Friday Offcuts – 26 September 2025
Click to Subscribe - It's FREE! Welcome to this week’s edition of Friday Offcuts.In New Zealand, major new government spending on housing, schools, and hospitals will boost the timber sector. While, in Australia, forestry’s central role in achieving net zero has been highlighted, and there is renewed cross-party support in parliament. The industry is also continuing to grapple with challenges. Recent NZ mill closures are sparking debate on the future of domestic processing and regional employment, NZIF is pushing back against misleading commentary on radiata pine, and Australian Paper is suing the Victorian government over the loss of wood supply. On the innovation front, work on Australian renewable fuels from forestry residues is progressing, Scion researchers are turning construction waste into new products, and we highlight training initiatives growing the forestry workforce. These topics will be front and centre in October's Bioeconomy Innovations 2025 and Residues2Revenues 2025 events. Read these stories and more in another packed edition of Friday Offcuts.
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This week we have for you:
Govt construction pledges boost NZ's wood industry
After a government pause in building and construction spend,
announcements this week on new defence housing, school infrastructure,
and hospital facilities provides a glimmer of hope to a flat building
industry.The projects include a $600 million spend on homes for military families, a plan to accelerate $413 million of investment in classrooms and other school infrastructure, and a $100m boost to upgrade hospitals. ‘These announcements come at a time when the wood processing industry is doing it tough, with some mills saying domestic timber sales are the worst they have ever witnessed’, said Mark Ross, Chief Executive of the Wood Processors and Manufacturers Association. ‘With a flat domestic market and challenging global sales any new government spending in building and construction is welcome.’ ‘Wood is a key component of buildings, and it is anticipated that these new projects will lead to increased timber orders from domestic mills. With the wood industry employing over 30,000 people in regional New Zealand, it is essential that the government procurement process supports the purchasing of locally produced sustainable timber and lumber over imported wood products,’ said Ross. The June quarter GDP figures showed construction had suffered more than most industries, with the value of building work put in place down 2.2%. Conditions in the building and timber supply sectors are still gloomy, but there is slight optimism emerging among industry players, especially following this week’s government announcements. Building data highlights that the picture in the construction sector is still very mixed. While Otago (including Queenstown) had seen a 47% jump in annual building consents, Wellington was down 11.4% and showing no signs of improving. Building activity in Auckland had just turned the corner, with a 3% increase in consents. Overall, the 34,000 consents issued nationally in the year to June were a 1% improvement, and although it was well down on the 2022 peak, it was in line with the long-run average. Renovation work dominated, with new building activity patchy. Source: Wood Processors and Manufacturers Association (WPMA)  Forestry sector is essential to achieve new net zero target
Following the Commonwealth’s decision to pursue a 62-70
per cent below 2005 level net zero emission reduction target by
2025 – the Australian Forest Products Association (AFPA)
is reminding the Government that it cannot be achieved without
the contribution of the forestry sector’s entire supply
chain, Chief Executive Officer of AFPA, Diana Hallam said.“Australia’s former Chief Scientist, Professor Ian Chubb said it best on the release of the Australian Carbon Credit Unit (ACCU) review, stating, ‘the only known pathway known to science that has immediate capacity – to remove greenhouse gases, particularly CO2 from the atmosphere is photosynthesis’. Australia’s sustainable forestry sector grows, processes and manufactures trees into a range of essential products – locking up carbon at scale,” Diana Hallam said. “We acknowledge the Government’s sector plans announced alongside the new 2035 target – especially the Agriculture and Land Sector Plan and Built Environment Sector Plan – which point to enormous opportunities for forestry to be an essential part of the decarbonisation solution. We will engage with the Commonwealth to ensure forestry and its supply chain can help meet the Government’s targets, with the biggest possible contribution." Through timber in new home and building construction, wood-fibre based packaging, paper and tissue products, power poles and even garden and mulch products – alongside production trees absorbing carbon as they grow – the forestry sector has the unique ability to help our national economy decarbonise while providing essential employment and economic contributions for the nation. “We will work specifically with the Albanese Government on existing initiatives like the Support Plantation Establishment Program (SPEP), the continued and necessary contribution from sustainable native forestry and how industry and the government can partner through the processing and manufacturing cogs of our supply chain – as the country works towards net zero 2025,” Diana Hallam concluded. Source & image credit: Australian Forest Products Association (AFPA)  Nelson Pine Industries chair to retire
Nelson — Murray Sturgeon is set to retire at the end of September 2025,
concluding a long and respected career in the forestry and wood processing
