Forest Products Industry

The EU is launching an anti-dumping investigation in plywood imports. Producers in the EU are citing a surge in cheap hardwood plywood which they say is coming from China, but they believe originates in Russia. Source: Timberbiz The Greenwood Consortium representing forest owners, loggers and suppliers say the investigation is critical to protect the EU industry. The plywood is cheap and comes from conflict timber areas, Russian timber is banned in the EU. It was the Greenwood Consortium that initiated the complaint against China in late August this year stating that Chinese imports are being sold at very low prices undercutting European companies. There has been a significant increase in Chinese plywood imports into the EU. Russia is said to be exporting hardwood into China which is being used in the production of the plywood. EU has countries such as Poland, Finland, the Baltic States and France producing plywood, and the industry is said to employ around 10,000 people. Tariffs are already in place on birch plywood imports from Kazakhstan and Turkey as they included Russian content. The EU Commission will examine if pricing misrepresentations have resulted in damage to the EU producers who claim declining sales are hurting the industry. The investigation is likely to take more than 12 months. However, all Chinese plywood imports will be registered at EU borders so that future tariffs may be imposed retrospectively. Other countries such as Morocco, the US and South Korea have tariffs on Chinese wood imports.  

The New York Stock Exchange said it would delist Enviva’s stock on 22 October and that shareholders would receive no recovery. Sources: The Wall Street Journal, Investing.com, Timberbiz The notice cements one of the most dramatic collapses of the green energy investing boom. Enviva’s stock market value ballooned to nearly US$6 billion in 2022 before a wrong-way bet on pellet prices bankrupted the firm. Enviva will be moved to the OTC market, following its voluntary petitions for reorganization under Chapter 11 of the United States Code. Over-the-counter (OTC) markets are those in which participants trade directly, without a central exchange or other third party. OTC markets do not have physical locations. As part of this process, Enviva has submitted an amended Chapter 11 reorganization plan, proposing to emerge as a private entity with current shareholders seeing their equity interests cancelled. The company has also secured commitments for a financial restructuring plan, which includes a Backstop Commitment Agreement with equity commitment parties and a US$1 billion senior secured facility contingent upon exiting the Chapter 11 process. Enviva has been flagged by the NYSE for non-compliance due to a delay in submitting its 2023 annual report, a delay linked to the company’s current bankruptcy proceedings. However, the NYSE has granted Enviva a six-month grace period to file the overdue report and regain compliance. Enviva has also submitted monthly operating reports, providing a snapshot of the company’s financial status during the bankruptcy process. The company has announced extensions to several key milestones under its Restructuring Support Agreement, including the deadline for delivering a revised long-term business plan. These are the recent developments in Enviva’s ongoing journey, highlighting the complexity of its current financial situation.

Tigercat debuted a new skidder model at this October’s Paul Bunyan forestry equipment exposition in Cambridge, Ohio. The 610H cable skidder aims to be a simple, lower cost addition to Tigercat’s highly regarded H-series skidder line-up. Source: Timberbiz The Tigercat FPT N6.7 engine delivers 151 kW (202 hp) to the same hydrostatic driveline as the other H-series skidders. The machine is equipped with 620H sized axles for added durability. The operator’s cabin, however, is simplified compared with the other H-series machines. Rather than Tigercat’s signature Turnaround seat, the 610H is fitted with a fixed position seat angled at 30 degrees. The heavy-duty winch provides maximum line pull at any engine speed. The winch can drop loads and drive away and reel in a load while driving using a wet-disk dynamic clutch. It also has very low free spool resistance which allows for easier cable extraction using a mechanical jaw clutch.

