. naturally . naturally Issue 7 - December 2010 A quarterly newsletter from Gunns Timber Products Window and door components Gunns' positioning for the future! For further information on this product visit www.gunnstimber.com.au On 18 October 2010 Gunns announced the agreement to acquire the Forest Enterprises Australia’s (FEA’s) Bell Bay Softwood Sawmill. Chris Peterson, CEO Gunns Timber Products, comments further about the purchase. "The purchase of this facility represents a logical progression in Gunns Timber Products’ growth strategy in the Australian plantation based timber industry." The 85 hectare Bell Bay sawmill is a modern and low cost production facility that will help increase softwood production and capability as well as allowing Gunns Timber Products to grow into existing and new markets within Australia. The Bell Bay mill has just entered its fourth year of operation. Whilst Gunns has identified several operational benefits and synergies through this purchase, FEA’s investment in modern sawmilling infrastructure has meant the softwood sawmill has world class technology. Chris further commented that through the new ownership of the mill, Gunns Timber Products can "saw better, grade better, dry better and have a better final product coming out of its Tasmanian operations." Among the many advantages of this new facility, those that stand out are the technological investments which will help to improve recovery and grade yield for the timber products. This means customers will continue to see cost competitive, consistent and reliable products with consistent supply. Continued inside GTP Photo Opportunity $3,000 up for grabs! In this edition of Gunns.naturally See inside for details H ar ris - Farewell to Terry and Garry Te rr y - VAFI Award for Innovation on - Sales offices and manufacturing closure times Th om ps - "Buy Australian Timber Framing" campaign G ar ry - GTP photo competition Australian Jarrah Australian Tas Oak & Vic Ash Australian Pine Continued from cover... Some of the key benefits of this facility include Chris further comments, "significant synergies and production cost savings will be achieved for Gunns Timber Products through processing the combined FEA and Scottsdale softwood sawlog volumes through the one modern and efficient mill. The log-in for the Scottsdale facility was 146,000m3 per annum of Radiata Pine, the combined facility will process approximately 450,000 tonnes of sawlog annually. Scale, proximity of market and log resource security are all key ingredients for success which we have at Bell Bay.“ Christine Briggs, GM Sales and Marketing comments, "beside the obvious additional volume that will now be available from GTP in softwood products for the Australian market, this now means that GTP has a base of two scale mills that are able to supply the various state markets in Australia with more flexibility and reliability. The Bell Bay product will go to market through current GTP sales and warehousing infrastructure. This means that customers should ring their normal state office to enquire about Bell Bay product availability. The offer will include both mill direct and pack lots via our warehouses in the southern states (Vic, SA and WA).“ • The installation of a Canadian ‘optimil’ automatic scan and set sawline that helps achieve better recovery of the saw log through the use of rotation and positioning functions, a Quad (4) bandsaw, optimising board edger, curve cutting cant profiler and a multi rip saw • A significantly large undercover finished goods warehouse that provides 8,500 square metres of undercover storage which not only allows products to be held ready for despatch but means they are kept out of the weather • New Metri Guard technology including a stress grader, grading, trimming, sorting and stacking line which means the products will be consistently graded Chris Peterson concludes, "Gunns’ future operation in the Tasmanian softwood sawmilling industry is based on owning and operating a modern and efficient softwood mill with a sustainable wood supply volume with throughput and scale to operate in a competitive market. We are achieving this through the acquisition of the Bell Bay sawmill.” • An automated strapping and packing station that aligns and compresses the wrapped packs and inserts the pack bearers then straps the packs with high strength poly strapping ready for despatch, for a higher standard and more uniform packaging of the products The state based sales teams are contactable on the following toll free numbers: P 1800 088 135 F 1800 337 104 This new equipment allows the sawmill to saw more accurately, provide better fibre recovery, use density sorting to segregate the heart-in products reliably and allows a more uniform kiln drying process. Through high speed planer and metri guard grading Gunns Timber Products can provide a uniformly consistent product. Whilst the pine products produced by the Bell Bay sawmill are consistent with the existing product and service offer of Gunns Timber Products, the nature of the Tassie resource will be complementary in some product ranges to our existing offer ex-Tarpeena. Structural products will continue to be a key area of this product mix.