All posts by Jo English

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NZ’s forestry exports forecast to rise

New Zealand’s forestry exports are forecast to rise nearly 11% in the year ending June 2018 to NZ$42.2 billion. This would be the largest annual increase since 2014, according to the Ministry for Primary Industries’ (MPI’s) latest quarterly update.

“Our Situation and outlook for primary industries report shows export revenue across all of the sectors has been incredibly strong over the past year, particularly for dairy, meat, and forestry,” says Jarred Mair, MPI’s policy and trade acting deputy director general.

“Forestry exports are also forecast to grow by more than 11% in 2018, supported by record harvest levels and ongoing demand for New Zealand logs from China.” High returns and new policies are likely to create investment opportunities across the primary industries, says Mr Mair.

“For example, high horticulture returns are driving investments in productivity and competition for suitable land. The Government’s One Billion Trees Programme is another catalyst for investment and changing land use, primarily through increased replanting rates and new production forest area.”

MPI’s Situation and outlook for primary industries report provides a snapshot and forecast for New Zealand’s major primary sectors. Read Full report here.

Alexander Mastrovito, Head of Sustainable Transport Solutions is in the line up for Woodflow 2018

Wood transportation expertise added to Woodflow 2018

Woodflow 2018 – As part of the upcoming two-yearly tech update for forestry, wood harvesting and transport companies around Australasia, the very latest international and local developments around vehicle fleet operations, planning and safety as they apply to the wood transport businesses are being unveiled.

Included in the line-up for WoodFlow 2018 are; Alexander Mastrovito, Head of Sustainable Transport Solutions, Scania – Asia & Oceania, Hong Kong. Alexander is the project leader for Scania’s autonomous vehicle development in Singapore and the head of sustainable transport solutions for Scania in Asia and Oceania. He’s responsible for promoting and implementing future solutions; electric and alternatively fueled vehicles, connected transports and self-driving trucks and buses. He heads up Scania’s regional work in Asia paving the way for electromobility, autonomous vehicles, ITS and mobility as a service. Prior to joining Scania Alexander was based in Beijing spending 11 years in the Greater China region working in the automotive industry.

Max Blatt, Head of Business Development, LOTS Group, Sweden. As Head of Business Development for LOTS Group, a Scania company, Max has had 17 years’ experience in managing the implementation of strategic and operational improvement initiatives within forest products and other heavy manufacturing sectors across North America, Europe and Asia.

A former Director at Pöyry Management Consulting and Head of Western Operations for Perforex, Max has worked with over 100 companies in 25 different countries. Max’s focus with LOTS Group is in providing transport solutions that combine technology and methods to positively impact costs, safety and sustainability.

Fernando Paredes, Transport Manager, Forestal Mininco, Chile. Fernando manages the transport area for the company CMPC, one of Chile’s largest forestry companies. Over the last 10 years, Fernando has managed the supply chain, loading and transportation of timber to the industrial centres of CMPC and other processing operations.

Fernando will be outlining an array of initiatives that have been employed by the company to improve efficiencies and safety, including utilizing technology available with on-board cameras being installed across their trucking fleet.

Andrew Rushworth, Managing Director, Zero Emission Vehicles, NZ. Andrew has an extensive background in new technology development, commercialization, manufacturing and sales of electric heavy vehicles worldwide. His company, one of just a few in this region, is designing and manufacturing EHV’s.

Full details of the WoodFlow 2018 series can be found on the event website, click here for details.
The conference programme, including two workshops around transport planning the day before each conference, run in Melbourne, Australia on 20-21 June then again in Rotorua, New Zealand on 26-27 June.

Sino-Forest Corp’s co-founder and former CEO Allen Chan guilty of fraud

Fraud…Court finds Sino Forest founder guilty

In Canada, an Ontario Superior Court judge has found Sino-Forest Corp’s co-founder and former CEO Allen Chan guilty of fraud, breach of fiduciary duty and negligence and ordered him to pay more than $2.6 billion.

Justice Michael Penny found that Allen Chan “abused his unique position as a fiduciary to orchestrate an extremely large and complex fraud” that caused the timber company to lose billions.

Penny’s decision last week is the latest development in one of the country’s largest corporate fraud sagas, which has landed the troubled company’s executives tussling with the Ontario Securities Commission (OSC) and auditors for years.

The civil case that Penny presided over was filed in 2014 by SFC Litigation Trust, which was acting on behalf of Sino-Forest’s creditors.

In his decision, Penny said, “Mr. Chan, rather than directing Sino-Forest’s spending on legitimate business operations, poured hundreds of millions of dollars into fictitious or over-valued lines of business where he engaged in undisclosed related-party transactions and funnelled funds to entities that he secretly controlled.”

In an effort “to deter the defendant and others from similar misconduct in the future, and to mark the community’s collective condemnation of what has happened,” Penny ordered Chan to pay $2.63 billion in damages and $5 million in punitive damages.

