Friday Offcuts 22 November 2024Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.This week brings a mix of challenges and opportunities for the forestry and wood products sector. We start with a sobering update from New Zealand’s Kinleith Mill, where up to 230 jobs are at risk as Oji Fibre Solutions restructures to combat financial pressures. This follows several recent mill closures, highlighting the ongoing strain on the industry. Across the Tasman, Australian manufacturers echo similar concerns, citing rising costs that threaten the sector’s viability. On a brighter note, innovation is front and center. The University of Tasmania leads collaborative research to modernize timber framing, aiming to streamline construction while championing sustainability. Meanwhile, WoodSolutions has launched an updated timber framing campaign to bolster industry adoption. In New Zealand, new trade agreements promise exciting opportunities for wood product exporters, accompanied by calls for increased investment in the sector. This week we hosted ForestTECH 2024 in Rotorua, which featured cutting-edge developments in remote sensing, inventory management, and precision silviculture. With an impressive turnout both in-person and online, the event set the stage for its Melbourne follow-up on November 26-27. Stay tuned for a detailed post-event write-up if you can’t make it! Read these and more in another packed edition of Friday Offcuts. Enjoy.
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Up to 230 jobs to go at Tokoroa’s Kinleith MillDespondent workers have filed out of Kinleith mill after hearing that up to 230 jobs are likely to be cut at the Tokoroa mill as its parent company faces ‘extreme financial headwinds’. A consultation meeting with chief executive Jon Ryder on Wednesday revealed the number of jobs that could be cut by June 2025.Some workers had only heard of the proposed job losses the night before through news sources, which left them frustrated that management hadn’t told them. Most people were going home to process the news. One man was off to the golf course to hit some balls. Oji Fibre Solutions Chief Executive Dr Jon Ryder said the company would simplify operations at the mill by focusing on pulp and discontinuing loss-making paper production. More >> Source: Waikato Times Press Release: OjiFS Proposes to discontinue Paper Production at Kinleith Mill Oji Fibre Solutions (OjiFS) has announced it proposes to take further action to stabilise and strengthen the company, by simplifying operations at Kinleith Mill, its largest facility that manufactures pulp and paper. Chief Executive Officer Dr Jon Ryder says: “After extensive work and considering a variety of options, we are proposing to simplify Kinleith Mill’s operations by focusing on pulp and discontinuing loss-making paper production. Therefore, we are consulting on a plan to permanently shut the Kinleith PM6 paper machine and move to a paper import model for our packaging operations. Manufacturing paper has become unprofitable. Paper production at Kinleith Mill has suffered significant losses for several years and we see no prospect of the situation improving. Due to the complexities of operational changes required at the mill for this proposal, the exact number of potential job losses is unknown at this stage. However, we anticipate approximately 230 roles may be affected. The wider impacts will become clearer as we work through the consultation period, through to final decision and into next year. This proposal takes into account our ability to continue to serve our customers with as little disruption as possible. We propose to continue producing paper at Kinleith Mill through to the end of June 2025, to ensure we meet our packaging customer obligations and provide a smooth transition to new paper supply arrangements. Under this proposal, there would be no change to the wastepaper collection service provided by OjiFS Fullcircle, which will continue to collect, sort and bale wastepaper throughout New Zealand for recycling. Dr Ryder added, “This is a difficult change to propose because of the impact on our hard-working team. We acknowledge the history and importance of Kinleith Mill in the local community and region and have made every effort to ensure we continue operating at the site. Our need for change is in no way a reflection of the experience, skills, and dedication of all the team and leadership at Kinleith Mill.” “We will now enter a consultation period with employees at Kinleith Mill, through to early January, to see if there is an alternative we have not yet considered. We anticipate announcing a decision by end of January 2025. More >> Source & image credit: Oji Fibre Solutions Closure of NZ mill highlights the pressures faced in AustraliaClosure of New Zealand paper facility highlights the pressures faced by Australia’s wood and paper products manufacturers.Australia’s forestry and forest products sector is warning that locally based manufacturing facilities are close to breaking point with spiralling energy, logistics and insurance costs taking a major toll on business operations, Chief Executive Officer of the Australian Forest Products Association (AFPA), Diana Hallam said. The warning comes as Australia and New Zealand based paper and packaging manufacturer Oji Fibre Solutions (Oji FS) today announced it will