Pacific Forest Products Ltd wins Wood, Building and Interiors Exporter of the Year

November 30, 2006

Pacific Forest Products Ltd, an entrepreneurial log exporter that in just four years of business has grown annual foreign exchange earnings to a projected $173 million in 2006/07, has won the Wood, Building and Interiors Exporter of the Year Award.

The Award was presented to Pacific Forest Products at the 2006 New Zealand Trade and Enterprise (NZTE) Export Awards in Auckland on Thursday 30 November. It was one of seven export sector awards, with the top prize, the DHL Supreme Exporter of the Year, won by Opus International Consultants.

The Awards’ judges said they were impressed with Pacific Forest Products’ smart strategies in a difficult trading environment.

“Pacific Forest Product’s rapid growth is brought about by focus and clever management of systems for procurement, transportation and logistics. Its robust management is enhanced by its extensive expertise in forestry.”

NZTE Chief Executive Tim Gibson said the calibre and achievements of this year’s Export Award winners was outstanding and inspirational.

"They are building world class companies by continually striving to take their business to the next level. And despite the diverse areas they work in, they share common strengths, including confidence, visionary leadership and the ability to do what they do extraordinarily well."

He said the companies proved that coming from a distant country of just four million people was no impediment to winning in the tough international business arena.

"We celebrate their achievements and the valuable contribution they are making to the New Zealand economy."

Pacific Forest Products was established in Auckland in 2002 by its three directors to sell logs into Asia and the Middle East.

Marketing and Shipping Director Keith Smith said the fact that the company is profitable and enjoying such outstanding export growth today is all the more pleasing, given the highly competitive nature of this industry and the highly adverse trading conditions during its first three years of business.

"Log exporting is a dynamic market, requiring an agile team to capitalise on the opportunities that such a market presents. To achieve this, we’ve built a small and extremely experienced team of 11 who collectively have over 150 years of experience in export log marketing and related business disciplines."

PFP has positioned its business with a mix of marketing logs for several large forest owners, and log trading, which Mr Smith said balances lower risk and high risk business activities.

In 2002 the company had 48 customers in three countries; it now has about 200 customers in seven countries and is focused on growth markets in China and South East Asia. It’s currently exporting around 1.2 million cubic metres of logs annually and is aiming to more than triple both volume and value within the next five years.

The cost of freight is PFP’s biggest cost – an estimated US$40 million in 2006. It jealously guards the details, but Mr Smith said PFP’s freight strategy works, and has been a primary driver in PFP successfully expanding its business throughout difficult log trading conditions over the past four years – "an environment where we have seen a large number of company failures."

Contact: Keith Smith, Marketing and Shipping Director, Pacific Forest Products Ltd, phone +64 9 309 0868, email keiths@pfpltd.co.nz , www.pfpltd.co.nz

Notes for editors:

The Export Awards celebrate their 40th anniversary in 2006. A historical briefing and more information including profiles of all of this year’s finalists and media information on individual sector category winners is available at www.exportawards.co.nz 

Interviews can be arranged through Jennifer Andrewes, New Zealand Trade and Enterprise, phone +64 4 931 6144, mobile 027 228 0261, or email jennifer.andrewes@nzte.govt.nz

Photographs representing Pacific Forest Products Ltd are available on request to Jennifer Andrewes.

About NZTE:

New Zealand Trade and Enterprise is the government's economic development agency, committed to helping New Zealand businesses grow their international competitiveness, capability and profitability. Visit www.nzte.govt.nz or www.exportawards.co.nz

About DHL:

DHL is the global market leader of the international express and logistics industry, specialising in providing innovative and customized solutions from a single source.
DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide.  285,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations.

DHL is a Deutsche Post World Net brand. The group generated revenues of €56 billion in 2005.

About the Foundation for Research, Science and Technology (FRST):

The Foundation for Research, Science and Technology invests over $460 million a year on behalf of the New Zealand Government, in research, science and technology. These investments are made to enhance the wealth and well being of New Zealanders.

Through its Technology New Zealand suite of schemes, the Foundation assists companies to undertake research and development projects that result in new export-focused products, processes or services. Investment from the Foundation, in the form of grants, is directed at supporting technical risk and the building of technical skills and expertise in companies.

For more information visit www.frst.govt.nz

About Export New Zealand (ENZ) - The association of New Zealand exporters:

ENZ is a Non Governmental Organisation (NGO), not for profit incorporated society with national coverage. ENZ specifically focuses on helping its membership of exporters and exporter service providers grow their business in the international market place. ENZ has an elected National Executive and CEO with well established regions in Auckland, Waikato, Bay of Plenty, Wellington and Christchurch providing the important regional presence and focus that ensures local needs are understood and met.  ENZ specifically acknowledges new export success with the Emerging Exporter Award.  This year, five regional finalists will compete for The Export New Zealand Emerging Exporter of the year award, to be presented at the NZTE Gala Awards evening in November.

For more information visit www.exportnewzealand.org.nz

Distributed by Jennifer Andrewes, New Zealand Trade and Enterprise, phone +64 4 931 6144, mobile +64 27 228 0261, or email jennifer.andrewes@nzte.govt.nz