The announcement of the joint venture – between Australia’s CSIRO Forestry and Forest Products (CFFP) and New Zealand’s Forest Research (FR) – was made at the recent inaugural Trans-Tasman Forum between the Australian Plantation Industry and Paper Products Industry Council (A3P) and the New Zealand Forest Industries Council.
Paul Cotterill, CFFP chief, and Bryce Heard, FR chief executive, say the deal will deliver many of the advantages associated with a full merger of both organisations.
“It will enhance the ability of both nations’ forestry industries to develop world-class products and services by making the most of the R&D and science investment synergies existing between the operations of CSIRO and Forest Research,” Cotterill says.
Heard says the prospect of being able to contact a single forestry R&D entity in the region was welcomed by many of Forest Research and CSIRO’s customers.
“The timing of the deal is regarded as crucial, particularly given the rapid rate at which the world forestry and forest products industry is consolidating through mergers and acquisitions,” he says.
“This partnership will create an organisation of real depth, breadth and scale for forestry and paper industries research and development. The goal is to strengthen capacity and increase technology transfer to both forest industry and pulp and paper clients. The joint venture’s enhanced ability to build expert teams and tackle complex problems is an important factor in enabling the sector to remain globally competitive.”
The advantages expected to accrue to the sector in both countries include: reduced costs of production and processing, higher-value product options, the creation of new jobs in regional centres and a marked improvement in the ability to compete against imported products and on export markets.
The unincorporated joint venture will integrate around half of CSIRO Forestry and Forest Product’s activities with one third of Forest Research’s activities with expected revenues of $27m.
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