UNLOCKING THE VALUE BEHIND WA s FOREST & PLANTATION INDUSTRY

Transcription

1 UNLOCKING THE VALUE BEHIND WA s FOREST & PLANTATION INDUSTRY VALUE CHAIN MAPPING PRESENTATION

2 The Bunbury Geographe Growth Plan (BGGP) developed from an initiative that brought together Government, Industry and the community to develop a unified and collaborative approach towards economic development and trade growth. The BGGP process identified Sustainable Timber Products as a growth driver for the region. Key attributes recognised include: Sustainable timber products respond favourably to domestic and global megatrends The industry aligns with the regions strategic competitive advantages The industry is an important regional employer Increasing use of timber has the potential to attract investment and create jobs

3 WA Timber Industry WA s timber industry is a The industry contributes The industry supports The industry employs key driver of economic $1.4 billion to the WA 2100 direct jobs, 1400 jobs careful and comprehensive activity and jobs in economy and creates in secondary processing management policies to Western Australia. about 6000 jobs in WA, and 2400 flow on jobs. ensure WA s forests and with more than 90% of plantations are sustainably those in regional areas. managed.

4 The Bunbury Geographe Timber Hub Is a key economic driver of the region Directly employs more than 700 people and produces an estimated $490M Gross Regional Product per year The hub currently includes : o Wespine - manufacturer of timber products o Laminex - manufacturer of fibre o WA Plantation Resources - exporter of woodchips (paper, biomass energy) o Preston Chipping - chipping of industrial logs for Laminex, Simcoa and export o Koppers - treatment of timber logs, power poles and sawn boards o Other supporting transport and service industries The expansion of the Timber Hub is a Priority Initiative identified in the Bunbury Geographe Growth Plan In early 2018 hub participants completed a Value Stream Mapping exercise which has identified opportunities for significant savings and improved value through the supply chain

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6 WA Softwood Industry World demand for timber, and particularly softwood, is increasing Demand in WA is driven by population growth and growing awareness that timber is better for the environment The WA softwood industry generates $617m for the State each year primarily based around the Bunbury Geographe Hub A number of emerging opportunities for value adding plantation timber, including engineered wood products (Glue laminated, Laminated Veneer and Cross Laminated Timber), NCN (a replacement product for plastic) and other bioproducts More than two thirds of direct jobs in the industry are in manufacturing and processing of softwood with most in the timber hub

7 Hub Current State The Bunbury Geographe Timber Hub is a large, integrated and successful government and industry partnership contributing significantly to the WA economy and providing sustainable quality products to housing, construction and industry Located on the future Bunbury Outer Ring Road with direct access to Bunbury Port The majority of the WA softwood estate is owned by the State Government The WA softwood plantation estate is currently not large enough to meet demand for renewable timber products Lack of softwood resource within economic haul distance of the hub will constrain the industry growth while the demand continues to grow; WA will become increasingly reliant on timber imports The Hub requires the regional softwood plantation estate to increase by 50,000ha to maximise the potential opportunities for Western Australia

8 Hub Current State Plantation supply is rapidly declining

9 Key Challenges Insufficient investment in Climate change. Trees Growing the forest and Reducing the 32 year cycle the softwood plantation store carbon captured as plantation estate with an from seedlings to harvest estate. Increasing they grow. Management established pathway to through further dependency on imported of forests and plantations market, of scale, to innovation, research and softwood products, has to consider strategies sustainably meet future investment and new Industry need to remain to cope with future drying consumer demand products competitive! climate.

10 Required Outcomes Fundamentally we need to be growing more trees and produce more wood fibre to meet the growing demand as we rapidly transition into a carbon constrained economy Key outcomes include: Improved return on investment to encourage growing of commercial trees linked to established markets Reduced total supply chain unit costs to ensure Industry competitiveness - forest/plantation to Mill to Market Improving Utilisation (use all wood fibre) through developing new and innovative markets for wood fibre within & outside of WA Further sustain and grow a key WA industry and the associated regional employment

11 Future Opportunities Unlocking the value through innovation and collaboration: 1. Ensuring right fibre to right process will improve value recovery from logs ( value add ) 2. Utilisation of residues from the harvest add value and reduce replanting costs by up to 30% 3. Small log processing technology to locally process logs that would otherwise be exported as chip or industrial logs 4. Encouraging research including new high-value engineered wood products & manufacturing capability within the hub and region