Friday Offcuts – 30 September 2005
Click to Subscribe - It's FREE! Good morningAs an editor to Offcuts I deliberately make few comments on some of the key issues that we collate and bring to you each week through this e-newsletter. The objective is to stay independent. We have a wide range of readers from an increasingly wide cross section of industries within the Australasian forestry, wood products and paper sectors. However, something caught my eye recently that caused me to question the New Zealand Government's real commitment to encouraging growth in the industry on this side of the Tasman. We reported several issues back on Blue Mountain Lumber's (BML) failed bid (reportedly costing the company NZ$1.5 million) to establish a NZ$30 million sawmill in the Coromandel Peninsula, New Zealand. Granted resource consents to the company were overturned by a local appeal to the Environment Court, mainly based on the perceived amenity values of a stream side piece of land. The company decided with the current legislation that it had no grounds to appeal the court decision. The NZ forestry industry was justifiably outraged when the decision was made in late July. The story doesn't end there though. It appears a Coromandel-based pressure group is now preparing to appeal BML's application for renewal of it's resource consent to harvest trees within it's own 10,557ha of forests in the Coromandel. Much of the appeal is based on the riparian strips alongside streams. The existing resource consent is for a 5-metre strip on either side of the streams. The company is offering to extend this out to 10m. With the regional Council running scared, Environment Waikato is now pushing for 15m either side of the stream and the environmental pressure group, 45m either side of streams. Where it gets even harder for the forestry industry to swallow is that this small environmental pressure group is according to their website and promotional materials, appealing in conjunction with the Department of Conservation. Of course the larger riparian or riverside strips make any harvesting in the area - and most forests in NZ - uneconomic. This latest process has the potential to become as debilitating to the New Zealand forestry industry as the spotted owl issue was to the industry in North America. The only difference is that in New Zealand, the industry doesn't have an endangered species to contend with. I'd suggest the only endangered species the New Zealand Government will have to deal with are existing forestry and wood products companies moving even more rapidly with their feet and prospective investors looking elsewhere as a direct consequence of the current RMA. Make no bones about it, this issue in Coromandel has major ramifications to the future of the forestry industry in New Zealand.
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This week we have for you:
Beetle-killed wood finds a new home in ScandinaviaAs BC continues to battle against mass die-offs of trees due to mountain pine beetle infestations in the interior, new hope is emerging for uses for the beetle-kill wood. A new alliance announced in July between a Vancouver company and Swedish partners will ship wood pellets made from beetle-kill wood to the European market. Wood pellet burners are a common energy source in commercial and residential operations in Europe and Scandinavia. The new venture will build four wood pellet plants in the BC interior to take the beetle-damaged pine. The project will cost C$110 million and will create over 600 jobs. The province provided special beetle salvage licences for tender, to try and combat the problem facing vast tracts of the forest resource, and the new company was the only bidder for the tender. The licence to harvest the wood will only progress following consultation with local First Nations groups.Source: NZTE Market Report, September (www.marketnewzealand.com)Sawmill staff layoffs announced in SA and VictoriaOn Monday, Carter Holt Harvey told staff at its three sawmills in Mt Gambier and western Victoria it was to cut 150 jobs. The company has mills at Myrtleford and Morwell in Victoria and Mt Gambier in South Australia. The job cuts across all departments, including management and operations. The Mt Gambier mill with a workforce of 300 faces the biggest cut with 90 workers likely to lose their jobs. These losses come on top of 38 losing their job at the Mt Gambier operation in January and 50 a year earlier. A slow down in the Australian building industry has contributed to a fall of about 15 per cent in timber prices in the past 18 months.Southern Biomass Trading Floor opens for businessSouthern Biomass Trading Floor opens for domestic and international trading on 1st October 2005. An Australasian initiative to open new trading channels for the burgeoning biomass market is to be launched in Brisbane this week, focusing principally on developing trade markets for green in-forest and mill waste into the demand bioenergy markets of Australia, New Zealand, the South Pacific and Asia.Gaven Ferguson, General Manager Sales & Marketing comments that the enquiry level so far for