Trip Report

December 3- 8, 2000

EMO P.O. # 40314815230

A. Travelers:

o Dennis Hayward - Executive Director, Western Wood Preservers Institute

o Dr. Jeff Morrell - Professor, Forest Research Lab, Oregon State University

o David Bond - Chief Operating Officer, Permapost Products Company

o Ralph Morris - Industrial Sales Manager, Pacific Wood Preserving

B. Purpose of Travel

To conduct workshops and meet with local business people and government officials regarding the use of treated western U.S. softwoods in French Polynesia. To identify potential issues and solutions regarding the use of these products in this market.

C. Itinerary

o Sunday December 3 - Travel to Papeete, Tahiti

o Monday December 4 - Meetings with firms and agencies.

o Tuesday December 5 - Meetings with firms and agencies.

o Wednesday December 6

- Meeting with firms and agencies

- Conduct Workshop #1

o Thursday December 7

- Visit Moorea to view treated wood uses

- Conduct Workshop #2

o Friday December 8 - Return to USA

D. Summary of Meetings - Observations

Our mission took place principally in Papeete, the capital and by far the largest city in Tahiti. It is the center of commerce and essentially all imports go to this Port before shipment to any of the 180 islands making up French Polynesia (Tahiti). In 1999 Tahiti was the 11^th largest export market for softwood lumber with exports valued at nearly $9,000,000. Our key contact was Jean-Jacques JORDA, President of Polybois, a major importer of western softwood lumber. He and Patrice ANESTIDES, the firm’s Commercial Director had set up numerous meetings and made all the arrangements for the workshops. In addition they escorted us to most of the meetings and provided translation. Organizations visited included import trading firms, architects, contractors, wood milling, chemical suppliers, inspection agencies and housing authorities. In addition our hosts had promoted the seminars in the local building material community and in the press. About 15 individuals attended each of the seminars. The seminars consisted of: Dr. Morrell covering the basics of wood technology, risk hazards, termite control and wood treating technology; Hayward reviewing the types of preservatives, the industry, US standards, Quality Assurance and safety information; and messengers Bond and Morris providing brief presentations on their firms and the types of products and services offered by the industry. The seminars were conducted with simultaneous translation and all attendees were provided with a complete packet of guidance materials on use and specification. The seminar concluded with a lengthy discussion of the issues related to treated wood in Tahiti.

Several factors are key to the use of softwood in the region:

o There is a high risk for termite damage throughout the region and the problem appears to be increasing. Fungal decay is also a consideration, although it appeared to be less of a concern to the wood users.

o Pre construction ground treatments and post construction controls for termites are not uniformly used and there appeared to be little follow up with supplemental treatments after construction. There was also a concern that applicators were diluting treatment chemicals to save money, further reducing the value of treatment.

o While the necessity for treating all cut ends is recognized and effective chemicals are available, field treatments are rarely performed due to work force attitudes. We observed numerous untreated cuts on one building over the course of our visit. This largely negates the value of treatment since it provides a pathway for termite entry beyond the treated wood barrier.

o They generally build above ground or above water on concrete piers.

o Douglas-fir is a preferred species and Hem-fir is acceptable. The users were concerned about strength- preferring the risk of decay due to poor treatment in return for a higher initial strength.

o Because much of the design is exposed they have moved away from the use of incised materials for aesthetic reasons. They also object to the green color of CCA treated materials. They also rejected the use of ammoniacal treatments, which would allow for deeper penetration without incising, but darken the wood. They recognize the potential for using the LOSP (Light Organic Solvent Process) which does not color the wood and might also use solvent based treatments from the U.S. Cost, however, was a major concern.

o While the need to use only treated materials is understood and accepted, the market has a low level of understanding that some treatment procedures will be less effective than others. Driven by economics, the predominate western species used is unincised green Douglas-fir treated with CCA. Such materials are poorly penetrated with preservative and are likely to have low retention levels. Not surprisingly, the materials are not performing well. In essence, French Polynesia has among the highest levels of risk in the world, yet uses materials which would not be accepted for the lowest level of risk in the US!

o They do not appear to have building codes or standards in regard to treatment as we do in the US and as a result the market uses the least costly material. There also appears to be little recourse for failure. Insurance agencies only require 5 to 10 years of performance on new buildings and do not consider termites in their risk models.

o There was some confusion with US standards which are commodity-based as opposed to French or international standards which are hazard based. As we move into full implementation of our Use Category Standards we will want to prepare an equivalency guide for use overseas.

o It is clear that a large portion of the market is at risk of being captured by radiata pine from New Zealand and Australia. There is both a cost and exchange rate advantage. This species has a high percentage of easily treated sapwood that does not require incising to achieve acceptable treatment. This species, however, has lower material properties and is more prone to twist and warp. In larger timbers, heartwood faces are also likely to result in poor treatment. We observed one radiata pine structure which had some evidence of failures

o They also use, and may be leaning toward increased use, of steel and concrete construction, especially for commercial and multi-unit housing structures. Even within these structures, however, there are major quantities of wood and there is a general desire to use wood.

o There are several other preservatives that might better fit some of their specific needs but these are generally more expensive and the market appears very cost sensitive.

o The people we met with seemed to appreciate the benefits of standards and recognized that many of their problems originate from the low standard of treatment they accept. Further they seemed open to the idea of doing something to improve the product.

o The Utility industry uses treated Douglas-fir poles generally treated with creosote but we also observed some CCA treated poles. They have some termite issues and we discussed with the local supplier the need for ongoing inspection and maintenance.

E. Conclusions and Recommendations

We cannot help but conclude that radiata pine (and alternative materials) represents a significant threat to our products if the western softwood lumber and plywood entering the country is not treated to an appropriate level to match the high risk environment. The US producers will continue to supply the low standard treated materials if that is what the market requests. The solution with the best potential for success is to convince the market to specify and use appropriately treated material and employ proper construction practices even though this will cost more and disadvantage the competitive position of our products.

We suggested, and the business community seemed accepting of the idea, that they form a loose working group to establish some Tahiti Use Standards and guidelines that they could promote within their country for western softwood. We also offered to provide guidance to this group as needed. They asked that we provide our recommendations for such a policy, which we agreed to do. While we are still discussing the details, our basic recommendation will be:

o Require that all construction sites be treated prior to construction with either a chemical barrier or a physical barrier to exclude termites.

o Provide guidelines to property owners for ongoing inspection and control after construction is complete.

o For all uses which are interior or where visual appearance is not a concern specify that the material be incised prior to treatment.

o Specify that CCA or other water borne preservative treated material for above ground use be treated to 0.25 pcf retention with a penetration of 0.40 inches with provisions for quality control and inspection. The retention should be increased to 0.40 pcf for material in ground contact.

o Lumber should be dried to below 40 % prior to treatment.

o Treated wood should be inspected by an accredited inspection agency after treatment to ensure that it complies with the specification.

o Where color is a concern, specify stained material, stain on site or consider other preservative systems that can provide a clear appearance. The practice of milling off the treatment to get a clear face should be eliminated.

o Every effort should be made to dispose of construction waste in landfills and to discourage the population from using the trimmed materials for cooking fires.

We believe that failure to improve the quality of wood entering this market will create an opportunity for other countries. Our host estimated that French Polynesia imported 15 to 20 million board feet of treated Douglas fir per year. While the loss of this market would not devastate the region, it has important implications for other Douglas-fir using islands in the Pacific and could start a trend away from our materials.

Report Prepared by: Dennis Hayward

December 18, 2000