industries.Until recently, Mr Sturgeon served as Chairman of Nelson Pine Industries Ltd (NPIL), Tasman Pine Industries Ltd, and Sumitomo Forestry New Zealand Ltd. He joined NPIL in 1984 as Chief Executive, bringing with him extensive experience from Fletcher Group and Canterbury Timber Products. His leadership played a key role in establishing NPIL’s operations around a then-emerging product: medium density fibreboard (MDF). Under his direction, NPIL commissioned the world’s first continuous MDF production line in 1986. Following its success, a second line was added in 1991, and a third in 1997—making NPIL the largest single-site MDF producer globally at that time. In 2002, the company expanded into veneer and laminated veneer lumber (LVL) production, enabling broader utilisation of regional log and forest resources that would otherwise have been exported. The acquisition of the Hancock Forest estate in 2016 further strengthened the company’s fibre supply and long-term resource security. Sumitomo Forestry, one of NPIL’s founding shareholders, became its sole shareholder in 1993. Its long-term investment approach and international reach have supported NPIL’s growth in key markets such as Japan and Southeast Asia. Mr Sturgeon oversaw the adoption of advanced manufacturing technologies at NPIL and the development of MDF and LVL products recognised for their quality and performance in furniture and construction applications. He also contributed to industry development through active involvement in organisations such as the Wood Processors and Manufacturers Association (WPMA) and the Japan New Zealand Business Council. His contributions have been acknowledged through several honours, including his appointment as an Officer of the New Zealand Order of Merit in 2003. He was inducted into the Washington State University Hall of Fame in 1997, the Nelson Chamber of Commerce Hall of Fame in 2009, named an Honorary Fellow of the Institution of Professional Engineers New Zealand and is a Life Member of the Tasman Rugby Union and the Nelson A&P Association. NPIL CEO & Executive director Kai Kruse says that “the team at NPIL extends its sincere thanks to Murray for his leadership and contributions over the years. We are grateful to have worked alongside him and wish Murray and Jocelyn all the best in this next chapter.” In retirement, Mr. Sturgeon looks forward to spending more time with his wife Jocelyn, their children, and grandchildren. NZIF responds to misleading pine tree debate
The New Zealand Institute of Forestry (NZIF) is calling for
balance and accuracy in the debate over pine trees, following
recent commentary questioning their value. NZIF President James
Treadwell says much of the public commentary confuses commercial
forestry with the problem of wilding pines. “The worst offenders when it comes to wildings are Pinus contorta (lodgepole pine), not radiata pine. P. contorta was introduced through government programmes for erosion control and early runholders planted P. contorta for shelter, especially in the Mackenzie Country and Inland Otago. It was not introduced by the commercial forestry sector,” Mr Treadwell said. “Wilding pines are a serious issue which damage ecosystems and landscapes, and the Institute fully supports continued collective efforts by government, communities, and industry to control and remove them. But it’s misleading to conflate wilding conifers with well managed radiata pine plantations.” The Need for a National Wilding Control Strategy Mr Treadwell says controlling wilding conifers requires a step-up in coordination and investment. “Right now, wilding control is being tackled in different ways by different agencies and communities, with variable results. We need a well-funded national body which brings together government, councils, iwi, landowners, and professional foresters. This body should be charged with forming and delivering a long-term, catchment-by-catchment plan for wilding control,” he said. “Professional foresters must be part of this effort; they bring the practical skills and land management knowledge needed to prioritise resources and ensure we get the best results for every dollar spent.” Slash and Storm Impacts Forestry has also come under scrutiny for storm damage and slash left after harvesting. “The industry is investing in better slash management practices, including improved harvest planning, debris catchment systems, and more careful placement of residues, to reduce risks in future events.” Mr Treadwell said. “But it is important to note after Cyclone Gabrielle, more than half of the woody debris found on beaches was not pine at all. It came from riverbank protection plantings, erosion control plantings on farms, and even native forests torn out by unprecedented flooding. Blaming pine plantations alone oversimplifies the problem.” The Positives of Plantation Forestry Mr Treadwell says New Zealand’s plantation forests, made up mostly of radiata pine, deliver a wide range of benefits which are often overlooked:
Mr Treadwell says forestry is committed to improving practices and diversifying species. “We recognise forestry must continue to evolve. Better slash management, more diverse plantings, and stronger collaboration with local communities are all part of our future. But we must also acknowledge the enormous value radiata pine forestry brings to New Zealand.” A Balanced Conversation The Institute stresses pine trees are not “all bad” or “all good.” Like any land use, they come with challenges and responsibilities. “New Zealand’s forestry estate is a success story when looked at in balance. Yes, we need to work together to control wilding pines and improve management practices. But we should also celebrate the fact our plantation forests protect our native bush, support our economy, and are one of the most effective climate tools we have,” Mr Treadwell said. More >> Source: New Zealand Institute of Forestry (NZIF)  Transforming forestry residues into low carbon liquid fuels
OneFortyOne and HAMR Energy have entered into a Memorandum of
Understanding (MoU) to collaborate on the supply of sustainable biomass
for renewable methanol production in Australia and New Zealand.