registration with the Trading has been staggering with over 1,000 domestic and international enquiries being recorded in the past month alone. "The Timber industry on both sides of the Tasman has been aware for a long time that better uses for traditional waste is a key for the future sustainability of our industry. A lot of time, effort and energy has been put into developing technology solutions, often in partnership with Government Agencies and Power Co's, and really we are only still scratching the surface of what is possible. By opening trade doors we believe that momentum will gather within the industry and encourage the industry to become even more pro-active than they have been so far. We're aiming to put the revenue answer in place." In simple terms Southern Biomass Trading sets out to link the product suppliers to the product buyers, both locally and internationally, and in that process will help to identify new markets as well as break into existing markets. For more information refer to www.southernbtf.com Woodwaste - 160MW of untapped NZ electricity generation potentialA recent report has found that the New Zealand forestry industry could become an important contributor to the country's electricity generation. Energy for Industry, a business of Meridian Energy Ltd, held a breakfast forum in August to highlight their report and further discuss its findings with the industry.The EECA funded report, Evaluation of Opportunities for Distributed Electricity Generation, examined a range of technologies and concluded that utilising wood wastes could generate up to 160MW of electricity. Wood processing sites was in the best place to realise this opportunity. Other sectors like dairy and pulp could also add to the grid through their on-site generators. Energy for Industry has already installed a number of cogeneration plants and sees further promise in a number of regions around New Zealand. Other opportunities include, for example, an 8MW green wood waste fuelled plant in Canterbury and an up to 25MW of generation on the East Coast. Detailed information on the opportunities of utilsing forest and wood wastes for energy production will be outlined in Residues to Revenues 2005. Registrations continue to stream in from both forestry and wood products companies for both events. The full programme can be downloaded from www.innovatek.co.nz Concern about potential scams out of ChinaNew Zealand Trade and Enterprise (NZTE) has become increasingly concerned about suspected scam activity in parts of China in recent months. NZTE is aware of 12 New Zealand and Australian companies that have received trade enquiries and draft purchase contracts from companies predominantly in Kunming, in the Yunnan Province, and also from Shenzhen, Haikou and Nanning in China.A number of these enquiries are from Chinese buyers looking to import the New Zealand or Australian company's products and inviting the potential exporter to visit them to sign contracts. Chinese companies have asked for expensive gifts for relationship building purposes and in two cases have had no further contact with New Zealand and Australian companies once the contract was signed. New Zealand companies have so far received such enquiries for stainless steel parts, boats, paint, tea and lumber. New Zealand companies seeking further information should contact John Bedkober, NZTE International Market Manager - North Asia, email john.bedkober@nzte.govt.nz or phone 07 362 7865 in the first instance. US$12 billion impact to forest products sector following KatrinaThe forest products sector was the single worst affected industry in Katrina's path, according to reports coming out of the US. Although too early to accurately assess, impacts from Hurricane Katrina on the forest products industry could approach US$12 billion. The first governmental estimate put out on 15 September estimated that Katrina damaged or destroyed approximately 19 bbf of standing timber with an estimated value of US$5 billion in Mississippi, Alabama and Louisiana. The Mississippi Forest Recovery Task Force more recently estimated pulpwood and sawn timber damaged in the state equal to approximately 60 million tons. This volume represents about two year's of annual harvests for the state. Other factors impacting on the cost of the hurricane on the industry include skyrocketing fuel costs in harvesting nationwide and near the Gulf impact area, lost production and inventory including lumber, plywood, pulp, paper and board.1.7m ha of eucalyptus plantations established in ChinaEucalyptus has become a strategic species in the establishment of fast-growing and high yielding plantations in the southern areas of China. About 1.7m hectares of eucalyptus plantation have been established in Guangdong, Guangxi and Hainan for the paper, pulp, and fibre industries. Eucalyptus is widely used for pulp and paper, medium density fibreboard and furniture manufacturing as well as for wood chips for export. According to preliminary statistics, 540,000 farmers, private entrepreneurs and foreign businessmen are investing in the establishment of eucalyptus plantations in Guangdong Province.Source: ITTO Tropical Timber Market Report, August 2005Logging ban posing problems for Philippines furniture manufacturersThe Philippines stands to lose about US$217 million in annual export revenues of wood and other wood products as a result of the selective ban on logging that the Department of Environment and Natural Resources (DENR) enforced in March this year. Under the ban, logging covering at least 2.3 million hectares will be allowed only in two to three regions. Caraga and Davao in Mindanao are proposed as the only areas where logging would be allowed. As a result, the country's wood imports of PHP560 million annually are expected to grow. Every year the Philippines imports some 3 million cubic metres of wood products, of which 1.5 million cubic metres go to the furniture industry. New Zealand is considered a source of timber materials for furniture manufacture.The new policy on logging is the DENR's response to the clamour of the wood industry to lift the suspension on logging except in private plantations. The Philippine Wood Producers' Association said that its members have defaulted on some $130 million, or more than PHP7 billion, worth of contracts owing to the shortage of raw materials for wood production. The group wants to lift the suspension on logging in areas not hit by flash floods and landslides in November and December 2004 to enable its members to recover billions in financial losses.Source: NZTE Market Report, September (www.marketnewzealand.com) Nordic sawmills working with the U.S. and Canada in ChinaThe Nordic Timber Council and the collaborative effort European Wood have begun working with the U.S. and Canada to improve opportunities for building with wood in China. Initially, this unique partnership involves fire regulations and codes that currently limit the use of wood in the building sector. "The collaboration between the Canada Wood Group, the American Forest & Paper Association, European Wood and the Ministry of Public Security is a breakthrough for long-term efforts. By cooperating across continents, we are improving our ability to influence and contribute to efforts," explains Jan SFuture Australian forestry skills audit welcomed by industryAustralian Government funding of AU$165,000 has been allocated to a future skills audit of the forest industries. The National Association of Forest Industries, in conjunction with the Australian Plantation Products and Paper Industry Council (A3P), have welcomed the announcement that Australian Government funding of AU$165,000 will be allocated to a future skills audit of the forest industries."We welcome the announcement by Australian Government Ministers, the Hon Gary Hardgrave MP and Senator Ian Macdonald," said NAFI's chief executive Catherine Murphy. "NAFI looks forward to working with A3P in managing the project, looking across plantations, forestry, harvesting, transporting, processing, retail and wood product exporting," she added. A3P CEO Mr Neil Fisher said "that having our two organisations jointly managing this project will ensure a seamless audit from Plantation to Paper." "For our industries to make their continuing contribution to the rural and regional economies we need to identify our skill needs and introduce strategies that address those needs as a priority," he said. Preliminary assessment indicates that a further 10-13,000 full-time employees will be required in timber growing, harvesting and processing. "This information can be applied to deliver the future training needs in the forestry regions around Australia through the new forest industry training package that is currently being completed by the Department of Education, Science and Training (DEST)," said Mrs Murphy. Source: NAFI News Future of NZ forest contractingThe future of both the forest industry and many of its contractors hangs in the balance as low market returns and high fuel prices take big bites out of everybody's margins. This year's Forest Industry Contractor's Association's Annual Conference is planned for Nelson on 27 October 2005. It has lined up an excellent group of speakers who will be focussing in on helping forestry contractors' businesses grow stronger in the face of tough economic times. The event will detail how to get better contract outcomes with a number of speakers from the finance, accounting and insolvency professions set to make presentations on how to protect contracting businesses from avoidable risks. The full programme can be downloaded from the Events Page on www.fica.org.nzNew Zealand forestry gains global recognitionA recent FAO publication has recognised a number of New Zealand forestry projects as exhibiting exemplary forest management. "In Search of Excellence: Exemplary forest management in Asia and the Pacific" details 28 examples of excellence, three of which are from New Zealand. A further 129 projects are summarised, including 13 from New Zealand. "For New Zealand to have over 10% of the recognised projects is a remarkable achievement, and shows the enormously high international respect for our forest management, both plantation and natural forest" said NZIF