Isue283

Advertising: Tel +61 7 3266 1429 Email: [email protected] 1ISSUE 283 | 19.08.13 | PAGE

THOUSANDS of cubic metres of Siberian spruce pine destined for Australia have been diverted to blossoming Asian markets as the dollar Down Under and a lethargic building sector render the destination too risky for Russian exporters.At least two new large sawmills in eastern Siberia were considering Australia and New Zealand as possible markets for their spruce and larch plywood and structural timbers.But, in fact, it is Russia’s lack of advanced processing capacities that has seen an alarming growth in the exports of logs, rather than fi nished products, to Asia-Pacifi c

markets.There are other factors: an uncompetitive wood processing industry, weak regulation, pervasive illegal logging and export, and high energy and transport costs. But rapid increase in demand, particularly in China, is the primary driver of change.Most regions within the federal far eastern region have increased timber cutting dramatically since the start of this year.According to the Russian Ministry for the Development of the Far East, the region’s timber

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7796

ISSUE 282 | 12.08.13 | PAGE 1

Osmose®, MicroPro® and MicroPro Sienna® are registered trademarks of Osmose, Inc. or its subsidiaries. Treated Wood Just Got Greener sm are slogan marks of Osmose Inc and its subsidiaries. MicroShades timber products are produced by independently owned and operated wood preserving facilities. © 2013 Osmose, Inc.

MicroPro Sienna® micronized preservative and pigment technology penetrates the timber to give the most advanced timber protection and longer lasting colour for a “one treatment solution”.

- New Age timber protection with longer lasting colour.

www.osmose.com.au Call: 1800 088 809

TM

Cont Page 6

Australia now toorisky for Ruskies

• Forestry tasmania joins FsC• election campaign pushes housing

$2.4m to help Forestworks training

• CLt goes to air nationally

• AFs calls for independent directors

• Housing drives recovery in us

• it’s all about sVLK at Jakarta talks

• Certifi cation drives export growth in Indonesia

tHis issue

Rise of Asian markets reshapes timberindustry in Siberia and far east Russia

For the time being, Russia says ‘nyet’ to Australasia as an export market.

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAgE | issuE 283 | 19.08.132

industry news

FREECALL

Melbourne

Sydney

Adelaide

Launceston

1800 177 001

(03) 9321 3500

(02) 8898 6990

(08) 8219 9028

(03) 6331 6077

ABN: 58 006 212 693

[email protected]

www.forestworks.com.au

Improving our industry’s capacity

to develop and maintain a skilled

workforce ............................

Forestry tasmaniajoins FsC Australiaeconomic chamber

STATE-owned resource man-ager Forestry Tasmania has been accepted as a member of FSC Australia’s economic chamber.The corporation manages 1.5 million ha of state forests for sustainable timber production which contains 39% of forest lands.FT operations are independently certified under the Australian Forestry Standard.“We are delighted that Forestry Tasmania has committed to support FSC’s mission to promote environmentally appropriate, socially beneficial and economically viable management of the world’s forests,” FSC Australia CEO Natalie Reynolds said.“It is important to note that membership of FSC Australia does not in any way influence the audit assessment for FSC certification, and thus whether or not the products of Forestry Tasmania can be sold as FSC certified products or not.”Ms Reynolds said membership of the organisation gave the member a voice, along with all the others in the chamber, in policy matters.“It was determined by the membership committee and endorsed by the full FSC board that Forestry Tasmania demonstrated the requisite commitment to imbed FSC in its operations such that it met the very strict criteria governed by our constitution and membership rules,” she said.“Under FSC rules, Forestry Tasmania will be assessed by an accredited independent certification body against the FSC principles and criteria in exactly the same way as any other organisation seeking certification. If FSC certification is not obtained, the membership can be revoked.”Chairman Bob Annells said Forestry Tasmania wanted to

be recognised and respected by stakeholders, customers, end users and the community for best practice management of Tasmania’s permanent timber production zone land identified by the Tasmanian Forest Agreement.“This requires the quality of our management and practices to be certified as conforming to national and international standards,” he said.“The need for dual international certification of both forest management and wood products also is driven by commercial requirements.”FSC certification for Forestry Tasmania is a durability requirement under the Tasmanian Forests Agreement.

Natalie Reynolds .. delighted with commitment.

Bob Annells .. best practice management.

Advertising: Tel +61 7 3266 1429 Email: [email protected] 3ISSUE 283 | 19.08.13 | PAGE

$2.4m federal funding to helpForestworks training program

industry news

Frame Australia 2014 Conference and ExhibitionFrame is the only national event for the complete supply chain of structural timber, engineered wood products and pre-fabricated frames for the detached housing and multi-residential dwelling markets, and embraces the key industry sectors from manufacturing through to building construction.

Frame offers an exceptional opportunity to suppliers for access to target markets, and a Sponsorship Proposal is available at www.frameaustralia.com.

For further information contact conference director Kevin Ezard: [email protected] or phone (03) 9537 3800.

Sponsorship Opportunity

Prefab Timber and Engineered Wood in Building Construction 2014

TRAINING group ForestWorks will receive $2.4 million in federal funding to help retrain Tasmania’s forestry workers.Speaking at Wesley Vale in the state’s northwest, Employment Minister Brendan O’Connor said the funds were separate from the forest peace deal and it was not an election promise.“This is something that we have costed for under the economic statement; it’s something that we determined before we went into caretaker,” Mr O’Connor said.ForestWorks has almost 700 former forestry workers on its books. The funding comes on top of a $4 million grant it received last year.The Wesley Vale area has borne much of the brunt of the forestry downturn. When the town lost its paper mill in 2010, 250 jobs went

with it.

The wood panel business that remains at the site employed 35 people until October last year.

Wood Panel Tasmania’s David loone is hoping to re-employ workers.

“With the downturn that has

affected the whole industry across Australia, and affected all our competitors as well, we had to start reducing our numbers, and now we’re down to six,” he said.“We have guaranteed sales for a seven-day-a-week operation, and that’ll bring our compliment

of people back to 35 or more eventually.”While the funding is not tied to the forest peace deal, Tasmanian liberal senator and Opposition spokesman on forestry Richard Colbeck has accused federal labor of trying to sway Upper House MPs who will have the fi nal say on the future of the peace deal legislation.“The labor Party and the Greens are trying to blackmail the Upper House into passing this really, really bad forestry bill,” Senator Colbeck said.“One that locks up 52% of the state; one that leaves the forest industry without a sustainable supply of timber for the future.”But Senator Colbeck said the Coalition would consider continuing the retraining program if it won government.