Sino-Forest first became embroiled in lawsuits and an Ontario Securities Commission investigation after Muddy Waters LLC released a 2011 report suggesting it was a Ponzi scheme that exaggerates its assets.

A year later it filed for bankruptcy protection, put itself up for sale and delisted from the Toronto Stock Exchange.

In 2017, the OSC found Chan and other Sino-Forest executives defrauded investors, misled investigators and engaged in deceitful and dishonest conduct.

That same year the OSC reached a $8-million settlement with accounting firm Ernst & Young, who it had accused of preparing a negligent audit of Sino-Forest and shoe manufacturer Zungui Haixi Corp., which both faced criticism for their financial practices.

Source: www.canadianbusiness.com

NZ - 100 million trees

100 Million Trees – NZ Anglers body shun pine proposals

Government’s 100 Million Trees Dream Must Avoid Pine Monoculture.

A national rivers and trout fishing advocacy group wants caution and foresight in the new government’s ambitious “one million trees” policy so as to avoid monocultures of pines.

The new government aims to plant 100 million trees a year – with the goal of planting a billion over 10 years.

New Zealand Federation of Freshwater Anglers’ president Graham Carter of Hamilton said monocultures of pine trees in many parts of New Zealand had been an environmental disaster with depleted stream flows and heavy siltation of rivers and estuaries following clear felling logging. “The emphasis seems to be on planting commercial areas of pine trees although it has been stated planting will include both exotics and natives. The Federation believes the emphasis should be strongly on native trees, and not pines,” he said.

Government statements indicated an environmental element to the plan, as forests planted on Department of Conservation land would be native trees acting as permanent “carbon sinks” to counter climate change.

Past attention about water and river quality had almost exclusively focused on so- called “dirty dairying” but there were other land-use questions to be answered.

“For instance have monocultures of large scale forestry had detrimental effects ecologically and environmentally to rivers?” asked Graham Carter.

The practice in NZ of clear felling pines exposed steep hill country to heavy runoff of silt and debris, when rains occurred. But run-off could be reduced by two-stage harvesting of forests, as apparently practised in Europe where felling is in done in two cuts perhaps 12 months apart, along contours thus reducing runoff.

Another aspect of forestry monoculture that should be investigated was lowered pH levels i.e. acidification of the soils and therefore increased acidic runoff into waterways.

“The pH level (degree of acidity) is important to both bottom fauna and subsequently aquatic life such as indigenous fish and trout. If the pH drops below 5.5 (increased acidity) then long term damage to the fishery, both native and trout, occurs.”

Pine trees take much more water from the environment than native vegetation and reports were where pines have been planted, stream flows were noticeably less and even disappeared.

Establishment of pine forests often resulted in clearance by burning of early regenerating of native vegetation ranging from fern to native shrubbery and bush so that hillsides could be roaded and pines planted for the dubious purpose of carbon trading said Graham Carter. One Malaysian owned forestry corporate in Marlborough had roaded extremely steep hill country with extensive slipping resulting and burned native bush. The Marlborough Sounds inner inlets had been badly silted up smothering the ecosystem and causing fishery declines.

“It is easy in this case of exotic monocultures to ‘not see the wood for the trees”, he said. “While a superficial glance at extensive forests might seem beneficial, in the case of monoculture of pines, there are various detrimental effects.”

Urgent study and policy should aim to implement better harvesting regimes as practised in Europe, zoning of land use to avoid extensive pine forest monocultures and making mandatory creation of 50 metre buffer zones along all rivers and streams said Graham Carter.

One encouraging aspect was Shane Jones’ pre-2017 election statement that foreign ownership of Northland forests was “out of control”.

“We hope post-election that Shane Jones will be assertive on the foreign ownership aspect,” he said.

Source: Scoop News

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NZ – Streamlining investments clarifies signals

Streamlining applications for overseas ownership in New Zealand forests clarifies investment signals.

The Forest Owners Association says streamlining the application process for overseas investment in New Zealand forests is a major step forward and will make clear to potential investors that New Zealand has a positive forest future.

 The Associate Minister of Finance David Parker has announced that cutting rights will be brought under the scope of the Overseas Investment Office, but the application process will be streamlined and cutting rights for forest land under 1,000 hectares, or for less than three years, will not need to go through the OIO.

Forest Owners Association President Peter Clark says he is reassured that the government intends to make the whole OIO process more straightforward, for both forest land ownership, and cutting rights.

 “We have always acknowledged that overseas investment in New Zealand forests is a privilege and not a right. But our members have increasingly found that to make a successful application takes a huge amount of time and expense and then they would then have to seek new approvals for each individual transaction.”

 “David Parker says these unnecessary impediments are to be removed, including the counterfactual test. Today’s statement may not be ideal from our point of view, but it is certainly an improvement on the current regime and clarifies the signal that the government is serious about achieving a planting target of a billion trees over ten years,” Peter Clark says.

David Parker says the government decision to include cutting rights in the scope of the OIO was necessary before the Comprehensive and Progressive Agreement for Trans Pacific Partnership came into force.