President Jaquetta (Ket) Bradshaw.Of the three examples of excellence, Lake Taupo Forest is a plantation forest, Woodside Forest is a mix of plantation forest and native forest, and Forever Beech manages native forest."The recognition of Woodside and Forever Beech in a situation where management of native forests has been facing strong criticism is of particular merit" says Ms Bradshaw, "and reaffirms that sustainable management of natural forests is achievable. At a time when New Zealand is importing increasing amounts of specialty timbers, particularly from unsustainably managed forests, then the ability to supply similar timbers from sustainably managed forests within New Zealand should be recognised and supported." Lake Taupo Forest is a joint venture between Ngati Tuwharetoa and the New Zealand government, and was recognised as an outstanding example of a joint venture between indigenous peoples and government. Here government funding has helped establish a commercial land-based venture with substantial and ongoing input from the landowner, while protecting the landowners land rights. Over time Ngati Tuwharetoa will assume total control of the project. Equipment for SaleWood Manufacturing Machinery for SaleThe entire plant of Abraham Furniture, Waimate, New Zealand is for sale by negotiation, with over 120 items of plant including: 1. SCM, superset 23 "plus" 6 head moulder, capacity 230mm x 120mm 2. Grecon, optimising defecting saw 3. CMS, PF/1-R8-RR machine centre 4. Taylor, 20 section clamp carrier with 120 / 44" clamps 5. Four Spray booths complete with extraction fans and enclosed lighting. The full list of 126 items of plant can be seen on an attached PDF on Offcuts equipment page. www.fridayoffcuts.com/dsp_equipment.cfm For further information on these items please e-mail john@abrahamfurniture.co.nz or call John Abraham on Ph:+64 3 689 8112. SALEM 6" X 40" bottom arbor board edger Harveywood has for sale a used Salem 6"x 40" bottom arbor edger. The machine was built in 1980 and has four shifting saw guides with a fifth rod for an additional shifter. At present there is a minimum between saws of 75mm and it has a splined #3 saw arbor. Four new saws also come with the edger. For more information please contact: Brendon Harvey, Ph: + 64 3 417 4786 or e-mail: harveywood@xtra.co.nz For further details on this equipment for sale go to www.fridayoffcuts.com/dsp_equipment.cfm Situations VacantHead Saw-doctor - PinetecPinetec is an expanding Western Australian company. In October the company is looking to commence production at their new sawmill and wood-processing complex at Collie, south of Perth, WA. The company requires the services of a head sawdoctor with experience in high strain band saw and chipper canter operations. The company has two sets of high strain quad band saws, two chipper canters, a high speed board edger and disc chipper and sorting and stacking line with inline trimmers. The sawshop is equipped with new Armstrong equipment including CNC grinders and auto leveller. This "hands on" management position will have responsibility for supervision and training of staff in the sawshop and trouble shooting of saw station related issues and maintenance all associated equipment. An attractive remuneration will be offered to suitable high calibre tradespeople. For further information contact Graham Wimsett at grahamw@pinetec.net For the full advertisement check out the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Senior Horticulturalist - Horizon2 Horizon2 is Australasia's largest producer of forestry treestocks. With sister companies in New Zealand and Australia, Horizon2 activities span research and product development through to nursery and greenhouse production operations. With head office in the Bay of Plenty, NZ, the company operates nurseries and greenhouses in the BOP, Gisborne, South Waikato, Northland, and Nelson in New Zealand, and Victoria in Australia. Production capacity exceeds 45 million tree-stock units with production achieved under a structure that includes nursery managers, crop production coordinators and external contractors. The company is currently looking for two Senior Horticulturalists for its Tokoroa (NZ) and Colac (Vic, Aust) nurseries. The nurseries currently produce around 8 million and 12 million radiata tree stocks respectively each year for distribution throughout New Zealand and Australia. The successful applicants will have extensive experience in managing production in horticultural open-rooted and containerised nurseries (ideally forestry based). For further information contact nikki.kilpin@changesolutions.co.nz by 20 October 2005. Further details on the full advertisement can be seen on the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Electrical Tradespersons - Hyne Timber Hyne Timber's Tuan mill is located 20km southeast of Maryborough, Queensland. The focus of the positions is to provide engineering services support to state of the art saw line, kilns and planer line equipment within the Structural Softwood Division. The successful applicant/s will hold a current trade certificate, have a positive