5 February 2020
Forest operations, lumber and pulp production at Pan Pac Forest Products are continuing at normal levels. This is despite some other New Zealand forestry companies reducing harvesting of their forests in response to high log inventories at China ports.
Pan Pac harvest 1.5 million tons of logs per year and consumes most of that volume within its sawmill and pulp mill. The arising log grades that are not consumed in the value-adding facilities are sold to other domestic sawmills with only the remaining volume destined for log export markets.
Tony Clifford, CEO of Pan Pac notes:
“The Pan Pac business model is to add value to our forest where we can. Pan Pac strategically has diversity of products and diversity of global markets for all our production output.
“Pan Pac owns and manages 35,000 Ha of Radiata Pine plantations which provide 50% of the supply to our mills. The remaining volume comes from other forests under supply contracts. Inventory of all products are currently at normal levels. We are monitoring the situation in China closely and will manage production volumes if required. The Chinese situation is very uncertain at the moment and, although many companies are closed for the extended Chinese New Year holiday, we have agents and information links into China providing up-to-date first-hand information.”
31 January 2020
Doug Ducker has stepped down as Managing Director (CEO), after 15 years in the top role and 45 years in the business. Mr Ducker joined Pan Pac in December 1974 and, excluding a brief period working in Sydney in 1984, has been with the company ever since.
Initially employed as a process engineer to support the expanding pulpmill operation, Mr Ducker assumed roles covering technical services, environmental management, project development and production management. In October 2004, he became Managing Director of Pan Pac with responsibility for the forestry, sawmilling and pulping operations.
Looking back over his time with Pan Pac, Mr Ducker said he had seen tremendous change in the company over the past 45 years.
“I have been fortunate to work with excellent people from our staff through to our suppliers, contractors, shareholders, iwi and the wider community,” said Mr Ducker. “The time now feels right to pass on my corporate responsibilities and to explore new projects involving family and friends.”
Tony Clifford, existing General Manager – Pulp, has been appointed Managing Director effective 1 February. Mr Clifford has been with Pan Pac for 27 years. Initially employed as an electrical engineer, he has held technical and managerial roles within the company and has been a member of the executive management group for 15 years. Mr Clifford has overseen a $70m upgrade of the pulpmill and the development of markets for BCTMP (pulp) into Asia and beyond.
Pan Pac Forest Products Limited (Pan Pac) was established in 1971 as a joint venture between Carter Consolidated (the predecessor of Carter Holt Harvey Limited), Oji Paper Company Limited and Kokusaku Pulp Company Limited. In 1993, the company became wholly Japanese owned by Oji Paper and Nippon Paper Industries, the two largest pulp and paper producers in Japan. In 2007, Oji purchased Nippon Paper Industries’ share in the business to become the 100% owner of Pan Pac.
Pan Pac retains tree ownership for around 35,000Ha and supports the harvest and utilisation of over 1.5 million tonnes of logs. Pan Pac operates one of New Zealand’s largest sawmills at Whirinaki, with a lumber output of around 500,000 m3/a. The company exports lumber to 17 countries. In 2016, Pan Pac established a second sawmill in Milton, Otago, that currently produces 100,000m3/a. Pan Pac’s pulpmill produces 270,00adt/a which is exported to global board and paper manufacturers. The company employs over 420 permanent staff and around 450 full-time contractors.
Pan Pac is a major supporter of business and industry in the Hawke’s Bay. The company’s sponsorships include the Hawke’s Bay Rescue Helicopter, the Hawke’s Bay Farm Forester of the Year Award, the Hawke’s Bay Business Awards and Business Hawke’s Bay. Pan Pac sponsors the kiwi creche run by ECOED at Lake Opouahi and supports school and community group initiatives throughout the Hawke’s Bay region.
For information on Pan Pac’s operation as a MHF in relation to the NZ Health and Safety at Work (MHF) regulations 2016, please read our safety case summary handbook: