Forest Products Industry

Timber removed during roadworks in a southeast NSW forest, already at the centre of a dispute over proposed logging, was sold to help pay for the work, the Forestry Corporation of NSW (FCNSW) has confirmed. Source: About Regional Glenbog State Forest, about 45 minutes north-west of Bega, has been the focus of a community campaign over the potential effects of logging on threatened wildlife, including greater gliders and koalas. When FCNSW undertook what it described as road maintenance in January, conservationists monitoring the work recorded timber being trucked from the forest. They say at least 26 loads were removed from a 2.7-km stretch of Bemboka River and Fraxinoides roads. FCNSW maintains the work was road maintenance, but the removal and sale of the timber prompted questions about how the operation had been classified and regulated. Those concerns led Wilderness Australia and South East Forest Rescue to lodge a report titled Illegal Logging in Glenbog State Forest with the NSW Environment Protection Authority (EPA) in early July. The report alleges the FCNSW operation was commercial logging disguised as road maintenance and may have bypassed environmental protections required under forestry or planning laws. The conservation groups say the roadside work was carried out between 13 and 22 January and involved the removal of more than 1000 trees with trunks wider than 20 centimetres. They allege clearing generally extended five to 10 metres beyond the road edge and reached between 15 and 20 metres in two places. Wilderness Australia executive director Andrew Wong said paperwork photographed at the site recorded at least 26 loads of timber. The report cited 21 truckloads, but Mr Wong said a later count of the photographed paperwork identified at least 26. FCNSW did not confirm the number of trees or truckloads involved. A spokesperson said the operation formed part of an ongoing program to grade, gravel and maintain roads across Glenbog for recreation, firefighting and forest management. “The work in January included some tree removal to enable machinery to access the road and safely carry out works, as well as removal of vegetation that had regrown on the road edge to maintain the road at a suitable width,” the spokesperson said. “Rather than mulching the removed trees onsite, as residents would often see on local roads and highways, some timber was recovered and sold to local mills.” The spokesperson said revenue from the timber helped fund road maintenance, but FCNSW did not disclose how much was raised. Mr Wong said selling the timber raised broader questions about whether the operation remained road maintenance or had become commercial forestry. “We believe it is the first case of potentially illegal logging that could be termed ‘for-profit management’,” he said. The distinction matters because commercial forestry operations must comply with the Coastal Integrated Forestry Operations Approval (CIFOA), including its threatened-species protections. FCNSW said the Glenbog roadworks were completed under a roading plan approved through a Review of Environmental Factors and were confined to the previously disturbed road corridor. However, the conservation groups allege the approval was more than three years out of date, restricted the work to the road’s existing disturbance footprint and did not permit the clearing they say occurred beyond it. The report says the timber-removal operation appeared to end after 2.7 km amid strong community opposition, although the wider roading plan covered more than 90 km of roads and trails. It argues that if the same approach were applied across the roughly 51,000 km of roads within NSW state forests, it could expose about 102,000 hectares of forest to clearing outside CIFOA oversight – equivalent, it says, to around five years of all native forest logging currently conducted in NSW state forests. FCNSW said maintenance had since been completed on most of the roads and trails covered by the plan but did not say whether any further timber had been removed or sold. The corporation said work would continue as required to maintain access for recreation, fire management and other uses. Mr Wong said documents obtained through a government information access request indicated the machinery used for the roadwork had been brought into Glenbog for the separately proposed logging operation known as 2312A–2315A. FCNSW did not say whether the roadwork prepared access for that operation or provide its current status. Mr Wong said paperwork accompanying the timber described the operation as “thinning”, which the report identifies as a harvesting activity normally regulated under the CIFOA. The report also summarises legal advice obtained from the Environmental Defenders Office that the operation should have been regulated under forestry law. The advice says that even under the planning framework used by FCNSW, planning law was likely breached and biodiversity legislation may also have been breached. Those legal arguments have not been tested or accepted by the EPA. The report further alleges that the clearing reached the boundary of South East Forest National Park and included a white ash forest, recently listed as a nationally endangered ecological community. It also raises concerns about the operation’s potential effects on surrounding wildlife habitat. A search by the conservation groups of the NSW Government’s BioNet database identified records of 25 threatened species in Glenbog, including greater gliders and koalas. The report identifies 12 greater glider den trees within about 85 metres of the clearing, including nine within 50 metres. One was recorded in BioNet a year before the operation and was about 13 metres from the clearing. Mr Wong said a greater glider search and broader habitat search would have been required had the work been treated as forestry, but alleged neither was conducted. FCNSW did not respond to questions about which threatened-species surveys were required or completed, or whether trees were removed within 50 metres of known greater glider dens. The EPA confirmed it was aware of community concerns and was assessing information relating to the January operation. It has not said whether it inspected the site or when its assessment is expected to be completed. “As this assessment is ongoing, it is inappropriate […]