The Te Hoiere Restoration Project is underway in OneFortyOne New Zealand’s Tinline Block. This is a project to research and understand the Te Hoiere (Pelorus) catchment and the land uses within current activities, impacts and opportunities for improvement. Source: Timberbiz Funding from the Ministry for the Environment has been allocated in early 2024 to enable a series of research projects with five forestry-based projects underway through the Top of the South Wood Council (TOTSWC). One such project is looking at reinstatement and enhancement of riparian margins within exotic forests – using a variety of re-establishment techniques to assess viability physically and financially and which can be replicated in remote and difficult access terrain. OneFortyOne’s Tinline block now has three trial zones in two different geo-locations. Each of the trial zones has 5 x 100m x 10m individual trial areas established, which will give the replicants of each trial. Trials initiated are: Do nothing. No spray, allow natural regeneration post-harvest, no control of regen or ‘undesirable’ weeds (eg : old man’s beard). Do nothing, manual plant. No spray, manual planting of natives. ‘Timata’ planting method of approx. 2,500 stems/ha equivalent at 2x2m spacing. 50% manuka/kanuka, balance mixed natives (heavy in pioneer species). Target spray weeds, allow natural regeneration post-harvest. Spray competitive and undesirable weeds (old man’s beard, banana passionfruit, Himalayan honeysuckle & other weeds which are fast growing and risk swallowing native regen). Manual spot spray, manual plant. Pre-plant spot spray 1.2-1.5m diameter spots at 2x2m spacing. Manual plant into spots using 50% manuka/kanuka, balance mixed natives (heavy in pioneer species). Aerial spot spray and seed by drone. Pre-plant spot spray 1.2-1.5m diameter spots at 2x2m spacing. Aerial broadcast application of native seed infused ‘bombs’ from drone. Trials within trials: Each manual planting trial has 2 x rows of mixed Manuka and Kanuka as species ‘upalatable’ to ungulates and a further 2 x rows of mixed species common to the Tinline area (10 species, 5 plugs of each species in each row. This is to look at species palatability and susceptibility to grazing in an open environment. Drone spraying is regular spaced chemical spots (where no existing native vegetation is present). Drone seed application is broadcast across the whole trial area. This is to look at native establishment with and without chemical assistance. Each of the 15 trial areas has 2 x PSPs established within the boundaries. A 5mx5m ‘open’ plot and a 5m x 5m deer fenced ‘exclusion’ plot. This is to look at the effect of uncontrolled browsing vs full exclusion across the range of trials. Ecological assessments and measurements are being undertaken three monthly until trial completion.

Applications are now open for Responsible Wood’s 2024-25 Community Grants Program. Now in its fifth year, the program continues to support rural and regional communities across Australia in creating and completing innovative forest-based projects that benefit both communities and the forests. Source: Timberbiz Responsible Wood and its certificate holders are committed to fostering stronger connections between communities and their local forests. Responsible Wood believes that when people can connect, understand, access, and enjoy their local forests, communities become stronger and healthier. This idea is one of the many aspects supported by Responsible Wood’s standard for sustainable forest management. The Community Grants Program provides funding for a wide range of forest-based initiatives, including the construction or upgrade of recreational facilities, forest rehabilitation projects, habitat for significant biodiversity values, and even forest-based art installations. Grants ranging from $2,000 to $15,000 are available for projects that meet the program’s selection criteria. Eligible applicants include registered charities, Landcare groups, local environmental organisations, Men’s Sheds, sporting clubs, councils, Indigenous organisations, and more. Successful applicants will have until June 30, 2025, to complete their projects. Applications close on Friday, November 22, 2024. To apply for the grant, applicants must: Complete the Eligibility Checklist. Seek support from a Responsible Wood certified forest manager or Chain of Custody supplier. Submit the completed Application Form and Eligibility Checklist by email to communitygrants@responsiblewood.org.au by November 22, 2024. For more information, including FAQs, Terms and Conditions, and access to the Eligibility Checklist and Application Form, please visit Responsible Wood’s Community Grants page.  

The nation’s forestry and timber industry can help build 50,000 much needed new homes annually with climate friendly timber and wood – but we need a strong and stable construction sector to achieve that, according to Australian Forest Products Association CEO Diana Hallam. Source: Timberbiz Data from AFPA and Master Builders Australia shows from the height of the COVID pandemic until early 2024, domestic timber sales have fallen more than 500,000m³ – meaning industry has capacity for 50,000 more homes annually. This is extremely significant given MBA has forecast Australia will fall 110,000 homes short of the Federal Government’s 1.2 million homes target by 2029. “Industry has product on the shelf ready to construct the new and climate friendly homes of tomorrow and capacity to produce more, but we need a range of different actions to get the housing construction sector moving so we can realise our goal,” Ms Hallam said. “With the right economic conditions and regulatory settings, we can make it happen.” A range of different actions are needed to help realise 50,000 extra homes, including: Derisking finance for building new homes Cutting red tape for building approvals to encourage more timber in construction Relocation stamp duty exemptions Encouraging greater take-up of modular and prefabricated timber dwellings with specifications that allow for economic builds and faster building approvals Providing measures to workforce capacity including incentivised apprenticeship programs, immigration visas and upskilling/retraining current workforces. “When it comes to timber, it’s not a materials supply issue,” Master Builders CEO Denita Wawn said. “The timber industry has signalled it has product ready to meet housing construction needs, with annual capacity for an extra 50,000 new homes. “We will continue to work with the Federal Government on ensuring policy levers are pulling in the right direction to ensure the industry and its supply chains are in the best possible position to achieve the Housing Accord targets,” Ms Wawn said.

