New Zealand’s “Industry Transformation Plan” Could be Forest Products Industry’s Turning Point

Introduced today (8-19-22) by New Zealand’s Forestry Minister Stuart Nash, the Wood Processing Industry Transformation Plan (ITP) sets out ambitious targets for exporting more finished wooden products, increased wood construction domestically, and a huge transformation from oil and coal fuels/materials to wood-based sources instead.

The ITP envisions an increase of added-value wood product exports to $3.1 billion a year.

International investment agency Gresham House predicts worldwide consumption of timber will rise from 2.2 billion m per year to 5.8 billion m a year by 2050, driven by the need to decrease concrete and steel construction.

The Forest Owners Association (FOA) is onboard. FOA’s President Grant Dodson says that while the ability of plantation forests to sequester carbon from the atmosphere is well known, the role of wooden buildings to continue to store that carbon is less appreciated.

Dotson added that there is at least as much potential in wood fiber as an energy source and for use in an emerging global bioeconomy.

In congratulating Minister Nash for driving ITP project and noting the forest industries backing of the ITP, Dodson concluded that “The challenge now is to implement it. It’s great to have such a positive plan and we look forward to the next steps to attract the investment which is necessary to make the plan an economic and environmental reality.”