attitude and ability to work in a multi-skilled teamwork environment, be self-motivated and prepared to work with minimal supervision and an ability to work flexible hours, including shift work and overtime. Applications close on Friday October 14, 2005. For more information contact Yvonne Loveday on yvonne.loveday@hyne.com.au or check out the advertisement on the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Production Manager, Hyne Timber, Structural Softwood Division, Tuan Mill Reporting to the Tuan Site Manager, the focus of the position is managing the production operations to achieve the required standards for safety, quality, environment, risk, product mix, cost-control and customer service. The principal qualification for this position calls for the applicant to demonstrate a proven record of achievement in essential criteria areas including an ability to motivate and lead employees, provide process management leadership and focus to operational, engineering and project personnel, an ability to identify the key business drivers to facilitate continuous process improvement and have significant operational experience at all levels of the production process. A remuneration package will be negotiated relative to skill and experience. Applications close on Friday 14th October 2005. For more information contact Yvonne Loveday on yvonne.loveday@hyne.com.au or check out the advertisement on the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Kiln drying positions-TDC Sawmills Due to the near completion of stage one of TDC Sawmills expansion project, internal appointments have left the company with the following opportunities for highly skilled people to join their dynamic, well-respected business. The company currently have openings for a Dry Mill Night Shift Supervisor and an experienced Kiln Operator. The Dry Mill processes approximately 120,000m3 of dried timber over two shifts. The kiln operator will be operating the ACT and HT kilns on a 4 day on, 4 day off rotating (Day/Night) shift system. Previous kiln and/or boiler experience is preferred, but not essential. For further information please contact Ph: +64 9 438 2006. Applications close: Monday 3rd October 2005. If you believe you have the skills, experience and attributes for any of these roles, complete an application form and send to: Dry Mill Vacancies, H.R. Department, TDC Sawmills, P O Box 11-041, Whangarei, New Zealand. The full advertisement with further details on the position is available on the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Forest Manager (Central South Island) Blakely Pacific Ltd is seeking a Forest Manager to join their team in the South Canterbury, North Otago region of New Zealand. The Operations office is based in Timaru. Blakely Pacific Ltd is a US family owned forest company dating back to 1864. Blakely Pacific owns and manages 28,323 Hectares of FSC certified forests in New Zealand and is committed to growing sustainable forests. Information on Blakely Pacific Ltd and its parent company can be found on its website, www.blakely-pacific.co.nz Applicants must have extensive management experience in all general aspects of forest fieldwork, in particular: Production Coordination, Harvest Planning, Harvest Systems, Wood flow Planning, Road Engineering and Log Value Recovery expertise. The successful applicant will have a minimum of 5-10 years experience in operational forest management and a degree or diploma in forestry. Applications close Friday 30th September 2005. For further information contact Claudine Lemon, Phone: +64 3 365 2846 or clemon@blakely-pacific.co.nz The full advertisement with further details on the position is available on the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Wholesale Timber Sales - Sydney Programmed Timber Supplies is expanding their internal/external sales team. This growing and well experienced company is committed to provide a genuine service in the processing and supply of targeted timber products across a range of wholesale and industrial markets. Interest is sought from people with a strong industry understanding and a passion to offer customers the highest level of focus on products and services aimed directly at meeting the client's business needs. Based in western Sydney, applicants should have a management approach with practical ability to their sales and marketing. Contact John Nutt in strictest confidence at jnutt@ptimbers.com.au The full advertisement is available on the jobs page on www.fridayoffcuts.com/dsp_jobs.cfm Jobs
Buy and Sell...and one to end the week on...train travel
Sent in by an Australian of course. Sitting together on a train, travelling through the Swiss Alps, were a Kiwi guy, an Australian bloke, a little old Greek lady, and a very attractive blonde Swiss girl. The Train goes into a dark tunnel and a few seconds later there is the sound of a loud slap. When the train emerges from the tunnel, the Kiwi has a bright red hand print on his cheek. And on that note, have a great weekend. Cheers. Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
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