Australian timber industry news

Sumitomo Forestry has received for the sixth consecutive year the highest-ranked top 1% assessment in the homebuilding industry in The Sustainability Yearbook 2024, a corporate sustainability assessment conducted by S&P Global, a US organization that is the world’s leading research and ratings company. Source: Timberbiz S&P Global assesses the economic, environmental, and social aspects of more than 9,400 leading companies around the world. The top 759 companies, including 83 Japanese companies, are listed in the Sustainability Yearbook 2024 for excellence in sustainability performance. Ever since the Sustainability Yearbook was first issued in 2008, Sumitomo Forestry has been selected for excellence in sustainability performance in the homebuilding industry for 17 consecutive years. This year, six Japanese companies, including Sumitomo Forestry, received the top 1% ranking in their respective industry sectors. Sumitomo Forestry has also been selected for inclusion in the Dow Jones Sustainability World Index and the Dow Jones Sustainability Asia Pacific Index, both of which are global ESG investment indices based on S&P Global scores.

The eight disciplines of problem-solving is a methodology widely used in automotive industry, and it applies to plywood production as well. The structured framework helps teams to identify, locate and fix the issue at hand. Source: Timberbiz “At UPM Plywood we use 8D in quality control projects because it is a well-applied method among our customers and it helps us systematically to identify the root cause when there are, for example, deviations in plywood product quality,” Harri Nieminen, Product Manager at UPM Plywood said. 8D aims not just to correct one problem but to eliminate the root cause behind reoccurring problems. Each discipline represents a structured step to take to solve a problem, from creating a team to verifying root causes, preventing reoccurrences, and eventually congratulating the team.  Nieminen describes that the 8D projects are led by product managers and product management, and he says the method works well in plywood quality management. At UPM Plywood, 8D project is established when there are challenging customer claims. “We establish 8D projects whenever there are large and demanding claims. Also, if the customer wants us to do an 8D project for some reason related to the product quality, we evaluate the problem and establish the project and the project team from product management, production, and sales. The team varies depending on the project,” Mr Nieminen said. Once the cause has been identified and corrected and preventive actions are implemented, the measures can be tracked from the 8D report. The 8D report is also delivered to the customer if needed. “For our customers, 8D method and report proves that if for some reason they have ended up with a faulty product, there will be no similar fault again,” Mr Nieminen said. “How wood behaves as a material is not always understood. If wood material is exposed to water it may swell, or it shrinks when it dries. It is difficult to get a completely flawless product from wood due to the natural characteristics of the material.” For example, WISA products used for vehicle flooring may often be the only wooden parts in the vehicle. “Plywood can’t be analysed the same way as metal parts, but the 8D methodology works fine with plywood as well,” Pekka Kautonen, Manager, Continuous Improvement at UPM Plywood said. “8D has clear steps and leads to a deeper analysis than the direct handling of the customer claim, in which case finding out the actual problem can be forgotten. As we are being experienced and wise, we may quickly jump straight to a solution, even though we should really find out what caused the error or deviation.” The 8D tool can be applied lightly or thoroughly, depending on the extent of the problem to be solved.

Studio Weave’s pavilion in London is built to the rear of an existing Edwardian brick library, this single-storey, timber-framed extension provides an open plan café and flexible spaces for individual, community and group activities. Source: Timberbiz Inside, a rich variety of wood salvaged from trees felled across the parks, streets and gardens of London forms the joinery and furniture. The architects worked closely with local furniture maker Sebastian Cox to design a continuous wall of fluted timber panelling that connects shelving with built-in seating. Cox also designed and made custom desks, collapsible tables, stackable chairs and upholstered sofas for the pavilion. Overall, 25 cubic metres of salvaged wood was used for fitted and loose furniture, from species including London plane, poplar, sycamore, ash, Holm oak, Turkey oak, sequoia and horse chestnut. The wood was sourced, milled, and planed with the help of Fallen & Felled – a London-based timber company set up to reduce wastage of fallen trees in the capital. Fallen & Felled, is a timber company pioneering a sustainable alternative. Thousands of mature trees are felled in London every year, and most are simply chipped and burned. Fallen & Felled repurposes felled urban trees into hardwood timber for furniture makers, architects and designers. It keeps tonnes of carbon out of the atmosphere and reduces the UK’s reliance on imported hardwood. More than 90% of hardwood used in the UK is imported. And yet every year, thousands of perfectly usable trees are felled in London. Almost all of them are chipped and burned for firewood or biomass fuel for power stations. So Fallen & Felled instead mills these trees into boards and seasons them for more than 12 months to transform them into furniture-grade hardwood timber. They also source some popular English species – including oak and ash which are less common in the capital from woodlands outside London. This timber is used by furniture makers, architects, designers and enthusiasts. Extracting huge trees from tiny London streets; persuading busy people to change how they dispose of trees; and milling timber that’s sometimes full of nails, shrapnel and worse is challenging. Despite the challenges, the company says it is excited to be a part of the ‘circular economy’, finding ways to recycle and add value to things our society has become used to throwing away. The company never fells trees and only use trees that perhaps have died of old age, or have been felled to make way a city development. The company has a shop in London as its main public-facing site, but there is also a timber store in Essex, just outside the M25 which is the timber warehouse behind the scenes. It’s on the same site that the wood is mill, air- and kiln-dry.  

