2019 International Forest Industries Magazine December / January IFI Dec Jan 2019 Digital | Page 19

LUMBER PROCESSING NEWS
Taranaki NZ : Agreements secure industry future
China Forestry Group NZ (CFGNZ)
is once again backing local wood
processing with a ground-breaking
agreement on harvesting and
processing wood from Taranaki’s
largest forest.
China Forestry Group NZ and
Taranakipine sawmill in New
Plymouth have signed a supply
agreement that supports long
term wood processing in New
Plymouth and employment for
the 170 workers at Taranakipine.
It’s another initiative that
demonstrates China Forestry Group
NZ’s ongoing commitment to New
Zealand.
Forestry Minister Shane Jones –
who strongly supports the private
forestry sector collaborating for the
benefit of New Zealand – was also
in attendance.
“This is exactly the sort of
cooperation we need to see
between our overseas- owned
forestry companies and New
Zealand sawmills,” Shane Jones
says. “I’m pleased that China
Forestry Group NZ and Taranakipine
have been able to reach this
agreement and I commend both
parties for their commitment to
our forestry sector – for regional
development and employment
benefits.”
The agreement will see China
Forestry Group NZ supply minimum
monthly volumes to Taranakipine
over the long term and at agreed
pricing.
Te Wera forest is very steep
in parts, requiring specialist
equipment and personnel. So,
to help with harvesting, China
Forestry Group NZ negotiated
an agreement with Northland
harvesting company Stokes
Logging to relocate part of their
crew capacity and business to Te
Wera.
“The partnerships with
Taranakipine and Stokes Logging
are a material demonstration of
China Forestry Group NZ’s ongoing
commitment to New Zealand
and how forestry owners and
local processors can better work
together,” says Steve Walker,
Chief Operations Officer of China
Forestry Group NZ.
China Forestry Group NZ will
underwrite the cost of Stokes
Logging relocating with a take-
or-pay commitment to 100,000
tonnes per year for seven years, to
December 2026. This commitment
will see a number of families move
to Taranaki with their moving costs
covered by China Forestry Group
NZ.
“These agreements are based
on mutually beneficial commercial
outcomes. At the same time,
we appreciate that we have an
important role to play in the New
Zealand forestry industry as a
supportive and understanding
partner to local operators and as
kaitiaki of the natural and cultural
resources entrusted to us,” Steve
Walker says.
As part of China Forestry Group
NZ’s commitment to achieve
Forest Stewardship Council (FSC)
certification for all its forests,
the Te Wera forest is now fully
certified under the PF Olsen Group
Scheme for FSC certification.
This certifies that the forest
management meets the principles
of sustainable forest management,
including management of social
Steve Walker, Chief
Operations Officer of
China Forestry Group NZ.
and environmental characteristics
of value.
The FSC certification of the
forest also has commercial
benefits, as many consumers now
insist on sustainable sourcing.
Tom Boon, CEO of Taranakipine,
says securing supply from an FSC
certified forest was a key concern
for Taranakipine.
“This agreement with China
Forestry Group NZ will secure
FSC log supply. Now we can grow
our markets in New Zealand,
Australia, Europe and the US with
wood products from sustainably
managed, renewable plantation
forests,” says Boon.
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International Forest Industries | DECEMBER 2018 / JANUARY 2019 17