In this issue:
In many endeavours, crafting a report with graphics based on data say 18 months old usually illuminates trends and comparisons that are good enough to make the point and support the narrative. Not so though for China. Recently, while writing a China paper, I found an eye catching chart which compared lumber import figures for 2007 for various supplying countries. Canada ranked #4. Refreshing the table to 2010 YTD, Canada had catapulted into the lead and by a long shot .... more
Japan Market Update
While Japan’s real annualized GDP surged to 5.0% in the first quarter of 2010, the pace of recovery slowed to 1.9% in the April to June quarter. Corporate earnings of Japan’s leading companies demonstrated vast improvements over year prior levels thanks to cost cutting, government stimulus spending and robust exports to China and India. A Nikkei survey of 1,100 non-financial firms reported .... more
A Convenient Truth: New Doors Opening for SPF in Non-Residential Construction
On June 20th, Canadian International Trade Minister Van Loan visited Sapporo to celebrate the opening of 7-11 convenience store, which features the use of Canadian SPF and OSB. Minister Van Loan thanked Mr. Yosaburo Sasaki, (photo far left) President of Iwakura Home Co., Ltd....more
Canada - Japan Dialogue Bears Fruit as
The Japanese Government Enacts “Wood First” Legislation
Japan Forestry Agency Director General Shimada with
B.C. Minister of Forests and Range, The Honourable Pal Bell
Inspired to an extent by B.C.’s Wood First Act, Japan’s Forestry Agency collaborated with MLIT to develop the “Act for the Promotion of Wood Usage in Public Buildings”. The Act was written into law on May 19th. The Act is designed to expand the market for wood products in public buildings such as schools and hospitals. Wooden structures constitute only 7.5% of public structures at present, compared with 36% as a ratio for all structures....more
Wooden Elderly Care Facilities Increasing in Popularity
In Japan, there is an ever growing interest in building elderly care facilities with wood. Another wonderful example of this trend, a special care senior’s housing facility, was recently completed in the Kanto region of Japan..... more
Calendar of upcoming events in Japan
Are you planning a trip to Japan? Before you leave, be sure to check out our calendar of upcoming events.... more
The South Korean economy has been on a recovery path, showing a 7.2% increase in real GDP for the second quarter and 7.6% increase for the first half of this year on the back of robust exports and improving domestic demand when compared with a year earlier. The growth rate has been steadily beating forecasts. The IMF recently raised its growth outlook for Korea from 4.5% to 5.75%, in line with the Korean government’s projection of 5.7% GDP gain in 2010.... more
2010 Developer/ Media Mission
The joint Canada Wood- KHA Developer & Media Mission to Canada ran from July 4 to 11 with a total of 17 delegates including architects, developers, government officials and media.
“After this mission, I realized that people learn from seeing innovation firsthand. To me, it was an excellent opportunity to learn about wood, forestry and wood frame construction as a green technology” said C.S. Yoon, former chair of KHA (Korean Housing Association) and professor of Yonsei University with admiration..... more
CWK-KWCA 5-Star Housing Quality Assurance program
The handover ceremony for the first awarded 5 Star QA Certification plaque was held June 4th. The new owner, members of Korea Wood Construction Association (KWCA), Canada Wood’s Tai Jeong, and Gab Bong Kim, President of Stuga - the home builder plus media gathered onsite to mark the occasion.... more
University-based training at Kyung Hee University, AnYang City
On August 13th a ceremony was held in Anyang City for graduates of “2010 Wood Frame Construction Program” co-hosted with the Department of Architecture, Kyung Hee University (KHU). This program provides fundamental knowledge on WFC to the university students majoring in architecture through 5 days of theory and .... more
Train the Trainers Workshop
The 14th Practical WFC Training Workshop was conducted in conjunction with the Korea Wood Construction Association (KWCA), Research Institute Culture City (RICC) and Canada Wood Korea from July 5 to 24 in Gangwon Province to train the future trainers of wood frame construction.... more
Hybrid Multi-use Structure Built in Pangyo
A mixed use three storey building in Pangyo new town development site was recently completed. The hybrid building comprises two storeys of light wood frame construction above a one storey concrete ground floor. Ground floor is to be used as commercial space along with three residential units on the second level and one residential ..... more
Calendar of upcoming events in Korea
Are you planning a trip to Korea? Before you leave, be sure to check out our calendar of upcoming events.... more
China Market Update