New kick-start for forestry workers .. additional federal funds for retraining.

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAgE | issuE 283 | 19.08.134

eVents

THE STANDARD for PRESERVATIVE TREATED and COLOURED OUTDOOR WOOD PRODUCTS!

MICROPRO SIENNA IS THE TRADE NAME OSMOSE IS GIVING WOOD PRODUCTS TREATED WITH A COMBINATION OF MICROPRO® AND MICROSHADES®.

The treatment is a unique combination of micronized copper preservatives and iron oxide colour pigments which are pressure treated into the wood. This means that the wood is not only protected against fungal decay and termite attack, the longer lasting micronised colour pigments penetrate the wood for colour that is not just “skin deep”.

MICROPRO SIENNA COLOUR

MicroPro Sienna micronized technology gives the treated wood a rich fi nished look that complements todays outdoor environments. Designed to meet the style demands of indoor/outdoor living, it offers a fi nished look similar to hardwoods and merbau with no initial staining.

In an exterior project, the colour of MicroPro Sienna will turn to warm tan and over the years will gradually fade to driftwood grey. The length of time will vary according to sunlight exposure, the wood species and the application. Any initial green colour that may appear around knots and grain features will change to a tan colour and blend with the overall look.

MICROPRO SIENNA IS:

• A one step process, MicroPro with MicroShades

• One colour, red/brown chosen for the Australian market and dosed to give consistent colour match

• A non-arsenic based preservative formula suitable for above ground and in-ground use.

• Long lasting colour proven over time

• Backed by the Osmose guarantee against fungal decay and termite attack (see guarantee document for details)

Osmose®, MicroPro® MicroShades ®and MicroPro Sienna® are registered trademarks of Osmose, Inc. or its subsidiaries. MicroPro, MicroShades and MicroPro Sienna timber products are produced by independently ownedand operated wood preserving facilities. “GREENGUARD® is a registered trademark of GREENGUARD environmental institute.” © 2013 Osmose, Inc.

www.osmose.com.au Call: 1800 088 809

®

Advertising: Tel +61 7 3266 1429 Email: [email protected] 5ISSUE 283 | 19.08.13 | PAGE

eVents

wHAt’s On?

Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association.

The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI).

AFPA was established to cover all aspects of Australia’s forest industry:

- Forest growing; - Harvest and haulage; - Sawmilling and other

wood processing; - Pulp and paper processing; and

- Forest product exporting.

For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.

AUGUST

20: institute of Foresters south Australia division AGM. 7.30 pm at Emergency Services Centre, Jubilee Highway East, Mount Gambier. RSVP Adrian Lynch by August 16 for catering at [email protected] or Jim O’Hehir at o’[email protected]

21: institute of Foresters of Australia ACt division AGM. 6-7.30 pm at IFA offi ce and conference room, Yaralumla. RSVP Stuart Davey [email protected]

24: (saturday): the Cat Goes Gold. Brisbane Hoo-Hoo Club 218 50th anniversary celebration. Fratelli Italian Ristorante, 103 Crosby Road, Albion, Brisbane. $79 p.p. for three-course meal and wines. $75 p.p. for tables of 10. Payments and bookings to PO Box 3236, Sunnybank South Qld 4109. Contact 0401 312 087 or 0428 745 455 for bookings.

28: institute of Foresters of Australia nsw division AGM. Members Bar Lounge, NSW Parliament House, 6 Macquarie Street, Sydney. RSVP August 14 to Ross Peacock [email protected]

28: institute of Foresters of Australia Victorian division. 6 pm at Bushfi re CRC, Level 5, 340 Albert Street East Melbourne. RSVP: Michael Ryan [email protected]

SEPTEMBER

3-5: woodeXPO 13 – Albury, NSW.

6: institute of Foresters of Australia wA division AGM.

4.30 pm for 5 pm at The Lake Monger Room, The Boulevard Centre, 99 The Boulevard, Floreat. RSVP [email protected]

11-13: woodeXPO 13, Rotorua, NZ. World leaders in wood processing, manufacturing and new product technologies will speak at the region’s fi rst ‘business-to-business’ wood industry show. The new expo will provide local companies – management as well as production staff – exposure to new technologies that can improve their own effi ciencies and productive capability. Leading technology providers from Europe, North America and Asia will join with each of the main equipment and product suppliers from New Zealand and Australia. Full details on the expo, summit and technology workshops are available on www.woodexpo2013.com

27: FsC Friday.A global celebration of the world’sforests highlighting the importanceof responsible forest management.Every year, schools, businesses,individuals, forest owners/managersand other organisations around theworld get involved in spreading theword about FSC and responsibleforestry. Visit http://www.fscfriday.org/index.htm

OCtOBer

11: Forest and wood Products Australian AGM. In conjunction with meeting of the Australian Timber Importers Federation and an industry value chain seminar. An industry dinner is planned for Thursday evening, October 10. Information about the AGM and seminar will be circulated at a later

date.Time: 8:30-10:30 am. Venue: Novotel Rockford Darling Harbour Hotel, Sydney. Inquiries to Ric Sinclair, FWPA (03) 9927 3200 or [email protected]

11: Building stronger value chains – Australian timber industry seminar. Time: 10.30 am-5 pm. Venue: Novotel Rockford Darling Harbour Hotel, Sydney. Joint hosts: Forest and Wood Products Australia (FWPA); the Australian Timber Importers Federation (ATIF) and Timber Merchants and Building Material Association (TABMA). This will be the industry’s ‘must-attend’ event for 2013. Inquiries to John Halkett, ATIF (02) 9356 3826; Colin Fitzpatrick, TABMA (02) 9277 3100 Ric Sinclair, FWPA (03) 9927 3200 or Eileen Newbury, Leading Edge Events International (03) 9597 0948. Seminar sponsorship inquiries to John Halkett.

11: Australian timber industry annual gala dinner and awards presentation. Time 7:30 pm onwards. Timber and Building Material Association (TABMA) Doltone House, Pyrmont, Sydney. Pre-dinner drinks 6:30 pm. Inquiries to Colin Fitzpatrick, TABMA (02) 9277 3100 or [email protected]

nOVeMBer

23: TABMA Queensland timber industry gala dinner. Moda Events Portside Level 2, Portside Wharf Hamilton. Contact Alicia on (07) 3254 3166 or [email protected]

THE STANDARD for PRESERVATIVE TREATED and COLOURED OUTDOOR WOOD PRODUCTS!