New Zealand’s Investment in Apprenticeship Boost will prioritise critical industries and targeted occupations that are essential to addressing New Zealand’s skills shortages and rebuilding the economy, Tertiary Education and Skills Minister Penny Simmonds and Social Development and Employment Minister Louise Upston said. Source: Timberbiz “By focusing Apprenticeship Boost on first-year apprentices in targeted occupations, we are providing employers in critical industries with the certainty to hire and retain first-year apprentices, and confidently hire new ones,” Ms Simmonds said. “Having the confidence to build and strengthen your team is important, especially when many businesses are doing it tough right now.” The National-NZ First Coalition Agreement includes a commitment to continue Apprenticeship Boost, with NZ$64 million allocated to initiative in Budget 2024. “The previous government had set time-limited funding until the end of 2024. “Our investment in Apprenticeship Boost, reinforces this Government’s commitment to fostering a skilled workforce in sectors that are critical to economic growth. First-year apprentices in key industries and occupations will continue to benefit,” Ms Simmonds said. From 1 January 2025, Apprenticeship Boost will prioritise key sectors and targeted occupations that are crucial to New Zealand’s growth and sustainability. They are: Building Agriculture Horticulture and Viticulture Forestry Studies Manufacturing, Engineering and Technology Process and Resources Engineering Automotive Engineering and Technology Electrical and Electronic Engineering and Technology Aerospace Engineering and Technology Maritime Engineering and Technology Other Engineering and Technology Human Welfare Studies and Services Food and Hospitality The targeted occupations are defined by the New Zealand Standard Classification of Education (NZSCED) code, ensuring that the initiative addresses the most pressing skill gaps and supports the long-term success of the economy. Employers can continue to claim funding for eligible apprentices under the current settings until 31 December 2024. Employers receiving funding for second-year apprentices will continue to receive NZ$500 monthly payments until the same date. From 1 January 2025, only employers of first-year apprentices in targeted industry areas will be eligible for the $500 monthly subsidy. These improvements to Apprenticeship Boost reflect the Government’s commitment to deliver a strong economy and support more New Zealanders into jobs. “Our economy is stronger when more people are in work,” Ms Upston says. “Industry training plays an important part in making sure our young people have more opportunities to get ahead through work, but we need to make sure the skills and qualifications they are gaining are also in sync with what our country needs. “Targeting Apprenticeship Boost makes sense as it will strengthen the long-term success of our key industries as we grow a more skilled workforce.” The Ministry of Education will review the targeted sectors every two years to ensure the program continues to address skills shortages and aligns with New Zealand’s evolving economic priorities. The first review is scheduled for July 2027.  

The Forest Stewardship Council (FSC) has successfully concluded its third annual FSC Forest Week, spotlighting the crucial role of responsible forest management in addressing urgent environmental challenges. Source: Timberbiz With the world set to convene at the upcoming COP16 and COP29 summits, FSC calls on businesses, communities, governments, and individuals to continue their efforts in protecting the world’s forests and urges decisive action to ensure forestry remains a priority in global climate discussions. In Australia and New Zealand, leading organisations such as Coles Group, ALDI Australia, Officeworks, VISY, Mitre 10, Wellington Zoo, and more, came together to celebrate their support for FSC’s responsible forestry. This year’s campaign, themed “Small steps together create big change for all,” highlighted the power of collective action in addressing the climate and biodiversity crises. With participation from over 1,300 partners across more than 40 countries, the campaign featured community outreach, corporate engagement, and forest walks. These activities showcased a unified approach to tackling critical issues such as climate change, biodiversity loss, and promoting the well-being of Indigenous communities. “I’m incredibly proud of the tremendous support from our members, certificate holders and promotional licence holders across Australia and New Zealand,” said Melanie Robertson, CEO of FSC Australia and New Zealand. “The rapid growth of our campaign has been crucial in raising awareness of FSC, bringing sustainable forestry into focus for consumers. This collective effort is driving meaningful action on the climate and biodiversity crises, highlighting the essential role responsible forest management plays in securing a healthier future for our planet.” This year’s campaign amplified the message that impactful change does not always require large-scale efforts. Rather, everyday choices, such as purchasing FSC- certified products, can contribute to broader efforts of protecting forests and those who depend on them. Additionally, it highlighted the critical role these actions play in combatting biodiversity loss and climate change. “We are thrilled to see the growing global influence of FSC Forest Week,” said Trevor Armel, FSC International Director of Marketing. “The mounting climate and biodiversity crises demand urgent action, and this initiative has proven to be a catalyst for responsible behavior, inspiring people and businesses to protect our forests and ensure a sustainable future.” Building on the success of this year’s campaign, FSC calls upon individuals, businesses, and communities to engage on the critical discussions around the climate and biodiversity crisis, and help drive the transition toward a greener, healthier planet for all.

