Firstly, thanks to all of you who have provided feedback this week and comments on the value of the new resource, the Technology Showcase. It went live last week. In less than a week we've already received more than 500 hits on the page. It's obviously struck a chord with our readers. Outstanding.
A final reminder for all forest managers, owners and consultants. For those interested in attending the new forest technology programme Forest-TECH 2007 running in Rotorua, New Zealand on 13-15 March 2007, today is the last day that significant discounts (early-bird rates) off registration rates will apply.
Registrations are now pouring in from throughout New Zealand and Australia. What's really interesting is the number of Australian companies that will also be coming into Rotorua for the event. To date, around a third of registrations have come from Australian forest owners. Like New Zealand, Australian forestry companies have been saying that there has been a complete vacuum for independent programmes on new tools and technologies that can be used by forestry companies to improve their operational performance.
For those still who have yet to make the decision - what is Forest-TECH 2007? In short, it's been designed by a wide cross section of forest growers and managers over the last 3-6 months. It comprises an integrated series of practical workshops, managed exhibitions, demonstrations and field visits. It will cover; " new technologies for improving plantation silviculture " developments in data collection tools, forest management information systems and growth modelling " innovations in remote sensing for forest inventory and mapping, and, " scanning systems for determining internal log defects. With registrations to date, we can guarantee it's going to be a full house - one of the larger gatherings of forestry technical staff for many years. For those yet to see the programme, full details can be found on www.innovatek.co.nz.
If attending, it may be useful - after you've browsed through this week's issue of Offcuts - to fill in and fax those registration forms in by the end of the day or complete the electronic registrations on line.
Two long-established engineering companies this week have announced a merger. Christchurch-based Southern Cross Engineering Ltd (SCE) is to merge with Auckland's Wilson Engineering Systems Ltd (WES), becoming the largest provider of engineering services to the Trans-Tasman timber industry.
According to SCE chairman Doug Marsh, SCE and WES have a combined total of 70 years in the industry, and have enjoyed what he describes as a healthy but respectful business rivalry. "Although both operate in provision of systems for the timber processing sector, the two companies are largely complementary".
"This merger is the culmination of three years of strategic development at SCE, which has ranged from major redevelopment of the company's Christchurch premises, including an expansion of the workshop, new offices and increased investment in capital plant, to securing a number of large overseas contracts, including work in Brisbane and Brazil and pursuing strong prospects in Laos and Papua New Guinea".
"For the Canterbury economy, this merger will mean additional local purchases and additional jobs. We expect 20 per cent growth in staff numbers to meet the projected workload that will result from the two companies merging. Doug Marsh said the merged company aims to achieve annual turnover of NZ$40 million, projecting that over 50 per cent of this will be via exports. Founder and principal of WES Alex Wilson will remain in the company as the general manager of WES for Auckland and Melbourne.
Australian pulp mill projects secure financial backer
The Australian investment firm, ANZ Infrastructure Services (ANZIS), will be a co-developer for the proposed Heywood and Penola pulp mills in Australia, according to the Australian Plantation Products and Paper Industry Council.
Backing from ANZIS will pave the way to a much-needed financial injection for the pulp mill projects, according to the original project developer, Protavia. Construction of the Heywood mill in Victoria was scheduled to begin last year, but the firm had problems securing financing for the 350,000 tonne/yr hardwood CTMP plant.
The Penola project in South Australia - another 350,000 tonne/yr hardwood CTMP plant - is still in the detailed engineering design phase. Both projects are scheduled for a 2009 startup. The schemes will cost A$1.3 billion in total. Source: RISI Pulp & Paper
NZ forest industry remains united on climate change
The NZ Forest Owners Association says the forestry sector is united in its opposition to the Government's land use climate change proposals. "Each organisation in the industry is free to respond to the proposals in its own way. But our Association, the Federation of Maori Authorities, the NZ Farm Forestry Association and the Kyoto Forestry Association, fully supports the six point plan which we put to all members of parliament in mid-2006," said NZFOA chief executive David Rhodes, in response to a media release issued by Forestry Minister Jim Anderton this week.
"It is very important the Government and its support parties understand that the nationalisation of private assets without compensation is totally unacceptable." "Just because you can't see the carbon that's locked up in trees doesn't make it any less real. It has value, it's measurable, and it exists only because thousands of individuals and companies decided to invest their money in growing trees on land which was once in pasture."
