62 | FORESTRY Sequal Four Kiwi families keeping it local Richard Loader Sequal expects to grow another 25% over the next 12 months. Sequal was founded in 2006 by four Bay of Plenty families who saw the large volume of logs coming into market and felt it was important for New Zealand that they were processed domestically, rather than exported for processing. Built from scratch, Sequal’s Kawerau site was completed in 2008, just in time for the Global Financial Crisis. While the first five years were challenging, multiple growth stages have resulted in rough sawn lumber being exported to about 20 different markets around the globe, with the single biggest market being New Zealand. Executive Director David Turner says about 70% of the product is exported, all from the Port of Tauranga. “At the end of the 2022 financial year we exceeded our goal of processing 500,000 tonnes of logs. That represents significant growth year-on-year. We expect to grow another 25% over the next 12 months and we’re now investing to grow the mill to have the capacity to process 800,000 - 1,000,000 tonnes per annum in the next three to five years.” All logs are supplied from the central North Island, with the significant majority coming from Kaiangaroa Forest in the Bay of Plenty, one of the biggest softwood plantation forests in the world and the biggest in New Zealand. About 10% of the logs come out of Taupo. “Logs come in and get cut into timber and depending in the market they are going into they will either be sent out in a green form or a kiln dried product. Some will be treated as well.” Powered by geothermal energy the addition of a kiln dryer in 2014 enabled Sequal to grow into different product streams beyond the green packaging that was its initial product line. Markets segments now include packaging, furniture, domestic re-manufacturing for products like weather boards, door jams and piles, and a lot of product is supplied into the process for engineered wood products like Glulam. David says having good people and an overarching brand around how the company engages with its customers have underpinned Sequal’s success over the last fourteen years. “That has been a real benefit to us in opening up international markets. In terms of our manufacturing system the key has been our adoption of a mass customisation business model. The industrial age was defined by mass standardisation. Timber Packaging Experts > Packaging Automation > Strapping > Timber Wrap > Tooling > Onsite Servicing 0800 850 060 rlbpackaging.co.nz Proud supply partners of Exclusive NZ distributor of TITAN Strapping Automation & Tooling. “The technology age is defined by mass customisation, which enables us to deliver exactly what customers want, when they want it and in a way that creates unique customer experiences and mass personalisation. “That business model is fundamentally more difficult to execute, but that is at the core of our growth and success. It means you don’t get caught up in a market with a specific product and it enables you to move frequently between geographies and market segments when certain areas become over-supplied. “That ensures that even in tough times you’re not going out of business, but rowing to stay still and that as been a key piece of our success.” Positive about the New Zealand wood industry David offers that while global demand for wood products is expanding the availability of wood products is diminishing with a number of elements at play including a massive housing shortage in the US, the devastation of plantation forests in North America Canada and Europe, and the global economy. “I expect to see a significant increase in the use of wood, including the use of engineered wood for mid-rise commercial buildings.” “When you think about New Zealand’s availability of logs, we export twenty million tonnes of logs every year and every stick of those logs could be processed here and turned into a valuable product. “In the domestic market I expect to see a significant increase in the use of wood in the built landscape, including the use of engineered wood for mid-rise commercial buildings. “The use of those products will only expand over time.“ I think that is really exciting. “The development of engineered wood products and the development of low carbon construction policies will drive demand for more timber. “So there is a really promising story domestically and internationally.”
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