MICROPRO SIENNA IS THE TRADE NAME OSMOSE IS GIVING WOOD PRODUCTS TREATED WITH A COMBINATION OF MICROPRO® AND MICROSHADES®.

The treatment is a unique combination of micronized copper preservatives and iron oxide colour pigments which are pressure treated into the wood. This means that the wood is not only protected against fungal decay and termite attack, the longer lasting micronised colour pigments penetrate the wood for colour that is not just “skin deep”.

MICROPRO SIENNA COLOUR

MicroPro Sienna micronized technology gives the treated wood a rich fi nished look that complements todays outdoor environments. Designed to meet the style demands of indoor/outdoor living, it offers a fi nished look similar to hardwoods and merbau with no initial staining.

In an exterior project, the colour of MicroPro Sienna will turn to warm tan and over the years will gradually fade to driftwood grey. The length of time will vary according to sunlight exposure, the wood species and the application. Any initial green colour that may appear around knots and grain features will change to a tan colour and blend with the overall look.

MICROPRO SIENNA IS:

• A one step process, MicroPro with MicroShades

• One colour, red/brown chosen for the Australian market and dosed to give consistent colour match

• A non-arsenic based preservative formula suitable for above ground and in-ground use.

• Long lasting colour proven over time

• Backed by the Osmose guarantee against fungal decay and termite attack (see guarantee document for details)

Osmose®, MicroPro® MicroShades ®and MicroPro Sienna® are registered trademarks of Osmose, Inc. or its subsidiaries. MicroPro, MicroShades and MicroPro Sienna timber products are produced by independently ownedand operated wood preserving facilities. “GREENGUARD® is a registered trademark of GREENGUARD environmental institute.” © 2013 Osmose, Inc.

www.osmose.com.au Call: 1800 088 809

®

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAgE | issuE 283 | 19.08.136

industry will have increased output by 45% to17.2 million cub m by the year 2016.According to Viktor Ishayev, the Russian Minister for the Development of the Far East, everything is in place for the projected production ramp-up.This includes a $13.6 billion government upgrade of the Trans-Siberian Railroad – the iron artery that has brought freight and passengers across the country since it was first completed in 1916.Though a rail tunnel to America has been contemplated, Russia has a plan and funding to refurbish the railroad in three infrastructure projects, including the construction of a high-speed rail line from Moscow to Kazan in European Russia.The Trans-Siberian Railroad starts in Moscow and goes across the whole country, passing through major cities to Vladivostok, the largest Russian port on the Pacific Ocean, not far from Russia’s borders with China and North Korea.It is the main rail line in the eastern part of the country, capable of handling 120 million tonnes of freight a year.In a Moscow Times report,

Viktor Ishayev said wood processing in Russia was nothing more than sawing logs into boards, selling the end product, leaving the debris behind and moving on.“However, projects are gradually emerging to produce parquetry, veneer wood and medium density fireboards,” he said.“The government should support such projects if it wants to boost the development of the timber industry. Of course, we must also bring our customs regulations in line with World Trade Organisation requirements.

“As long as selling unprocessed lumber remains more profitable than marketing value-added timber products, we will be unable to advance the processing industry however hard we try. Economy itself must motivate producers to turn to processing.”

Mr Ishayev also says Asia-Pacific demand for Russian timber is set to grow.

“One should understand that Russian wood is of the northern type,” he explained. “It is used for outdoor applications, including housing construction. Southern types of wood are more susceptible to the effects of temperature fluctuations and high humidity.

“This is why they are used in indoor outfitting. Nothing is going to replace Russian timber. We should remember this and act accordingly. However, rather than merely ramping up production, we should aim to make better profit with our current volumes.”

Russia’s Far Eastern timber industry unites 1065 enterprises specialising in lumber harvesting, processing, logistics and marketing. The sector employs 39,800 people.

industry news

From Page 1

17.2 million cub m by year 2016$13.6bn upgrade of the Trans-Siberian Railroad

Plenty more where this came from .. rail trolleys on the Trans- Siberian line loaded with logs wait at Manzhouli, near Siberia, China’s main gateway for wood.

Viktor Ishayev .. economy itself must motivate producers to turn to wood processing.

Advertising: Tel +61 7 3266 1429 Email: [email protected] 7issue 283 | 19.08.13 | Page

industry news

Wood Protection

Tanalith EProviding safe eco-friendly protection for wood productsOur water based Copper Azole formulation is a stable preservative providing colour uniformity without any treatment end use restrictions

This environmentally friendly preservative can be safely used for the treatment of timber products used in applications such as decks , handrails, outdoor furniture, as well as council and national parks projects

Tanalith E has a lower corrosion impact on treatment plants and equipment as well as fixings and fasteners used for the finished wood products

Due to its stability, it is particularly suitable for the reduction of residues generated through the treatment processing

Contact the Australian Lonza team for full details of the Lonza value package. phone:1300 650 636

AFs calls for independent directors

Wood Expo 13set for kick-off

Promoting sustainable forest managementAUSTRAlIAN Forestry Standard ltd is seeking nominations of, or applications from, suitably qualified independent directors to join the AFS board.,AFS ltd is a not-for-profit company that owns and manages the Australian Forest Certification Scheme. Membership is open to all individuals and organisations who support the objects of the organisation.A standards development organisation accredited by Standards Australia, AFS ltd promotes sustainable forest management in Australia’s forests through the development and maintenance of the Australian standard AS4708 and the associated Australian standard for chain of custody of certified wood and forest products (AS4707).AFS ltd is a member of the international Program for the Endorsement of Forest Certification (PEFC), and the Australian Forest Certification Scheme has achieved international mutual recognition as an endorsed PEFC scheme.

AFS ltd promotes domestic and international markets for sustainably produced forest products through AFS and PEFC supply chain product labelling.The organisation is governed by a board of up to nine directors, six appointed by members and up to three independent directors (not members of AFS ltd or employees of members) appointed by the board.The chair is appointed from among the independent directors. The board meets three to five times a year, with

additional meetings of board committees – audit and risk, governance, marketing and communications – as required.Independent directors are

appointed according to their skills and experience to ensure the board collectively has the capacity to effectively advance AFS ltd’s objectives. The focus will be on the forest and wood products industry; environment and the community; and management and public policy.

