Canterbury’s Forest Industry

About 45 percent of Canterbury’s planted production forest resource is held by three companies: Carter Holt Harvey Forests; Selwyn Plantation Board Ltd; and Blakely Pacific Limited. Compared with most other regions, a large proportion of Canterbury’s forest resource (totalling about 50 percent) is held by local authorities, partnerships, farmers and other small forest owners.

PLANTED FOREST OWNERS & MANAGERS

Carter Holt Harvey Forests

Carter Holt Harvey Forests (CHHF) is a fully owned subsidiary of Carter Holt Harvey Ltd, a publicly listed New Zealand company. CHHF has 33 000 hectares of stocked forest. The company manages forests at Hanmer (net stocked area 4200 hectares), Balmoral (8800 hectares), Omihi (1200 hectares), Ashley (5400 hectares), Okuku (4000 hectares), Mount Thomas (1600 hectares), View Hill (300 hectares) and Eyrewell (6600 hectares) under a forestry right with Ngai Tahu. These forests are located in the Hurunui and Waimakariri Districts. In addition, CHHF manages 900 hectares of radiata pine in Canterbury as freehold or through joint ventures.

Production from CHHF’s Canterbury forests has ranged between 300 000 and 400 000 cubic metres per annum since 1994 when Carter Holt Harvey Panels Ltd commissioned a second line at its medium density fibreboard plant near Rangiora. The sustained yield potential from CHHF’s Canterbury forests is estimated to be around 500 000 cubic metres per annum.

Selwyn Plantation Board Ltd

Ownership of the Selwyn Plantation Board Ltd is held by the Selwyn District Council (61 percent) and Christchurch City Council (39 percent).

The company has about 10 200 hectares of stocked forest on the coastal strip north of Christchurch and on the mid-Canterbury plains and foothills. Annual production was approximately 45 000 cubic metres in 1993, 75 000 cubic metres in 1996, and is expected to be about 150 000 cubic metres in 2000/01.

Blakely Pacific Limited

Blakely Pacific Limited is a Seattle based company that has recently purchased Geraldine Forest (stocked area about 4000 hectares) from Ngai Tahu. Most of Geraldine Forest was planted from the mid-1960s, and harvesting commenced in 1988. In 1995 Blakely Pacific commenced planting Pentland Hills in Waimate District.

Crown Forestry Management Ltd

The Aoraki Forests (Waimate in Canterbury and Silverpeaks in North Otago) are owned by the Crown and managed by Crown Forestry Management Ltd. The operational management contract for these forests is currently held by Resource Management (NZ) Ltd in Waimate.

Waimate Forest (2900 hectares) was established from 1978 and production is likely to start around 2006. Sustainable production from Waimate Forest is estimated to be about 50 000 cubic metres per year.

Other Forest Owners

Major local authority forest owners are Environment Canterbury (2300 hectares), Ashburton District Council (1721 hectares), Waimate District Council (948 hectares), Mackenzie District Council (792 hectares), and Timaru District Council (231 hectares).

PROCESSING COMPANIES

Canterbury’s wood processing industry is largely comprised of a number of medium and small-scale sawmills, and a medium density fibreboard (MDF) plant. Veneer processing and quality furniture manufacture are small-volume but significant added value industries. Over 300 enterprises produce wood and wood products in Canterbury and provide approximately 900 jobs in first stage processing industries (see Table 7, page 17), and about another 1000 in secondary processing and finishing of wood products.

Sawmills

Since 1995 sawn timber production in Canterbury has averaged around 165 000 cubic metres per year. In 2000 production reached 212 000 cubic metres (see Table 5). The largest six sawmills account for nearly 70 percent of the total production. Some of the smaller fixed mills use old technology with low levels of capital investment in plant improvements. The number of portable or chainsaw mills operating on a near full time basis has increased in recent years, and current estimates are nine portable mills producing in total about 10 000 cubic metres annually.

