the joint forces of csiro & scion ensis: model for the future iaws conference 16 november 2006

THE JOINT FORCES OF CSIRO & SCION


Ensis: Model for the Future

IAWS Conference

16 November 2006


The Story

Forest industries down-under Why a joint venture How it operates Our successes The future


Australasian R&D landscape

R&D supply fragmented Multiple stakeholders Strategic engagement Industry vs Government investment Breadth vs Depth – science capability


Our external environment

NaturalResources(air, land, water, forests etc)

Forest Establishment

Forest Management

PrimaryProcessing

Manufacturing(timber,composites,pulp & paper, packaging)

Environment Agribusiness Manufacturing

The Breadth vs Depth challenge for our science


Our scale locally

Australia NZ

Roundwood M m3 25.6 20

Plantation M ha 1.7 1.8

Turnover $B 18 8

Exports $B 1.6 3.2

% GDP 1 3.2


…but not global

‘Australasian Forestry Inc’ (if it existed) is about the same size as Weyerhaeuser…

Combined NZ and Australian forest industries R&D spend about equal to the R&D spend of International Paper


…and has some distinctive features

Government ownership of majority of plantations (in Aus) – but this is changing

New owners are ‘non-traditional’

Diverse mix of production species

Broad geographical distribution

A mandate for expansion in Australia via the Plantations 2020 vision

Pushing the survivability boundaries in some regions (< 600 mm rainfall threshold)


...and we are challenged

Australasian forest sector is under stress from globalisation…and so is the research community

Organic growth difficult science capacity and quality issues across a

broad value chain

Growth by partnership was the best choice but with whom?

Key issues were alignment of objectives, freedom to operate and depth of commitment


The two partners

NZ Forest Research Institute Ltd (Scion) - a Crown Research Institute

340 staff – 2 sites

CSIRO FFP - a business unit of a large statutory authority (6500 staff)

220 staff – 6 sites


Our mandate

Ensis is the forestry and allied industries science delivery organisation for both CSIRO and Scion

Operationally it acts like a merger – combined science teams under a single management team

True 50:50 (contributions of staff, resources, financial performance) joint venture,

no project-by-project negotiations

National interests are protected through structure and JV agreement


Key enablers

Unincorporated JV

Staff remain on parent employment contracts

Assets and IP owned by the parents

Focus on science delivery, parents to provide support services

Parent science investment processes retained

Partnership with other R&D organisations and industry is a critical success factor


Ensis now

Fully integrated forestry industries science delivery organisation with 6 business units

Around 350 science delivery staff, almost 400 personnel (contractors, students, Hon Fellows etc)

A$55M turnover, around A$26M from ‘external’ sources

Matrix structure across 8 sites

A child of its parents but rapidly developing its own personality!!


Strategic business units

Genetics: Breeding better forests for maximum returns Forests and Environment: Management systems for

sustainable plantations, and protecting the environment with forests

Forest Biosecurity and Protection: Minimising risks and protecting our forests

Wood Quality: Linking quality to value Wood Processing: Ensuring the place of wood in a modern

market Papro: Optimising processes and products


Our Current Locations

Canberra

Cooroy

MelbourneRotorua

Perth Mt Gambier

Hobart Christchurch

5400 km


Our successes Ensis Wood Quality

Enhancing timber quality control

Instigated a world-first application of aerospace technology to enhance timber quality

Neville Smith Timber adapted the ultrasonic void detection technology to detect internal faults in dried hardwood boards

Potential to revolutionise hardwood timber processing


Our successesEnsis Papro

Developing quality boxes

“The Dynamic Stiffness Tester provides a quick and reliable measure corrugated board integrity that enables us to control the corrugating and converting processes to tolerances not previously possible, thus reducing the incidence of box failure.”

Adrian Dalgleish, Technical Manager, VISY


Our successes Ensis Wood Processing

Replacing chemical wood adhesives

Collaboration between Ensis and Scion.

Extracting chemicals from pine bark to replace synthetic and petroleum-based compounds used in building products, packaging, plastics and cosmetics.


Our successes Ensis Forest Biosecurity and Protection

Biological control agent

A leaf-eating weevil has been identified as a sustainable and environmentally-friendly way of controlling the weed Buddleja davidii, which was introduced to NZ as an ornamental shrub.

“The industry is under constant pressure to reduce chemical use and the cleopus initiative demonstrates how we are keen to support serious efforts to find alternatives”,

Dave Little, Harvesting and

Marketing Mgr Crown Forestry.


The futureEnsis Strategic Plan

Targeting key outcome areas for our future science Value scenarios

Forest benefits

Precision forestry

Risk management

Process and product innovation

Future bioproducts from forest resources

Sensors and sensing technology

Worker wellbeing



Targeting key outcome areas for our future science Value scenarios: Developing a value-chain model for the forest

industry to guide Ensis research to areas that have maximum impact on industry competitiveness

Forest benefits

Precision forestry

Risk management




Worker wellbeing




Forest benefits: Developing the means to value, capture and enhance all of the benefits of new and existing forests

Precision forestry

Risk management




Worker wellbeing




Forest benefits

Precision forestry: Improving current forest management, harvesting and logistics

Risk management




Worker wellbeing




Forest benefits

Precision forestry

Risk management: Developing an integrated risk management approach to forest industries, particularly targeting new forest owners




Worker wellbeing




Forest benefits

Precision forestry

Risk management

Process and product innovation: Developing new and improved high-value products and processes for the forest industry



Worker wellbeing




Forest benefits

Precision forestry

Risk management


Future bioproducts from forest resources: Positioning the forest industry as a leader in the bioeconomy through biofibre, biorefinery and advanced material approaches


Worker wellbeing




Forest benefits

Precision forestry

Risk management



Sensors and sensing technology: Developing high technology sensors for the forest industry

Worker wellbeing




Forest benefits

Precision forestry

Risk management




Worker wellbeing: Increasing the technological skills, productivity and health of the forest industry workforce


Ensis integration

Precision forestry

Value scenarios

Technical services

Markets Distribution Secondary

Manufacturing Primary

ProcessingForests

Environ.

Forest Biosecurity Protection Genetics Forests

Wood Quality Papro

Wood Processing

Product and process Innovation


Forest benefits

Risk management

Products from renewable resources

Worker wellbeing


Ensis - a future model?

Consolidation provides similar benefits to R&D organisations as to commercial enterprises creates critical mass

avoids duplication

enables synergies

targets growth

Other R&D examples Incipient: Forintek, Paprican and Feric

On-going: STFI and PFI

Failed: STFI and KCL (pulping research)


Ensis - a future model?

Critical success factors for Ensis

Enhance world-class science capability build strategic partnerships

Target new technology development ideally together with end-user partners

Maintain relevance to Australasian needs economic, environmental and social

Expand international profile (and business) world-scale offerings in niche areas

the joint forces of csiro & scion ensis: model for the future iaws conference 16 november 2006

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