Friday Offcuts – 5 February 2009
Click to Subscribe - It's FREE! Offcuts is one day early this week as the Kiwis will be taking their one day National Holiday - Waitangi Day - tomorrow. We said last week that in the current economic climate we'd endeavour to bring you news that "accentuated the positive". The news amongst the gloom for the forest products industry in Australasia was really pretty good this week.In Australia on Tuesday the Government unveiled a AU$42 billion Nation Building and Employment plan. The aim is to retain 90,000 jobs over the next two years. The centrepiece of the new package is AU$28.8 billion in spending that's planned for schools, housing, community infrastructure and roads and support to small business. Most of the spending has been earmarked for 2009-10 and 2010-11. This week's announcement is the second major economic stimulus package the Australian Government has bought out since the AU$10.4 billion economic security strategy which was released in October. On the New Zealand side, hundreds of millions of dollars in tax relief for businesses to help them through the recession was unveiled yesterday. Of much greater significance though to the NZ forestry industry was the announcement on Tuesday that the Government is making a bold move - as promised - with over 100 changes to the Resource Management Act planned (see story below). Current legislation as the Prime Minister John Key puts it, has been a "huge frustration" and a "handbrake on growth". The Kiwi forest products industry can rattle off a large list of planned expansions that have been written off, new investment that has been deferred or investors that have simply looked elsewhere because of the inordinate amount of time being taken for consents under the RMA and the opportunity that's often taken with frivolous objections. The new Government has to be congratulated with reforms such as streamlining processes for projects of national significance, improving plan development and plan change processes, streamlining decision making and improving workability and compliance - issues that have being raised with the previous Government by forestry interests for the past nine years. Finally, as a follow-up to a story in last week's issue, a reader has commented on the growth and potential for coconut wood products in both New Zealand and Australia. Further details can be found on e-letters
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This week we have for you:
2009 Tech events attracting keen interest
Another full programme of technology events has been set up for forest products companies on both sides of the Tasman for 2009.Attached for your information is a listing of FIEA Technology programmes planned for this year. Websites for all of the events have now been set up and can be accessed for further information on the programmes. Interest in presenting or exhibiting at this early stage can also be made. Events include: - Wood Preservation 2009 Tools, Technologies and Product Opportunities 15-16 April 2009, Rotorua, New Zealand 21-22 April 2009, Brisbane, Australia www.woodpreservationevents.com - Residues to Revenues 2009 Wood Management, Handling & Combustion Technologies to Improve On-site Energy Efficiencies 10-11 June 2009, Rotorua, New Zealand 15-16 June 2009, Melbourne, Australia www.woodresiduesevents.com - SawTech 2009 Sawing Technologies to Improve Mill Performance 9-10 September 2009, Rotorua, New Zealand 14-15 September 2009, Melbourne, Australia www.sawtechevents.com - ForestTECH 2009 Tools & Technologies to Improve Forest Planning & Operations 10-12 November 2009, Rotorua, New Zealand 16-18 November 2009, Albury, NSW, Australia www.foresttechevents.com Ambitious changes planned for Resource Management ActAlong with a suite of planned changes, a new Environmental Protection Authority will be established to speed up consents for major building and infrastructure projects under plans to reform the Resource Management Act, announced by Prime Minister John Key on Tuesday. The Government will make more than 100 changes to the existing law, with legislation to be introduced this month.The most important part of the announcement is allowing applicants for projects of national importance to apply directly to the Environmental Protection Authority a new agency being put together out of parts of the Ministry for the Environment and the Environmental Risk Management Authority. The EPA can then refer the application to a board of inquiry made up of experts in the field. More >> Wood insulation properties studied
Lincoln University researchers have studied the paradox of houses built from solid wood seeming to have greater levels of heat retention and cosiness than the insulation value of the wood wall itself would suggest. On their own, solid wooden walls have a fairly low R-value - meaning that theoretically the walls should not provide a particularly high level of thermal insulation."But the R-value is just a measure of the material's resistance to heat flow," Research Engineer Dr Bellamy said. "It only says how much heat is passing through, not how much is being stored." Researchers discovered the answer to this puzzle was wood's superior thermal mass. Having worked extensively with the concrete industry where concrete's ability to store heat is well known, Dr Bellamy was not expecting wood to provide as much thermal benefit as it does. Traditionally brick and concrete were thought to have superior insulation and passive solar heating properties, but the researchers have shown