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Forestry Tasmania is today loading a trial shipment of lower quality peeler logs for a potential new market in China.

Managing Director Bob Gordon said the shipment is part of Forestry Tasmania's ongoing program to find alternative markets for lower grade wood to counter the effects of the temporary international downturn in the woodchip market.

“While these logs are not good enough for the Ta Ann rotary peeled veneer mill, our Chinese customers see potential in using these logs for laminated veneer,” Mr Gordon said.

“The export shipment is also helping FT to meet increasing demand for sawlogs. In order to supply sawlogs economically, FT must have customers for lower quality wood.”

Mr Gordon said the shipment had a number of other benefits including:

• Providing much needed work for contractors during the downturn
• Providing an additional revenue source for FT
• Potential for the shipments to lead to further downstream processing in Tasmania

Mr Gordon said it is not dissimilar to the approach Forestry Tasmania took to encouraging Ta Ann to invest at Southwood.

“Exporting the logs will help familiarise new markets in China with the suitability of eucalypt for LVL and the good news is that in the longer term will lead to more export opportunities for timber processed in Tasmania.”

“Just as we supplied logs for Ta Ann to trial, we are hoping that the Chinese trials will in time lead to further downstream processing of this resource in Tasmania.”

“The logs to be exported are lower grade than those currently suitable for Ta Ann’s processes and markets.”

“Instead of becoming woodchips the logs will now be turned into a higher value product”

However, Mr Gordon said in the meantime, the shipment and hopefully, shipments will ease some of the pressure on contractors.

The Tasmanian Forest Contractors Association welcomed the trial shipment of lower quality peeler logs.

TFCA Executive Officer, Ed Vincent said TFCA members, were delighted in FT’s success in establishing the Chinese peeler trial.

“Hardwood contractors, who have been greatly impacted by the downturn in international markets, applaud any initiatives that help underpin the forest industry. ” Mr Vincent said.

“The sales will assist contractors who have been operating at historically low levels over recent months.”

“We all hope the trials are successful and lead to establishment of additional processing options for lower grade logs within Tasmania.”

Mr Gordon said overall there would be no overall increase in truck movements through Hobart than there would have been, had the logs gone to the Triabunna woodchip mill.

“However, it does mean that while the ship is being loaded, there'll be more trucks on the road for four or five days.”

“To minimise impact on traffic flows, the trucks intend to operate outside peak hour.”

ENDS

www.forestrytas.com.au