He says imposing a deforestation tax on those who planted trees before Kyoto was even thought of is also unacceptable. "Regardless of the level at which it is set, the tax is forcing forest owners into a three-way dilemma. They can cut their trees down and change land-use before the end of 2007 without penalty, they can change land use after 2007 and pay the tax, or continue growing trees on possibly unsuitable land."
Sawmillers given tools for valuing wood wastes
New Zealand sawmillers are being encouraged to find economic value in wood waste, with the help of a range of online bioenergy calculators. The calculators, developed by bioenergy specialists at Crown Research Institute Scion in Rotorua, New Zealand have been created to help the 300 odd sawmilling companies in New Zealand find ways to reduce costs by using wood waste for energy.
In sawmilling about 50 percent of wood ends up as a waste product. But that 'waste' does have different uses - for example bark can be sold to garden centres, or the wood can be used as a fuel to replace fossil fuels such as coal. Michael Jack, a senior scientist in Scion's bioenergy group, says wood waste is often viewed by sawmillers as having no value, so the calculators are aimed at helping them asses the economic value of the waste wood as a fuel and determine the most beneficial technology for extracting that value.
"Often sawmillers will come up with some good ideas for how to use the wood waste they create, but to test out their theory can be expensive. By using the tools we've created, they can get an estimate of the economic return and value - before getting consultants involved in feasibility studies," he says. The tools that are available include estimating the economic value of wood waste, assessing the economic return from replacing fossil fuel burners with wood waste alternatives for heat and power generation, and calculating the energy content of wood waste.
"There's a lot of science behind the calculators and they are based on the knowledge Scion has gained over many years. But we are presenting that science in economic terms that has meaning and real application for sawmillers," Dr Jack says.
The calculators are aimed at small and medium sized companies as pre-feasibility decision-making tools. Dr Jack says the calculators are unique because they are specifically designed for sawmillers. "There is a lot of general information about bioenergy out there but it is often very technical. It is difficult for any industry to get specific quality information that they can actually use to make a difference to the way they do business. That was our challenge," he says.
The bioenergy team is planning to expand the calculators to include tools for forest growers to look at the value that can be gained from using wood waste produced during harvesting for bioenergy. The calculators are part of a new Bioenergy Knowledge Centre, an initiative funded by the Forest Industry Development Agenda Bioenergy Programme.
Sawmillers can access the calculator at www.bioenergy-gateway.org.nz or can get more information at 0800 BIOENERGY.
Massive biofuel program to go ahead despite int'l concerns
International criticism of Indonesia's massive biofuel development program will not affect the project, which is expected to turn the country into one of the biggest biofuel producers in the world, says an official.
The director of the Energy and Mineral Resources Ministry's research and development unit, Nenny Sri Utami, said in Jakarta that the plan to turn more than five million hectares over to growing the feedstock for the biofuel plants would go ahead as planned.More >>
Wood for energy is a waste says European paper industry
The European paper industry has published an independent study showing that using wood as a resource for paper products first, and only using it as a source of energy at the end of the product life cycle adds four times more added value to the economy and retains six times more jobs than simply burning wood for energy. The findings help support the European paper industry's stance that it can be part of the bio-solution to climate change.
The European paper industry is already Europe's single largest industrial producer and consumer of energy from renewable sources. 50% of the industry's total primary annual energy consumption is biomass-based. And the industry is committed to building on this. In fact, its R&D commitments, through the Forest-based Sector Technology Platform, look towards a key role in a future sustainable Europe and focus strongly on bio refinery and the production of bio fuels.
The study's figures relate to the core business for the paper and energy sector, if the model is extended to the wider chain for both industries, the value added for paper rises to eight times more and the number of jobs retained is 13 times more. As a result of sustainable forest management, Europe's forests are increasing at an area of more than 4000 football pitches a day. However the increasing competition between wood for bio-energy and for the paper industry presents a new challenge. A recent European Environment Agency Report, "How much bioenergy can Europe produce without harming the Environment?" only forecasts an annual additional potential of 200 million m3 of biomass in Europe's forests. CEPI wonders how more ambitious targets on wood for bio energy can be met without risking the overall sustainability of Europe's forest and agricultural resources as well as the competitiveness of the sector. This becomes particularly relevant in light of the new EU targets for energy from renewable sources, to be fulfilled by 2020.