For further information or to submit a nomination or application contact the national secretary Richard Stanton on (02) 61222 9000 or email [email protected]

THE scene is now set – sawmilling, wood panels and timber manufacturing exhibitors from all over the world are descending on Australia and New Zealand in just three weeks.WoodEXPO 2013 is the first dedicated wood expo to be run in Australasia. The turnout for the series along with the many technology related events looks to be attracting all major wood products companies in the region.The first of the two-show series runs in Albury, NSW, from September 3 to 5 with the NZ leg of the series in Rotorua from September 11 to 13. Visit event website, www.woodexpo2013.com

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAgE | issuE 283 | 19.08.138

By JiM BOwden

MORE than 250 business leaders, policy makers and government officials are in Jakarta this week for a high-level review of SVlK, the legality and verification program that, together with new trade legislation signed last year, aims to ensure only verified legal timber is exported from Indonesia.SVlK now covers almost half of Indonesia’s production forests and 650 companies.Gathering at the Sultan Hotel on August 21 are representatives of the Indonesian Exporters Association – host of the dialogue – ministries of trade, forestry, industry and finance and speakers from Australia, the UK, Europe, the US, Japan and China.Australian speakers include Greg Moriarty, Ambassador to Indonesia, Dean Merrilees, Minister-Counsellor (Agri-culture) based in Jakarta, and John Halkett, technical manager, Australian Timber Importers Federation.Supporting the program are British MP lynne Featherstone, Secretary of State for International Development UK, and Karel De Gucht, the EU Trade Commissioner based in Belgium.Billed as the third High level Market Dialogue, proceedings

will be opened by Indonesia’s Forestry Minister H.E. Zulkifi Hasan.Mr Hasan said the dialogue was a timely opportunity to discuss how the new legislation and regulations would be applied and how these might boost Indonesia’s timber products exports putting the sector back on a growth track.In the last decade, the Indonesian forestry sector and timber industry have struggled to overcome illegal logging, with its associated cost to the industry and to the economy, as well as to the environment and the people living in and around the forest.Also, timber products manufactured from illegally sourced timber undermine the competitive position of the country’s timber sector in international markets, and contribute to depress timber prices worldwide.Yet Indonesia has also led tropical timber producing countries in its political commitment, international agreements, enforcement on the ground and development of practical instruments to

eliminate illegal timber from Indonesia. This has resulted in reports [including Chatham House) of a significant drop in levels of illegal logging in Indonesia.The SVlK and the associated V-legal licensing system have been designed in accordance with international standards and 17 companies began to use V-legal documents (FlEGT license) on timber consignments during a shipment test under the SVlK to six countries in Europe.The EU is one of Indonesia’s main export destinations for timber and operates under the EU Timber Regulation which contains specific recognition of timber produced under trade deals with producer countries known as a Voluntary Partnership Agreement (VPA).Indonesia and the EU believe the technical content of such an agreement, which comes into force later this year, will include specific recognition of the SVlK as ‘zero risk’ under the EUTR.Key questions to be asked at the Jakarta forum include• How will the due diligence

requirements of the Australian Illegal logging Prohibition Act and the EU Timber Regulation work in practice?• How will Indonesia SVLK timber be ‘rated’ by importers from Australia, China, the EU, Japan and the US?• What are the implications for the Indonesian industry and policy-makers?• How can Indonesia capitalise on the growth opportunities emerging from all this hard work, especially for small and medium-sized enterprises and with respect to green buildings and climate change?ATIF’s John Halkett is attending the dialogue under the auspices of RAFT (Responsible Asian Forestry and Trade), a five-year program funded by the US Agency for International Development which is implementing public polices and corporate practices needed to improve forest management and bring transparency to the timber trade in Asia.Mr Halkett will touch on key issues for Australia: sensitive timber harvesting with legality an essential step and the importance of frugal and value-added utilisation of tropical timber’s on-going development of glulam and other engineered wood products. • Certification drives export growth, Page 10.

industry news

it’s all about sVLK in JakartaInternational stakeholders gather fordialogue on timber legality assurance

Greg Moriarty John Halkett Lynne Featherstone Karel De Gucht Zulkifi Hasan

the dialogue is a timely opportunity to discuss how new legislation and regulations

will be applied and how they might indonesia’s timber exports

Advertising: Tel +61 7 3266 1429 Email: [email protected] 9issue 283 | 19.08.13 | Page

industry news

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CLt stars in ABCnational tV showTHE EWPAA’s laboratory in Brisbane became an impromptu television studio last week when ABC-TV’s current affairs program landline decided its national audience should know more about engineered wood, and cross-laminated timber in particular.The program will start with the rejoinder that every once in a while a product or technology comes along which is a game changer – think the microwave oven, the iPod, e-book readers or the world wide web itself.Fronting the camera, EWPAA general manger Simon Dorries (pictured) said he believed new ClT technology would have a similarly revolutionary impact on the construction industry.Talking up what has been described as ‘jumbo ply’, he said it was a remarkable idea, a remarkable product and maybe one day Australia would have its own ClT manufacturing plant.ClT is made from solid wood planks bonded together into large panels and then sandwiched into three, five or seven layers with the in-between layers running cross directionally.“It is stronger and more resistant than typical wood frame construction. You can’t

destroy a wall easily – it is really very, very resistant,” Mr Dorries told landline.

“Buildings using ClT are quarter of the weight of the same building using concrete. Having less mass also means they will behave better during ground disturbances such as earthquakes.”

Panning the laboratory, the camera picked up shelves of tested engineered wood samples – structural plywood, lVl, formwork and I-beams.

landline, with more than two million viewers, and many more watching on-line and on iPod, has been ABC-TV’s main vehicle for current affairs coverage of regional and rural issues and events since 1991.

The multi-award winning show typically features stories, ranging across agri-politics and economics, business and product innovation, animal and crop science, regional infrastructure, climate and weather trends, regional and rural services, music and lifestyle.

The program airs on Sundays at noon, Mondays at 11 am and 6 pm on ABC 1, and on Saturdays at 8 am and 2 pm on the Australia network.