The Chinese economy continues to stabilize with slight concerns over inflation and bigger concerns over a pending asset bubble in the housing sector. GDP growth slowed to 10.3% in Q2 from 11.9% in Q1. The Canadian Embassy, in line with most forecasters, is projecting a continued slowing down of growth in Q3 & 4 to reach a 2010 GDP overall growth of 10%.... more
Governor General Visits China
Canada Wood China and FII China were privileged to Host Her Excellency Michaelle Jean and His Excellency M. Lafond, accompanied by a high-level Canadian delegation, to the Vancouver pavilion at the Urban Best Practices area of Expo 2010.... more
Developer/Government Official Mission to Canada
A group of ten influential Chinese developers and government officials travelled to Alberta and BC for one week in July. First stop for the mission was Edmonton where a session was held with Alberta Forest Product Association (AFPA) member companies. The visitors .... more
Former Technical Coordinator with Canada Wood Joins Local Builder
After more than three years with Canada Wood China, Mr. Chen Xiao recently accepted a site foreman position with a Chinese builder Jie Li Construction. Jie Li, a company we have worked closely with over the past several years, was in need of experienced personnel after securing the framing contracts for 360 wood frame villas in a new housing development near Kunming city in the southern province of Yunnan.... more
Vancouver Stands Out at Shanghai EXPO
Over 200 pavilions at the Shanghai EXPO are vying for the attention of China’s media. Though the Vancouver Pavilion is relatively small compared to the national pavilions, it is garnering more than its share of coverage.... more
China Visit - NRCAN Minister Paradis
Minister Christian Paradis paid a visit to China in June with stops in Beijing and Shanghai and considerable time set aside for Canada Wood. This marked the first trip to China by an NRCan Minister since Minister Gary Lunn in 2008. It was timely given that the Canada Wood funding envelope is up for renewal at the end of the current .... more
FPInnovation Code Specialists Tackle Challenges
A little known facet of the China initiative is the valuable contribution made by FPInnovations. As Canada’s national R&D body for the wood industry, FPInnovations has been an integral player in development of Chinese codes, technical standards and design tools required by the construction sector.... more
Calendar of upcoming events in China
Are you planning a trip to China? Before you leave, be sure to check out our calendar of upcoming events.... more
Paul Newman
Executive Director - Market Access and Trade, COFI Vancouver
Email: newman@cofi.org
Paul Newman joined Canada Wood in 2003 and prior to that worked for COFI for 12 years. He also has experience working for a forest products firm and with the Canadian banking sector. Paul is a graduate of the University of British Columbia in wood science and SFU in Business Administration. Paul is responsible for Canada Woods Asian programs. He enjoys gardening, outdoor pursuits and reading.
It is critical that NRCan’s Canada Wood Export Program is renewed in April 2011, so that Canada’s successful transition in today’s transformed world can be completed and our industry and economy’s futures assured.
Director's Message
by Paul Newman
Forward Ho!
In many endeavours, crafting a report with graphics based on data say 18 months old usually illuminates trends and comparisons that are good enough to make the point and support the narrative. Not so though for China. Recently, while writing a China paper, I found an eye catching chart which compared lumber import figures for 2007 for various supplying countries. Canada ranked #4. Refreshing the table to 2010 YTD, Canada had catapulted into the lead and by a long shot. Such is the pace of change, even for China’s trading partners!
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| The Government of Canada, the BC Government and leading lights in industry got it bang on when they forged ahead – despite the naysayers – and funded the last decade of work in China and other key Asian markets. |
Ten years on – after we launched missionary work in China in 2000- Canada is now leading the pack for lumber imports into China. |
Ten years on – after we launched missionary work in China in 2000 – the world has greatly changed. Back then it was challenging to get industry’s attention re – China. It was a long ways away and besides they paid crap prices. America was king. Even after the 2008 downturn washed over us many felt that it was only a matter of time before the USA regained its edge and its suzerainty over our exports in lumber. Perhaps.... but it sure doesn’t feel that way now.
The new normal suggests that those who wait for resurrection of US demand might perish of starvation before that day comes. Not so long ago, commodity sectors were looked down upon as sunset industries and losing propositions versus high tech et al. Interestingly, countries that have weathered the economic storm the best (e.g. Australia and Canada) are commodity plays and have been pulled along largely on the coat-tails of China.