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Australia’s Syncorana Group and Steco Centar from Bosnia and Herzegovina have signed a landmark Joint Venture Agreement to establish Steco (Australia) Pty Ltd, a new company that will introduce high-quality prefabricated homes in Australia and Oceania. Source: Timberbiz The partnership combines Syncorana’s strategic vision for Indigenous economic development including housing manufacture and building and workforce training with Steco’s thirty years of experience in the design and manufacture of prefabricated housing systems. Syncorana is an Australian company focused on developing innovative housing, advanced manufacturing, early childhood education, workforce training and artificial intelligence solutions. Steco Centar is a Bosnia and Herzegovina-based manufacturer of prefabricated building systems with extensive experience in the design, engineering and manufacture of innovative construction technologies for domestic The joint venture represents a significant step towards establishing an advanced manufacturing facility capable of supporting Australia’s growing demand for affordable, sustainable and high-quality housing solutions. The new facility is designed to create highly skilled jobs, strengthen sovereign manufacturing capability and support long-term industry growth. Under the agreement, the parties intend to establish a local manufacturing operation at an estimated cost of around $150 million capable of scaling to produce three thousand prefabricated homes per annum using advanced European manufacturing technology adapted to Australian standards and market requirements. A distinguishing feature of the proposed Australian facility will be the inclusion of Syncorana’s registered training organisation – Living Planit/Dreamtime Institute of Training and Management – designed to become a national centre of training excellence for prefabricated construction, advanced manufacturing and modern building techniques. The integrated training facility is intended to support the development of a highly skilled Indigenous and non-Indigenous workforce capable of manufacturing, assembling and installing prefabricated building systems for the Australian market. The venture will seek to supply a broad range of construction markets including residential housing, Indigenous affordable and social housing, early childhood learning and aged care centres, workforce accommodation and commercial developments. It complements Syncorana’s Indigenous housing strategy planned for implementation via its national network of Indigenous partnerships. Steco also intends to collaborate with strategic partners, government, institutional investors, developers and builders and community housing providers to expand the use of prefabricated construction systems throughout Oceania. This initiative will assist in addressing Australia’s housing supply challenges while contributing to national economic development and increasing participation by Aboriginal and Torres Strait Islander peoples in the construction and manufacturing sectors. “The joint venture marks a defining milestone in the evolution of Syncorana,” Carlton Taya, Chief Executive Officer and Managing Director, Syncorana Group, said. “Our partnership with Steco Centar brings together proven international manufacturing and building expertise with an Australian vision to transform the way homes are built. “Australia is facing one of the most significant housing supply challenges in its history. Through this joint venture we intend to establish advanced manufacturing capability that can deliver high-quality prefabricated housing faster, more efficiently and at scale,” Mr Taya said. “Importantly, this partnership is about much more than manufacturing. It is about creating skilled jobs, supporting Indigenous economic participation, developing the next generation of workers through our training centre of excellence, and using technology and artificial intelligence to build a smarter and more sustainable housing industry. “Importantly, this initiative will provide meaningful training and employment pathways for Aboriginal and Torres Strait Islander peoples, apprentices, school leavers, veterans and workers seeking to transition into advanced manufacturing and modern construction.” “We are delighted to be partnering with Steco Centar, a world leader in prefabricated housing manufacture and look forward to building a long-term business that delivers value for our shareholders, customers, government partners and Indigenous communities across Australia.” Steco Centar chairman Milenko Stevanović said his company had spent many years developing innovative building technologies and manufacturing systems. “We believe Australia represents an exciting opportunity to apply our experience to one of the world’s most dynamic housing markets,” he said. “Syncorana shares our commitment to quality, innovation and long-term growth. Together we intend to combine European engineering expertise with Australian manufacturing capability to deliver world-class housing solutions. “We are delighted that our Australian partnership will include a dedicated training centre where our engineering knowledge and manufacturing systems can be transferred to a new generation of Australian professionals.” “By integrating education with manufacturing, we will help ensure that Australian workers are trained to the highest international standards while supporting the long-term success of the joint venture.” “We look forward to working closely with the Syncorana team and contributing our technical knowledge, manufacturing systems and experience to the success of this important venture.”