likely end paper production at one of its major NZ mills because it’s no longer profitable. The closure will cost around 230 local jobs. The mill supplies paper to Oji FS’s three Australian packaging facilities. Diana Hallam said, “The forestry and forest products supply chain is Australia’s 6th largest manufacturing sector and the processing and manufacturing facilities that employ local people and create local products, from timber house-frames to packaging, cardboard and paper and other home furnishing products are under extreme pressure with rising costs. The challenges we face here are the same as those across the Tasman. “One of AFPA’s member manufacturers has reported its future Queensland electricity contract will increase threefold from $50 per megawatt hour to over $150 early next year. Rising energy costs like this, along with increasing transport and logistics and insurance costs, coupled with the depressed market for building and construction products like timber – is proving to be a very difficult storm for manufacturing businesses to weather. “Our sector is responsible for injecting $24 billion into the economy annually. We directly employ 80,000 people and indirectly employ another 100,000 on top. Many of these jobs are the lifeblood of regional centres. It is vital to maintain the scale and integration of our sector – if the cost of one element in the supply chain becomes too difficult it will have a huge ripple impact across the rest of the sector. “The cost of local manufacturing and the flow on impact to local jobs and communities is shaping up to be a huge Federal Election issue in 2025. Large manufacturers need affordable and reliable power to run their equipment and make local products. Right now, those costs are out of control and flowing onto those other input costs like transport. “Forest products manufacturing needs a solution to this crisis and AFPA along with the rest of our sector will be campaigning on this issue ahead of the 2025 Federal Election,” Diana Hallam concluded. More >> Source: AFPA Uniting to modernise Australian housing constructionThe timber framing industry is on the cusp of a major update, with a collaborative research project led by the University of Tasmania and Forest and Wood Products Australia (FWPA). The Lightweight Timber Framing project, funded by Australian Forest and Wood Innovations (AFWI), is part of a broader ‘Future Framing Initiative’ managed by FWPA.In partnership with over 20 industry stakeholders and eight universities, the project will provide the research and development background to bring contemporary products and systems into the Australian Standards. This allows for streamlined design and approvals, with the goal of accelerating house construction across Australia. Timber remains the top choice for residential construction, with 80 per cent of new homes in Australia built using timber framing each year. As a renewable resource, timber also plays a crucial role in the fight against climate change. The Lightweight Timber Framing project is one of eight selected through AFWI’s inaugural A$5 million National Open Call for Research, which targets sector challenges and promotes innovation. This project has received strong backing, with A$1.1 million in contributions from industry partners. “AFWI is very proud to support this exciting and transformative project, it clearly demonstrates the support of industry, federal government and university sector for collaborative research that targets wood-made, carbon-positive solutions for the needs of the Australian community,” AFWI’s Interim Director, Dr Dean Williams said. “I am really delighted that AFWI is able to support this high-quality project with its enormous potential. Being able to connect our current and future researchers with industry to deliver positive environmental, economic and social outcomes right across Australia is core to AFWI’s purpose. And this is just the start, we have more projects in the pipeline that will deliver positive impacts all along the forestry and forest products value chain.” Dr Louise Wallis, Research Lead and Deputy Director of The Centre for Sustainable Architecture with Wood (CSAW) at the University of Tasmania said the research project aimed to modernise design and construction practices of timber-framed houses. “We’re focused on making it easier for builders, designers, and engineers to work with lightweight timber framing, ultimately speeding up construction while using our forest resources more effectively. This project is all about productivity, there are other stages still to come in future with more universities collaborating,” Dr Wallis said. Andrew Dunn, CEO of the Timber Development Association and industry champion for this project, said the current timber framing design and construction practices no longer reflect modern building practices, or the use of engineered wood products. This makes it difficult for timber to remain competitive in the housing market. “Timber framing is the preferred construction method, but we’re falling behind because builders, carpenters, and engineers need simpler and more straightforward compliance processes,” he said. “The design and approvals processes are outdated, still based on traditional sawn timber methods, while today’s homes increasingly use engineered wood products. Competing materials don’t