The MoU marks a significant step forward in the development of HAMR Energy’s flagship Portland Renewable Fuels Project (PRF Project) in Victoria. The project will produce up to 300,000 tonnes per annum of renewable methanol, derived from forestry residue biomass and green hydrogen, which can be used to fuel planes and ships, helping decarbonise hard-to-abate transport. The partnership aligns with the Australian Government’s Cleaner Fuels Program, announced earlier this week, which will provide A$1.1 billion to support the supply of low carbon liquid fuels (LCLF). David Stribley, Co-Founder of HAMR Energy, said, “Our MoU with OneFortyOne is another important milestone as we continue to develop our pipeline of LCLF projects and finalise our Series A fundraise. We have MoUs in place to supply all the feedstock for the PRF Project, and recently completed Pre-FEED with global chemical design company ThyssenKrupp UHDE, positioning us to move quickly through the next phase of project development. "We are looking forward to working with OneFortyOne, our other project partners, state and federal governments and offtakers so that locally-sourced forestry residues are soon fuelling Australian aviation and shipping.” Under the MoU, OneFortyOne will work with HAMR Energy to supply biomass residues initially to the PRF Project, with the potential to then leverage the learnings into New Zealand, where OneFortyOne has forestry assets in the Nelson/Marlborough regions in the South Island. The parties will explore optimal biomass specifications and supply chain logistics with the intention to progress to long-term supply agreements in due course. Nick Chan, Director of Corporate Strategy at OneFortyOne, said, “This is a pivotal moment for trans-Tasman forestry – we believe our industry is the logical partner in this LCLF space given the predictability and reliability we offer through scale and consistency of feedstock supply, year-round operations, and utilisation of well-established infrastructure and supply chains.” “We are excited to explore how lower-value residues can be transformed into high-impact renewable fuels, supporting emissions reduction efforts in other industries like aviation and shipping.” “We are happy to have entered this MoU with HAMR and, if successful, we will diversify our end market exposure while working towards decarbonising our supply chain, particularly Scope 3 transport emissions. This is another example of how we’re innovating across both Australia and New Zealand.” Over the next 18–24 months, OneFortyOne will support HAMR’s development efforts, including supplying sample wood fibre for testing and in-field operational trials to refine feedstock assumptions, in addition to progressing supply agreements. The partnership reflects a shared commitment to sustainability, regional economic development and innovation. It also reinforces OneFortyOne’s focus on reducing emissions across its operations, including Scope 3 emissions from forestry and export activities. Nick added; “The announcement this week on LCLF by the Australian Government is very timely, we are pleased to see the ongoing commitment to reducing Australia’s carbon emissions. We look forward to collaborating with government, industry and research organisations as we explore carbon emission reduction options.” Source & image credit: OneFortyOne  Australian Paper sues Victorian government for A$402 million
A paper mill is suing the Victorian government for more than
$400 million in damages, accusing it of not providing a steady supply of
pulpwood. Paper Australia, trading as Opal, has filed
proceedings in the Supreme Court of Victoria, claiming the government
breached a contract that required it to provide a stable supply of
pulpwood to the Maryvale Mill in Gippsland's Latrobe Valley.The Maryvale Mill ceased white paper production in 2023, but still produces other paper products in a smaller capacity, in the wake of dwindling native timber supply and the state government ending native timber harvesting in 2024. Opal operates the mill near Morwell, and is a major employer in the region. The company said it was suing the state government for substantial loss and damage. More >> Source: ABC Why are mills toppling over at a shocking rate?
