Sustainable Products for the World
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Transcript of Sustainable Products for the World
Cycling to Success
PAGE 1
C A N F O R C O R P O R A T I O N
Sustainable Products for the WorldBuilding New Markets and Sustainable Success for Forest Communities Across BC
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 2
ABOUT CANFOR
15 sawmills in Canada4 sawmills in US50.2% interest in Canfor Pulp
Canfor Employs:4,690 Employees2,200 Contractors
Plateau Sawmill Employs:49 Salary Employees290 Hourly Employees
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 3
Sustainable Operation in a Global Context
World population– 6 billion in 2000– 7 billion in 2010– 8 billion in 2020– Over 20 years, an additional 2 billion people
Countries around the world are focused on how to supply housing, energy and sustenance with the least impact on the planet– Tremendous opportunity for wood products– Forest-rich communities poised for sustained prosperity
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 4
Cycling to Success
Forward looking strategy and planning for success can reduce cyclical impacts on operations, communities
For Canfor Plateau, this has meant:– Maintaining top safety performance. Sustainable jobs
and communities starts with keeping people safe. – Maintaining Plateau’s top quartile performance. Top
quartile mills can operate even when market demand low.
– Sustainable forest management; involves Canfor and key contractors; maintains preferential access to key markets.
– Developing diversified markets, so that we remain committed to but not entirely reliant on the US.
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 5
CANFOR’S MAJOR MARKETS
Then: 80% US 10% Domestic 7% Asia 3% Europe and other
Now 45% US 40% Asia 10% Domestic 5% Europe and other
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 6
US MARKET
The United States has traditionally been our largest market, and will remain central to Canfor in the future– World’s largest and most dynamic economy– Many key Canfor customers– Our closest neighbour
But, many reasons to diversify markets– Good business practice– In most cases, balances out regional economic cycles– Long term US softwood lumber trade dispute and
associated costs
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 7
ASIAN MARKETS
Japan has been an important market for Canfor for more than 40 years and will remain important going forward– Premium market with a strong preference for higher-grade
lumber– Mature in terms of single family housing demand and
population growth– Significant growth opportunities in
– Green building– Non-residential applications– Elderly care facilities for Japan’s aging population
– Canfor is working with long term customers on how to assist reconstruction efforts from earthquake, tsunami disasters
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 10
CHINA MARKET DEVELOPMENT
Canfor was the first BC company into China, beginning in 2000
Within a few years, Canfor joined by other BC companies and the BC Government
Canfor’s pursuit of China acted as a catalyst for government market development initiatives, which brought about $6 million / year to building the Chinese market for forest products
When we began, China did not build with wood nor have the – regulatory framework– architectural capacity or– building trades knowledge to build with wood
NAME_2010 C A N F O R C O R P O R A T I O N
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CHINA MARKET DEVELOPMENT
Collective efforts have involved– Promotion– Regulatory work– Technology transfer– Government relations– Demonstration
Early on, established the “Canfor College” – Wood design, building training
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 13
Tremendous Success for Canfor and BC
May and June exports to China surpassed exports to the United States
30% of Canfor’s total sales Widespread use of wood in
– Concrete forming– Remanufacturing– Roofing– Early uptake in wood
construction
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 14
What Comes Next in China
The knowledge base for wood use has been established Now BC’s market development efforts can focus on the
highest-growth opportunities:– Supporting major developers / builders to implement
wood frame construction– Affordable housing low-rise apartment projects
envisioned in China’s 12th 5-Year Plan As China adopts the use of wood in construction, the
potential for lumber demand is immense.– Over the last 10 years, 218 million Chinese moved from
rural to urban areas – almost 7 times the entire population of Canada. All of them need somewhere to live.
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 15
Into the Future
INDIA– 10 or more years away from significant demand
– But so was China in 2000– Canfor will be joining BC reps on Premier Clark’s
mission in November KOREA
– Small but growing market– Well-developed understanding of green merits of wood
MIDDLE EAST / NORTHERN AFRICA– Preliminary investigations into market opportunities
here
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 16
WHAT THIS MEANS FOR BULKLEY-NECHAKO
Diversified markets and a nimble marketing infrastructure positions Canfor and our communities for stability
Chinese demand– Kept mills operating that would have faced curtailment
due to the US housing market collapse– Kept upward pressure on price– Kept people working, at the mill and across our supplier
network
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 17
THE FUTURE IS BRIGHT
Demand for wood products world-wide is growing– Wider recognition of the environmental merits of
wood use– Growing world population needs sustainable
resources, products– Forest-rich communities with proven
environmental credentials are well positioned for sustained prosperity
NAME_2010 C A N F O R C O R P O R A T I O N
PAGE 18
THE PATH AHEAD
Economic sustainability involves working together Business has a role to play Governments at all levels have a role to play
– Sound business hosting conditions– Support for market development– Support for labour force attraction and retention– Maintenance of strong communities and a great place
to live for employees, contractors and suppliers To date, the collaboration between industry and
government at all levels has created tremendous opportunities and flow-through benefits to communities like Vanderhoof