face these challenges.” This research project brings together experts from eight universities, and from across the wood products industry, with the aim of updating the existing standards. This will enable us to better align with modern construction needs, while ensuring our homes are safe, perform well and are more affordable. More >> Source & image credit: AFWI Wood & technology needed for NZ's climate responseOpinion: Dr Elizabeth Heeg, NZFOAThe United Nations Conference of the Parties for Climate Change (COP29) was held over the last two weeks in Baku, Azerbaijan. It is the second time in two years that a petrostate has hosted the climate conference. While some may view this cynically, I tend to think that having conversations where the transition may be starkest presents some real opportunities. While I wasn’t at COP29 (it’s a bit busy here on the home front!), I have been working with our international colleagues and New Zealand officials who are on the ground in Baku. There are a couple of key decisions being taken at the ‘finance COP’ as it’s been called, particularly around the Article 6.4 markets, which will allow countries to trade with each other to meet their climate targets. How land use is treated in these markets could have implications for forests’ role in the global climate response. Initial standards at the start of COP would have placed additional requirements on land-based mitigation projects like forests, that industrial mitigations like carbon capture and storage did not face. Forestry industry bodies and environmental groups have been pushing back to ensure that, at this early stage, the playing field is set fairly. This is particularly important given that forest-based mitigation projects can also be nature positive and contribute to the biodiversity crisis. It is also going to be important for New Zealand, given that we are not on track to meet our climate targets. The Government has just opened consultation on the target, and we’ll be having our say on behalf of our members, but meeting any target will require a reduction in gross emissions and some serious tree planting. The Intergovernmental Panel on Climate Change (IPCC), the United Nations (UN) body responsible for global climate science, has said that global emissions must peak by 2025 if the world is to have a good chance of keeping global temperature rise between 1.5-2 degrees C, as specified by the Paris climate agreement. As the Economist stated in their analysis last week, much hinges on China and the emissions report they will release at the end of this year, which could alter the global trajectory. A rise above 2 degrees C will not only contribute to the warming of the planet, but also the more intense storm events that we have experienced here in New Zealand. It's important that we’ve got the markets and tools on the international stage and at home to really address our climate risks. That’s why we’re not only pushing for coming global markets to recognise forestry projects, but also for our domestic emissions trading scheme to continue to recognise the role forestry plays in climate mitigation. We submitted on the most recent Emissions Trading Scheme (ETS) cost recovery settings to say that reducing the annual fee by half is a step in the right direction, but the public benefits of forests need to be better recognized by the government. We will keep pushing to ensure our forests’ contribution gets its due. More >> Source: NZ Forest Owners Association Victoria opens consultation on future of state forestsThe Victorian Government has opened public consultation on the future of the state’s forests. Minister for Environment, Steve Dimopoulos visited Coopers Creek Campground in Gippsland to announce that Victorians can share their ideas as part of the Great Outdoors Taskforce consultation.“Victoria is home to some of the most impressive forests in the world, and we want as many Victorians as possible to enjoy the great outdoors,” said Mr Dimopoulos. “We want to grow opportunities for Victorians to enjoy the outdoors and ensure our forests continue to attract visitors from across the globe to camp, bush walk, hunt, horse ride, BMX, four-wheel drive, walk their dogs, fish and more.” The Government established the Great Outdoors Taskforce earlier this year, to consult with the Victorian community and provide recommendations to government on the management of state forests in Gippsland, East Gippsland and the North East. “This is a landmark opportunity to open up 1.8 million hectares of Victoria’s native forests that were formerly used for native timber harvesting, with new opportunities for recreation and tourism, while also ensuring we protect the things Victorians love about the bush,” said Minister Dimopoulos. More >> Source & image credit: Inside State Government ACCTS positive for NZ wood product exportersAgreement on Climate Change, Trade and Sustainability (ACCTS) positive for New Zealand wood product exporters. Formal signing of the ACCTS by New Zealand, Costa Rica, Switzerland, and Iceland overnight is welcomed by the Wood Processors and Manufacturers Association.‘The ACCTS is significant as it is the first trade agreement of its kind dedicated to trade and climate issues, hence demonstrating a fresh approach to global trade negotiations’, said WPMA Chief Executive, Mark Ross. ‘The agreement eliminates tariffs on 316 environmental goods, including 34 wood products such as sawn timber, pulp, and panels for construction.’ New Zealand exports over $2.4 billion of wood products worldwide and has a leading story to tell around our sustainable and renewable forests fitting strongly with the core goals of ACCTS. ‘By capturing atmospheric carbon, wood has an important role to play within the global carbon cycle and our fight against climate change,’ said Ross. Particularly important, is the fact that this agreement opens new opportunities for New Zealand wood product exporters. Being designed as an open plurilateral agreement means that other core trading partners will be encouraged to join ACCTS over time thus growing our export markets for environmental and sustainable goods. New Zealand, Costa Rica, Switzerland, and Iceland may well have started something that not only could lead to a larger trade and climate agreement but also provides a lesson in decisiveness that all countries should take to heart. We congratulate the New Zealand government in seeing the ACCTS to conclusion and look forward to the future benefits of this agreement for our wood processing industry. More detail on ACCTS can be found here. Source: WPMA Woodsolutions launches timber framing campaignWoodSolutions launches updated timber framing campaign with new assets and expanded digital push. The industry’s timber framing campaign is now live on the WoodSolutions website, with updated resources and assets to boost adoption. Managed by Forest & Wood Products Australia's (FWPA) WoodSolutions program, the refreshed and updated page and campaign assets are available free to download by industry to support their timber framing promotional efforts.Expanding the reach of timber framing The decision to integrate the timber framing campaign under the management of the WoodSolutions program was made to strategically harness its expansive and reputable audience, along with its robust and growing database. This move aims to maximise the campaign’s reach and deepen engagement with key stakeholders across the industry, ensuring the messages resonate with a broad and influential audience. With tens of thousands of users each month, the WoodSolutions website is a powerful platform to promote the pro-timber framing messaging. The campaign will be supported with a boosted digital campaign that will target key decision makers in large residential building companies and inspire them to embrace the campaign and its co-branding customisation opportunities. The digital campaign will also engage with proud entrepreneurial tradespeople and share the promotional assets across their platforms and business promotion. The overall aim of these efforts is to support building a better business by promoting the use of renewable timber framing. Market research backs the campaign As with everything that FWPA and WoodSolutions does, the rebranded creative assets are built on valuable insights gathered over the six years since the campaign's launch. Key findings from research by the Timber Framing Collective include: Builders respond:
We can effectively communicate through messages such as: “Choose renewable, sustainable timber framing,” “Certified sustainable timber framing is the responsible choice,” and “Your timber framed home stores carbon absorbed from the atmosphere during photosynthesis and helps address climate change.” More >> Source: WoodSolutions Logging company at fault in 2021 worker deathWorkSafe is again urging the forestry sector to reflect on what more it can do to improve safety, as the details of yet another worker death emerge from a court prosecution.Jake Duncan was fatally struck when a log came loose and hurtled 325 metres down a hill at Tangoio, north of Napier, in June 2021. The 23-year-old was doing work known as breaking out, where felled logs are connected to a hauling machine for extraction. The log had been put in place as a ‘plug’ which acted as a bridge for other logs to slide over, until it gave way with tragic consequences. This uncommon method is known as plugging and bridging. The pre-harvest risk assessment only listed two hazards for the entire site, and did not properly consider the risks of the plugged log dislodging. The company should also have had better controls in place to minimise the risk of workers like Jake Duncan being struck. These health and safety failures led to WorkSafe charging Mr Duncan’s employer, Logged on Logging 2020 Limited. In a reserved decision, the Napier District Court has ordered Logged on Logging to pay reparations. Another company, Forest Management (NZ) Limited, was sentenced in late 2023 for its health and safety failures unrelated to the death. “Jake Duncan was a treasured father, partner, son, brother, and friend. The forestry industry owes it to whānau to ensure workers get home safely each day,” says WorkSafe’s area investigation manager Paul Budd. Businesses must manage their risks and up to date, site-specific risk assessments are a must-have in forestry. Plugging and bridging is an unstable method, and logs should be cleared as soon as possible to avoid coming loose. “Jake Duncan’s workmate only survived because he jumped in the opposite direction as the log came down the hill. The terror the two men must have endured as they saw the log coming towards them is unthinkable,” says Paul