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“Future Proofing our Industry” …………… “Future Proofing our Industry” …………… Ron Eddy Managing Director TimTech Chemicals Limited.

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Presentation on theme: "“Future Proofing our Industry” …………… “Future Proofing our Industry” …………… Ron Eddy Managing Director TimTech Chemicals Limited."— Presentation transcript:


2 “Future Proofing our Industry” …………… “Future Proofing our Industry” …………… Ron Eddy Managing Director TimTech Chemicals Limited

3 The Value of Strong Competition over the Last 20 Years

4 © R C Eddy 2005 But, before we carry on………………… ……………………................

5 © R C Eddy 2005

6 “ T ell them what you are going to tell them, T ell them, T ell them what you’ve told them” History over last 20 years –Hickson & Rentokil –Chemicca –La Porte –Quantum –Protim –TimTech Chemicals Customer benefits of strong competition –Internationally low prices –Improved service levels –Release of new products & processes –Rapid innovation/R&D –People development Where to from here? –Learn from history –TimTech & CRC Wood Innovations –New products, processes & technology

7 © R C Eddy 2005 Background 1984: Mike Brown launches Chemicca BTB Ltd –Two suppliers Hickson (65%) & Rentokil (35%) Traditional split –Hickson initially do nothing, assuming Chemicca will not last 1986: Chemicca market share increases –Low prices win customers –Hickson react by reducing ALL prices significantly to ‘force out’ Chemicca Finance Controller didn’t know true costs Hickson trades 30% below cost – profit gone –Hickson acquires Rentokil New Zealand Back to 2 players – Hickson now 85%

8 © R C Eddy 2005 Background 1987: Hickson UK force MD to retire early –Hickson & Chemicca compete on innovation, technology & service –Prices slowly return to higher levels to support this 1987: Nigel Poole launches Koppers NZ –Wins limited market share Baigents in Nelson Tropik Wood Fiji 1989: Hickson & Koppers merge –Koppers Hickson formed to service Australasia, Oceania, SE Asia & Japan –Back to 2 main suppliers

9 © R C Eddy 2005 Background 1990 – 1995: Period of relative stability –Both companies compete through R&D, new technology and people development Products & Technology –Diffusol®, Tan™ Dry, Tan™ E, ACQ®, Lektraspray, Lite Process, Wood hardening, Timbercare range People Development –Roy Parish, Terry Smith, Jeanette Drysdale, Campbell Boyd, Ross Grant, Mark Fortune, Paul Maynard, Peter Cobham, Murray Clark,Bruce McCullagh, Rob Anderson, Jeremy Christmas, Graeme Rees, David Airey, Wally James, Wayne Vegar………………………………………………. –Both obtain ISO9002 accreditation –More emphasis on OSH, Environment, Code of Practice –Fernz acquire 100% Chemicca –La Porte make an entrance –LOSP starts taking off – Protim lead. –Untreated framing almost kills Boron

10 © R C Eddy 2005 Background 1996: Ron Moon launches Quantum –KH do not compete on price & retain most customers –Fernz lose customers & cut prices to maintain market share 1998 - 2000: –Koppers Hickson/Arch (KHA) cuts prices –KHA put Quantum into Receivership –Fernz purchase La Porte & Protim –Osmose purchase Fernz Timber Protection –Back to 2 main suppliers –Competition between companies less apparent –Prices increase rapidly & service levels drop Cash cows for American corporates 2001: Mike Brown & Ron Eddy launch TimTech Chemicals 2002: TimTech products registered & sales commence –Difficulties……..Not as good looking as Rachel Duley…..

11 © R C Eddy 2005 TimTech’s Rachel

12 © R C Eddy 2005 Industry Benefits from Strong Competition Better Prices & Special Deals –Large prices drops as suppliers fight for market share –Treaters get exceptionally good deals e.g. Subsidised plants, steamers, pumps, tanks Automation & plant upgrades “Free” preservative

13 © R C Eddy 2005 Industry Benefits from Strong Competition Customer Service –Call rates increase rapidly –Additional, Improved services offered –Marketing assistance –Overseas trips Rugby & Cricket African Safaris Study Tours

14 © R C Eddy 2005 Industry Benefits from Strong Competition New Technology e.g. –Spray Borons –Oil based carriers –New solvents –CuN formulations –Azole LOSP’s –Advanced automation –State-of-the Art Plants

15 © R C Eddy 2005 The Future Investment in R&D and commercialisation of new products, processes & technology is vital –TimTech selected as partner in CRC Wood Innovations –Revolutionary technologies developed & commercialised as well as relevant research establishing wood as the sustainable material of choice –Established & supported by Australian Government’s Cooperative Research Centres Program –Mike Brown invited to replace Adrian de Bruin, Auspine, on the CRC Board

16 © R C Eddy 2005 Commercialisation of new Products, Processes & Technology Microwave Processing of Wood –Improved processing efficiency of solid wood –Improved end-use performance for structural & appearance –Online technologies for impregnation of ANY species Douglas Fir treats very well –Long term outdoor decay trials with environmentally benign preservatives Patented single board treatment plant –Incorporated into dry mill, straight after planer –Delivers uniform treatment with defined amount preservative online No need for offline handling New Treatment Schedules –Very rapid CCA Fixation –Significant environmental benefits –Sludge free –Elimination of dripping –Very rapid treatment turnaround ~ 2 min High speed treatment plant –Plant fills & drains in 2 sec stages –Uniform exposure of packet in 5 sec – 5 min –Suitable for all hazard classes & preservatives Premium Quality Decking –New Chemistry preservative system –Dimensionally stable –Stronger & harder –Includes colour –UV inhibitors

17 © R C Eddy 2005 CRC Partners Include: Australian Solar Timbers, NSW Australasian Furnishing Research & Development Institute Ltd, TAS A.V. Syntec Pty Ltd, OLD Black Forest Timbers Pty. Ltd, VIC Carter Holt Harvey, VIC CSIRO Manufacturing & Infrastructure Technology, VIC Forest & Wood Products Research & Development Corporation Forest Products Commission, WA Furnishing Industry Assoc, VIC QLD Department of Primary Industry & Fisheries Swinburne University, VIC Treecorp Pty Ltd, VIC University of Melbourne, VIC

18 © R C Eddy 2005

19 Strong Competition is Good for the Industry

20 © R C Eddy 2005

21 Commerce Commission charges wood firm over documents THURSDAY, 17 FEBRUARY 2005 The competition watchdog is toughening up on companies that don't cooperate with its investigations, filing criminal charges yesterday against a wood chemical company for allegedly not providing information and documents.

22 © R C Eddy 2005 David Sarnoff “Competition brings out the best in products & services & the worst in people” David Sarnoff

23 © R C Eddy 2005 That’s All Folks. Thank you!

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