Friday Offcuts – 15 March 2013
Click to Subscribe - It's FREE! The Council of Trade Unions in New Zealand continues publicly to fight the forestry sector’s safety record. In an interesting move, a billboard is being put up as part of their recent campaign on one of Auckland’s main highways. In one of our stories this week we’ve supplied a link to a piece title "The Bush War" that appeared in one of the major daily newspapers – from both the Union and from the forestry industry’s perspective.The Union continues to suggest that the industry’s safety record is a “big hidden secret”. It’s no secret. It’s been out in the open for some time. It’s an absolute stated priority for the industry. The forestry sector has always been open about the need to improve safety and the safety culture amongst all of its staff and contractors. A raft of safety initiatives, systems and tools have been introduced by forest owners, through industry associations like FICA and NZFOA and have well supported by Government through ACC and MBIE. The huge effort moves up yet another notch this year. In line with these efforts to improve safety out in the bush, it’s pleasing to see that the frequency of testing for drugs and alcohol out in the workplace is up – and up markedly. On-site workplace drug tests increased 31% over the last year. Even with the large jump in the number of tests only 0.4% of the tests returned a positive result. The message to workers is obviously getting through. Other news this week includes; the announcement of a new CEO for Australia’s major pan-industry grouping, the Australian Forest Products Association, the completion of the eagerly awaited WoodScape report that evaluates wood processing options for New Zealand and the unveiling of the identity of the new “Forests NSW” – the State-owned corporation now known as the Forestry Corporation of NSW. We’ve also got a smattering of corporate news; the purchase of Mattersmiths’s wood preservative business by Osmose, the completed acquisition of Rayonier's Wood Products Business in the U.S. South by Interfor and announced plans by Visy Industries to double its revenues from Asia over the next decade. Enjoy your weekly read.
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New CEO of AFPA announced The Chair of the Australian Forest Products Association (AFPA), Mr Greg McCormack, has announced that following a national search, a senior manager in global networking giant, Cisco Systems, had accepted the role of CEO of the organisation.Mr Ross Hampton is currently General Manager of Australian and New Zealand public sector business development for Cisco – a role which he has held for six years. Mr Hampton built a public sector engagement strategy for Cisco from the ground up. He is credited with a significant share of the multi-million dollar growth in Cisco’s public sector business – especially in ground breaking work in cross-government collaboration. Mr McCormack said, “We are delighted that Mr Hampton has accepted the offer to lead AFPA. One of the most pressing issues facing our industry is: how do we leverage the natural advantages of forestry and timber products in the carbon constrained economy, including the role of renewable energy and paper products into the future?”. Mr Hampton brings to our organisation a unique blend of global expertise in environmental policy at this crucial time. Mr McCormack also paid tribute to outgoing CEO Dr David Pollard. Mr Hampton is expected to be in his CEO role by May. Wood residues goes globalTe Radar - New Zealand's most well-known "sustainable" TV show host shone their TV cameras recently on New Zealand's most sustainable alternative to the oil industry - residues from wood being re-used to generate revenues and a more sustainable planet.Te Radar's current TV series is called "Global Radar" and on Wednesday night's episode the subject was alternatives to oil. You can watch forestry's five minutes of TV fame here at TVNZ on demand - click here to watch. Te Radar will also be the guest after-dinner speaker at the Auckland venue of the Residues to Revenues 2013 conference series. Remember, people who are members of FIEA and supporting associations are eligible for registration discounts. Forestry safety - an issue that’s not going awayNearly everyone says that Ken Callow was unlucky. He was working alone and no one saw him die, but the Government inspectors went through the block he was working after the accident and looked at the trees he had already felled. It was good work, the cuts made at the right level and depth and place, the trees had come down in the proper way and position, so it was relatively easy and relatively safe for them to be hauled out later. The autopsy found drugs or alcohol were not a factor. It was October 2011. He was 31 years old.Now Ken’s going to be on a billboard. The Council of Trade Unions (CTU) is raising funds on the Onebigvoice site to put his picture up on Auckland's busy Khyber Pass. It's going well, there's $3800 in the bag already and 10 days to go at this writing to raise another $500. Underneath the picture of him, tough and head-scarfed like a Vietnam-era soldier, will be a single question: What Killed Ken Callow? CTU President Helen Kelly has her suspicions it was more than bad luck. 