Heavy equipment manufacturer Komatsu has signed a multi-year deal with Williams Racing to become the principal partner of the British team from the start of the 2024 FIA Formula One World Championship season. Source: Timberbiz Komatsu was a key partner of Williams Racing in Formula One during the 1980s and 1990s, a period of abundant success for the team. The most notable achievements were in 1996 and 1997, when Komatsu supported Williams Racing to Constructors’ and Drivers’ Championships with Damon Hill and Jacques Villeneuve respectively. With an eye to the future, both brands are excited to build on their shared history as they embark on a new era. Tokyo-based Komatsu has been leading innovation in the equipment manufacturing sector for more than 100 years. As embodied by its brand promise, “Creating value together,” the company believes that collaborative partnerships are the optimal way to create a lasting positive impact. Komatsu’s official designations with Williams Racing reflect the companies’ shared focus on the long-term development of engineering, technology and new generations of talent: Official STEM and Early Careers Partner, Official Esports Partner and Official Construction Machinery Partner. These areas will overlap and combine within the partnership, as Komatsu endeavours to engage and bring focus to the next generation of innovators through STEM events enriched by the Williams Racing esports platform. “Komatsu and Williams Racing have shared values around innovation and the development of our people,” said Hiroyuki Ogawa, President and CEO of Komatsu Ltd. “Through our partnership we look forward to creating value together, both on and off the track. Our partnership with Williams Racing, is aligned with Komatsu’s mission to create value through manufacturing and technology innovations to empower a sustainable future where people, businesses and our planet can thrive together.” One of the driving forces behind the partnership was the alignment of vision that the two brands share. The characteristics embedded in Komatsu’s DNA and values, such as cutting-edge technology, outstanding quality and unwavering reliability, are all demonstrated by Williams Racing at the highest level of motorsport. This new partnership creates a foundation for cross collaboration between Williams and Komatsu into the future, and we look forward to working together across a range of disciplines, especially relating to the development of our people and exploring potential opportunities in the technical engineering ecosystem. “Williams Racing is delighted to be rekindling our relationship with Komatsu,” James Vowles, Team Principal of Williams Racing said. “We have enjoyed huge success together in the past and reuniting is a significant step in Williams Racing’s long-term mission to return to the front of the grid. Both Williams and Komatsu are committed to attracting and developing the best young talent in pursuit of our goals and we look forward to working together again.” Komatsu’s logo and branding will feature prominently on the 2024 Williams Racing livery, as well as the team’s overalls and kit, during the upcoming Formula One season. With operations in more than 140 countries, Komatsu is a global provider of premium heavy equipment, services and solutions. The company introduced the world’s first autonomous dump truck in 2008 and is helping customers advance towards carbon neutrality with its growing range of electric, hybrid and fuel cell construction and mining equipment. Williams Racing is one of the world’s most iconic Formula One teams. The British outfit has been competing at the highest level for almost five decades, amassing 114 victories, 313 podiums and 128 pole positions in that time. Williams Racing has also won nine constructors’ championships, making them the second most successful team in the history of the sport.

The National Heavy Vehicle Regulator (NHVR) is on track to transition responsibility for delivering heavy vehicle regulatory services, including on-road compliance and enforcement, from the Queensland Department of Transport and Main Roads (TMR), on 20 April 2024. Source: Timberbiz NHVR CEO Sal Petroccitto OAM said the transition of services in Queensland will be a significant achievement for the organisation and will result in safer and more consistent regulation of heavy vehicle movements across Australia. “The transition of heavy vehicle services in Queensland will complete our National Service Transition (NST) program – a huge accomplishment for our organisation,” Mr Petroccitto said. “I am thrilled we are a step closer to achieving our aim, of having a consistent approach to compliance and enforcement from the roadside to interventions, borderless operations and delivering timely, national responses to critical compliance issues. “The transition will result in a more streamlined approach to how heavy vehicles are regulated across Australia, a journey that will have taken the NHVR almost 10 years to achieve. “From 20 April, on-road compliance, investigations, prosecutions and programmed heavy vehicle inspections will be some of the services currently provided by TMR to transfer across to the NHVR.” On transition, the Northern Region will be created within the NHVR’s Operations Division and will join Central and Southern Regions in leading on-road operational service delivery. “This exciting milestone will see 165 roles added to the NHVR as part of our Northern Region, many of which will transfer across from TMR,” Mr Petroccitto said. From April, the heavy vehicle industry can expect to see the NHVR’s Safety and Compliance Officers working roadside across Queensland, including in the far north and western areas of the state. TMR spokesperson Joanna Robinson said the transition will end a 10-year journey for the NHVR and will finally deliver a nationally consistent approach to regulating the heavy vehicle industry. “TMR has been working closely with the NHVR, to ensure a seamless transition for all staff and customers,” Ms Robinson said. “We are currently advising our team that heavy vehicle regulatory services and those staff who have chosen to transfer, will officially transition to the NHVR on 20 April. “TMR will continue to be directly responsible for delivering regulatory and compliance programs for several important services, including road manager functions. “This transition will streamline the delivery of heavy vehicle regulation for industry and will improve regulatory outcomes and safety.” The NHVR was established in 2013 as a statutory authority to administer the Heavy Vehicle National Law, which applies in all Australia’s states and territories except the Northern Territory and Western Australia. Queensland is the sixth Australian jurisdiction after South Australia, Tasmania, the ACT, Victoria, and New South Wales where the NHVR will be directly delivering heavy vehicle regulatory services.