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NSW has the opportunity to become Australia’s benchmark for construction productivity and project delivery, but achieving that will require changes to procurement, risk allocation and the way government and industry work together, delegates at Foundations and Frontiers 2026 heard. Source: Timberbiz Addressing the Australian Constructors Association’s (ACA) flagship industry forum in Sydney yesterday, NSW Treasurer Daniel Mookhey outlined his vision for improving project delivery, strengthening industry capability and ensuring taxpayers receive greater value from the state’s significant infrastructure investment program. The Treasurer’s address followed a challenge from industry leaders that while NSW is one of Australia’s largest construction markets, it should also aspire to be one of the nation’s most attractive places to deliver major projects. The challenge was taken up by NSW Treasurer Daniel Mookhey, who outlined the NSW Government’s vision for improving project delivery, strengthening industry capability and ensuring taxpayers receive greater value from the state’s significant infrastructure investment program. Sending a message to contractors, the Treasurer said government is looking for innovation that can be scaled and repeated across projects, not demonstrated once and set aside. “Government is the construction sector’s largest client. That gives us power, but it also gives us responsibilities. We must develop projects properly before taking them to market. We must be clearer about scope, more realistic about risk and more consistent in our requirements,” said Mr Mookhey. “We must engage industry earlier, make decisions faster and resolve genuine claims without allowing every issue to become an adversarial contest. We must look beyond the lowest apparent tender price and ask whether a bid is credible, deliverable and represents value over the full life of the asset. “For too long, an unhealthy model took hold in parts of the construction industry. Contractors bid low to win the project. The tender price became the opening offer. Once construction began, claims, variations and renegotiations became the route back to profitability.” In setting a vision for the industry the industry, the Treasurer pointed to the role of industrialisation and modern methods of construction in driving the change. “We want greater standardisation, more modern methods of construction and innovation that can be repeated across projects—not demonstrated once and then forgotten,” said Mr Mookhey. The Treasurer later joined ACA President Annabel Crookes for a fireside discussion examining the role government, contractors and project owners must play in improving productivity and delivering better project outcomes. “Genuine partnership starts well before contracts are signed. It means bringing industry in early to help shape the problem, being transparent about the pipeline and creating the conditions for government and contractors to solve challenges together before they become disputes,” said Ms Crookes. “If we want to lift productivity, procurement has to be shorter, smarter and more focused on outcomes. The opportunity is to spend less time in extended, duplicative competitive processes and more time in genuine development phases where the right people are around the table early.” “The next phase of NSW infrastructure investment gives us a real opportunity to think differently about how work is packaged, sequenced and delivered. “Where the pipeline includes repeatable assets or similar scopes, we should be looking for ways to standardise, build momentum and give industry the confidence to invest in industrialised construction, offsite manufacture and digital delivery.” ACA CEO Peter Colacino said improving productivity had become one of Australia’s most important economic challenges. “The discussion today reinforced that productivity is no longer simply a construction issue. It’s a cost-of-living issue, a housing issue, and an economic issue,” said Mr Colacino. Foundations and Frontiers 2026 has brought together more than 450 leaders from construction, government, consulting and the supply chain under the theme Smarter. Stronger. Together. The forum focuses on identifying practical reforms and proven approaches that can improve productivity and lift project delivery performance across Australia.

