Taranaki: Agreements secure industry future
Wednesday 21 Nov 2018
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 today 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 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.
“Locally, it means secure employment for our 170 staff. And, of course, the new
agreement re-establishes our historic commercial relationship with Te Wera forest.”
Taranakipine was specifically founded in 1982 to process the first commercial
harvest from Te Wera and had a strong ongoing supply from the forest for many
decades.
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