West Coast Forest Industry and Wood Availability Forecast - June 2008
6 The wood processing industry
Sawmilling and integrated manufacturing
In the late 1960s and early 1970s, annual indigenous sawn timber production was approximately 140 000 cubic metres, but by 1990 it had declined to around 62 000 cubic metres. In March 2002, harvesting from Crown-owned indigenous forests ceased and only logs sourced from privately owned indigenous forests, managed under the provisions of Part IIIa of the Forests Act 1949, can now be processed.
For the year ended March 2007, about 1600 cubic metres of indigenous sawn timber were produced on the West Coast.
With the reduction in the availability of timber from indigenous forests during the 1990s, sawmills moved to processing plantation-grown species. Total production of sawn timber began to increase in 2000 as significant volumes from plantation forests reached maturity. For the year ended March 2007, some 88 000 cubic metres of sawn timber were produced from plantation grown logs. Sawn timber exports were predominantly through the ports at Lyttelton and Nelson.
Table 6.1: Production of sawn timber from the West Coast (cubic metres)
| Year ended 31 March |
Indigenous species (m3) |
Plantation species (m3) |
Total (m3) |
|---|---|---|---|
| 1990 | 62 240 | 5 028 | 67 268 |
| 1991 | 63 066 | 3 665 | 66 731 |
| 1992 | 47 692 | 7 130 | 54 822 |
| 1993 | 53 302 | 9 967 | 63 269 |
| 1994 | 61 794 | 19 678 | 81 472 |
| 1995 | 62 577 | 25 600 | 88 177 |
| 1996 | 23 473 | 34 634 | 58 107 |
| 1997 | 20 699 | 26 500 | 47 199 |
| 1998 | 21 444 | 25 574 | 47 018 |
| 1999 | 18 674 | 29 780 | 48 454 |
| 2000 | 18 480 | 58 171 | 76 651 |
| 2001 | 13 068 | 70 039 | 83 107 |
| 2002 | 9 139 | 50 171 | 59 310 |
| 2003 | 3 870 | 92 184 | 96 054 |
| 2004 | 2 096 | 88 465 | 90 561 |
| 2005 | 2 002 | 88 495 | 90 497 |
| 2006 | 1 853 | 87 706 | 89 559 |
| 2007 | 1 583 | 88 372 | 89 955 |
Source
Ministry of Agriculture and Forestry.
The West Coast sawmilling industry was dominated in 2007 by Westco Lagan Limited, Coastpine Ltd, Stillwater Lumber Limited, and Westimber Ltd. Together they accounted for about 84 percent of the region’s sawn timber output in the year to March 2007. These sawmills only cut plantation-grown timbers.
Table 6.2: West Coast sawmills by production categories (2007) in cubic metres sawn timber per annum
| Production level | Sawmill (location) | |
|---|---|---|
25 000–49 999 m3 sawn timber per annum |
Westco Lagan Limited |
Ruatapu |
10 000–24 999 m3 sawn timber per annum |
Coastpine Sawmill |
Reefton |
Stillwater Lumber Ltd |
Dobson | |
Westimber Ltd |
Ngahere | |
5 000–9 999 m3 sawn timber per annum |
Inangahua Sawmilling Company Ltd |
Inangahua Junction |
W E Whiley & Company Ltd |
Three Mile | |
500–4 999 m3 sawn timber per annum |
Hindman Smartsaw Ltd |
HariHari |
Wilson Lumber Ltd |
Ikamatua |
Sources
Individual sawmill owners and managers.
There are many other small sawmills on the West Coast. These often operate on a part-time basis, and include 51 mills registered under Part IIIa of the Forests Act to cut indigenous timber, with six being fixed mills and 45 portable.
Westco Lagan Limited
Westco Lagan is the largest timber processing operation on the West Coast, with a focus on the furniture, joinery and appearance grade segments of the timber products market. It was formed in 1994 through the merger of two privately owned companies, although its sawmilling history goes back to the early 1900s.