Table 4: Sawmills operating in Canterbury - Year Ended 31 March 2001

Sawmill Location Drying kilns Portable
A. Production level: 25 000 m3 – 50 000 m3 sawn timber per annum
McAlpines Ltd Rangiora Yes
McVicar Timber Group Ltd Harewood Yes
Methven Sawmills Ltd Methven
B. Production level: 10 000 m3 – 24 999 m3 sawn timber per annum
Craigpine Timber Ltd Yaldhurst Yes
Keighleys Waimak Ltd Kaiapoi Yes
Mitchell Bros. Sawmillers Darfield Yes
Shands Road Sawmills Ltd Rolleston Yes
Stoneyhurst Sawmilling Co. Ltd Belfast Yes
C. Production level: 5 000 m3 – 9 999 m3 sawn timber per annum
Arundel Lumber Co. Arundel Yes
Ashburton Timber Co. Ltd Ashburton Yes
Selwyn Sawmills Ltd Hororata
Sutherland & Co. Ltd Kaiapoi Yes
D. Production level: 500 m3 to 4 999 m3 sawn timber per annum
Adams Sawmilling Co. Ltd Ashburton
Avonhead Sawmilling Harewood
Basher, H.C. & Sons Ltd Amberley
Bennetts Sawmill Oxford
Borneo Sawmill (NZ) Ltd Oxford
Grant Jamieson Akaroa Portable
Mizer Mobile Sawmills Ltd Pleasant Point Fixed & Portable
Scott, R.S. & G.E. Geraldine
Timberlinz Portable Sawmilling Ashburton Portable
Waimate Timber Waimate Yes

Source: Ministry of Agriculture and Forestry

Note: (1) Drying kilns include heat pumps and dehumidifiers, low temperature, conventional, accelerated conventional and high temperature kilns.

There are an additional 13 sawmills in the region that each produce less than 500 cubic metres of sawn timber per annum. Six of these are portable sawmills.

All the larger mills in Canterbury export sawn timber, mainly to Australian markets. Some of the smaller mills also export significant amounts of their production, often through co-operative marketing arrangements. Sawn timber exports account for approximately 55 percent of the region’s total production of sawn timber. Potential production from Canterbury mills, using existing plant but working overtime and/or additional shifts, is estimated at 245 000 cubic metres per annum.

Although sawn timber is the main product, most of the larger mills and some smaller ones have diversified into added value reprocessing. In addition to remanufacturing plants at existing sawmills, a small number of specialist lumber factories process externally sourced sawn timber into high-value products. Remanufactured products include clear pine mouldings, panels, speciality boxes and packaging, and wooden componentry.

Canterbury processors have increased their use of timber to produce a range of high-value, remanufactured products. New technologies that are improving wood processing include dimension component sawing, thick slicing, finger-jointing and vapour phase preservative treatment. The increase in clearwood volumes from pruned forests will improve opportunities for high-value processing.

Table 5: Production of Rough Sawn Timber from Canterbury (cubic metres)

Year ended
31 March

Natural forest

Planted forest

Total

1990

5

108 763

108 768

1991

9

140 917

140 926

1992

10

129 085

129 095

1993

32

131 908

131 940

1994

1 304

153 662

154 966

1995

1 708

155 792

157 500

1996

2 293

142 523

144 816

1997

883

161 509

162 392

1998

235

150 687

150 922

1999

406

159 951

160 357

2000

24

212 249

212 273

Source: Ministry of Agriculture and Forestry

Medium Density Fibreboard (MDF) Manufacturing

Carter Holt Harvey Panels - MDF: The Carter Holt Harvey Panels - MDF plant at Sefton (near Rangiora) was the first MDF facility in New Zealand and the Southern Hemisphere, commencing production in 1976.

In 1994 a second production line increased annual production capacity to over 200 000 cubic metres of panel products, processing the equivalent of about 420 000 cubic metres of logs per annum. The plant utilises about 40 percent of the total Canterbury log harvest, mostly from Carter Holt Harvey Forests in the Hurunui and Waimakariri Districts and from Selwyn Plantation Board Ltd forests in Selwyn District and Christchurch City. About a quarter of the wood fibre is sourced as woodchip; most from Canterbury sawmills although some is from the larger mills on the West Coast.

Veneer & Panel Overlay

Gunns New Zealand Pty Ltd: Gunns New Zealand Pty Ltd is part of Gunns Limited Group (an Australian forestry company), that purchased the former Carter Holt Harvey Panels plant at Hornby in 1999. Gunns New Zealand Pty Ltd produces over three million square metres of sliced veneer per annum. About 75 percent of the veneer is from radiata pine, most of which is exported. Rimu and Lawson cypress are also sliced.

Previous Page TOC Next Page

Contact for Enquiries

Policy Analyst - Forestry
Innovation and Research
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Tel: +64 4 894 0100
Fax: +64 4 894 0741
Contact this person