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August, the peak of the ski season and last month in our winter. There is a lure that spring is only just around the bend as lambs start emerging in paddocks and daffodils pop up all over the place. Sometimes, however, this can be a false sense of security as September can prove to be one of the wettest and windiest months on the calendar which can, in turn, create a few issues for foresters with windthrow and infrastructure damage. NIWA expects an 80% chance that El Nino will reach or exceed strong intensity by the end of September which will likely result in unusually windy conditions. This is great for drying things out but not so great for keeping trees vertical. We have seen considerable wind damage over the past few years, starting with Gabrielle in 2023 and latterly with the 2025 events in the Nelson Tasman region and 2026 event in the Southern north island. This has resulted in an out-of-cycle increase in harvest volumes in these regions and pushed supply into markets when it was not necessarily needed. While these salvage operations have wound down in the North Island, the Nelson region still has some distance to go. Even though the market has not needed the extra slugs of volume resulting from the salvage operations, there has been a reasonable balance in terms of supply and demand which has kept prices on a relatively even keel for the past 12 months. While we saw a 7% drop in June; July and August have seen a rebound back above the 12-month average with A Grade 3.9m at around $125/JAS in North Island ports and around $115/JAS in South Island ports. Economic data out of China isn’t painting a rosy picture with the Purchasing Managers Index (PMI) dropping to 49.2 from 50.3 in June indicating a softening in manufacturing activity. Probably nothing to see here as July and August are historically fizzers for PMI data. It is important to note, however, that the quarter 2 economic growth rate was the lowest in three years at 4.3% and, when combined with increased in tech exports and decreased construction activity, wood-based products are probably fearing worse than reported. On the bright side, in market log inventories have dropped slightly to around 2.47 million cubic metres with daily offtake a shade under 60,000 cubic metres per day. NZ supply has been somewhat subdued with weather issues and problems berthing vessels in Gisborne due to successive long wave events. These events are especially frequent during southerly conditions and result in vessels being held at anchor and unable to load. This creates a backlog as the port fills quickly and stock begins to build in the forest which takes time to clear. Shipping costs continue to be problematic with the Iran conflict keeping costs over $US40/JAS. As long as the US and Iran continue their Mexican standoff it’s unlikely that we’ll see any reductions in the near term. It’s a great time to be a fuel company with many booking record windfalls and profits in the double to quadruple range. To put it into context, the eight major fuel companies booked more than $US90 billion in profits in the 3 months following the war. Nothing like a bit of profiteering at the expense of others in a time of global crisis. India didn’t want China to feel lonely in the PMI stats game and have recorded their lowest result in five years. While still above 50 (so indicating expansion), the July number of 53.5 is well back from June. While export orders grew at the fastest pace since April, job hires were at the lowest point in almost 30 months. Vessel arrivals into India are currently down around 50% on July with around six vessels due to berth at Kandla Port. Berthing in India is slow and complicated and recent damage to one of the berths has made this process more difficult. The rainy season has flooded many parts of North, West and central India which has in turn dropped radiata lumber demand by around 50%. Containers of logs have started turning up at Tuticorin Port from South Africa, USA, Australia and NZ. As there are no processing facilities near this port, much of the volume must be trucked hundreds of kilometres to sawmills which adds to cost and complexity. There was a bit of excitement in the carbon game a few weeks back when the volume of the NZU’s available for sale dwindled creating a buyer flurry that saw 700,000 units sold in a day and sale prices break through $55/NZU. This in turn got the traders’ phones going and this available sale volume was quickly replaced as participants tried to capitalize on the goldrush. As with any flurry, this quickly settled down to business as usual without any significant price reaction. The domestic market continues to show green shoots as log supply tightens and sawmill inventories recede. Pruned especially is in high demand and although this is supply related, it does show the advantage of pruning your forest. Pruned log prices continue to remain buoyant, and some sawmills are happy to help cover the additional cartage component to get supply from out of their traditional region. RMA minister Chris Bishop has put on his big boy pants and blocked Gisborne District Councils’ NZ$600M plan to force landowners (farmers and foresters) to transition to permanent vegetation cover. This has created the expected level of vitriol from proponents of the plan, many of whom seem hellbent on turning the East Coast into an economic and social backwater. This is the classic case of being careful what you wish for as we are already seeing significant forest related processing investment walk away from the region due to long term supply insecurity. So, how will the rest of the year play out? If you were a betting person, you’d probably put your casino chips on increased export prices heading into the pointy end of the year. […]

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