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAgE | issuE 283 | 19.08.1310

INDONESIA’S forest product exports recorded a three-fold increase in the first half of this year, thanks to the timber legality certification (SVlK) that has helped build market confidence, according to the Forestry Ministry.Secretary-general Hadi Daryanto said the export of forest products in the first half of this year might had rivalled last year’s total annual exports.“The market is favouring Indonesia’s legally-certified timber now that the government had obliged exporters to verify their timber products before sending them abroad,” Mr Daryanto said.Data from the ministry shows that forestry exports reached $US1.53 billion by July, increasing more than three-fold compared to the same period last year. A Jakarta Post report says Indonesia booked $417.6 million in forestry exports last year, a slump of 40.27% compared to $699.07 million during the same period in 2011.Plywood represented 68.42% out of the total exports with $1.04 billion, followed by wood mouldings with $266.74 million, or 17.6% of the total figure.“Export is skyrocketing as

more buyers seek legal timber,” Mr Daryanto said.“Our country is ahead of others in providing traceable legal forestry products now that exporters are only allowed to market SVlK-certified timber.“The certification has helped pave the way for Indonesia to penetrate global markets where countries have started imposing an audit scheme for legal timber imports.”The US introduced the lacey Act in 2008 and the European Union introduced the EU Timber Regulation this year, followed by the Illegal logging Prohibition Bill in Australia. All of the laws ban the trade of illegally-sourced timber and wood products, with penalties for importers that fail to comply.Mr Daryanto said the negotiation over the schedule to sign the Voluntary Partnership Agreement (VPA) with the EU had progressed, with the EU offering a signing date in late September or early October.The SVlK was introduced in

2003 to fight illegal logging, which was running virtually unchecked nationwide. The SVlK has been mandatory for industrial forest concessions and industries since 2010, as it was expected to smooth the way to the European market that, since March, requires importers and sellers to keep records of the sources of their supplies.To comply with the regulation,

due diligence must be conducted to ensure the timber is legal, with exceptions for products having secured VPA licenses, which will be considered by the EU to have been legally harvested.

Indonesia was among the first countries to conclude the negotiation with the signing of a memorandum of understanding in 2011, but the signing of the VPA itself was delayed twice last year and has been deferred several times this year.

The necessity for translation into 22 EU languages is said to be behind the postponement.

“The EU told us that with or without the VPA, Indonesia has started seeing flourishing exports,” Mr Daryanto said.

“But what we need is sustainability; we need to make sure that flourishing exports will not just be a momentarily occurrence.”

Indonesia saw a 43.95% increase to 3.99 million cub m of timber exports in 2011 compared to 2.77 million cub m in 2010, before dropping 34.2% to 2.62 million cub m last year.

industry news

Certification drives export growthfor indonesia’s forestry products

SVLK that has helped build market confidence

‘Certification has helped pave the way for indonesia to penetrate global markets

where countries have started imposing an audit scheme for legal timber imports’

– Hadi daryanto

Hadi Daryanto.. certification has paved the way for Indonesia to penetrate global markets.

Abbott pledges to ‘open’ forests in tasmaniaOPPOSITION leader Tony Abbott said the Coalition remained committed to opening up the state’s forests by tearing up the Tasmanian Forest Agreement.He was speaking in Hobart last week at the release of the Coalition’s first stage of a $230 million grand plan to stimulate the state’s economy.The Coalition’s Economic

Growth Plan includes a greater federal presence in the state with a commitment to establish a one-stop shop for developers wanting to set up projects worth more than $50 million.

A joint Commonwealth and Tasmanian economic council – including the Prime Minister, Treasurer and representatives of Tasmanian business and the state government – would

also be established under an Abbott-led government.Mr Abbott said he would unveil further details of the four-year economic plan closer to the election on September 7.Shadow Treasurer Joe Hockey said the package focused on investment and productive infrastructure to help grow the Tasmanian economy.“It’s very much focused on

cutting red tape and green tape and facilitating faster approval processes for major investment,” Mr Hockey said.

Mr Abbott’s pledge to abandon the Tasmanian Forest Agreement was attacked by environmentalists who say it is a relic from the late 1990s and contrary to what the industry wants.

Advertising: Tel +61 7 3266 1429 Email: [email protected] 11issue 283 | 19.08.13 | Page

enGineered wOOd

Cont Page 12

Housing drives recovery in us

OURWORDIS OURBONDLook for the stamp of exceLLence

Don’t give traders who cutcorners a licence to sellwood that threatens the livesand livelihood of our workers.Face the facts

FACT: All EWPAA structural plywood and Type A bond exterior plywood have an emission class of E0 or E1 certified under a JAS-ANZ accredited system.FACT: All EWPAA products have a durability guarantee and all EWPAA members carry liabilityinsurance.FACT: All EWPAA products can gain extra Green Star rating points – one for low formaldehyde emissions (E0 or E1) and one for super E0 in office fit out.FACT: Not all imported non-certified LVL and plywood

meet these requirements. In fact, laboratory tests show manyimported non-certified products are continuously failing Australian standards for emissions and bonding strength and are life threatening.FACT: Manufacturers, agents and suppliers trading in inferior quality, unlabelled and non-compliant plywood and LVL risk damage to their business, media exposure and high penalties under Australian law.

Engineered Wood ProductsAssociation of AustralasiaPlywood House, 3 Dunlop Street, 4006 Queensland AustraliaTel: 61 7 3250 3700 Fax: 61 7 3252 4769. Email: inbox@ewp,asn,auWeb: www.ewp.asn.au

Don’t risk it.Specify EWPAA products stampedwith the approved certification.

Panels, I-joists, glulam and LVL lead the chargeHOUSING is beginning to lead the economy in the US and is expected to provide an economic catalyst for years to come, according to the APA-Engineered Wood Association, based in Tacoma, Washington state.Taking the reins of the association at an exciting time in the US recovery is 35-year APA veteran Ed Elias who was elected president-elect of the association this month.Mr Elias will replace Dennis Hardman who is retiring later this year after 32 years with APA, eight years as its president.Mr Elias has worked in APA’s technical, international marketing and financial divisions and is currently vice-president and corporate

secretary.APA expects good growth in wood production, including a 17% boost in I-joist manufacturing, expected as economy and housing continue to improve.The small but positive uptick in the economy and residential construction closed 2012 on an optimistic note for the first time since the recession began, and that slow-but-steady growth is expected to continue through 2013.With indicators pointing to rising housing starts through the year and into 2014, APA predicts a second straight year of growth in all four of the wood product sectors it represents.“last year saw across-the-board increases in structural panels, I-joists, glulam, and

lVl. In 2013, not only will that trend continue, but at a slightly faster pace in most cases,” says Craig Adair, APA’s market research director.

“Residential construction will drive much of that growth, with

pent-up demand for housing, moderately rising house prices, and growing consumer confidence having the most influence.”Mr Adair says most of the gains will come from housing, with raised-floor construction continuing to provide a notable boost.“Increased housing starts also will drive demand for lVl, the majority of which is used for beams, headers, and rimboard. lVl production should reach 54.9 million cub ft in 2013, a 10% growth over 2012,” he said.APA says the US residential market is gaining strength from a very low bottom, and interest rates are still low. While

Ed Elias .. enjoying uplift in demand for engineered wood.