Mass timber has the potential to be a critical building component for the cities of the near future given the need for the construction sector to reduce its reliance on concrete and steel to lower its Co2 emissions. However, as this market grows and mass timber buildings evolve to greater heights, the construction risk landscape will also be transformed, bringing risk management challenges for companies, according to the new Emerging Risk Trend Talk report from Allianz Commercial. Source: Timberbiz “The emergence of mass timber as a sustainable construction alternative represents a significant opportunity for the building sector to reduce its carbon footprint while also satisfying a demand for a material that is more cost-efficient but as durable as steel and concrete,” Michael Bruch, Global Head of Risk Advisory Services at Allianz Commercial said. “However, in any industry, deployment of new materials or processes can result in new risk scenarios, potential defects, or unexpected safety consequences, as well as bringing benefits, and mass timber is no different. Given this market’s expected future growth, companies should do all they can to develop a greater understanding of their exposures including fire, water damage, repetitive loss scenarios and even termite infestation, and ensure they have robust loss prevention measures in place to combat these.” Although mass timber currently only represents a small proportion of the overall number of buildings constructed worldwide each year, nevertheless, from mixed use developments to hotels to schools, an emerging market is underway. As mass timber buildings evolve with greater height and intricate designs, they will pose new challenges in terms of risk mitigation. This Allianz report identifies several of these hazards and challenges with Allianz Commercial risk consulting engineers also highlighting loss prevention measures to consider that could help to reduce their impact. Mass timber is wood, and fire is the primary hazard concern, with this risk needs to be considered through all the life stages of a building – design, construction, and operation. Ongoing research and testing is being conducted to further develop a methodology for evaluating the performance of structural elements during the entire duration of a fire. Allianz analysis shows damage from natural catastrophes is already the second most expensive cause of construction claims. Timber buildings exposed to floods may require structural controls, drying and repairs, impacting expected operating losses. Mass timber is highly vulnerable to water damage including flood, water ingress, and plumbing leaks. Mass timber construction has a unique supply chain and manufacturing processes that differs from traditional concrete and steel framing. One significant disadvantage of the assembly line manufacturing process is the potential for a serial loss scenario. If a particular batch of mass timber elements has a defect, multiple elements in a structure or across project sites may be affected. Defective products is already the third costliest cause of construction/engineering insurance claims, according to Allianz. Construction firms may face challenges in finding experienced work crews for mass timber construction projects, given its nascent status. This can result in productivity issues and safety concerns as crews navigate the learning curve of working with mass timber. While not common in all areas of the world, termites and other wood-boring insects may pose a significant threat to mass timber buildings, potentially causing extensive structural damage over time. You can download the Allianz document here.

Forest and Wood Communities Australia (FWCA) will be participating in the upcoming Primex Field Days, a significant event that fosters crucial connections between the agriculture sector, timber communities, forestry industries, and the everyday individual. Source: Timberbiz Primex Field Days, which are to beheld May 16 to 18 in Casino, NSW are renowned for celebrating innovation and excellence in agriculture, and so provide an ideal platform for FWCA to highlight the pivotal role of forestry in sustaining communities and ecosystems. This event serves as an opportunity to bridge the gap between the sustainable timber sector and the public, offering a unique insight into the significance of responsible forestry practices. FWCA’s presence at Primex aims to showcase the sustainable and diverse contributions of forestry to our society. Through engagement with the public, visitors will gain valuable knowledge about the timber industry’s positive impact on the environment, economy, and community well-being. Forestry education lies at the heart of this initiative, as FWCA endeavours to dispel misconceptions and promote a balanced understanding of the sustainable timber sectors role in shaping a sustainable future. Through this engagement, FWCA seeks to inspire a sense of environmental stewardship and appreciation for the intricate connections between forests, communities, and the products derived from wood. FWCA will be joined by a host of other forestry and timber related exhibitors in the PRIMEX ‘Forestry and Timber Hub’ – all of whom are at the forefront of advancing the dialogue on sustainable practices and the harmonious coexistence of forestry and successful communities. For more information on the Primex field days head to www.primex.net.au