Westco Lagan’s main operation is an integrated sawmill, kiln-drying and manufacturing facility at Ruatapu, 10 kilometres south of Hokitika. The operation focuses on milling pruned radiata pine butt logs to produce clear timber for the New Zealand, Australian, United States and other international markets. The manufacturing facility includes a bandsaw and three moulding machines. Wood waste from the sawmill and manufacturing plant provides all the energy required for the kiln-drying process.
The Ruatapu operation is complemented by a smaller Christchurch operation designed to service speciality product requirements. Marketing and administrative functions are also provided from this centre. (www.westco.co.nz )
Coastpine Ltd
Coastpine Ltd’s sawmill is situated just out of Reefton and is 250 kilometres from Christchurch and 212 kilometres from Nelson. The mill was originally established in the 1960s, and was purchased by the current owners from Nelson Pine Forests Ltd in 1991.
Coastpine Ltd’s primary business is milling and processing radiata pine, with between 20 000 and 25 000 cubic metres of sawn timber produced annually on a single-shift basis.
The operation processes mainly long internodal logs and complements this with kiln-drying and planing facilities. The mill is FSC certified with products exported mainly to the United States and Asian markets, as well as selling domestically.
On 25 January 2008 it was announced that the sawmill would close within the next few weeks. The mill’s future is unclear.
Stillwater Lumber Limited
Stillwater Lumber Ltd is a sawmilling and processing plant that has both domestic and export markets for its radiata pine lumber. The processing plant has kiln-drying capacity with optimising machinery leading to finger-jointing machines. The operation’s main focus is on producing clear blank products, with some 50 staff employed in the processing divisions.
Finished goods are sold throughout New Zealand and Australia. The company is a major user of transport and other service providers on the West Coast.
Westimber Ltd and Ngahere Processing
With the change-over from indigenous timber to radiata pine, the Gibson and Donaldson families purchased the Kopara Sawmilling Company’s mill at Ngahere in 1997 and renamed the business Westimber Ltd. Production started in June 1997. It is now a fourth-generation family sawmilling business.
The mill produces kiln-dried timber for the domestic and export markets, and has a timber preservation facility onsite.
Ngahere Processing was built in 1975 to process the indigenous timber milled by the Gibson’s and Donaldson’s previous mills at Red Jack and Deadman Valleys. It now machines timber supplied by its onsite co-business, Westimber Ltd.
The company has timber yards in Greymouth and Christchurch, producing pre-cut frames and house trusses.
Inangahua Sawmilling Company Ltd
The Inangahua Sawmilling Company started operations in the 1960s and is located a short distance from Inangahua Junction. The mill produces kiln dried sawn timber for the domestic and Australian markets. The company also operates planing and finger-jointing machinery.
W E Whiley Ltd
W E Whiley Ltd’s sawmill is situated at Three Mile, five kilometres north of Hokitika. It primarily mills pruned logs to produce kiln-dried sawn timber and finished products for the United States, Asian, Australian and domestic markets. The company also produces treated timber products for fencing and farm yards.
Wilson Lumber Ltd
The sawmill originally started operations in the 1920s processing indigenous species from the Rough River valley near Ikamatua. Purchased by the current owner about 20 years ago, the mill now cuts radiata pine and some other exotic species to produce air-dried sawn timber for the domestic market.
Manufacturing plants
International Panel & Lumber (West Coast) Ltd
International Panel & Lumber (West Coast) Ltd (IPL) is located at Gladstone, south of Greymouth, producing products that are sold throughout New Zealand.
The plywood mill peels logs sourced from plantation forests on the West Coast, Nelson and Marlborough regions, manufacturing high quality plywood, treated and untreated under the brand name “Tuffply”. A full range of grades are manufactured, with a thickness range from 4 to 32 millimetres.
A large range of decorative plywood cladding, branded “Alpine Cladding” and internal lining (tongue and groove appearance) brand “Elite Line” are also manufactured.
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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