All of this is to say that the Government of Canada, the BC Government and leading lights in industry got it bang on when they forged ahead – despite the naysayers – and funded the last decade of work in China and other key Asian markets. The payouts are there for all to see. It is critical that NRCan’s Canada Wood Export Program is renewed in April 2011, so that Canada’s successful transition in today’s transformed world can be completed and our industry and economy’s futures assured.
Shawn Lawlor
Director, Canada Wood Japan
Email: lawlor@canadawood.jp
Shawn graduated with a Bachelor of Arts from the University of Ottawa in 1990 and later from the Asia Pacific Management Program at Capilano College in 1995. His career has spanned 15 years in international forest and building products marketing and sales with leading primary producers. Shawn joined the Canada Wood group in April 2007 to take on the role of Director, Japan Operations. He resides in Tokyo with his wife Christine and son Cole.
SPF exports to Japan posted their best performance since 2007 in the first five months of 2010; jumping 40.4% over year prior levels.
Japan Market Update
by Shawn Lawlor
Economy
While Japan’s real annualized GDP surged to 5.0% in the first quarter of 2010, the pace of recovery slowed to 1.9% in the April to June quarter. Corporate earnings of Japan’s leading companies demonstrated vast improvements over year prior levels thanks to cost cutting, government stimulus spending and robust exports to China and India. A Nikkei survey of 1,100 non-financial firms reported an average 320% rise of net earnings in the second quarter of 2010 compared to year prior levels. Export growth to emerging markets helped overturn Japan’s trade deficit with China to a surplus of ¥740 billion yen between January to March. At present manufacturers of flat panel TV’s, autos and semi-conductors are running at near capacity.
However, as the yen appreciated from ¥92/USD in January to ¥85 by mid-August, the earnings windfall may prove short lived. With the economic outlook for the U.S. and Europe remaining shaky, investors have flocked to the relative safety of Japanese government bonds, thereby adding upwards pressure on the yen. Japanese lawmakers and the Bank of Japan are now expressing concern that the rapid appreciation of the yen may hamper recovery and lead to increased offshore outsourcing of manufacturing. As a case in point, Nissan recently broke with long term tradition by beginning to import autos from its Thai plant to supply the Japanese market. The rising yen has also taken its toll on equities markets as the Nikkei 225 Index retreated from the 11,000 level in January to under 9,200 by mid-August.
Recovering earnings and GDP have yet to translate into growth in employment or consumer spending. Unemployment rose from 4.9% in January to 5.3% as increased numbers of job seekers sought to re-enter the workforce. Recent trends indicate that Japanese housewives are aiming to enter the job market to make up for falling household income. Consumer spending remains sluggish with June sales at department stores, supermarkets and convenience stores down 6.0%, 1.4% and 1.5% respectively.
Housing Sector Summary and Outlook
Japan’s wood frame housing sector is demonstrating slow but steady signs of recovery in the first half of 2010. Overall housing starts between January and June fell by 3.8% as a result of persistent sluggishness in the non-wood condominium segment – falling land prices and tight credit are proving particular challenges. Conversely, wood frame starts increased 5.0% in the first half of 2010. Platform frame starts totaled 42,575 units over the over the same time frame: a 4.5% increase over 2009. Although rental apartments were flat in June, 2x4 single family custom and speculative housing starts jumped by 10.3% and 29.0% respectively: an encouraging sign that single family 2x4 homes are holding their own against post and beam starts.
Increased affordability in metropolitan regions will also be a trend to watch for in the near to medium term. In June residential land values in central Tokyo fell 11.3% year over year, prompting increased sales activity in Central Tokyo. Prices on Tokyo condominiums have fallen 20 to 30% from their peak in 2007 and budget conscious home buyers have begun to take notice.
Japan SPF Exports
SPF exports to Japan posted their best performance since 2007 in the first five months of 2010; jumping 40.4% over year prior levels. Between January and May a total of 313 million feet was shipped to Japan. Buoyed by a run in North American market, J-Grade prices also recovered steadily in the first half of 2010.
- The University of Tokyo’s IRT Research Initiative has designed a housework and nursing care helper robot, 155 cm in height and 130 kg in weight, can clean floors with a broom, carry dishes on a tray and throw the laundry into a washing machine.