that somewhat surprisingly, weight-for-weight, solid wood actually has over 2.5 times the thermal mass of concrete. When comparing walls of the same thickness, due to the different densities of the two materials, concrete will still have greater thermal mass, but the little-appreciated thermal retention properties of solid wood walls means they do in fact play a significant role in regulating the interior comfort of a house. They store the sun's heat during the day and release it into the house at night. Dr Bellamy used a Danish building simulation model to confirm that when the thermal mass effect was added to the relatively low R value of the external walls, the solid wood house performed very favourably. The thermal performance of the solid wood house was further increased when solid wood internal walls and ceilings were used. "Basically, the more wood you use the better, Dr Bellamy said." Source: NZ Wood BC Government takes over pulp millThe B.C. government has taken over operation of the Mackenzie pulp mill - and a potential C$50-million clean-up bill - to prevent an environmental disaster after the mill's Alberta owner stopped paying employees and transferred the company to an address in Slovenia. Workers describe the mill as being so badly maintained that they are scrounging from empty oil cans to find enough fuel to keep machinery operating. They are owed 12 days' wages and if they leave, systems that keep toxic chemicals safe would freeze in -20 C temperatures.Initially, the province intends to keep the pulp mill in a "warm shutdown" mode, keeping the plant's sensitive electronics and volatile chemicals from freezing. For the long term, the government is seeking third party advice "in the event that it has to continue to participate in the site over the long term. At this stage it's too early in the crisis to determine how deeply the province intends to get involved, but it could be a long-term obligation. It could be stuck with a clean-up bill of C$30 million to C$50 million. Source: TLA New Business Development Manager for Osmose AustraliaOsmose Australia General Manager, Elias Akle, has announced the appointment of Mr. Nick Livanes as the Australian Business Development Manager effective from February 2009. When discussing his new role, Nick explained that his experience in market development roles and most recently as Executive Officer with the Frame and Truss Manufacturers Association (FTMA Australia) will assist him in his new role. Nick will also continue to work with FTMA Australia in standards representation and in assisting the FTMA Australia Board. In recent years Nick has assisted the plantation pine manufacturers develop and implement the BluePine marketing campaigns, web-sites and regional television commercials and in representing the treated pine industry to Government.Coals to Newcastle - or Chilean Ash to Australia
Eucalyptus regnans or Victorian Ash was introduced into Chile by INFOR, the Chilean national institute for forest research, during the nineteen sixties along with other eucalyptus species. The Vic Ash outstanding growth and tree form by way of trials in Chile, together with references from Australia about Vic Ash timber qualities led a Chilean family owned forestry company to commence planting the species in 1984.Today there is more than 1200 ha of plantation Ash with ages from 2 years to 24 years and ongoing planting to extend the plantations. Harvesting and lumber trials are now under way with excellent quality of sawn lumber being produced. Information on the Chilean Ash being sold is attached in a brochure. A3P appoints Manager Plantation ResourcesA3P has welcomed Gavin Matthew as the new Manager - Plantation Resources. Gavin has over 12 years of diverse experience in forest management, timber processing industries and forest consultancy. Gavin joins A3P from Forests NSW, where he worked in their commercial services branch as the Softwood Sales Manager and Softwood Market Analyst.Sawmill bucks the trend with US$45 million cogen plantIn a bold move in the current environment, the Seneca Sawmill Co. of Eugene in Oregon is building a US$45 million wood-fired power plant that will generate enough electricity to light up 13,000 houses. Construction will begin in October and the cogeneration plant will come on line a year later. The proposed 18.8-megawatt cogeneration plant is expected to produce more than twice the electricity needed to power all three milling operations at Seneca's plant."Cogeneration is having a resurgence with all the emphasis on renewables and the high cost of fossil fuels," said Bill Carlson, a Redding-based consultant who is advising Seneca. Two years ago, the Oregon Legislature adopted a renewable energy portfolio standard that requires large utilities to get 25 percent of the power they sell to retail customers from renewable sources. The state and federal governments have renewed or improved tax credits and other incentives that make it easier for companies to pursue renewable energy projects. The Seneca project is likely to qualify for a US$10 million state tax credit for construction and additional federal credits based on the energy it generates. Source: TLA China facing a pending log supply shortageWhile Russia's move to an 80% log export tax has been delayed to late 2009, the projected reduction in Russian log production and exports in combination with higher log export costs (due to the current 25% tax with a minimum of euro 15/m3) is increasingly putting pressure on global log markets. China, Japan, Scandinavia