 New Zealand Pine Exporting Companies (NZPEC), is an Industry group formed some 6 years ago to facilitate expanded and joint promotional and market development initiatives for its members.
It was recognised that individual privately owned companies lacked the "critical mass" to both finance and support such initiatives as independent operations and moreover there was a room for a larger scale of cooperation needed just to be able to adequately service the demand levels from the larger emerging economies.
In a parallel development, it has also become clear that fragmented marketing policies have traditionally "hamstrung" NZ independent producers where individuals have not been able to accurately determine real market information in the absence of the "bigger picture" and the shared information made possible by regular meetings and communication between members has proved to be of tremendous value to all in getting real time knowledge of markets trends and practises.
Members are all active industry participants with considerable experience and investment in New Zealands Forestry sector in the added value area and together represent a very significant volume of New Zealand's exported timber products.
All members also maintain clearly independent selling and market representation policies .
The group has spearheaded market entry into the China market with tradeshows and exhibitions and has recently conducted and in depth visit and study tour of India to examine market opportunities in the second biggest population centre of the world.
The group is well supported and financed and is still keen to widen the membership base further to both improve and expand our market initiatives and information base. New or interested members are cordially invited to write to the secretary at info@nzpec.co.nz or to contact any of the listed members to discuss.
Enterprise Network
Recent activities in the China market (including WoodBuild EN) have encouraged NZPEC to look at expanding its current promotional activities to other regions, such as South China
An interest group was established to evaluate this, consisting of: Southpine/McAlpines, Arbor Resources, Craigpine, Lakesawn Lumber, Redstag Timber, Lumberlink, and WPI, and have concluded the following:
NZPEC are dedicated to work together to promote NZ lumber products in China , in particular targeting the development of value-added initiatives. It was after NZPEC's and NZTE's initiatives in the first three years of Woodbuild in Shanghai , that the Wood Innovation Centre was initially promoted. Some of NZPEC's members are members of this.
NZPEC will not only focus on establishing new opportunities for sales of furniture lumbers, but also market development of products and solutions, with the need to further develop commercial relationships with local Chinese companies to help maximise opportunities. Guangzhou is an area that most of the member companies have little direct experience with and the furniture fair provides a lead for investigating opportunities and contacts further.
NZPEC need to work closely with NZTE. NZTE is able to provide market intelligence, research and networks to develop a strategic market approach for NZPEC - some new initiatives in this region are already underway. New Zealand Pine Exporting Companies ( NZPEC) is an integrated group of 18 Companies (a combination of Sawmills, Processors and Trading Organisations) that work together in the sale and development of New Zealand P ine to the Asian Cont inent. Products produced from these companies range from Green Sawn, Kiln Dried Rough Sawn, Kiln Dried Dressed, Mach ine Stress Graded (MSG), Treated Wet (CCA, ACQ) to H3.2, H4, H5, H6 Levels, Treated Dry (LOSP, Tru-Core, Vascol Azure) to H1.2, H3.1, Fingerjointed and Laminated. Grades produced from these companies are wide and varied due to the location of the sites in New Zealand and the log grades purchased from the various forests.
NZPEC's members have the ability to eventually supply core housing solutions to customers including framing, treated outdoor and fit-out products. The total comb ined production output from these companies makes it one of the biggest producing groups of pine in New Zealand . The group has the ability to create opportunities and are flexible enough to change to meet markets.
The potential for the group to increase earnings not only from a NZPEC perspective but from New Zealand producers is good as the South China inland regions continue to develop rapidly and do not have the ability to supply or produce all its requirements. The areas being targeted are the building, treated and furniture sectors. As part of this process it is anticipated that each company will allocate approximately 50% of their time to the furniture show, and the remainder to following up leads and initiatives in Guangzhou .
Enterprise Network Objective
The NZPEC mission to south China has three main objectives.
- Gather market intelligence on opportunities for added value wood products opportunities.
- Develop strategic relationships with possible end-users in market
- Develop collaborative models for the New Zealand wood products industry.
The principle objective of the group is to do market and product research in Guangzhou , while more directly accessing more Chinese manufacturers in the existing furniture industry. The demand for alternatives from Hardwoods and local wood species is becoming increasingly common and the growing middle class who are more open to alternatives has pushed this along. Current demand for NZ pine is very strong throughout SE Asia and this is a prime opportunity to further develop ideas and concepts without the added pressure of competing for sales.
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