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAGE | ISSUE 283 | 19.08.1312

enGineered wOOd

Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on the restaurant deck under the eucalypts, followed at 7.29 pm by a three-course dinner accompanied by wines, beers and soft drinks

Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on

Fratelli Restaurant

Prizes • Special Guest Speaker • A night also to honour club foundersDress: Smart casual • Plenty of parking space

Accommodation options within 10 minutes of venue:Brisbane Riverside Hotel, Cnr Kingsford Smih Drive and Hunt Street, Hamilton.

Tel: (07) 3862 1800Airport Ascot Motel, 550 Kingsford Smith Drive, Hamilton. Tel: (07) 3268 5266Kingsford Smith Motel, 610 Kingsford Smith Drive, Hamilton. Tel: 3868 4444

Riverview Motel, Riverview Terrace, Hamilton. Tel: (07) 3268 4666 Contact: 0401 312 087 or 0428 745 455 for celebration

dinner bookings. RSVP by August 16, 2013.Bookings and payments to

PO Box 3236, Sunnybank South Qld 4109

undersPrizes • Special Guest Speaker • A night also to honour club fothree-course dinner accompanied by wines, beers and soft drinks

undersundersthree-course dinner accompanied by wines, beers and soft drinksthree-course dinner accompanied by wines, beers and soft drinks

Brisbane Riverside Hotel, Cnr Kingsford Smih Drive and Hunt Street, Hamilton.

$79pp includes 3-course dinner & wine.Tables of 10 $75pp

Let’s all celebrate the 50th anniversary of Brisbane Hoo-Hoo Timber Industry Club 218

Saturday, August 24, 2013

103 Crosby Road, Albion, Brisbane(at entrance to Brothers Rugby Club)

The Cat Goes Gold!

renewed repair and remodelling energyattaches to rapid housing growth in US

housing is not immune from potential tax increases and government spending cuts, momentum is favourable for a healthy increase in starts.APA is forecasting single-family housing starts to reach 665,000, a 24% gain, as homeowners take a positive view toward purchasing a home, the job market improves and home prices fi rm up in many cities. Multi-family starts are expected to improve 35% to 330,000 units.The remodelling market is also showing small signs of life, although the outlook is brighter into the second half of 2013 and in years following. The Harvard Joint Centre for Housing Studies predicts repair and remodelling expenditures to

reach 2007 levels, around $145

billion, a dramatic improvement

over 2008-2012 levels.

Overall, manufacturing is

expected to grow about 2%

this year, down from 4% in

2012, improving to a 5%

growth in 2014.

Domestic (US and Canada)

production of OSB and

plywood is expected to reach

30.5 billion sq ft feet in 2013,

a 10% rise over 2012. Glulam

is predicted to see a 10%

increase over 2012, reaching

248 million board ft.

Growth in the I-joist market

is forecast around 17% in

2013 to 651 million linear feet,

slightly slower than 2012’s 22%

increase.

Most of the gains will come

from housing, with raised-fl oor

construction continuing to

provide a notable boost.

Increased housing starts also

will drive demand for lVl and

production should reach 54.9

million cub ft in 2013, a 10%

growth over 2012.

From Page 11

Residential construction will drive much of the economic growth in the US.

Advertising: Tel +61 7 3266 1429 Email: [email protected] 13issue 283 | 19.08.13 | Page

FORESTERS and forest planners have always needed to know the location of timber resources, including for planning forest management and harvesting operations, for monitoring wood flows to mills and ports, and for marketing of forest products.Various systems have been developed over the years to provide this type of information. In the tropics, these have until recently been mostly based on complex paper-based forms that were often prone to error and/or corrupt practices, thereby reducing their utility and often compounding the problems they were meant to solve.Over the past decade and a half there has been a boom in electronic and other sophisticated systems for tracking logs and finished wood products. This began with the adaptation of the typeof barcodes used for inventory control of packaged items in supermarkets to forestry applications and has evolved to include radio frequency identification tags, sophisticated wireless communications technologies remote sensing, stable isotope analysis, DNA profiling and othertechniques.The prime driver behind this explosion in forestry tracking technologies has been the growing demand for demonstrably legal and sustainable forest products (as laid out, for example, in the new EU Timber Regulation, the US lacey Act and other importing market requirements).At the same time, forestry administrations in several tropical countries, including many producer member countries of the International Tropical Timber Organisation,

have recognised that weak governance and other problems have resulted in significant production and trade of illegally produced timber, says an ITTO tropical forest update report.This illegal production puts legitimate timber businesses at a competitive disadvantage and can also mean big losses of resource rents and other

government revenues.ITTO has been a strong supporter of timber tracking as a means of strengthening forest governance in the tropics and thereby promoting sustainable forest management. Numerousprojects have been funded, through the regular project cycle and more recently through the TFlET (Tropical Forest law

Enforcement, Governance and Trade) thematic program and the ITTO-CITES program.CITES, with substantial experience in tracking of animal species listed in its appendices, was keenly interested in collaborating with ITTO to promote the adoption of timber-tracking technologies in tropical countries with CITES-listed tree species. This resulted in the 2012 joint publication Tracking sustainability (ITTO Technical Series 40), a review of currently available electronic and semi-electronic timber-tracking technologies.Timber-tracking technologies are also playing an increasing role in independent forest and chain-of-custody certification,Cost issues are of course a major concern for many countries and this is part of the reason why there has been an upsurge in requests for assistance to ITTO and other partners like FAO to help to fund the acquisition and implementation of such technologies.ITTO says it is important for countries to select appropriate technologies taking into account the sophistication of their forest sectors, geographical considerations, available budgets, major markets and other relevant factorsIt is also important to note that many of the evolving sophisticated (and more costly) technologies such as stable isotope analysis and DNA profiling) are designed to support and work in tandem with existing tracking and forest management systems to focus on particular problem areas (or species) rather than being implemented on a country-wide scale.

FOrest MAnAGeMent

demand for legal timber primedriver of tracking technologiesStrengthening forest governance in the tropics

Exposed .. an employee of Swiss monitoring company SGS checks tree trunks in an effort to use cutting-edge tracking technology in Liberia’s timber industry.

timber-tracking technologies are also playing an increasing role in independent forest and

chain-of-custody certification

On track .. DNA testing of logs in Indonesia, a system helping to pin-point the species and origin of the timber. Until recently, the battle against trade in illegal timber has been waged with regulations and preventive measures, and has not met with much success. Now it is increasingly focused on using the criminal justice system and law enforcement techniques.

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAGE | ISSUE 283 | 19.08.1314

DONE and dusted .. the Brisbane Hoo-Hoo Club 218 Holden Kingswood – dubbed the national forest industry’s ‘kids care car’ – has completed its Variety Club of Queensland Bush Bash run with the vehicle and all team members intact.Along with more than 400 other drivers, the Hoo-Hoo team crossed the fi nish line at Mission Beach in North Queensland on August 14 after travelling for 10 days and 3736 km over long dusty roads, along property fence lines, and through some dense forests.The Bush Bash, which started in Emerald in central Queensland, raised more than $1.2 million for Queensland’s special children.After offi cially opening the new Mareeba liberty Swing, Bashers set off on the last day of the ‘Sun, Saddles and Surf’ Variety

Bash. The scenery changed from the dirt and dust of the Outback to some nice forestry before the very fi rst stop on the banks of lake Tinaroo.Bashers enjoyed the green grass and vast lake before heading out on the road again, in the direction of South Johnstone. Children from the local school welcomed the drivers into their playground with open arms, providing one last reminder just how friendly country hospitality can be.The Bashers then moved into the home stretch – their fi nal 60 km on a 10-day journey that has travelled into the west of Queensland, up into the gulf region and back to the pristine coast.Congratulations Club 218 – and thanks for contributing to the heath, happiness and long life of bush kids.

eVents

Returning to the action ..Brisbane Timber Industry

Hoo-Hoo Club 218’s ’77 Holden Kingswood is ready

for the 2013 Queensland Variety Club Bush Bash

from Emerald in central Queensland, via Winton and Mount Isa, to Mission Beach in Far North Queensland.

Members of the Brisbane Hoo-Hoo Club 218 Bush Bash team committee prepare for the Queensland Variety Club’s ‘Sun, Saddles & Surf’ Variety Bash starting in Emerald in central Queensland , west to Blackall and Stonehenge, up to Winton, across to Boulia, up to Mount Isa and further north to Normanton, then across to the coast via Georgetown and Mareeba to Mission Beach in North Queensland.

Brisbane Timber Industry Hoo-Hoo Club 218 has entered the 2013 Variety Club of Queensland Bush Bash from August 5 to 14 to raise funds for disadvantaged children, travelling in the clubs’ veteran Bush Bash performer – a 1977 Holden Kingswood.The Variety Bush Bash in the club’s major children’s charity event this year.Please support it and show how the forest and forest products industry can enrich the lives of underprivileged children.Your sponsorship will attract wide media coverage and is tax deductible.

For more information and to discuss sponsorship options contact one of the committee members:Alan Jones 0419 754 681 Don Towerton 0428 745 455 Tim Evans 0417 726 741 Jim Bowden 0401 312 087

We sincerely thank the following sponsors:

Major Sponsors

John Crooke, Queensland Sawmills

HQ Plantations

Advanced Timber Systems

Sponsors (to date)

Forest and Wood Products AustraliaAustralian Forest Products AssociationEngineered Wood Products Association of AustralasiaAustbrokers Premier InsuranceBeyond BlueTim Tech ChemicalsKop-Coat NZTimber&Forestry enews

Frank WitheyAlan Jones (Hoo-Hoo Club 218 president)Spiro Notaras (Notaras Bros, Grafton, NSW)John Gill (The Timberman)Thora Wholesale TimbersNoel Griffiths (Skyline Building Services)Nigel Turvey (Gro Group, NT)David Alcock (Asia Pacific Timber Marketing)Gerry Gardiner (iTreat Timber Pty Ltd)Tim Evans (Independent Verification Services)Tableland TimbersPaul Anderson (IMEMS Pty Ltd)Peter and Carolyn MortRon Bell

done and dusted!

Happy smiles .. children from South Johnstone state school in North Queensland crowd around Car 253, entered in the Variety Bush Bash by Brisbane Hoo-Hoo Club 218.

We made it .. Brisbane Hoo-Hoo Club 218 members Peter and Carolyn Mort and Tim Evans at the Bush Bash fi nishing line in Mareeba.

Hoo-Hoo car completes3736 km Bush Bash run

Advertising: Tel +61 7 3266 1429 Email: [email protected] 15ISSUE 283 | 19.08.13 | PAGE

young trees shows worst effectsfrom Chernobyl nuclear disasterEnvironmental stress showing up in Scots pinesEXPOSURE to radiation from the 1986 Chernobyl accident in Soviet Ukraine has had a lasting negative legacy on the area’s trees, a study has suggested.Researchers say the worst effects were recorded in the “fi rst few years” but surviving trees were left vulnerable to environmental stress, such as drought.They added that young trees appeared to be particularly affected.Writing in the journal Trees, the team said it was the fi rst study to look at the impact at a landscape scale.“Our fi eld results were consistent with previous fi ndings that were based on much smaller sample sizes,” explained co-author Tim Mousseau from the University of South Carolina, USA.“They are also consistent with the many reports of genetic impacts to these trees,” he told BBC News.“Many of the trees show highly abnormal growth forms refl ecting the effects of mutations and cell death resulting from radiation exposure.”Prof. Mousseau, who has been carrying out fi eld studies since 1999 within the 30 km exclusion zone around the site of the 1986 explosion, said it was the fi rst time that a study of this scale – involving more than 100 Scots pines (Pinus sylvestris) at 12 sites – ha been conducted.“There was one similar study conducted before but it only looked at a total of nine trees and was mainly interested in wood structure, not growth,” he said.“Another study was performed in the 1950s but it was for a

different tree in the US and it used a single external gamma source suspended above the ground to show growth effects for a very limited number of trees.”For this study in the Chernobyl exclusion zone, the team took

core samples from Scots pine trees for a number of reasons – the species is found across Europe and well dispersed within the Chernobyl region.“They are also a favourite for silviculture and have enormous economic value,” Prof.

Mousseau added.

“The twisted stems of Scots pines have been attributed to mutations caused by radiation exposure.

“Also, based on past work and our own observations, they appeared to be a good target for radioecology as they showed signs of being impacted by the fallout.

“In fact, one of the fi rst ecological observations at Chernobyl was the death of the so-called red forest; a stand of these pines very quickly died and turned red following the disaster.”

Scots pines’ tree rings were also easier to read than other species, such as birch, found in the study area, Prof. Mousseau explained.

The professor and his team hope to follow up this study by carrying out similar work in the Fukushima region in Japan, where logging also had considerable economic importance and pine trees were widely dispersed.

