Job losses as exports drop

This, according to the report, has led to massive financial repercussions for local industry. Woodchip exports came under the spotlight during a meeting at the Zululand Chamber of Business last week.

Factors contributing to the reported 45% reduction since 2004, include among others the serious fires experienced in the Midlands last year and land claim issues affecting Mondi and Sappi.

The chamber said in addition, domestic prices for timber were currently viewed as being more competitive than export prices, while more timber previously used for woodchip exports, was now being used locally.

Industry representatives at the meeting said there was also a concern of more retrenchments.

Alec Franz, mill manager of the Central Timber Co-op Ltd said that compared to the 1.75m tonnes of woodchip exported in 2006, their projected tonnage for 2008 was 1.1m tonnes.

Job losses

The company confirmed that a further 46 people faced retrenchment at the end of June due to the reduced exports. Also affected was the number of export vessels visiting the port. A total of 147 vessels brought in revenue of R139m in 2004.

It was projected that only 71 vessels would be loading export woodchip this year, earning revenue of R87.5m.

Wally Luyt, managing director of Shincell said woodchip exports had also dropped at their company.

"It is a concern for us, but fortunately in our case, we do not foresee any retrenchments. Our margins are extremely tight and we will have to go to draw areas further afield to bring timber to Richards Bay."

"Competition will definitely increase for the commodity, as prices of timber have risen dramatically."

- Sapa