One of New Zealand’s largest forestry companies has had its certification suspended over slash damage in and around Tolaga Bay. Sources: 1News, Timberbiz Ernslaw One is part of the Oregon Group, owned by the Malaysian based Tiong family, along with its subsidiary company and processing arm, Winstone Pulp International, situated in the Central North Island, which undertakes lumber and pulp manufacturing. The certification was from the Forest Stewardship Council, an international body that sets forestry standards. Damage to the area from the slash is from 2018, however, locals remain concerned. Tolaga Bay farmer Mike Parker said there’s “thousands” of areas which have had slash damage. “[They’re] in the back of Tolaga Bay, Tokomaru Bay, our friends up in the Waiapu region there, there’s thousands of these situations happening. There’s only one way they go, and that’s down and they keep going.” With multiple forestry companies working in Tairāwhiti, there’s no way of knowing where all the wood has come from. However, some areas impacted by the slash filmed by 1News this week were where Ernslaw was a major grower. Manu Caddie of Ngāti Pūkenga and Ngāti Hauā said Ernslaw has already been prosecuted successfully in the High Court. “This is just another notch against them, I guess, and hopefully there’s other companies that go under the spotlight.” Chair of the Ministerial Inquiry into Land Use Hekia Parata said it was an environmental disaster unfolding in plain sight. Not only has Ernslaw lost its certification from the Forest Stewardship Council but an audit was being conducted into many forests around the country. Ernslaw said it was appealing the suspension. The company referred 1News to the agency that audited its forestry operations in New Zealand. The agency hasn’t responded to a request for comment. 1News chief correspondent John Campbell said that like the slash itself, there is much more to come on this story.

The Engineered Wood Products Association of Australasia has welcomed the appointment of Diana Hallam as the new Australian Forest Products Association Chief Executive Officer which it says comes at an important time for the renewable timber products sector. Source: Timberbiz “Diana has significant previous experience working at senior levels of the Australian Public Service and has expressed a strong commitment to understanding the many issues affecting our supply chain and regional communities across Australia,” EWPAA’s Chief Executive Officer, Mr Gavin Matthew said. “Diana takes on this important industry leadership role at a critical time with a volatile market for our essential products, a national need to plant more for-harvest trees, a worldwide push for reduced emissions and renewable products, and international impacts continuing to disrupt supply chains. “The timber manufacturing sector produces many innovative, reliable, and renewable products that should be recognised as preferred building materials in a low emissions future. There is much to be done but we are confident Diana will hit the ground running, using her understanding of Australia’s public service and political environment, and work for our industry backed by the strong team at AFPA.” “EWPAA is keen to work with Diana and her team to put in place quality policy settings that will plant more for-harvest trees, build more homes and businesses with timber solutions, and grow our forest product industries.”

Western Victoria’s new plantation hardwood strategic alliance, GT Hardwood, is actively educating the community on its plans to invest in new plantation trees to meet the world’s growing consumption for fibre-based products and mitigate the continued decline in resource. Source: Timberbiz The collective, formed by the region’s main plantation hardwood (Eucalyptus globulus or Bluegum) growers, including ABP (Australian Bluegum Plantations), Midway Limited, and New Forests, recognised the need to collectively work on educating the community and government on the increasing market demand for its sustainable woodchip resource and plans for more local investment, including a focus on domestic value-add. Founding Green Triangle Forest Industries Hub, CEO, Liz McKinnon was recently appointed as the GT Hardwood external affairs manager to support stakeholder engagement, strengthening relationships, and understanding of the contribution of the collective, which exports more than three million tonnes of sustainably grown plantation hardwood chip annually from the ports of Portland and Geelong. This focus includes working with Midway promoting its commitment to invest up to $200 million in new plantations with associated carbon projects through new green field sites within the south west region. The investment supports the Federal Government’s National Forest Industries Plan which has earmarked the planting of one billion plantation trees nationally by 2030, as well as the national ambition towards net zero. Midway is also working with local farmers to facilitate forestry based carbon projects on their land which produce carbon credits that can be sold to large emitters, diversifying on farm income. Ms McKinnon and Midway leaders have been in the region this week, undertaking consultation with the Corangamite Shire Council demonstrating how hardwood plantations complement existing agriculture investments, highlighting that their management activities rely heavily on local employment. “Australia’s plantation estate is in decline, losing a further 28,000 hectares in recent years, equating to a 250,000 decline over the past decade. This includes a 10 per cent contraction in the nation’s blue gum estate over the past decade, with significant parcels of blue gum land lost across the Green Triangle. This loss, largely due to conversion back to agricultural use, comes at a time when global demand for fibre continues to soar, with estimates the global market will quadruple by 2050,” Ms McKinnon said. “Planting more trees to store carbon is a key lever to meet the international focus on decarbonisation. Our locally grown sustainable plantation hardwood chip also plays a valuable role producing recyclable paper and packaging to replace plastic products as well as replacing coal for energy generation. “New trees will also play an instrumental role in reaching Net Zero Emission Targets for the agricultural sector. Our trees, which are often planted as woodlots and shelter belts, are a reliable tool in capturing and storing carbon whilst supporting farmers to diversify their farm income by earning carbon credits through the government backed Australian Carbon Credit Unit (ACCU) Scheme.” Ms McKinnon said GT Hardwood was focused on optimising the use of its fibre and diversifying its market base, investing in domestic value-add research to understand how to use globulus in new structural timber products to support the nation’s strained housing market. “Domestic demand for hardwood timber products continues to climb with hardwood imports into Victoria increasing by nearly 40 per cent since 2019. Our collective is investing in research to understand how to use eucalyptus globulus in structural timber and other hybrid products in an effort to reduce this reliance on imported products, which are often sourced from unsustainable sources,” Ms McKinnon said. “We need our sustainable hardwood plantation sector to continue to grow to support the creation of new local jobs, support investment in new domestic manufacturing, meet growing market demands, and utilise trees in the fight against climate change. New plantation hardwood trees mean more carbon capture, locked away in these new earmarked locally produced timber products.”  