“ Visit www.standards.org.au and type 'AS1684' into the search to access MGP span tables. For all wholesale enquiries contact your state sales team on P 1800 088 135 F 1800 337 104 “In a commodity market, you can only be as good as your dumbest competitor.” Peter Drucker (The father of modern business management practices) Help raise the intelligence level of the pine market in Australia. Buy Australian Pine Framing. Auspine® – reliable Australian pine framing from Gunns Timber Products Auspine and Gunns have been suppliers to the Australian merchant, resellers, fabricator and manufacturing market for a lot more than 10 years. Our people have had years of experience in the industry and are well known to our customers. This proud history of growth includes Auspine’s purchase of Frenchpine in 2005, Gunns purchase of Auspine in 2008, and most recently Gunns purchase of FEA (2010). Choose Auspine framing from Gunns Timber Products. We pride ourselves on being reliable and our state-based sales and GTP has a proud history of growing service teams are always available their supply base in Pine through to visit your business or spend capital improvements at our mills time with you and your customers and through acquisitions of some helping plan mutual growth and iconic companies in the Australian “reading the market cycles” timber landscape. together. We work closely with our customers as valued partners understanding the market cycle and protecting the value of our precious Australian plantation pine resources. Our main focus as an Australian sawmilling business employing Australians is to service the Australian market. P 1800 088 135 Locally manufactured in Australia to exacting OH&S and environmental standards No change or extra costs in plate material The right pack size Supply isn’t linked to world markets Australia IS our long term business plan F 1800 337 104 This year Gunns Timber Products says farewell to some of its most valued staff members as they leave the company to embark on another journey called retirement. Terry recalls the last 42 years for him in the industry as being in constant This year we say farewell to Terry Harris, the former Tasmanian State Manager and Garry Thomson, an Account Manager in Tasmania. Together these guys have put in a massive innings with a combined service of over 85 years in the Tasmanian timber industry. For Terry’s future he says, “I am looking forward to the future and joining so many of my ‘baby boomer’ colleagues in becoming ‘grey nomads’, touring the length and breadth of Australia and seeing more than the usual capital cities.” Terry Harris For Terry Harris, "there was no question which industry I was going to work in. Timber was the obvious choice.” In 1968, Terry began in the industry, with timber company H.T. Russell and Sons, as a timber clerk. In 1978, working in production planning at the time, Terry commenced with J & T Gunn. In 1986 he moved from an accounting and associated duties role to a sales role and then in 1993, took on a marketing and major group management role for the company. Terry remembers being a part of the administration team involved with the purchase of seven substantial forest industry companies including Kauri, KilnDried Hardwoods and Boral Tasmania, at this point Terry was responsible for the production planning over these three major sites. change. "We would bed down one acquisition and then the next came.” Graeme Stevenson, GM Tas Manufacturing says, "so many people have come and gone under the mentorship of Terry, his knowledge and guidance is something that Gunns Timber Products will miss. He has been a strong supporter of Gunns and the industry in both good and tough times." “The trouble with retirement is that you never get a day off.” Abe Lemons A highlight for Terry has been his "shared responsibilities with export customers in Europe, Thailand and New Zealand. Along with setting up distribution stores and agents/ stockists in all states." Terry was also a key part in the management of the sports floors concept rollout in 2001. Terry Harris, 1984 Garry Thompson, 1990 For all wholesale enquiries contact your state sales team on P 1800 088 135 F 1800 337 104 Visit at www.gunnstimber.com.au Garry Thompson Garry commenced working in the industry with Kemp and Denning Timber on 4 December 1967. He started his career on the front counter doing junior duties and assisting people off the street with general trade enquiries before moving into a timber dispatch and ‘special orders’ role servicing builders. Garry then took on a more external role travelling out with colleagues and other sales representatives, measuring up floors and other areas for timber construction. Kemp and Denning then brought out Chestermans, a processing and drying yard in north Hobart where Garry moved into the 2IC role where his responsibilities were to rotate the timber through the kilns, into the yard and then to the reconditioners for further processing. Garry then moved back into the office where he looks back on a career highlight of being a part of Kemp and Dennings transition from a small hardware store into a much larger operation. Garry moved from retail shop sales out to the mill at which time the company became owned by Gunns. After the change in ownership he moved back into a sales role and began servicing the Melbourne, Sydney, Brisbane and Adelaide customer bases until warehouses in each of these states were opened. Garry then moved into his most recent role of Account Manager for the southern Tasmanian states. Garry remembers "Going from small building retail sales through to large construction and wholesale was an exciting challenge for him in his career”. Graeme Stevenson, GM Tas Manufacturing says "Both the company and his customers will miss Garry's extremely dedicated and diligent approach to his job." Terry Harris comments "I remember vividly the day Gunns purchased the K&D sawmilling business (early 1980's). The mill manager (Tony Jaeger) and Garry invited the Gunns management to a dinner at a Thai restaurant in Hobart. The curries were sooo hot that the drinks bill (all beer), was almost twice the food bill for the night." Photo Opportunity $3,000 up for grabs! Gunns Timber Products would like to offer our customers the opportunity to win one of the following prizes just by submitting a photo of Gunns Timber Products in finished application. It could be flooring, furniture, framing, F17 Seasoned Hardwood, outdoor products, decorative products, stair case components or any product from the Gunns Timber Products range. Dont miss the opportunity to have your work professionally photographed! Prizes will also be awarded for photo shoot location leads. * The prize judged as being the best use of Gunns Timber Products wins ** A Gunns Timber Products allocated and administrated $3000 budget for local advertising specifically tailored for that customer All entries will receive a promotional prize. To