Peter Clark accepts this has caused a rush to develop policy, but he says the forest industry will be making full use of the brief period of public consultation and reference to a Select Committee.

“The forest industry in this country is massive. It represents a huge ongoing investment both by New Zealanders and from overseas. We have to make sure that legislation and other rules which are approved are realistic and practicable. That process can’t be rushed.”

McDowell

A new window is opening up for CLT

With a long history manufacturing presses for OSB and the composite board industry, USNR entered the emerging North American CLT market in 2015 with the advent of it’s modular, window-frame style press.

Since then, interest has taken off and thanks to industry stakeholders, advancements in mass timber have seen strong and steady enthusiasm. There is even good news from the world stage with the European market expected to triple its 2016 production volumes by 2020. It’s a testament to just how strongly this new construction medium is taking hold. It’s bringing not just a new component to the mix, but a whole new paradigm for building construction.

Click here to learn more about their innovative press for CLT manufacturing.

 Visit USNR at the MASS Timber show next week in Portland, Oregon – March 20-22.

 

Tolko invest in new BioVision Edger Line

Tolko invests in new USNR edger line with BioVision

Tolko is investing in a new BioVision Edger line for its sawmill at Armstrong, BC.

The new line will comprise an unscrambler, Maximizer positioning infeed with dual fetchers, 4-saw edger, and close-coupled picker tailer. The optimizer is a BioVision system utilizing data from the new transverse scanner fitted with BioLuma 2900LV vision sensors. Also included is a MillTrak™ lumber flow control system comprising two sensors mounted above the unscrambler.

BioVision’s edger grade evaluation adds overall value through re-manufacture or rip, based on the final grade of the wood. For example, a #3 appearance due to knots can be edged to #3 wane with confidence, to maximize recovery. Likewise a low grade 2×8 may be worth more as two 2x4s, one being a higher grade. Contact USNR to learn more.

Rex Lumber adds Profiling to it's HSS - Horizontal Shape Sawing Gang

Rex Lumber adds profiling to its HSS

Rex Lumber of Brookhaven, MS has invested in updating its existing horizontal shape sawing gang (HSS), and recently decided to add profiling to this process. Adding profiling will reduce the load on the edger, eliminate the need for the sort station, and facilitate a much more efficient process.

Profiling can be added to your primary breakdown or gangsaw process. To learn more, click here.

Tilhill forestry appoints Julian Hollingdale as District Manager of its North Highland Office in UK

Tilhill Forestry appoints Julian Hollingdale as District Manager of its North Highland office in the UK

Tilhill Forestry has appointed Julian Hollingdale to the role of District Manager for their North Highland District office based in Inverness, the UK. Julian then spent 7 years in Southern England within the Forestry and Landscaping businesses before moving to join the forestry team in Inverness in late 2010. Julian is also a professional member of the ICF since 2013 and an ICF assessor since 2016.

Tilhill Forestry firmly believe that in order to effectively grow the business they must grow their talent internally. In order to support staff, the Company run a Management Development Programme that equips both new graduate recruits and senior managers with the skill sets required to run a successful forestry and timber harvesting company. Julian’s appointment is a good example of this philosophy.

Julian’s comprehensive experience across a range of disciplines and locations within Tilhill, together with the inheritance of a strong District team, will allow the Company’s North Highland office to expand further taking advantage of the opportunities that the large and varied geographical area provides.

 

OneFortyOne Plantations to halt sawlog exports

OneFortyOne Plantations to halt sawlog exports

OneFortyOne Plantations (OFO) has announced that as a result of strong domestic demand and the continued outperformance across the building industry, it has advised customers that there will be no sawlog exported from its estate for the next financial year.

OneFortyOne Plantations CEO, Linda Sewell said: “The volume of sawlog we export has been steadily in decline in recent times due to high demand from our domestic customers. Whilst demand remains strong, we will further support the local industry by retaining the logs onshore.”

This announcement comes as the domestic timber industry continues to experience its strongest performance in 15 years, and follows OFO’s previously announced decisions in 2017 to cease exporting large saw logs and to formally withdraw from the Korean export market.

As the local industry processors have made significant investments in their mills and operating technology over the past five years, the Company has found its customers are seeking more fibre than ever before.

“We have been meeting the rising domestic demand where we could do so sustainably. Our focus is to support the current capacity of the domestic industry and not compromise the longterm sustainability of our forests by expanding beyond its means”.

The Company has confirmed that it will continue to export surplus pulplogs produced from critical forest thinning programs that are needed to ensure healthy forests. Whilst domestic demand is currently strong, the Company does not preclude exporting sawlogs in the future, if market conditions change.

OFO’s focus on the domestic industry has seen the company increase the number of local customers, and increase the volume supplied to those customers by more than 45% over the past five years.

OFO is a leader in the Australian forestry industry. It holds long-term harvesting rights to a softwood plantation estate in the Green Triangle region comprising over 80,000 hectares.