The published study (www.cepi.org) is the first of a number of major projects that CEPI is currently undertaking to provide the Commission with data on the future fibre availability in Europe and the paper industry's potential to help provide the bio-solution to climate change issues. Source: RISI Pulp & Paper
Beetle to make clean sweep of broom
A beetle with an appetite for destruction has been brought in to battle one of New Zealand's five worst weeds. The Canterbury Broom Group, Landcare Research and the NZ Landcare Trust will release the broom leaf beetle in the wild for the first time, on Thursday February 8, near Hanmer in Canterbury. True to its name, the beetle is expected to do significant damage to Scotch broom.
Broom can be found in most parts of New Zealand. Unpalatable to livestock, broom forms impenetrable thickets and shades out desirable pasture species. Although a bad weed now, it could become far worse, as it currently occupies only a small fraction of its potential range. Landcare Research weed researcher Hugh Gourlay says the broom leaf beetle has been kept in containment ahead of the release. He says it is the first of three new agents brought in to attack broom. More >>
Dell offers to plant tree for every PC sold
Dell unveiled an initiative recently that will allow customers to donate to a tree-planting program to offset the carbon impact of electricity required to power their systems. The so-called "carbon neutral" initiative announced by company founder Michael Dell would include voluntary contributions by customers to a program aimed at offsetting the impact of so-called greenhouse gases.
Dell said funds would go to The Conservation Fund and the Carbonfund.org, non-profit organisations that will plant trees in managed forests, absorbing carbon dioxide released in the atmosphere from generated electricity. "Essentially what we're doing is partnering with our customers to help make the operation of their computers carbon neutral," said Dell, who was attending the Consumer Electronics Show in Las Vegas, Nevada. "We hope to encourage others to do the same." The program is available now to Dell's US customers and will be available to global consumers in April. Source: Energy & Technical Services, SnippETS
Felling planned to contain pine worm
Authorities in Portugal have decided to cut a 200km long cordon around the capital to contain the pine wilt nematode to within an area of one million hectares, about a ninth of Portugal's total forest area. The worm was first detected in a port city south of Lisbon in 1999 and has spread steadily since then. Work was meant to commence on 5 February and it is hoped the corridor will stop the disease spreading inland and towards neighbouring Spain.
Gunns pulp mill turmoil continues
Gunns' plans to establish a pulp mill in Tasmania, Australia, lay in tatters as its chairman refused to meet the January 31 deadline for submitting extra information to the pulp mill assessment panel. Chairman John Gay was supposed to hand over additional environmental information on the A$1.4 billion pulp mill, but on legal advice, he declined to do so until it is made clear how the project would be assessed.
The firm was given an extension from mid-December - and was allowed to set its own deadline - by the Resource Planning and Development Commission (RPDC) to respond to concerns about its draft impact statement. But Gay said two high profile resignations from the assessment panel not only delayed the project, but also threw the process into doubt. He added that the rules must be made clear first before more money is spent on extra detail sought by the panel, including additional statements from Gunns' consultants.
The RPDC has been evaluating the proposal for a year, but the process was disrupted by the resignation of its commissioner, Julian Green, and a panel member, Warwick Raverty, late last year. After resigning, Raverty issued a statement saying Tasmania is the worst possible place to build the 1.1 million tonne/yr pulp mill.
Local newspapers also threw a spanner in the works when they published a leaked letter in which Green said he left the RPDC as he could no longer tolerate pressure from a government taskforce set up to promote the project. Questions are also being asked about the A$141,000 payment given to the former chairman upon his resignation. Several environmental groups have called it "hush money".
Tasmania state premier, Paul Lennon, said that while the process had been tainted, there was no legal reason for the commission to be discarded. He appointed a former Supreme Court judge to chair the panel starting February 5.
The commission said that upon receipt of the supplementary information from Gunns, the RPDC will consider the submission and then set out a timeframe for the process. But the premier agreed with the Gunns chairman, who previously threatened to axe the project, that the assessment should end before July. Source: RISI Pulp & Paper
Tenon reports 50% increase on earnings
Tenon this week reported earnings before interest, tax and depreciation (EBITDA) for the 6 months ended December 2006 of US$9 million - up 50% on the US$6 million recorded in the comparative 6 month period ending December 2005. Commenting on the result, which was in line with market expectations, Chief Executive, Mark Eglinton, said, "In light of the very challenging business environment experienced in the second quarter, we consider it to be a solid financial performance for the Group."