Did you get your heart broken this Valentine’s Day? Now researchers have invented a new hydrogel that can be used to heal damaged heart tissue and improve cancer treatments.  Source: Timberbiz University of Waterloo chemical engineering researcher Dr Elisabeth Prince teamed up with researchers from the University of Toronto and Duke University to design the synthetic material made using cellulose nanocrystals, which are derived from wood pulp. The material is engineered to replicate the fibrous nanostructures and properties of human tissues, thereby recreating its unique biomechanical properties. “Cancer is a diverse disease and two patients with the same type of cancer will often respond to the same treatment in very different ways,” Dr Prince said. “Tumour organoids are essentially a miniaturized version of an individual patient’s tumour that can be used for drug testing, which could allow researchers to develop personalized therapies for a specific patient.” As director of the Prince Polymer Materials Lab, Dr Prince designs synthetic biomimetic hydrogels for biomedical applications. The hydrogels have a nanofibrous architecture with large pores for nutrient and waste transport, which affect mechanical properties and cell interaction. Dr Prince, a professor in Waterloo’s Department of Chemical Engineering, utilized these human-tissue mimetic hydrogels to promote the growth of small-scale tumour replicas derived from donated tumour tissue. She aims to test the effectiveness of cancer treatments on the mini-tumour organoids before administering the treatment to patients, potentially allowing for personalized cancer therapies. This research was conducted alongside Professor David Cescon at the Princess Margaret Cancer Center. Dr Prince’s research group at Waterloo is developing similar biomimetic hydrogels to be injectable for drug delivery and regenerative medical applications as Waterloo researchers continue to lead health innovation in Canada. Her research aims to use injected filamentous hydrogel material to regrow heart tissue damaged after a heart attack. She used nanofibers as a scaffolding for the regrowth and healing of damaged heart tissue. “We are building on the work that I started during my PhD to design human-tissue mimetic hydrogels that can be injected into the human body to deliver therapeutics and repair the damage caused to the heart when a patient suffers a heart attack,” Dr Prince said. Prince’s research is unique as most gels currently used in tissue engineering or 3D cell culture don’t possess this nanofibrous architecture. Dr Prince’s group uses nanoparticles and polymers as building blocks for materials and develops chemistry for nanostructures that accurately mimic human tissues. The next step in the research is to use conductive nanoparticles to make electrically conductive nanofibrous gels that can be used to heal heart and skeletal muscle tissue.

Vimek has launched a brand-new harvester model, the Vimek 470. This new harvester is stronger, bigger, and more efficient than ever. Source: Timberbiz The Vimek 470 is built on the same NextGen platform as the Vimek 870 Forwarder and therefore has many common technical features. Vimek believes in higher quality first thinning with in-stand operating methods. The company believes that in-stand thinning provides the best results for the driver and the best quality thinning. In-stand operating thinning requires an agile and light harvester with good all-around visibility and high capacity, all these features are found in the Vimek 470. Used in conjunction with the Vimek 870 forwarder, you get the benefit of minimum strip road area and a machine that allows operators the best opportunity to make active decisions about which trees should be harvested and which should be retained and to grow further to enhance the timber quality and increase future yield. “This provides the conditions for high growth of profitable assortments and reduces the risk of damage to the stand,” Johannes Nilsson, CEO of Vimek said. Vimek’s Next Generation machines the Vimek 470 and Vimek 870 are bigger and stronger than their predecessors but still gentle on the environment. The machines are designed specifically to work with thinning trees and causing minimal damage to the ground and remaining trees. The engines are Stage V certified, can run on HVO fuel and have very low diesel consumption and thus low CO2 emissions. The weight of the machine is low and is distributed well on all wheels. The driver sits low for good visibility in the young forest and the cabin offers a good driver environment.