- A phenomenon collectively known as “Mrs. Watanabe” in Japan, has individual investors, mainly women relieved from work and household chores, now making highly leveraged bets on yen/dollar exchange rates.
- For the 2009 calendar year, the volume of SPF dimension lumber exports to Japan from Canada was 647,844 MFBM valued at 327,673 million Canadian dollars. Export volumes for Canadian wood products totalled 919,448 million fbm.
- In 2009, thirty-nine 2x4 technical training seminars (2,018 participants) were conducted across Japan and distribution of COFI SPF technical related literature was 22,266 copies.
A Convenient Truth: New Doors Opening for SPF in Non-Residential Construction
by Shawn Lawlor
Sawami, Sapporo, HokkaidoThe store in Sawami is roughly 200 square metres and features the use of 2x4 wall panels and roof trusses. Mr. Mitani of 7-11 was encouraged by the results of adopting 2x4 wood frame systems and intends to expand wood frame outlets throughout Hokkaido and Northern Japan in the near future.
7-11 Japan builds or re-builds between 900 to 1,000 stores per year. Other large convenience store operators, such as Lawson and Mini Stop, have also launched stores which feature wood frame construction.
Interest in wood frame construction among commercial chain store operators is increasing recently due in part to revisions to MLIT’s Energy Conservation Act, which came into effect in April 2010. In particular these revisions mandate that commercial operators submit to MLIT energy management plans with clear CO2 reduction targets for Category 2 Buildings which have a floor area of 300 to 2,000m². The new regulations are applicable to convenience store operators because floor area calculations are based on the total number of outlets. As a result commercial entities are beginning to introduce a series of new technologies such as energy efficient construction and energy efficient lighting in view of attaining energy savings. Although, details over carbon reduction results of specifying wood products instead of traditional steel frame construction in convenience stores has yet to be officially released, indications are that for an average sized store, approximately 50 tons of CO2 can be reduced at time of construction and a further 10 tons of CO2 on an annual running basis. Material cost savings and shortened construction schedules are also cited as advantages of wood frame convenience stores.
The adoption of truss technology has also facilitated the introduction of platform frame in retail outlets. Until recently, retailers felt wood frame construction was inappropriate in a retail context due to the necessity of using wooden posts which were intrusive to the floor plan, however, with the use of trusses the necessity of posts has been eliminated – underscoring the advantages of platform frame construction. COFI continues to partner with the Japan Wood Truss Council on seminar and advertising initiatives to heighten awareness of the advantages of 2x4 truss technology.
- Central Japan Railway Co. (JR Tokai) has plans for the new linear-motor shinkansen bullet train, which is slated to link Tokyo and Nagoya in 2027. When the maglev train begins operation, passengers will be able to travel between the two cities in about 40 minutes, cutting one hour from the trip on conventional bullet trains.
Canada - Japan Dialogue Bears Fruit as The Japanese Government Enacts “Wood First” Legislation
by Shawn Lawlor
Japan Forestry Agency Director General Shimada with B.C. Minister of Forests & Range, The Honourable Pal Bell
The Forestry Agency’s aim is to generate 100,000 cubic metres of additional annual demand for wood products. While wood will not be required in all public structures, wood will have preferential status and in structures where structural wood use is not practical, finished wood material use will be promoted. Technical details of the Act are now being reviewed. It is expected that the law will come into force by the end of 2010.
In November 2009, COFI Japan and the Canadian Embassy facilitated a meeting between Forestry Agency Director General Shimada and B.C.’s Minister of Forests and Range, the Honourable Pat Bell, to explore areas of mutual interest. Director General Shimada listened with keen interest about BC’s Wood First legislation. The meeting resulted in follow up dialogue wherein COFI Japan provided MLIT and the Forestry Agency additional data on BC’s Wood First Act as reference material for the development of Japan’s Act for the Promotion of Wood Usage in Public Buildings.
While a key objective of this Act is designed to promote the use of domestic wood products, the Forestry Agency worded the law to read “timber that are domestically produced and other timber products”. Although the wording of the law does encourage the use of domestic timber, it does recognize imported wood products as eligible. As part of the public comment review phase, COFI Japan is issuing a statement to the Forestry Agency underlining the concern that imported wood products must be treated fairly within the procurement guidelines of the Act.