Budd. WorkSafe’s new strategy zeroes in on forestry because its fatality rate is nearly 20 times higher than the average for all industries. Our priority plan for the sector notes workers hit or trapped by a moving object as a specific source of high harm. WorkSafe’s targeted frontline activities in forestry will be increasing as there are opportunities to significantly improve health and safety, reduce acute harm, and address inequities. WorkSafe's role is to influence businesses to meet their responsibilities and keep people healthy and safe, and where they don’t, we will take action. More >> Source: Worksafe NZ Napier Port results log increaseNapier Port, the freight gateway for the central and lower North Island, has released a robust annual report, which also highlights the regional recovery and rebound of volumes post-Cyclone Gabrielle. Napier Port is well positioned for further growth, with positive momentum across its diverse trade base and revenue streams.Napier Port Chairperson, Blair O’Keeffe, said, “It is pleasing to deliver a strong financial result that demonstrates Napier Port’s capability to deliver with improved operating conditions. As the regional recovery continued during the year, cargo volumes rebounded, and the operating leverage developed over recent challenging years saw a set of milestone financial results achieved." New infrastructure investment has allowed for greater volumes of log exports and the bounce back in containerised exports of fresh produce, apples, meat, and timber. Mr O’Keeffe said, “The announced closure of WPI was a disappointing outcome for their local Rangitikei community, Napier Port and New Zealand manufacturing. We await the outcome of the potential asset sale process and in the meantime are supporting WPI’s parent group with additional log exports." Growth Bulk cargo volume increased 9% to 3.47 million tonnes, from 3.18 million tonnes a year ago. The increase was largely due to 13.5% growth in log volumes to 2.87 million tonnes, compared to 2.52 million tonnes in the prior year. Log volume was supported by cyclone affected windthrown logs and redirected logs, that would have otherwise been processed into wood pulp or timber. Outlook While inflation pressures globally are retreating, regional exporters continue to face elevated uncertainty in key international export markets. The regional recovery post Cyclone Gabrielle is continuing, and Napier Port looks forward to Pan Pac building to more normal operating levels at its pulp mill during the first half of the 2025 financial year. Log exports are continuing to flow steadily and there is raised expectations amongst exporters that export market conditions will continue to improve. Napier Port continues to see demand from exporters for storage space and shipping as the supply of maturing logs remains strong. More >> Source: Napier Port A champion of Australia’s forest industries retiresAfter a remarkable 65 years of dedication to Australia’s forest industries, Peter Crowe OAM, is retiring from his last official position as Chair of the Softwoods Working Group (SWG).“Peter's unwavering commitment and invaluable contributions have been instrumental in shaping the future of the softwoods industry in Australia,” SWG Executive Officer, Carlie Porteous said. Peter's journey with the SWG began in 1987, and over the decades, he has played a pivotal role in advancing sustainable forestry practices, fostering industry collaboration, and advocating for innovation. His knowledge, leadership, and vision have left an indelible mark on the industry, earning him the respect and admiration of colleagues and stakeholders. “Peter has been a driving force behind numerous initiatives that have strengthened the softwoods sector. His efforts have enhanced the industry's economic viability and helped ensure its environmental sustainability for future generations, including the commitment to good fire management practices, weed management and tree breeding," said Ms Porteous. He started work in the forest industries in 1959 when he joined the NSW Forestry Commission, where he worked in various positions until 2006. Since then, he has worked as an industry consultant and advocate, championing many advancements in the timber industry including plant breeding initiatives, which have improved the quality of timber grown in plantations. Mr Crowe said he could enter so many older plantations and remember when the first trees were planted and in numerous cases, he helped plant them. “I am extremely proud of working in such a vibrant renewable industry alongside so many fantastic, committed individuals who have recognised the importance of forestry and its contribution to the development of regional Australia,” he said. Ms Porteous said as the industry celebrates Mr Crowe’s retirement, it is a time to reflect on his remarkable achievements and the legacy he leaves behind. “His passion for forestry, dedication to excellence, and unwavering commitment to the industry's growth will continue to inspire us all,” she said. “The SWG extends its heartfelt gratitude to Peter for his exceptional service and wishes him all the best in his well-deserved retirement. We look forward to continuing the work he has championed and building on the strong foundation he has established.” Source & image credit: SWG Picterra unveils new solution for