'What is going on in forestry is a big hidden secret and we are trying to highlight it." This is part of a wider campaign being waged at the moment in New Zealand. The full article, "The Bush War", appeared in the Waikato Times last weekend. Click here to see the full story – from the Union’s and Forestry Owner’s perspectives. New Zealand’s WoodScape study completedWoodScape, an economic evaluation of New Zealand’s wood processing opportunities, has been completed by Crown Research Institute Scion.The study is a financial analysis and market review of 39 traditional and emerging wood processing technologies. It identifies pathways the wood processing sector could take toward achieving its strategic goal of doubling the value of forest sector exports to around NZ$12 billion by 2022. Wood Council chair Doug Ducker says the council must now examine the study’s findings and integrate them into its action plan. A date for public release of the study has not yet been set. The study was commissioned by the Wood Council as one of the key steps in its Strategic Action Plan released last year. Funded by the council, Ministry for Primary Industries, New Zealand Trade & Enterprise and Crown Research Institute Scion, the study began in July 2012 and was delivered to the council on 28 February 2013. Visy planning on Asian expansionThe billionaire Pratt family's paper, packaging and recycling group, Visy Industries, plans to double the revenues it generates from Asia over the next decade by setting up manufacturing plants in a raft of Southeast Asian countries and using a new trading company to sell more products to meet burgeoning demand in the region reports the Australian.Outlining his vision for Visy in Asia, the group's executive chairman, Anthony Pratt, said he was keen to replicate the growth story of his North American operation, Pratt Industries, which has expanded over the past two decades to become the fifth-largest box-maker in the US, with operations in more than 20 states. Visy is planning to set up new packaging plants in at least four Southeast Asian countries, modelled on the group's existing plastics plants in Thailand, Vietnam and Malaysia, the first of which has been significantly expanded since it opened three years ago at a cost of more than AU$50 million. He said while the focus on Visy manufacturing in Asia would continue to be on greenfield plants, he would not rule out opportunistic acquisitions. Mr Pratt said Visy's US operations were "booming". Pratt Industries does not publicly release its financial results, but it is believed its annual revenue is more than $US1bn (AU$977m). Source: The Australian On-site Workplace drug screening increases 31%The number of on-site workplace drug tests has increased 31% over the last year reports the New Zealand Drug Detection Agency (NZDDA) in the release of its annual statistics. In 2012 NZDDA conducted 68,561 on-site drug screening tests, up from 52,124 tests carried out in 2011. This follows an increase of 77.7% from the 29,513 tests carried out in 2010.Screening for alcohol in the workplace, in 2012 NZDDA conducted 39,369 breath alcohol tests – up 32% from 2011 when 29,791 tests were carried out. In 2010 there were 13,821 tests conducted. Of the 39,369 alcohol tests performed last year, 0.4% of the tests were positive, the same figure as for 2011. In 2010, 1.9% of alcohol tests were positive. NZDDA’s chief executive Chris Hilson says, "The rise in the number of on-site workplace drug and alcohol tests in 2012 illustrates that many more employers are taking workplace safety very seriously. Most of our testing takes place in the safety-sensitive sectors such as forestry, transport and construction – sectors in which it’s vital for employee safety but also for their customers and suppliers and, in some cases, the general public. There’s no second chance if there’s any impairment from drugs and alcohol in those workplaces.” Cannabis (THC) continues to be the most frequently detected drug in workplace drug screening, with 71% of the non-negative tests detecting this drug, up from 68.5% in 2011. In 2010 the figure was 70.3%. Opiates (including codeine) were detected in 18% of non-negative tests, compared with 15.9% the previous year, and 16.2% in 2010. Methamphetamine was found in 6% of non-negative tests in 2012, 9.1% in 2011 and 16.2% in 2010. Benzodiazepines were detected in 1% of non-negative tests in 2012, down from 1.2% in 2011 and 2% in 2010. Cocaine hasn’t been detected at all in tests in 2012 and 2011, and 0.2% of non-negative tests in 2010.
15 months of a forest's lifePhotographer Samuel Orr took photos out of the window of his house for 15 months, then put the accumulated 40,000 photographs into this amazing time-lapse. Petapixel writes "The camera was set to snap a photo between once every 10 seconds and once every 10 minutes at certain key times of the year (snowfall, spring, fall colours).For most of the time the camera was switched off. After shooting 40,000 photographs, he turned each group of key moments into 5-8 second time-lapse films. He then blended these short films into the finished video above at 30 frames per second. Finally, he added background sounds characteristic of each period to give the viewing experience an added dimension." Source: Treehugger Forests NSW becomes Forestry Corporation
At a series of meetings across the State last week the Forestry Corporation of NSW (formerly Forests NSW) unveiled to staff its new identity as a State-owned corporation.The meetings were held at Bombala, Tumut, Eden, Batemans Bay, West Pennant Hills, Maitland, Wauchope, Coffs Harbour, Narrandera, Bathurst and Dubbo (Photo showing General Manager Softwood Plantations, Ian Brown, Field workers Jeff Matthews and Anthony Bevan and Hume Regional Manager Bob Germantse wearing the new forestry corporation logo). Forestry Corporation Manager Public Programs and Community Interaction, Joanna Bodley, said senior management attended the meetings to explain to staff the objectives of the new corporation as well as unveiling its new logo. Ms Bodley said as has been highlighted before, the new corporation remained publicly owned and the nature of its business remained largely the same. But the change to the governance structures is expected to improve the organisation’s commercial performance. Further details on the new Forestry Corporation can be found on www.forestrycorporation.com.au. MLCs focus on forest reportMLCs have this week been discussing a draft report on the Tasmanian forestry inquiry before its probable release today. The 169-page draft report details the findings of the select committee on the Tasmanian Forest Agreement Bill from 12 days of hearings and more than 130 public submissions.It is unlikely to make any recommendations, but Huon MLC and committee chairman Paul Harriss says that doesn't mean the bill will pass the upper house without amendment. Mr Harriss said the final report may be released today and debated when the Legislative Council resumes for the year next week. Elwick MLC Adriana Taylor said it was unlikely that the bill would be approved without increasing the sawlog quota from 137,000 cubic metres to about 155,000 cubic metres, which would have an impact on forest reserves. Signatories have said any change to the reserves would be a deal-breaker.  