Kevin Bews
SPF Manager, Canada Wood Japan
Email: bews@canadawood.jp
Kevin Bews, joined COFI/Canada Wood in 1998. He is a graduate of the University of Guelph, with a Bachelor of Commerce degree. He recently spent time in China attending the Canada Wood Asia staff meeting. He enjoys sports, traveling, and barbequing.
- Major real estate developers' entry into the retirement housing market reflects Japan's rapidly aging population: Households with either one person or a couple 65 or older are expected to increase to nearly 30% of the total in 2030 from the current 20%.
- Three-dimensional, virtual model houses are becoming a major sales promotion tool for housing makers in Japan. Closing real model houses to cut construction and maintenance costs, the housing makers are hoping to strengthen their marketing with less expensive Web-based promotions.
- F-one Ltd., a leading maker of suits made to order in Japan, will soon offer the industry's first suits made from a synthetic rubber fabric that can quickly dry out without loss of shape after washing or after being caught in a downpour.
Wooden Elderly Care Facilities Increasing in Popularity
by Kevin Bews
The Oono-No-Sato project, located in Kashima
city, Ibaraki prefecture, officially opened its doors
July 1st.
The 2-storey fireproof building is currently the largest
2x4 structure in the region, which boasts a total floor
area of 3,507 m² and consumed approximately 680 m³
of SPF dimension lumber in its construction.
The Oono-No-Sato facility will house 50 permanent
senior residents, 10 units have been designated for
short term occupants and also offers a day care service
for another 30 elderly persons in the community.
The Oono-No-Sato project, located in Kashima city, Ibaraki prefecture, officially opened its doors July 1st. The 2-storey fireproof building is currently the largest 2x4 structure in the region, which boasts a total floor area of 3,507 m² and consumed approximately 680 m³ of SPF dimension lumber in its construction.
On Sunday, June 27th, Mr. Robert Derouin, Minister, Embassy of Canada, Paul Newman, Shawn Lawlor and Kevin Bews from COFI, represented Canada’s interests, participating in the opening ceremony and toured the new elderly facility.
The Oono-No-Sato facility will house 50 permanent senior residents, 10 units have been designated for short term occupants and also offers a day care service for another 30 elderly persons in the community.
Opening remarks made at the ceremony by Ms. Hisayo Ishizu, Chairman Welfare Shinwakai, the owner of the new facility, revealed the main advantages of building this facility with wood were:
| • | Wood was deemed to be a more economical and environmentally friendly option when compared to other construction methods. |
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| • | Wood allowed for an attractive building design, which fits in nicely with the surroundings of the local community. | |
| • | Wood provided a comfortable natural dwelling for staff to provide quality care for its elderly occupants. |
This facility not only showcases how Canadian building technology is being adopted in Japan, but provides COFI with another excellent working example of how to build large wooden structures in Japan.
Tai Jeong
Technical Director,
Canada Wood Korea
Email: jeong@canadawood.or.kr
Tai Jeong joined Canada Wood in 2006. Tai brings over 20 years of technical expertise in wood design and construction to the Canada Wood team. Tai is an accomplished building professional, having worked as an architect for 15 years, and is a registered contractor. In his time away from the office, he enjoys singing and sports.
In 2009, improving domestic demands resulted in a 50.9% increase in Canadian SPF shipments to Korea to 89,948 MFBM. The 2009 volume of Canadian SPF was the highest ever!
Korea Calendar
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WFC Seminars & Events
- Aug. 21
Daejeon MBC Architecture Exhibition Seminar: Daejeon Convention Center, Daejeon - Sept. 13
CWK-KHA Green Building Seminar: COEX, Seoul - Sept. 13-15
Canada-Korea Housing Committee Meeting: Seoul - Sept. 30-Oct.3
5th Dong-ah Remodelling & Country Home Expo: SETEC, Seoul - Oct.1
Busan Housing Fair Seminar and RTD: BEXCO and Westin Chosun, Busan - Oct.21
Korea Architecture Fair & Festival Seminar: KINTEX, Ilsan
Did You Know
- In April 2010, the Presidential Decree on “Low Carbon, Green Growth” was promulgated and the “Framework Act on Low Carbon, Green Growth” came into force. In the Act, “Green Products” are defined as those which minimize consumption of energy and resources and reduce emission of greenhouse gases and pollutants; thus benefiting wood and wood based products.