Enviva, the largest US wood pellet exporter, is on the brink of filing for bankruptcy following substantial losses resulting from an ill-fated speculation on future commodity prices.  Source: Benzinga The company is facing nine-figure losses and initiated a 30-day grace period after missing a US$24 million interest payment to bondholders. Enviva, anticipating a bankruptcy filing by the end of the week, might delay if bondholders agree to extend the grace period. A faction of Enviva’s bondholders is proposing financing for the Chapter 11 process, offering a potential lifeline, the Wall Street Journal noted. Enviva’s shares, once resilient during the pandemic and the European energy crisis, have plummeted by 99% over the past 12 months. Establishing its manufacturing and export network in 2010 with financial support from energy-focused private-equity firm Riverstone, Enviva has grown to be the nation’s leading wood pellet seller. Riverstone holds over 40% of the company’s stake. In a stark reversal of fortune, last year, Enviva’s strategy to purchase pellets for resale backfired, leaving the company obligated to pay US$296.3 million for 800,000 metric tons of wood pellets worth only US$156.9 million on the open market, according to a November securities filing. Anticipating an additional US$140 million in losses over the next two years, the company expressed doubts about its ability to persist as a going concern due to the adverse impact on profitability and liquidity. Enviva, which markets its wood pellets as a low-carbon alternative to fossil fuels, operates ten plants across the South and six marine terminals. Although metric tons sold increased in the latest quarter, which ended September 30, revenue dwindled, and net losses expanded due to lower prices. In January, Enviva received notification that the company no longer complies with NYSE’s continued listing criteria.

Australia has a significant under supply of housing which is universally recognised. And to address this the Federal, State and Territory Governments have committed to a ‘Housing Accord’ to build 1.2 million much needed homes over the next five years. Source: Timberbiz HIA Managing Director Jocelyn Martin said the HIA had welcomed this announcement, and its members stood ready, willing and able to build these homes. “However, the current commentary and ‘threats’ on further changes to tax settings is acting as a significant deterrent to productivity and increasing housing supply,” Ms Martin said. “This is coupled with the uncertainty from interest rate rises, new complex industrial relations reforms on businesses, the introduction of widespread changes to the building code and layers of approvals and regulatory change. “This is all coming together to substantially affect market confidence and is reflected in building activity data which is indicating decade low numbers for future new home construction.” Ms Martin said that building businesses were feeling swamped and heavily weighed down by this constant attack on changing rules and increasing complexity, and at a time when more skilled workers were needed as more people left the industry than entered it. “It is time all parts of Government came together, to work in a coordinated way, to commit to providing stable and reliable policies and measures to support and grow the building industry – with the ultimate goal of building these much-needed homes,” Ms Martin said. “New housing is already one of the most highly taxed and regulated sectors in the economy, and any further increases to tax settings or increased regulatory complexity would only make that situation worse and ultimately result in less homes being built. “Increasing the supply of housing is the key to addressing affordability. This will involve adequate release of land for new dwellings, increasing the density of housing in metropolitan areas, unlocking further land and infrastructure investment in regional areas and supporting investment in new housing. “The focus needs to be on how we get more slabs poured that will result in the keys getting in the front doors of buyers’ and indeed renters’ pockets quicker,” she said.

Scion has become a member of The Australian Research Council (ARC) Advance Timber Hub. This five-year, $16.5 million research initiative was recently launched at The University of Queensland, Australia in the presence of industry leaders, academic partners, and government officials including Senator Anthony Chisholm, Assistant Minister for Education and Assistant Minister for Regional Development. Source: Timberbiz The primary objective of the ARC Advance Timber Hub is to drive innovation in the Australian mid-rise building market, which represents a significant portion of the country’s construction industry valued at approximately $80 billion annually. This initiative has the potential to revolutionize both timber processing and construction sectors. By leveraging international expertise in advanced timber manufacturing, the Hub also presents substantial opportunities for optimizing forestry resources, including those in Aotearoa New Zealand. At Scion, Henri Bailleres and his team, comprising Tripti Singh, Romain Meot, and Diego Elustondo, are eager to collaborate with the Advance Timber Hub to explore avenues that can benefit both the industry and forests of Aotearoa New Zealand. Their goal is to foster strong partnerships with the Australian timber building sector, fostering synergy between our nations in a shared market. Administered by The University of Queensland’s School of Civil Engineering, the ARC Advance Timber Hub brings together a diverse range of stakeholders including innovators, developers, technology providers, designers, fire engineers, forestry experts, and government representatives. With participation from 12 Australian universities and five international universities and research institutes, the Hub is poised to drive significant advancements in timber processing and construction technologies. Scion sees immense value in joining the Hub, as it provides a platform to contribute our innovative expertise and secure opportunities for our resources and timber products. Together, we look forward to shaping the future of timber innovation and sustainable construction practices in Australia and beyond. To learn more please visit www.advance-timber-hub.org