compliance monitoringPicterra has introduced a new all-in-one platform for plot monitoring, reporting and verification. This innovative tool is designed to support companies in the supply chains of soft commodities and forestry in meeting their compliance and sustainability objectives.The new platform, Picterra Tracer, simplifies and enhances the processes of creating, validating, analysing and monitoring land plots and boundaries. Leveraging satellite, drone and aerial imagery, alongside global and regional open-source layers and a user-friendly geographic interface, Picterra Tracer provides precise and reliable plot analysis. Picterra Tracer’s automated data verification and correction tools ensure that all incoming data is accurate, consistent and compliant with regulatory standards such as the EUDR. The platform’s ability to automatically map plot boundaries from minimal information further simplifies the creation of accurate land boundaries. Interactive data visualization features allow users to review environmental layers, such as deforestation detection, before exporting results into a comprehensive report with a single click. This functionality enhances transparency and enables effective decision-making across the supply chain. Frank de Morsier, co-founder and COO at Picterra, highlighted the platform’s value: “Regulatory requirements such as the EUDR and the demand for transparent sustainability practices have created immense pressure on companies to manage their supply chain and associated geospatial data more effectively.” More >> Source: GIM International Hawke’s Bay Forestry Awards 2024The strong forestry sector of Hawke’s Bay came alive on Friday night at the Hawke’s Bay Forestry Awards held at the Napier War Memorial Centre, a gathering that celebrated resilience, innovation, and extraordinary contributions to the industry. With the event hosted by the talented Jeremy Corbett, renowned for his role on TV’s Seven Days, the evening witnessed a full house united in recognition of our industry’s heroes rising to tackle the challenges of the past two years.This year’s awards emphasized the immense strength of the forestry community as it emerged from the profound difficulties wrought by Cyclone Gabrielle in 2023. A highlight of the evening was the presentation of the Adversity and Rebuild - Recognition of Dedication and Industry Service Award, bestowed upon the Hawke’s Bay Forestry Group (HBFG) by Tania Kerr, Deputy Mayor of Hastings District Council. This accolade celebrates their extraordinary leadership and commitment to community recovery following the cyclone's impact. One of the evening's standout winners was Amy Satherley of ATS Logging Limited, who was celebrated as the Woman of the Year Excellence and awarded the Skilled Professional of the Year 2024 Trophy. Amy’s tireless commitment to both her team and community, alongside her impressive achievements in mentoring and health and safety advocacy, epitomizes the spirit of leadership in our industry. The awards showcased a remarkable spread of talent and dedication across various companies within the Hawke’s Bay forestry sector. James Powrie, CE for the Hawke’s Bay Forestry Group spoke, “In the two years since our 2022 awards, Cyclone Gabrielle provided many challenges and changes for us all. The clean-up and the rebuilding effort has been massive.” Together, the forest sector celebrated the remarkable individuals and organizations that continue to elevate the forestry industry in Hawke’s Bay, showcasing a spirit of dedication and excellence. Results: Hawke’s Bay Forestry Skilled Professional of the Year
Source & image credit: Hawkes Bay Forestry Awards Prototype mass timber gingerbread houseA research team in Oregon has unveiled a mass timber prototype home that seeks to showcase a sustainable, energy-efficient alternative to traditional home construction. Designed by the TallWood Design Institute, a collaboration between the University of Oregon and Oregon State University, the 760-square-foot project was unveiled at an open house event on November 7th.The home, built from locally sourced mass plywood panels produced by Freres Engineered Wood, aims to address key issues such as affordable housing shortages, wildfire resilience, and economic sustainability. Unlike conventional timber construction, the home is constructed of mass plywood panels shaped to fit together like pieces of a gingerbread house, the team says. Through the project, the team imagines a future where a home could arrive in a flatpack similar to an IKEA bookshelf, with a crew and small crane assembling the pieces in a more efficient manner than traditional construction. More >> Source: Archinect News Image credit: University of Oregon JobsBuy and Sell
... and one to end the week on... The MAiZE from above
The massive corn industry in America serves three primary functions: livestock feed, ethanol production, and corn mazes. Having to find your way out of a corn stalk labyrinth before the sun sets at 4 PM is one of autumn’s great joys. And while some would argue that looking at mazes from above is cheating, we’d counter with this cool image of corny words written in Portland’s The Maize. Source: Planet Labs And on that note, enjoy your weekend. Cheers. Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
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