Explaining the magnitude of the change in trading conditions that occurred, the Company said new house building starts in the US for the 6 month period were 22% below the same period in 2005 and renovation market spend was flat. "These factors, combined with a continued high NZ exchange rate against the US dollar, resulted in prices for Moulding & Better lumber (in New Zealand dollar terms) finishing the half-year at their lowest levels since we entered the market in 1995," he said.
The Company said that its earnings increase was largely as a result of business restructuring that had taken place in Tenon over the past 12 months. This has included Tenon's exit (in November) from its under-performing 50% investment in American Wood Mouldings, the purchase of 100% of Ornamental Mouldings - a manufacturer and distributor of decorative mouldings with operations located in North Carolina, USA and Ontario, Canada; a full six months earnings from Southwest Mouldings; and the ongoing implementation of the Company's cost reduction programme, including the conversion of the Taupo site to lower-cost geothermal energy, the renegotiation of freight rates from New Zealand to the US east coast and log procurement initiatives.
Mr Eglinton said "We continue to focus our efforts on maximising sales opportunities, such as the new supply agreement with BlueLinx, North America's largest distributor of building products, announced this week."
Wespine Industries planning major installation
USNR, the largest U.S.-based manufacturer of sawmill equipment, have announced that it will be supplying machinery, optimization, and controls to Wespine Industries for a complete new primary breakdown system at the plantation pine sawmill at Dardanup, near Bunbury, in Western Australia. The new primary line will increase Wespine's operating productivity and recovery.
Wespine's new primary breakdown line will feed a USNR optimized edger that was installed in 1998, and an existing gang. The new primary line will include a quad-roll log turner, a short optimized log infeed with slewing and skewing to maximize recovery, and conical chip heads. A vertical feed module with a sharp chain will feed an L&B-style quad bandmill with separator outfeeds.
Bi-annual Jacks and Weinig Group Ligna Tour
Jack's bi-annual Ligna tour for 2007 has now been prepared. This tour will take in a short stopover in Shanghai, China where the group will visit a couple of factories, and then on to Europe where several major cities in Europe including Prague and Berlin will be visited plus visits to 9 production sites spread throughout Germany. For the first time the tour group will also visit two of the latest Linck high speed saw lines operating in Germany. Both of these plants are cutting in excess of 1 million cubic meters of log per annum. A visit to one of the latest glulam post and beam manufacturers which has only been in operation since approx July last year will show the latest technology and automation. There is also a week in Hannover to visit the famous Ligna Exhibition planned.
Numbers on the tour are limited so be in now to secure your place, contact Peter Cook on Ph: +64 9 271 7702 DDI or Email, petercook@jacks.co.nz for a full Itinerary.
...and one to end the week on...a true story of firefighters
There is a fire at a chemical factory in town. All the fire brigades are there. The owner of the factory rushes out and says to the fireman that there are secret formulas stored in the safe in the middle of the building. Whoever can save them gets $100,000.
The fire companies battle hard, but the flames get hotter and hotter. No one can get through. The owner doubles the reward. $200,000 for the fire company which can save the formulas. More trucks are called in. Soon trucks from the entire region are there. But the flames prove too hot for the men.
Suddenly, in the distance, a lone siren is heard. It is the volunteer Maori fire brigade, from a little village up the coast. Most of its' volunteers are old Maori men, well into their 70's. The little dilapidated truck they own is on its last legs.
Rushing to the scene, the truck never even slows down, but runs right past the other trucks, right into the very centre of the blaze. The elderly Maoris jump out, and in a superhuman effort, put out the fire, and save the secret formula.
The owner of the building is so impressed, he doubles the reward to $400,000. A TV camera is on hand to record the scene. Everyone is in tears. A TV presenter asks the leader of the Maori brigade what the brigade is going to do with the money.
"Well", says Hohepa, the leader of the brigade, "The first thing we're gonna do is fix the f****** brakes on that truck!"
And on that note, have a great weekend. Cheers.
Brent Apthorp
Innovatek
PO Box 904
Level Two, 2 Dowling Street
Dunedin, New Zealand
Ph: +64 3 470 1902
Fax: +64 3 470 1904
Web page: www.innovatek.co.nz
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