“Based on our limited fi eld observations in the most contaminated regions of Fukushima prefecture, there did not appear to be a major die off as seen in Chernobyl for Scots pines,” he said.

“However, anecdotally, we have noticed signifi cant die off of growing tips and branches in some areas that suggests that there could be impacts on growth.

“This is worth further investigation.”

For the study in the Chernobyl exclusion zone, the team took core samples from scots

pine trees for a number of reasons – the species is found across europe and is well

dispersed within the Chernobyl region

Aftermath .. a British scientist studies trees and wildlife in the Chernobyl exclusion zone.

Time-line .. the change in wood colour in these Scots pine logs indicates the year of the Chernobyl accident.

Advertising: Tel +61 7 3266 1429 Email: [email protected] PAgE | issuE 283 | 19.08.1316

CHINA has surpassed Japan to become the world’s largest importer of hardwood chipsThe Wood Resource Quarterly says major expansion of pulp manufacturing capacity in China in the past five years has resulted in a dramatic increase in the importation of woodchips to supply new pulp mills.Growing demand for paper in China has not only forced the country to import large volumes of pulp to supply the country’s paper machines, but also resulted in investments in new pulp production within China.Because of a lack of competitively priced wood fibre in China, the two pulp companies with the largest operations in the country – Asia Pacific Resources International and Asia Pulp and Paper – are procuring much of their wood fibre needs from out-of-country sources. As a consequence, importation of woodchips to China has surged the past few years.

In just five years, the import value for woodchips has increased from $US180 million in 2008 to $1.3 billion in 2012, and this year the estimated import value could beclose to $1.5 billion, according to WRQ.It was only been a matter of time before China became the

largest importer of hardwood chips in the world. In the second quarter this year, China surpassed Japan with the record importation of almost 2.4 million cub m of chips.Although there were sporadic shipments of chips from latin America, Malaysia and South Africa during 2012 and

2013, there are really only four countries that have been supplying China with wood fibre the past few years – Australia, Indonesia, Thailand and Vietnam, with Vietnam accounting for over half of the total import volume.

Another interesting development is that the average cost of imported wood chips has

declined by almost 6%vfrom the 2Q/12 to the 2Q/13. Biggest price decline has been in Australian chips, which have fallen over 11% in one year. Because of this price drop, in the second quarter of this year Australia exported its highest quarterly volume to China since 2010.

With the continued plans to expand domestic pulp manufacturing in China it, can be expected that shipments of woodchips, both softwood and hardwood, is going to increase in the coming years.

internAtiOnAL FOCus

the chips are never down forChina as imports keep rising

Exports of eucalyptus and acacia woodchips from Vietnam have increased at a phenomenal in the past 10 years. In 2001, the country exported only 400,000 tonnes of woodchips while in 2011 a new record of 5.4 million tonnes was reached. Last year’s shipments were 36% higher than the previous years and tripled those in 2007.

weyerhaeuser Co. tests market for saleof us home-building unit worth $3.9bn

PlANS by timber conglomerate Weyerhaeuser Co. to market its US home-building unit, valued at more than $3 billion, accelerated last week as prospective bidders submitted preliminary expressions of interest in a deal, according to industry observers.Most of America’s largest home builders are expected to explore a possible purchase of the unit, which was the 18th largest US builder last year with sales of roughly 2300 homes, according to Builder Magazine.The real plums within the Weyerhaeuser unit are its thousands of lots ready for home construction or close to it,

especially in California. Such lots are in scarce supply since land development slowed markedly during the recession.“It’s going to move the needle for most builders,” says Michael Kahn, a home-building consultant based in Palm Coast, Florida Bankers at Citigroup Inc. and Morgan Stanley are running the process for Weyerhaeuser.Weyerhaeuser, based in Federal Way, Washington state, for several years has pared its myriad business lines to focus on its timber business. The company announced in June that it was studying strategic options for its home-building

unit and may, after it tests the market, decide to keep it.As of June, the Weyerhaeuser unit controlled 27,000 home lots, including 17,500 in California, mostly in San Diego and los Angeles. Analysts at RBC Capital Markets estimate the value of the unit at $3 billion to $3.9 billion.“I don’t think they’d put this out without already having tested the water,” says Mark Wilde, a managing director at Deutsche Bank AG.“The one thing that most home builders have been scrambling around to get is lots, and this company has lots; it biggest

preponderance of lots is in one of the most attractive markets in the country, San Diego.”Home builders’ deal activity has heated up in recent months as smaller builders strapped for financing are opting for buyouts by larger, publicly traded rivals. Public builders have completed at least eight large acquisitions in the past 18 months for an estimated $1.5 billion.Weyerhaeuser first entered the home-building market in 1969 by building homes in southern California. Since then, it has assembled an operation that builds homes under five brands in seven states.

Advertising: Tel +61 7 3266 1429 Email: [email protected] 17ISSUE 283 | 19.08.13 | PAGE

HOusinG

Election campaign centres onstrengthening housing sector

TWO days after the Australian Bureau of Statistics announced a sixth consecutive rise in housing fi nance fi gures showing a strengthening recovery in the residential housing market, Master Builders Australia launched its Strong Building Strong Economy) campaign to call for election policies that will boost confi dence, economic growth and jobs.The total number of dwelling commitments rose 2.7& in June, seasonally adjusted. The number of commitments for the construction of new dwellings rose 0.9% and commitments for the purchase of new dwellings rose 0.2% seasonally adjusted.Nationally, loans for the construction of dwellings and for the purchase of new dwellings combined rose 0.6% in the month, to be up 13.3%

from June 2012.

Encouragingly, housing fi nance commitments for owner occupiers in Queensland increased by a strong 4.4% seasonally adjusted for the month of June.

Master Builders chief economist Peter Jones said the fi gures

confi rmed the impact of lower interest rates was starting to be felt in the housing market.

“The strength of the $100 billion building and construction industry is a bellwether for the health of the Australian economy,” Master Builders CEO Wilhelm Harnisch said at

the launch of the strong building campaign last week.“In the election campaign, both major parties have acknowledged the central role the building and construction sector as the industry is expected to play in the transition to a post resources boom economy,” Mr Harnisch said.“We are ready to do the heavy lifting but need whichever party that wins government do its part by providing policies that are real road maps for reform and a commitment to see their implementation through.”Policy solutions in the campaign include housing affordability; investment in more vital community infrastructure; a fairer and simpler system tax system; and a return to a balanced industrial relations system.

Central role .. Australia’s $100 billion building and construction industry a bellwether for the health of the economy.

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