 About APEC
| Company Description |
| Production Capability |
| Quality Assurance |
| Employment Factors |
| Competitive Advantage |
| After Sales Service |
| Overall Commitment |
Company Description
APEC has been operating in the Albany region since 2000, processing began in Sept 2001, with wood chip exports beginning in 2002. A contributing and innovative factor of APEC's success is the integration of three companies that ensures cost and quality efficiencies from plantation establishment and management to harvesting, chipping and shipping of the final product.
APFL (sister company) was the brainchild of Mr Syd Shea (CALM, Forest Products) and Mr Kenji Kanda (Oji Paper, Tokyo). Long before public discontent they saw the future need to cease logging of old growth forests and find an alternative for the demands of the modern world. These visionaries were the driving force in the establishment of the first Eucalyptus plantations in the Lower Great Southern. APFL / APEC were the pioneers which has seen the development of the industry in Albany and surrounding regions. Whilst we are now one of the many players in the local marketplace we are proud of our pioneering efforts in establishing this huge growth industry locally.
The business structure and roles of responsibility within the business are:
Albany Plantation Forest Company of Australia Pty Ltd (APFL) (APEC sister company) is responsible for securing suitable land through either leasing, share farming or freehold.
APEC is responsible for contract harvesting and chipping the mature trees. Harvesting commencing on average 10 years after planting. APEC processes the timber through its purpose-built static woodchip mill. The high quality woodchips are railed (community request) to the Albany port and shipped to Japan and other markets as they are developed.
OJI Paper (APEC associated company) is the marketing and manufacturing arm of the company. OJI takes delivery of the high quality woodchips to use in its numerous paper mills in Japan and other countries.
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Production Capability
APEC has the capacity and the commitment to meet the growing production needs of the woodchip export market into Asia. The nature of the timber industry is such that the time to grow trees from seedlings to maturation is in itself a long term commitment.
APEC has developed a staged management structure that guarantees a continuous supply of woodchips for export market for decades. Presently APEC has 24000 hectares planted in trees and with 3000 hectares ready for harvesting annually.
The capability to expand is a crucial element for the success of APEC. Therefore it is essential that APEC demonstrates responsible land management in the region to ensure their continuing community support, regional economic growth and business success in the timber industry.
To achieve this APEC:
- Has obtained FSC Chain of Custody certification.
Conforms to the highest environmental requirements set down by regional departments.
Works with and has the support of the local community which is evidenced by the manner in which they share farm and / lease land throughout the region. The economic return for landowners is substantial.
Have fire fighting procedures in place to ensure the safety of the community and the protection of their plantations from fire. All employees and contractors are trained in fire fighting procedures.
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 Quality Assurance
As part of our quality assurance commitment APEC has a zero tolerance of foreign body contamination in the woodchips. Contamination in woodchips may take form of plastic (poly pipe, flag tapes) wire etc. all of which damage expensive equipment and cause paper discolouration during the paper making process.
Employee training is a crucial part of ensuring zero contamination. There are a number of operational procedures strictly adhered to for quality assurance.
The key procedures are as follows:
APFL Plantations employ a site supervisor to ensure adherence to the site management procedures.
Site surveys are completed prior to plantation establishment. Any foreign materials are marked or removed from site.
All site reports are investigated and monitored.
APFL work closely with landholders and contractors by providing information concerning their requirements on site.
Site clean-ups are completed following road and harvesting activities.
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Employment Factors
APEC and the sister companies APFL Export Company and OJI are extremely beneficial for the economic growth of the region. APEC provides direct employment as well as contract and land leasing arrangements for many people in the area.
APEC's employment numbers continue to grow with full time employment reaching 19 at this time, 10 in administration while the remaining 9 in the woodchip processing area.
The plantation establishment and management arm of APEC, APFL, employ further people. APFL's majority of labour is however, indirect, as local contractors are used in the field. There is a steady growth of employment opportunities as the plantations mature and harvesting commences. For example, in 2004 contractors employed approximately 54 people which has grown to more that 170 sub contractors in 2006.
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Competitive Advantage
The main competitive advantage APEC have within the export timber industry is the closely linked business partnership with APFL and OJI.
APEC's Forest Stewardship Council Certification (FSCC) greatly strengthens their marketing position to ensure sustainable marketing success and growth throughout Asia. It further enhances their ability to process timber for other plantation companies through the Great Southern region and beyond.
Other factors demonstrating competitive advantage include:
production of consistently high quality woodchips
reliable supply
competitively priced - efficient economies of scale
conforms to the highest environmental requirements
works with and has the support of the local community
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After Sales Service
A review of the delivery of each shipment is undertaken with the buyer to ensure that they are satisfied and that the goods comply with the sales agreement. Any variations are carefully examined to ascertain the reasons for they may have occurred and the necessary action taken to correct the problem should there be one.
Overall Commitment to Export
The total production of woodchips exported, therefore there is a total dedication by senior staff to the development of the export market through sales and marketing as well as the production costs and quality control that are an essential part of developing new markets.
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