Two research projects supported by Growers Research Advisory Committee members have been selected among eight projects to receive funding through Australian Forest and Wood Innovations’ inaugural $5 million National Open Call for research. Source: Timberbiz Funded through cash and in-kind investments, both projects seek to improve the resilience and adaptability of Australian plantations, and to support growers in maintaining and increasing plantation productivity in the face of changing climate and weather conditions. These projects are: Developing more productive plantation trees better adapted to changing environments, through Tree Breeding Australia. Enhancing fire resilience in Australian plantations, through The University of Melbourne. The GRAC represents Australian forest growers and managers and is managed by Forest and Wood Products Australia (FWPA) in its role as an Industry Services Company. The following growers have provided additional voluntary funding through the Grower Collaborative Commitment (GCC) process. Their significant financial contributions support research projects expected to deliver high value for grower members and the wider forestry and wood products industry. African Mahogany Aust AKD – Australian Kiln Driers Australian Bluegum Plantations Forestry SA Forico Global Forest Partners (Snowy Mountain Forests) Global Forest Partners (Southern Cross Forests) Green Triangle Forest Products HQPlantations HVP Plantations OneFortyOne Plantations Peppermint Estate PF Olsen Reliance Forest Fibre Sustainable Forest Management (Lenah/Tas) Sustainable Timber Tasmania Timberland Pacific Pty Ltd (Green Triangle) Timberland Pacific Pty Ltd (Tasmania) WAPRES In addition, the following project partner collaborators are providing cash and/or ‘in-kind’ contributions to the two AFWI projects: Project 1: Developing more productive plantation trees better adapted to changing environments: Forico HQPlantations HVP Plantations Project 2: Enhancing fire resilience in Australian plantations: HVP Plantations Reliance Forest Fibre Australian Bluegum Plantations HQPlantations Timberlands Pacific Global Forest Partners (Southern Cross Forests) Forico Wespine Industries Craig Taylor, Chair of GRAC, welcomed AFWI’s support to further research and data collection that will empower growers and the industry as a whole. “Increasing our understanding of how plantations are impacted by changing climates, varying site types and environmental factors such as fire will equip growers around the country to develop stronger, more resilient and more productive plantations,” said Mr Taylor. “In turn, this creates benefits across the supply chain and supports the industry’s ability to meet consumer demand and improve efficiency while innovating its growing and harvesting processes. “The breadth of research required cannot be achieved through industry funding alone. We welcome AFWI’s financial support and collaboration with industry members to facilitate more research and increase our collective knowledge in these crucial fields.” Supported by grower members in conjunction with AFWI funding and coordinated by FWPA, the two projects will examine aspects of plantation resilience and productivity. Project 1: Developing more productive plantation trees better adapted to changing environments Led by Tree Breeding Australia, this genetics-focused project seeks to fill gaps in historic data sets by expanding field trials of tree species to include a broader range of environments. Recognising the need to understand climate change risks and potential expansion beyond traditional production areas, the trials will specifically target drier and more challenging environments to measure the impact on species such as radiata pine, southern pines, blue gum and shining gum among others. Combining this data with existing research, the project will support the development of genetically superior trees capable of sustaining future productivity in softwood and hardwood plantations – even when grown in more challenging environments. In addition, the knowledge gained will improve productivity, quality and forest health in more traditional or predictable sites. Project 2: Enhancing Fire Resilience in Australian Plantations Bushfire activity is predicted to increase globally as a result of climate change, posing an increasing threat to Australian plantations and regional communities. This project addresses critical gaps in fire risk management to enhance fire resilience, inform adaptive practices, and mitigate risks under a changing climate. By refining softwood plantation models and developing hardwood plantation models for the Australian Fire Danger Rating System, it aims to enhance fire prediction accuracy under future fire regimes. This study will provide growers with data for investment decisions, risk management strategies, and recommendations for fire management under changing climates. The project will improve sector resilience, ensure reliable wood production, protect communities, and contribute to environmental sustainability by reducing fire impacts and carbon emissions. Eight projects were identified through AFWI’s Open Call for research and will share in $5 million in funding. Leveraged by more than $8.3 million in industry and researcher cash and in-kind contributions bringing the total investment in research for the forestry and wood products industry to $13.3 million. AFWI was established in March 2024 and is a collaboration between the Australian Government and the University of Tasmania. The eight selected projects were recommended by AFWI’s Research Advisory Committee, a panel of industry and research experts, ensuring the projects align with industry needs, deliver transformative outcomes to the sector and support growth in research capacity. A summary of these projects can be found on the AFWI website https://www.afwi.au/