NEW! For
the first time in more than 40 years, the Eden chipmill has
made a loss. SEFE blames reduced demand, but this is not the
full story. Their raw material costs went DOWN and sales
revenue was only down 10.8%.
In 2011, SEFE exported 922,551 GMT, which is historically,
actually quite high. In 10 out of the past 15 years they
exported LESS than that and made good profits in each of
those years. In 1998 they only exported 666,830 GMT and made
a $11M profit.
Corporate
South East Fibre Exports Pty Ltd (SEFE) is the owner of the Eden
woodchip mill. It is a subsidiary of Japan’s biggest paper manufacturing
company, the Nippon Paper Group Inc.
Eden was Australia’s first woodchip mill, set up in 1969 by the Daishowa
Paper Manufacturing Company of Japan and was the first overseas
operation of that company. Woodchip exports commenced in December 1970.
Nippon Paper took over Daishowa in 2001 and the Australian subsidiary
changed its name from Harris-Daishowa to SEFE in 2003. Nippon Paper is
the majority shareholder with about 60% of the shares. The remainder are
owned by the Itochu Corporation.
The Eden chipmill uses only native forest trees, most cut down solely
for woodchipping. It does not use waste wood and, indeed, cannot process
branches, butts or crowns. It can only chip whole tree logs.
Eden is the only region in New South Wales where trees are felled solely
for woodchipping. This has led to very large scale logging operations,
with virtual clear felling the norm.
Since its establishment it has exported over 35 million tonnes of native
forest chips, mostly to Japan and mostly to paper mills owned by its
parent company in Japan.
After Tax profits in $A
|
1989 |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
|
9,348,609 |
8,199,570 |
6,292,798 |
6,084,308 |
6,038,351 |
10,347,751 |
12,981,967 |
6,839,580 |
9,063,146 |
|
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
|
11,775,732 |
5,983,063 |
7,763,403 |
6,446,910 |
6,264,013 |
7,265,748 |
6,060,015 |
7,968,447 |
|
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
6,859,580 |
9,063,146 |
10,907,529 |
3,888,013 |
4,441,756 |
922,551 |
|
Environment and Markets
In recent years, however, improved environmental policies and quality
standards by Nippon Paper have placed the Eden operation under some
pressure and are forcing it to adjust to a changing market.
Exports of woodchips in Green Tonnes
|
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
700,123 |
666,830 |
704,264 |
712,758 |
760,993 |
711,378 |
|
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
794,433 |
838,600 |
854,550 |
1,060,407 |
1,071,841 |
977,074* |
796,850 |
1,033,195* |
126,430 |
* includes some plantation pine chips
Nippon Paper has a policy to import only
‘plantation’ or ‘certified’ chips by the year 2008. Unfortunately the
company has accepted the discredited Australian forestry Standard (AFS),
which it "achieved" in 2007.This is a business-as-usual
outcome devised by former Federal Forestry Minister, Wilson Tuckey.
Even without the strictures of a reputable form of certification, NP’s
quality standards are also causing some problems for SEFE.
From 2004, Nippon Paper has advised SEFE that it will only buy highest
quality chips, from the younger trees of regrowth forest, but dropped
this policy the following year.
The paper industry pays a higher price for regrowth or plantation chips
because these have a longer fibre length, are stronger and lighter
coloured, more suitable for producing high quality bright white paper.
Pale coloured timber requires less bleach.
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