FSC is organising a webinar Navigating Compliance with Australia’s Illegal Logging Prohibition Laws in partnership with the Department of Agriculture, Fisheries and Forestry (DAFF) and SCS Global Services. Source: Timberbiz This session is tailored for importers and processors sourcing FSC-certified materials, offering crucial insights to ensure compliance. The webinar is relevant to FSC certificate holders. It is also relevant to non-certified organisations that import and/or process material sourced from FSC-certified suppliers and need to verify that the certification applies to the particular product. This webinar is designed to provide importers and processors of FSC-certified material with crucial information to ensure compliance with Australia’s illegal logging laws. Participants will gain insights into various aspects of the intersection between Australia’s illegal logging laws and FSC certification such as: Obligations of importers and processors under Australia’s illegal logging laws when sourcing material from FSC-certified suppliers. Understanding FSC chain of custody certification, including requirements for compliance with timber legality legislation Clarifying how importers and processors can utilise FSC claims to support compliance Identifying parts of the laws where FSC certificate holders can rely on their current procedures for compliance Determining areas where importers and processors are required to undertake further due diligence for compliance Verifying suppliers of FSC-certified material Receiving and handling FSC-certified material, including receiving FSC claims on sales materials and transferring material between sites. The webinar will be held on 21 March at 2pm EST Australia. You can register here.  

All Tasmanian political parties are being urged to throw their support behind the state’s sustainable forestry industry, ahead of the 23 March State election. Source: Timberbiz Speaking at the launch of the Tasmanian Forest Products Association Election Wishlist, TFPA Chief Executive Officer Nick Steel said the forest industry is vital for the state’s economic, social and environmental success. “Over 5,500 Tasmanians are employed directly and indirectly by the Tasmanian forestry industry,” Mr Steel said. “The Tasmanian forestry industry is vital to secure our rural communities, for our economic prosperity and to help meet the state’s ambitious climate change targets. “In the coming weeks, the TFPA will be reviewing the promises made by all parties and candidates, and assessing them against the Election Wishlist. “Our wishlist prioritises the key election policies needed to ensure that our sustainable industry can continue to thrive in years to come,” Mr Steel said. The TFPA Election Wishlist focuses on four key priorities. They are: timber trees and productivity supporting Tasmanian businesses reducing red tape climate change and the fire threat. “Closer to the election the TFPA will release an Election Scorecard which will rate all parties’ policies against their support of the Tasmanian forestry industry,” Mr Steel said. “That score card will allow Tasmanians who care about our sustainable industry to determine where their vote can go, to truly support our industry. “I urge all political parties to work with the TFPA to ensure that their policies can ensure the Tasmanian forestry industry can continue being successful and sustainable for many years to come.” The TFPA election wishlist is available here: https://bit.ly/4bPyfDF

The Australian Forest Products Association has appointed experienced government relations professional Diana Hallam as its new Chief Executive Officer. Source: Timberbiz Ms Hallam has a long and distinguished career working at senior levels of the Australian public service, as Chief of Staff to a former Deputy Prime Minister and in other senior political advisory and corporate roles with a focus on infrastructure, transport and agriculture. “Diana’s breadth of experience across senior levels of government, politics and the corporate sector will stand her in excellent stead to manage the challenges and opportunities facing our sector,” AFPA Chair Stephen Dadd said. “On behalf of the board, staff and membership, I congratulate Diana and welcome her to the team.” Ms Hallam will leave her current role as a First Assistant Secretary in the Australian Government Department of Agriculture, Fisheries and Forestry to commence as AFPA CEO on 12 March 2024. Ms Hallam served as Chief of Staff to Deputy Prime Minister and Minister for Agriculture Barnaby Joyce from 2014 to 2017 and prior to that occupied senior roles at both Toll Group and Singapore Airlines. She holds a Bachelor of Arts (Hons) and a Master of Science and Technology (Aviation) from the University of NSW, a Master of International Law from the Australian National University, a Graduate Diploma of Professional Communications from the University of Southern Queensland and is a graduate of the Australian Institute of Company Directors. Ms Hallam said she was thrilled to be offered the opportunity to become AFPA’s CEO. “I look forward to meeting AFPA’s membership and working with everyone across the forest products supply chain,” she said. “The industry is at the forefront of key policy challenges from climate change to economic development and sovereign capability. I look forward to getting out on the ground and talking to stakeholders about the industry’s issues and opportunities.”