- The percentage of building permits issued for detached and low-rise multi-family housing to May 2010 YTD is 48.6% of the total, the highest since 1984, explaining why the wood construction market is expanding in the midst of recession.
- 20.5 years is the average life span for multi-family housing in Korea according to a Seoul city report. Efforts to develop policies to extend operational life, similar to the Long Life Housing initiative in Japan, are gaining momentum in Korea.
- It is estimated that Korean forests absorb 46 million tons of CO2 per year, equivalent to 7.5% of total greenhouse gas emissions.
- According to Korea Forest Service data, one family car in Korea produces 8.1 tons of CO2 per year on average, which is equivalent to the amount of CO2 that 1 ha of pine forest absorbs in a year.
- In 2009, wood construction has expanded its market size and share despite the worldwide economic downturn making it the only construction sector with positive growth compared to the year 2008.
- South Korea has the world's highest estimated national IQ, with leading rankings in mathematics, science, problem solving and reading, as declared by the OECD (Organization for Economic Co-operation and Development).
- South Korea is a country in the center of East Asia that stands below the 38th parallel on the Korean peninsula.
- A recent research conducted by Seoul City revealed that 9 out of 10 commercial and residential buildings in Seoul were built without any consideration for earthquakes. A 3.0 magnitude earthquake occurred on the outskirt of Seoul on Feb. 9, 2010, reminding Korea that it is not entirely safe from this risk.
Korea Market Update
by Tai Jeong
Economy
GDP Growth:
The South Korean economy has been on a recovery path, showing a 7.2% increase in real GDP for the second quarter and 7.6% increase for the first half of this year on the back of robust exports and improving domestic demand when compared with a year earlier. The growth rate has been steadily beating forecasts. The IMF recently raised its growth outlook for Korea from 4.5% to 5.75%, in line with the Korean government’s projection of 5.7% GDP gain in 2010.
Trade Surplus:
Based on the $18.94 billion surplus tallied for the first six months of this year and a favourable trade balance that could exceed $4 billion in July, Korea’s annual trade surplus is expected to reach USD $30 billion this year . Korea’s imports and exports are expected to reach a record high of $869.7 billion in 2010, up 26.6% from $686.6 billion last year.
Interest Rate:
In a bid to curb mounting inflationary pressure, the Bank of Korea hiked the key interest rate to 2.25% from a record low 2% in July, ending 16 straight months of stand-still. The bank left the rate unchanged in August on concerns about the slowing recovery of global economy.
Unemployment Rate:
Despite the rebounding economy, the nation’s unemployment rate climbed to 3.5% in June from May’s 3.2%. Unemployment was especially high amongst youth.
Nevertheless, the Finance Ministry was optimistic about the job growth for the second half, saying that job creation will be driven by the private sector on the back of improving domestic demand.
Won-Dollar Exchange Rate:
In a recent report, the won is forecast to strengthen to 908 won per US dollar in 2011 and 977 won in 2012 – due to of Korea’s rapid economy recovery. This would represent a more than 18% gain for the won, which was quoted at 1,194 won as of August 19th.
Housing
Korean Housing Starts Summary:
Korean housing starts in 2009 declined 1.2% to 63,190 buildings from a year earlier (63,943) reflecting the depressed property market. Though January-June 2010 YTD housing starts rebounded 33.4% to 37,768 buildings compared with 2009, fears persist that property markets may be heading for a serious slump. Recent indicators show both land and apartment prices falling, despite the economic recovery. Moreover, Korea’s construction and property sectors face major uncertainty as the largest-ever urban development policy is in disarray under the current administration.
Government is soon to announce a real estate stimulus package and it is anticipated that revitalization of the property market will occur.
Korean Wood Building Starts Summary:
The number of wood building permits and starts in 2009 maintained its growth trend up 8.2% and 16%, respectively, compared with the year earlier, representing 11,022 permits and 9,503 starts.
2009 was the second consecutive year where starts exceeded 10,000. The Korean wood industry believes greater than 10,000 starts represents a tipping point beyond which larger scale developments and apartments are more likely.
This positive trend continues for the first six months in 2010 recording 4.9% and 6.6% increases in permits and starts compared to 2009.