What is happening with New Zealand mills? Just this week, Carter Holt Harvey announced plans to close its Tokoroa plywood manufacturing plant and import product from overseas. It will mean almost 120 jobs go. The company's also shutting down its Eves Valley sawmill near Nelson, with the loss of 140 jobs.The Kinleith Pulp and Paper Mill in South Waikato, Winstone's Kariori Pulpmill and Tangiwai Sawmill have also all closed in the past year. Red Stag Timber processes lumber for New Zealand & export and operates the largest sawmill in the southern hemisphere, CEO Marty Verry spoke to Lisa Owen. Click here to listen to interview. Source: RNZ Australian Timber Market Survey - June quarter 2025
The latest edition of the Timber Market Survey (TMS) report has
been released for the June quarter 2025.The TMS collects price data through quarterly surveys of a representative sample of timber market participants in eastern Australia. All quarterly TMS reports contain price movement information for softwood timber, panels and engineered wood products. The June and December quarter editions also include price movement information for hardwood timber products surveyed over a six-month period. Price movement data are presented in nominal terms unless otherwise stated Softwood timber products – Quarterly price movements
Further information and the latest Timber Market Survey report is available here: Download the June quarter 2025 TMS report Source: Indufor  Growing skills, growing forests: Ladd Forestry crewThe WIDE Trust is proud to have supported Stratford-based Ladd Forestry and its crew as they begin their studies towards the New Zealand Certificate in Forestry Operations (Level 3).This support will enable six members of the team to gain industry-recognised qualifications, boosting their skills in silviculture and forestry operations while strengthening the workforce behind New Zealand’s fast-growing forestry sector. Why this training matters Over the past five years, New Zealand has seen an unprecedented level of tree planting. While this is a huge step towards carbon goals and future timber supply, it has also created a shortage of skilled forestry workers. Without enough trained staff, the sector risks delays, safety concerns, and long-term impacts on the health of planted forests. The NZ Certificate in Forestry Operations (Level 3) is designed to meet this challenge. Delivered through hands-on, work-based training, it equips forestry workers to:
 Meet the Ladd Forestry crew The six men beginning this qualification are more than colleagues, they’re a close-knit team with strong connections to their community and their work. Each brings unique experiences and passions:
Building a stronger future This training is more than a course, it’s an investment in people, in safer worksites, and in the long-term sustainability of New Zealand’s forests.
The WIDE Trust is committed to supporting initiatives that grow expertise in forestry and wood-related industries. By helping Ladd Forestry staff undertake this training, the Trust is helping ensure that today’s planting successes become tomorrow’s healthy, well-managed forests. We look forward to following the progress of the Ladd Forestry team as they embark on this important journey. Source & image credit: WIDE Trust  NZ forestry monthly report - September 2025
Stability has once again been the order of the day in September,
with NZ domestic and export log sales steady in demand and prices
largely unchanged from August. This is great news once again,
with steady workflows and consistent production bringing broad scale
efficiencies within commercial forestry industry related companies.Indeed, my check of historic pricing suggests wharf gate prices for export logs have rarely moved outside of a $10 per cubic metre band in the last 2 years. This might even be regarded as a small miracle, given the world disorder and chaos that has emerged from President Trump’s economic mis-management. China consumption has been steady at 55,000 to 60,000 per day for the first half of September. Most commentators are suggesting an October lift in demand and possibly prices as Autumn weather allows more productive outputs. Against that potential is recent news of some Letter of Credit (LC) issuing companies pulling back having sustained some big losses on trade defaults. As at mid-September, there is some suggestion of downward price pressure as LC’s and contracts become harder to settle. Most are saying this is a short term “blip.” China growth data statistics suggest a broad improvement in purchasing activity adding to positive economic gains whilst rising unemployment is a sign of slow trickle-down effect. Other data shows accelerated input costs and weaker sales prices across key sectors. A recent weakness in the value of the Yuan against the US$ is helping to maintain sales prices for exports netted back to China manufacturers, but also helps drive up imported prices for logs, as an example. Within this diverse mix of positives and negatives, most commentary is suggesting business confidence has strengthened to a 6-month high so in the longer term should help Radiata pine log prices to remain stable to strengthening. India is also showing a combination of positives with inventory low, log prices stable to very slight improvements and most commentators remaining reasonably at peace with the world. Current demand and sales are in good alignment, with 7 vessels of softwood logs delivered in each of July and August, with a total of 8 expected in September. A total of 10 vessels are forecast for October. This is potentially a worrying sign of oversupply when India also takes a 10 – 15 day holiday to celebrate the Diwali festival. Whilst this suggests the supply/demand planets will be out of alignment, history shows the festival brings confidence and increased sales on either side of it, so broader medium term trade levels are likely to remain stable. Like China, India manufacturing confidence remains subdued on the back of uncertainty as to where US Tariff levels will land and how they will impact sales. What is becoming clear is the severe strain on the US economy under the previously referred to economic miss management... More >> Source: Laurie Forestry  SnapSTAT - China property slowdown drops log demand Export pricing is directly tied to China’s property market. Nearly 90% of New Zealand’s logs are destined for China, where they are mostly used in the construction industry. China’s property market has been struggling since 2021 when a speculative bubble burst. Bad debts, vacant properties, and incomplete builds are hanging over the residential construction sector, and there is no indication that it will recover anytime soon. The Government is not inclined to reinflate the bubble, and weakening underlying rates of population growth and urbanisation are structural barriers to construction sector growth. The graph from 2015 to now tells the story.