February has kicked off with a hiss and a roar with log exporters pulling out the pencil sharpeners and publishing prices in the mid to highNZ$130’s for A grade (except for Bluff and Lyttleton where you poor folks are between NZ$10 and NZ$20/m3 less). This price level has given forest owners a grin that rivals Chloe Swarbricks’ after James Shaws’ resignation and gives numbers that are at least NZ$10/m3 over both the three- and five-year averages. This lift is courtesy of an increased CFR price, lower foreign exchange, and steady shipping rates. It’s not all beer and skittles though and anyone that reads the news will be well aware of the continued issues with the Chinese economy and the embattled construction sector. The Chinese Evergrande debacle continues to unfold with an order from a Hong Kong court to liquidate the company which currently holds the crown of the worlds most indebted developer with over 300 billion yuan in total liabilities. An attempt by Fengtao Property Company, one of Evergrande’s offshoots, to auction off some of its assets was met with zero bids, which indicates the level of demand in the property sector. There are some glimmers of light through the dark CCP clouds as Reuters reported that the average Chinese city house price rose 0.15% in January, not really a ‘wow moment’ but it is the fastest gain since mid-2021 with growth occurring in half of the surveyed cities. It was also noted that government land sale revenue also gained 1.8% from the previous year which is the first-time sales have risen in two years. How this is happening when there’s 10 years’ housing supply still in the system is anyone’s guess, but sentiment is a huge driver of the Chinese economy which doesn’t really conform to economics 101. The China market is even more important to NZ now as a number of sawmills in South Korea have closed their doors. While South Korea isn’t a massive player in terms of volume, it is especially significant in that South Korea accepts non-fumigated cargo from NZ. Most of the NZ log cargo is shipped on vessels that have approximately a third of the cargo ‘on deck’ and therefore this cargo must be fumigated on port prior to loading if going to China. The ‘under deck’ cargo in the holds is fumigated enroute which is reasonably straight forward but following the NZ EPA’s effective banning of Methyl Bromide as a fumigant (by requiring large buffer zones), on deck cargos that cannot be fumigated are now mostly de-barked if destined for China. Delivering top deck cargos to South Korea is a good option for those exporters from ports that don’t have de-barkers or the ability to fumigate, and therefore any reduction in Korean demand also reduces the optionality for NZ exporters. Chinese log inventories have crept up around 50Km3 in the past month and now sit at around 2.6Mm3 which is approximately 40 days’ supply. Chinese New Year celebrations kick off next week and many sawmills have shut early which explains the inventory build and it’s likely that we will see total inventory at the mid 3Mm3 level by the time everyone returns to work. Total log imports into China for 2024 will likely be similar to 2023 at a shade under 40Mm3 which is around 60% of the 2021 levels. NZ has increased its share and currently accounts for around 45% of this total, which is an increase in terms of market share but a decrease in total volume. Supply from Europe and the US has reduced significantly with the Red Sea scuffle potentially keeping the lid on this for the mean time. Australia has recommenced log exports to China however, only in smaller volumes (once bitten twice shy) with the majority of their export volume destined for India. Carbon prices have rallied somewhat with current spot prices at NZ$73.35. This equates to around NZ$2,200/ha/yr and will likely have many sheep farmers looking at trees as a form of succession planning, despite the negative press from the noisy few. The next Govt NZU auction is scheduled for March, and it will be interesting to see if any bids clear the floor price following the failures of 2023. Nicola Willis will be watching very carefully as the auction revenue will probably be factored into the 2024 books to help fill the Roberston fiscal hole. So, all in all 2024 is shaping up pretty well with solid export prices, strong domestic demand, (especially pruned logs) and a reasonable general outlook. All eyes will be on China demand once everyone returns from new year celebrations and hopefully a few weeks R&R will have them return to work with renewed fizziness about building things with wood. NZ supply will be interesting over the next few months as weather and prices increase woodlot activity, and the Taupo windthrow salvage starts to wind down. Whether we can hold the price gains through into Q2 is yet to be seen but like any good commodity trader, we’ll take what we can get. Marcus Musson is a Forest360 Director. He holds a Bachelor of Forest Science with Honours from Canterbury University, New Zealand, and specialises in steep slope cable harvesting, marketing and value recovery initiatives.

The timber industry in Australia plays a significant role in the nation’s economy, providing employment opportunities and contributing to various sectors such as construction, manufacturing, and forestry. Within this industry, apprenticeships hold particular importance, serving as a cornerstone for skill development, knowledge transfer, and sustainability. This week’s National Apprenticeship Week (12-18 February) has been promoting the value of apprenticeships to employers, job seekers, industry, and government, and advances the role apprenticeships play in building workforce skills, knowledge, and a robust Australian economy. There are of course many good reasons to consider employing an apprentice. Australia’s timber industry, like many others, faces skills shortages due to factors such as an aging workforce and evolving technological advancements. Apprenticeships help address these shortages by actively recruiting and training new talent, ensuring a steady supply of skilled workers to meet industry demands. Apprenticeships play a crucial role in preserving traditional craftsmanship within the timber industry. By passing down skills from experienced artisans to the next generation of apprentices, valuable techniques and craftsmanship are retained, contributing to the cultural heritage of woodworking and timber-related trades. But apprenticeships also provide a platform for innovation and adaptation within the timber industry. As apprentices learn from experienced mentors, they also bring fresh perspectives and ideas, driving innovation in processes, techniques, and product development to keep pace with changing market demands and technological advancements. Apprenticeships offer clear career pathways and opportunities for advancement within the timber industry. Upon completing their training, apprentices often transition into full-time employment with the same company or pursue further education and specialization, contributing to a skilled and versatile workforce. Apprenticeships are integral to the sustainability, growth, and competitiveness of Australia’s timber industry. By nurturing talent, preserving traditional craftsmanship, fostering innovation, and providing career pathways, apprenticeships ensure the industry’s continued success and relevance in the modern economy. Australia’s timber industry can’t live without them.