Wood Market Update
Korean Log Imports:
Log imports in 2009 vs. 2008 decreased 4.8% to 5,013,760m³. Canadian log imports likewise decreased 4.5% to 264,080m³ accounting for a 5.27% share in the total Korean log import market.
For the first half of 2010 compared with 2009, log imports decreased 4.7% to 2,262,160 m³: however, Canadian log imports increased 18% to 136,690m³ accounting for a 6.04% share. New Zealand remains the number one log exporter with a 56% share followed by the United States Australia and Russia. Russian imports continue to decrease significantly due to the Russian log export tax.
Korean Softwood Lumber Imports:
Total softwood lumber imports in 2009 increased 2.4% from a year earlier to 718,420 m³. Canadian imports grew by 19.9% to 172,480m³ accounting for a 24% share followed by Chile (a 22.5% share), Russia (a 20% share) and New Zealand (a 15.2 % share).
Softwood lumber imports for January-June 2010, skyrocketed 73.5% to 492,950 m³ compared with 2009, with Canadian softwood rising 48% in volume and 94.2% in dollar value, respectively to 104,300 m³ and USD $29,529,000.
SPF Shipments to Korea (MFBM)
In 2009, improving domestic demands resulted in a 50.9% increase in Canadian SPF shipments to Korea to 89,948 MFBM. The 2009 volume of Canadian SPF was the highest ever!
January-May 2010 Canadian SPF maintained the trend increasing 64.6% to 45,063 relative to 2009.
SPF dimensional is the main lumber product imported from Canada followed by Hemlock and Western Red Cedar. SPF is primarily destined for the wood frame construction sector and feedstock for the treated wood industry.
Sunny Kim
Program Manager, Canada Wood Korea
Email:kim@canadawood.or.kr Sunny has over 15 years industry experience having designed numerous 2x4 wood framed homes and structures. She also worked to design high-end luxury Marvin Window and Doors for elite projects in Korea. In addition to publishing the CW Korean newsletter, Sunny organizes activities such as seminars, trade fairs and training programs.
We were so impressed with Canada’s forest management system, which is being practiced in a country 98 times bigger than Korea. The more we use Canadian lumber, the better we can keep our environment healthy.
2010 Developer/ Media Mission
by Sunny Kim
Group Photo at Viceroy.
Korean delegation shows keen interest in new technology.
International Forest Products Ltd.’s Acorn Division
sawmill visit.
The joint Canada Wood- KHA Developer & Media Mission to Canada ran from July 4 to 11 with a total of 17 delegates including architects, developers, government officials and media.
“After this mission, I realized that people learn from seeing innovation firsthand. To me, it was an excellent opportunity to learn about wood, forestry and wood frame construction as a green technology” said C.S. Yoon, former chair of KHA (Korean Housing Association) and professor of Yonsei University with admiration.
The group toured wood frame development sites in Vancouver, Victoria and Whistler and met Canadian builders and developers. The group was also exposed to saw mill and research operations and learned about sustainable forest management practices and construction technology.
Mission leader, Sun-Hee Park, chair of KHA said, “We were so impressed with Canada’s forest management system, which is being practiced in a country 98 times bigger than Korea. The more we use Canadian lumber, the better we can keep our environment healthy.” Chairman Park added “we plan to organize a joint technical seminar with Canada Wood to promote green building concepts to Korean architects and KHA members”.
D.H. Choi, CEO of Tomoon Architects & Engineers, with 450 designers in the firm, decided to switch a major housing project from concrete to wood. He said “By doing so, we want to demonstrate that Tomoon is a company which considers the environment as a top priority”.
The media aspect of the mission was very fruitful with Canadian industry garnering over CAD $800,000 in earned media coverage representing more than 900,000 media impacts
Tae Ik Hwang
Program Director, Canada Wood Korea
Email: hwang@canadawood.or.kr
Tae Ik Hwang began to work as the Technical Consultant for Canada Wood Korea from March this year. Before joining Canada Wood Korea, he used to work for Korea Wood Construction Association (KWCA) as a technical director. Lately, he has been assisting Tai Jeong for the fire resistance tests of wood wall assemblies with Korea Technical Group.
5 Star certification is a mile stone in the history of Korean wood frame construction.
CWK-KWCA 5-Star Housing Quality Assurance program
by Tae Ik Hwang
Plaque hanging cerermony (from right, CWK
country director, KWCA chair, Prof. Seoul
National University, KFRI director).