be in the running for these great prizes (or for further information) please email your name, company contact details and photos (or leads) to Nicole Lewis at nicole.lewis@gunns.com.au or contact 08 8721 2204. Opportunity ends 1st March 2010. * Leads means a nominated place and contact person that Gunns Timber Products may contact and arrange a time for photography of Gunns Timber Products in end application. ** Judged means an internal representative of Gunns Timber Products selecting the customer who has provided an image or lead of a project deemed to be the ‘best use’ of Gunns Timber Products, winner will be communicated via the March 2011 Gunns.naturally newsletter. Garry wants to use his time to now enjoy family, do some jobs around the home and eventually plans a trip into the wide yonder. www.gunnstimber.com.au Consider Gunns Timber Products for all outdoor timber needs Site closure times NSW Sales Office / Sydney Warehouse Last day of business: noon 23 Dec 2010 First day back: 12 Jan 2011 Export Sales Office Last day of business: 23 Dec 2010 First day back: 10 Jan 2011 Scottsdale, TAS Mill Last day of business: 21 Dec 2010 First day back: 17 Jan 2011 Tas Sales Office Last day of business: 23 Dec 2010 First day back: 4 Jan 2011 QLD Sales Office / Brisbane Warehouse Last day of business: noon 23 Dec 2010 First day back: 2 Jan 2011 VIC/ SA Sales Office / Melbourne Warehouse Last day of business: 23 Dec 2010 First day back: 4 Jan 2011 Tarpeena, SA Mill Last day of business: 21 Dec 2010 (Despatch), 22 Dec 2010 First day back: 4 Jan 2011 (Despatch), 10 Jan 2011 Heyfield, VIC Mill Last day of business: 11.00am 22 Dec 2010 First day back: 10 Jan 2011 (F J Lam, Moulders, Despatch), 17 Jan 2011 (all other operations) Adelaide Warehouse Last day of business: 23 Dec 2010 First day back: 4 Jan 2011 Bell Bay, TAS Mill Last day of business: 23 Dec 2010 First day back: 4 Jan 2011 (Despatch), 12 Jan 2011 (Production) WA Sales office / Perth Warehouse Last day of business: 23 Dec 2010 First day back: 4 Jan 2011 Kalangadoo, SA Mill Last day of business: 21 Dec 2010 First day back: 4 Jan 2011 (Despatch), 11 Jan 2011 (all other operations) Lindsay Street, TAS Mill Last day of business: 22 Dec 2010 First day back: 4 Jan 2011 (Despatch), 12 Jan 2011 (Planning and Production), 19 Jan 2011 (All other operations) Alexandra, VIC Mill - All enquiries to Heyfield Manjimup, WA Mill Last day of business: 21 Dec 2010 First day back: 17 Jan 2011 Deammill, WA Mill Last day of business: 22 Dec 2010 First day back: 12 Jan 2011 Gunns Agricultural Centre Last day of business: 21 Dec 2010 First day back: 4 Jan 2011 Vince Hurley accepting the award from The Hon Joe Helper, Minister for Agriculture Finished window components GTP Heyfield has manufactured a new range of fully finished, profiled, cut to length window and door components by finger jointing and laminating short narrow standard grade Victorian Ash. This product is now being substituted for the imported Meranti products that were traditionally brought into Australia and manufactured for windows and doors. GTP wins the Victorian Association of Forest Industries '2010 Innovation' award Gunns Timber Products was recently awarded the Victorian Association of Forest Industries’ (VAFI) 2010 Innovation award at their annual Sustainability awards dinner, held in Melbourne on 15 October 2010. With an array of industry representatives in attendance, Gunns Timber Products took out the innovation award following the demonstrated product developments at the Victorian based Heyfield site, the criteria for the award 'new product in new markets’. The Victorian based sawmilling site has made hefty investment into product development, focusing on creating products that broaden the market for Victorian timbers, along with products that can be used for import substitution. Vince Hurley, General Manager of Victorian Operations says, "this was a great achievement for GTP Heyfield and it is great to be recognised for innovation in both customer interaction and manufacturing. This is a key part of the existing business. We want to ensure that we are always looking for potential opportunities to open new markets and not just compete in existing, this also provides broader industry benefits.” Some of the key product and market development has happened in the following areas. Door stiles from low grade material These machined precision docked door stile components have been manufactured from short narrow low grade timber. The process used both smart manufacturing and scanning technology to produce a product to substitute imported Meranti and Rubberwood door stiles. Supachord high strength truss chords After 18 months of development, the Supachord range has been introduced. The product is the only Finger Jointed Laminated truss material in Australia and as such had to break new ground in Australian Standards and proof testing. Supachord competes directly with imported LVL. The high strength truss structural requirements are greater than can be met by pine. GTP developed the tension tested product utilising short, narrow structural grade. Finger jointed flooring Maximising the extraction of high grade timber from each sawlog often leads to the recovery of short pieces of timber between defects. The market prefers supply of longer length timber and therefore there is some concern as manufacturers focus on improving value recovery resulting in the production of shorter timber increases. GTP Heyfield has overcome this problem by horizontally finger jointing short pieces and profiling longer set end matched length flooring. European window market GTP Heyfield has supplied the European window market since 1994. However, with the EU signing Kyoto, new rules with regard to insulation and window design have changed the product requirements. The company was able to capitalise on the changes by developing and supplying a range of laminated window components to both Denmark and Germany, even in a depressed European market. For all wholesale enquiries contact your state sales team on P 1800 088 135 F 1800 337 104