Osmose acquires Mattersmiths wood preservative businessOsmose New Zealand, a wholly owned subsidiary of Osmose, Inc., a global supplier of wood preservative products, announced this week that it has completed the purchase of Mattersmiths Holdings Ltd. and Mattersmiths Technologies Ltd. Mattersmiths’ business focuses primarily on the manufacture and sale of antisapstain chemicals. Among the assets Osmose is acquiring are Mattersmiths’ patent portfolio as well as its trademarks and other intellectual property.Steve Crimp, General Manager of Osmose New Zealand, said “This acquisition is very exciting for Osmose and our customers. In addition to the current antisapstain business of Mattersmiths we see great opportunity for many of the technologies Mattersmiths has developed, in particular a new product for the treatment of framing timber to meet the H1.2 hazard class.” Paul Maynard, previously Managing Director of the Mattersmiths Group, believes Osmose can successfully develop the new technologies, henceforth he will continue to pursue technology development in other fields. Forestry environmental resource established
The Eastland Wood Council is a grouping set up in 2001 of major plantation forestry, wood processing and distribution interests operating in the East Coast of New Zealand’s North Island, in the Gisborne District.With environmental issues being one of the major issues facing forestry companies with wood harvesting in the region on the rise – and steep terrain being common to the region. To assist EWC members and the wider forestry industry, the Council employed a student over the summer break to pull together a resource of research, reports and information applicable to; sedimentation, woody debris, water quality, biodiversity, stream morphology and public perception. The documents, over 250 of them, mostly post 1990, have now been posted onto the EWC website for use by the forestry industry. To access the resource, click here. For further information, please contact trevor@eastlandwood.co.nz Purchase of Rayonier's Wood Products business completedInternational Forest Products Ltd (Interfor) has announced that it has completed the acquisition of Rayonier's Wood Products Business in the U.S. South, as scheduled on 1 March. The acquisition includes three sawmills located in central Georgia with a combined annual capacity of 360 million board feet."The acquisition of Rayonier's Wood Products Business is a significant strategic move for Interfor," said Duncan Davies, Interfor's President & CEO. "In addition to providing a footprint in the U.S. South the acquisition increases Interfor's annual production capacity to more than 2 billion board feet and broadens our product base to include Southern Yellow Pine." Source: Reuters Work schedule impacts on harvesting productivityTo improve production efficiency and harvesting economics some forest companies are looking at extended hours of use for forest machinery, which may include longer shift lengths, multiple shifts per day, and more harvesting days per week. A review of the literature provides mixed signals on the costs and benefits of extending work hours.A long-term data base, which contained over 30 000 machine day records and was maintained by a Chilean forest company, was used to evaluate the effects of three types of extended work schedules (beyond a 9 hour work day) on the productivity of two types of harvesting operations; mechanised processing of Pinus radiata stems into logs and mechanised harvesting of eucalypt (Eucalyptus globulus Labill and E. nitens) trees. Production increased as working hours increased. However, average hourly productivity fell by 9 to 30% as the working day length for equipment was extended from 9 to 18 hours. A range of factors, some interacting, were found to affect the level of decrease. These factors included type of work schedule, type of operation, season, tree species, and tree size. For more information, check out this month's R&D Works Newsletter
Forestry products chiefs expect more consolidation
Chief executive officers in the global forestry products industry are increasingly looking to joint ventures or mergers as they seek new avenues of growth, says a new survey.Half of forestry, paper and packaging CEOs in PricewaterhouseCooper’s annual poll said they struck a new strategic alliance or joint venture in the past year. And 34 per cent said they completed a cross-border merger-and-acquisition (M&A), with 32 per cent saying they closed a domestic M&A, the report indicates. In the coming 12 months even more CEOs plan to do deals, with 58 per cent eyeing a strategic alliance or joint venture, 47 per cent a cross-border M&A and 34 per cent a domestic M&A, according to the poll. "The high degree of transactions and partnerships reflects the broadening uses being found for fibre such as bioproducts, biofuels, and textiles," Bruce McIntyre, leader of PwC’s forest, paper and packaging practice in Canada, said in a news release on Monday. PwC’s 16th annual Global CEO Survey is based on 1,330 interviews in 68 countries conducted during the last quarter of 2012, including 38 forestry CEOs in 15 countries. For more information on the survey click here. RuralAus shutting Perth officeForestry group RuralAus will close its Perth office and move its headquarters to Adelaide. John Ipsen also has resigned as CEO and Ian Greenyer will act in the role. RuralAus has terminated its managed investment schemes in Western Australia and now will have only the Timber Creek pine sawmill on Kangaroo Island, south of Adelaide.Jobs
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...and one to end the week on....the importance of paper!!
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