See more on Page 11: ANZ Agrifocus, August 2025 Parliamentary friendship group officially re-established
The Parliamentary Friends of Forestry, Timber and Paper
Products has been officially re-established in the
48th Federal Parliament as a non-partisan
friendship group to support the full supply chain of
Australia’s forestry and forest products sector, Chief
Executive Officer of the Australian Forest Products Association (AFPA),
Diana Hallam said.“On behalf of Australia’s forest industries, I can say we are thrilled the Parliamentary Friends of Forestry, Timber and Paper Products has been re-established. The group is made up of parliamentarians from different sides of politics and represents important and stable, cross-party support for our sector in the Australian Parliament,” Diana Hallam said. “I especially congratulate Victorian Labor Senator Raff Ciccone and NSW Nationals Senator Ross Cadell on their appointments as Co-Chairs for the group. Over successive federal parliaments the Parliamentary Friends of Forestry, Timber and Paper Products has proudly represented industry through dialogue with stakeholders like AFPA." Many MPs and Senators count forestry and the supply chain as major industries in the electorates and regions they represent, while many more recognise the importance of the sector for the nation in terms of sovereign capability, creation of essential products and the growing environmental and climate contribution the sector provides. In many ways, this group facilitates a collective voice in the parliament for the tens of thousands of Australians who rely on forest industries for their livelihoods. “AFPA will seek to collaborate with the re-established Parliamentary Friends of Forestry, Timber and Paper Products over the life of the 48th Parliament to strengthen the voice of one of Australia’s most important primary industries and manufacturing sectors,” Diana Hallam concluded. Source: Australian Forest Products Association (AFPA) NZ Govt funding for wood waste research
New Zealand researchers have secured a $300,000 grant
to transform construction wood waste into high-value products. The
funding was awarded to scientist Ayyoob Arpanaei and
his team at Bioeconomy Science Institute's Scion division,
through the NZ–China Strategic Research Alliance
Catalyst Fund, supported by the Ministry of Business,
Innovation and Employment (MBIE).Over the next three years, the researchers will partner with colleagues in China to develop green technologies for recycling discarded wood. The project aims to reduce landfill and help establish a circular economy for timber in Aotearoa. ♻️ This initiative is one of three projects at the institute to receive the grant, highlighting its key role in developing science-led environmental solutions. More >> Source & image credit: Bioeconomy Science Institute .jpg) Timberlands’ Colin Maunder wins Raptor Award
The team at Wingspan Birds of Prey Trust are delighted to
announce Timberlands’ Colin Maunder as the winner of the 2025
Raptor Award.The award recognises individuals, groups and organisations for outstanding efforts and contributions towards New Zealand birds of prey. Rotorua-based conservation charity Wingspan established the award in 2006. Wingspan General Manager Ineke Milner describes Maunder as the perfect candidate. “Colin’s been in Wingspan’s corner and the kārearea’s corner right from the very start”. Wingspan has been working closely with Kaingaroa forest estate managers since the landmark discovery of kārearea/New Zealand falcon breeding in Kaingaroa Forest in 1994, a significant breakthrough for the conservation of this threatened species. Since then, falcons have been reported in pine plantations throughout the country. As GM of Sustainability for Timberlands, managers of the Kaingaroa forest estate, Maunder is responsible for environment, iwi and community relations, fire and security, forest communication, enterprise risk, biosecurity and operational land matters. But it is Maunder’s contribution to kārearea conservation that earns him this prestigious award. During his tenure, Timberlands became the first forestry company to adopt falcon-friendly practices into their Forest Stewardship Certification, setting a benchmark that influenced the entire forestry sector across New Zealand. Maunder also championed Timberlands’ Restorative Development Goals, with kārearea at their core. He has supported several postgraduate studies into the species and provided Wingspan an annual grant for long-term monitoring, alongside securing significant funding towards Wingspan’s new National Bird of Prey Centre. “Colin has led the way in bringing forestry and conservation together”, said Wingspan founder Debbie Stewart. A special presentation was made on 11 September at the Timberlands office in front of colleagues and representatives of Wingspan. Maunder said, “It’s an incredible privilege to receive the Raptor Award, though I’m not sure I deserve it — I get paid to do what I love. The real reward is in the work itself and the people I get to work with.” Source & image credit: Timberlands  Jobs
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