issue with fellow club member Peter Sykes from NSW State Forests“Peter mentioned that he had some very interesting information about the real changes that have taken place in the availability of these species and, more importantly, the changes that are predicted to take place in both the supply and demand for these products in coming years,” Chris White said.“It looks like we’re all going to have to get used to the fact that wide, long, high grade North Coast hardwoods are going to be harder to find a lot sooner than we all thought and of course, the availability of the popular flooring species will also be affected.”Peter Sykes says the market’s expectations for hardwood flooring are still very high.“Aussies still have a passion for
virtually clear grade floors,” he said.Peter has seen a lot of great floors laid with very high grade boards which still don’t satisfy the home owner’s expectations for colour variation and grade. He has also seen a lot of poorly laid floors and badly designed and built decks.Peter will explain State Forests’ position on issues such as acclimatisation and laying procedures for hardwood floors and give an overview of the changes to log supply and demand that are expected in the near future at the next Club 215 meeting on March 17.“We have a mix of timber wholesalers and merchants, floor showroom staff and floor layers coming along as well
as some flooring producers,” Chris told us.The club will also be giving away tickets to the Sydney Working with Wood Show and Chris has got some exciting news about discussions that he’s been having with the show’s organisers about the inclusion of a ‘building with wood’ component to the show, which the club will help to develop for 2011.“This will be an opportunity for marketers of timber products to showcase their products in a cost effective way with
enormous exposure to an audience already passionate about wood and without the interference from ‘timber alternatives’ that occurs at other more expensive exhibitions.The show is being promoted to architects and specifiers, builders and homeowners.Chris reckons that anyone who has been happy to spend money exhibiting at a single timber outlet’s trade show will be “absolutely wrapped” to have exposure to so much more of the market for about the same money.“I’m thinking producers, distributors, industry associations, retailers, along with manufacturers of allied products such as finishes, adhesives and tools would all be very interested in such an event,” he said.Liz Falloon and Rick Smith from Everything Exhibitions and Events will be at the March 17 club meeting to briefly outline their thoughts on how the show would operate, give indications of the costs involved for exhibitors and to get an understanding of the level of interest from the industry.
Hardwood flooring .. market expectations still very high.
merchandising
Hard job finding those hardwood specs‘Aussies still have passion for clear grade floors’
Chris White .. excited about ‘building with wood’ segment.
Australia pays indonesia$30m to preserve forestsAUSTRALIA and Indonesia have announced a joint initiative to reduce logging and deforestation on the Indonesian island of Sumatra.Australia will pay Indonesia $30 million to find economic alternatives to land clearing on Sumatra as part of the so-called REDD [Reducing Emissions from Deforestation and Degradation] scheme.In a joint statement, federal climate change minister Penny Wong and Indonesian forestry minister Zulkifli Hasan said
the project was the first large-scale joint program to preserve the carbon-rich peat swamp forests of Central Kalimantan province.
Loggers drain the swamps that emit high concentrations of carbon gases when they burn during the annual dry season.
Australia has been paying Indonesia since 2008 to reduce forest clearing, which accounts for 80% of the vast archipelago’s greenhouse gas emissions.
Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 115 | 08.03.10 12
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