and the Baltics have already incurred major negative fall-out as a result of the 25% log export tax - to the point where new wood supply strategies have been rapidly implemented.A new report produced by the WOOD MARKETS Group on the Russian Log Export Tax report highlights some key market reactions to the taxes: - The volume of Russian softwood log exports will plummet through to 2012 as a direct result of the log export tax schedule. Supply is expected to steadily decrease to Russia's seven largest softwood log export markets. - Global log trade disruptions from Russia will create new log export opportunities for major global softwood log exporters, especially in the key Asian markets of China, Japan, and South Korea. - It is now expected that new capital investment in the Russian wood products industry will be delayed or be minimal at best following the collapse of many smaller logging and wood product manufacturing companies in 2008. - Northern China has been the most negatively impacted by the current 25% and will be most affected by the proposed 80% log export tax. - China needs to source new log and lumber suppliers and also step up its own domestic timber harvests. - Wood demand in China continues to increase despite decreases in finished wood product exports as its own domestic wood product market continues to expand. The recent collapse in global currencies (relative to the U.S. dollar and Chinese RMB) - and especially the Russian ruble - could provide some short term relief for supply options. Vice president and co-author Gerry Van Leeuwen states that "The ripple effect from Russia's log export tax will continue to disrupt major log and lumber markets - especially China - and higher prices (or returns to exporters) are a given!" "This means that there are some potentially attractive opportunities for those log and lumber exporters that can create a competitive fit with China, especially during the global market downturn," commented company president Russell Taylor. The current market turbulence leaves China as the only destination that will likely require increased log and lumber imports in 2009 and this is the opportunity for strategic exporters . Source: International WOOD MARKETS Group Inc www.woodmarkets.com/p_russialogexptax.html September 2008 NZ Forestry Production & Trade StatisticsThe September 2008 Forestry Production and Trade Statistical Release is now available on the MAF website. For all forestry statistical tables, please visit www.maf.govt.nz/statistics/forestryWood chemistry used to track origin of timberA researcher is using carbon and oxygen isotopes to track the origin of timber as part of a worldwide effort to develop methods to combat illegal logging. Dr. Akira Kagawa, a wood scientist with the Forestry & Forest Products Research Institute in Tsukuba, Japan, has developed a technique that compares the ratio of various isotopes in tree rings to pinpoint the geographic origin of timber from temperate climates.The technique capitalizes on differences in climatic parameters (temperature and precipitation) over distances - trees that grow in close proximity will show similar fluctuation of stable isotopes; trees growing at distances of 150-300 kilometers away from one another other will show differences in stable isotope fluctuation. The process builds on earlier work that used only tree ring width for determining the origin of wood. Kagawa says the new technique is more precise, but notes that it doesn't yet work for tracking tropical timber that lack tree rings. Tropical timber is important because it is the dominant type of wood in the $10-billion-per-year illegal timber trade. He says that improving current isotope analysis technique, sampling other isotopes or combining the technique with others used for determining the origin of wood (including DNA and chemical extracts) may hold the key for tropical timber. Kagawa presented his research at the American Geophysical Union's annual meeting in San Francisco. Source: Mongabay.com Contact required with timber workers exposed to PCPAllen and Clarke Policy and Regulatory Specialists Ltd (Allen & Clarke) this week released the terms of reference for a project to design and consult widely on a possible support service for workers in the New Zealand timber industry who were historically exposed to pentachlorophenol (PCP). PCP is a chemical that was used as an anti-sap stain treatment in the New Zealand timber industry between the 1950s and 1980s. The chemical was used at certain stages in timber processing only and has not been used in the industry for over 20 years.Recent research (McLean et al 2008) has shown that most timber workers had low exposure to PCP and had mortality rates similar to or less than, national death rates. However, about 10 percent of timber workers were more highly exposed to PCP or worked for more than 10 years in the industry. While their numbers were too small for an assessment of specific health problems, the findings suggested a possible increase in physical and neuropsychological conditions. This also includes a small non-significant increase in cancer mortality similar to that found in other studies on dioxin and health outcomes. Workers exposed to PCP also had higher levels of dioxins in their blood than the other people in the study and other New Zealanders. More >> Jobs
Buy and Sell...and one to end the week on...taking the bus
Two Irish friends leave the pub.
 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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