Exterior facade of the completed house that received
the very first 5-Star Certificate..
The 5 Star Quality Assurance Certification Program was conceived by Canada Wood and the KWCA in May 2009 and the partners set to develop an inspection check list and procedures for certification. Program rollout occurred in December 2009. Canada Wood QA staff provided joint inspections with KWCA personnel to ensure its credibility and impartiality.
5 Star certification is a mile stone in the history of Korean wood frame construction. For the first time a progressive inspection system has been introduced similar to that used in North America. Previously in Korea, the only inspection occurred at the time of completion and was too late to influence construction quality.
Mr. Kim of Stuga said in a press interview “we had been doing our best to improve construction quality but we were not sure whether we were doing the right things. So we welcomed these third-party inspections by Canada Wood. Our job site managers are now paying a lot more attention to details.”
Since inception, 9 buildings have been certified with an additional 4 underway and 12 applications being processed. Canada Wood Korea provides plan review and structural engineering support.
Jae Chol Choi
QA Consultant, Canada Wood Korea
Email: choi@canadawood.or.kr
Jae has extensive wood frame construction experience as a Wood Building Designer, having worked on a wide range of projects such as hotels, schools and multi-storey buildings in the UK. Jae is now able to share his wood knowledge with fellow Koreans by recently joining the Canada Wood Korea team in April 2009.
It only took us a couple of days to build a 60m² pavilion with Canadian SPF dimension lumber. Wood
is one of the best construction material in terms of workability, speed and ease of handling. During the last 5 days we all recognized this.
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University-based training at Kyung Hee University, AnYang City
by Jae Choi
On August 13th a ceremony was held in Anyang City for graduates of “2010 Wood Frame Construction Program” co-hosted with the Department of Architecture, Kyung Hee University (KHU). This program provides fundamental knowledge on WFC to the university students majoring in architecture through 5 days of theory and practical training.
 Before: existing shelter at Hakun Public Park. |
 After:Shelter transformed into a new pavillion. |
“It only took us a couple of days to build a 60m² pavilion with Canadian SPF dimension lumber,” Prof. Kwan Soo Kim of KHU said at the graduation ceremony. “Wood is one of the best construction material in terms of workability, speed and ease of handling. During the last 5 days we all recognized this.”
 Students making 2nd & 3rd decks. |
 Students designing book shelves. |
16 students and 8 instructors participated in this practical ‘learn by doing’ course by building a wood pavilion at Hakun Public Park, Anyang City. The City graciously provided space for the course and, in return, the completed pavilion was donated by the students.
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Graduates will eventually be employed as architects or designers. “With the knowledge gained, I believe they will play an important role in promoting the use of WFC to protect the environment and achieve government’s Low carbon, Green growth policy” said Prof. Il Hyun Kim.
Currently, about 200 university students from 8 universities nationwide are participating in Canada Wood’s University-based training programs.
Tae Ik Hwang
Program Director, Canada Wood Korea
Email: hwang@canadawood.or.kr
Tae Ik Hwang began to work as the Technical Consultant for Canada Wood Korea from March this year. Before joining Canada Wood Korea, he used to work for Korea Wood Construction Association (KWCA) as a technical director. Lately, he has been assisting Tai Jeong for the fire resistance tests of wood wall assemblies with Korea Technical Group.
This year’s workshop was organized and delivered by Canada Wood’s Construction Specialist Won Hwa Choi, himself one of the graduates of the very first workshop held in 1996. Choi has subsequently trained more than 4,000 hobbyists and tradesmen in wood frame construction techniques.
Train the Trainers Workshop
by Tae Ik Hwang
The 14th Practical WFC Training Workshop was conducted in conjunction with the Korea Wood Construction Association (KWCA), Research Institute Culture City (RICC) and Canada Wood Korea from July 5 to 24 in Gangwon Province to train the future trainers of wood frame construction.
 Students at work. |
 Students are erecting a wall portion. |
Participants included 33 architecture students from 8 universities, 5 civil engineering students with a total of 60 completing the three week course.
This year’s workshop was organized and delivered by Canada Wood’s Construction Specialist Won Hwa Choi, himself one of the graduates of the very first workshop held in 1996. Choi has subsequently trained more than 4,000 hobbyists and tradesmen in wood frame construction techniques. With luck this program will produce another exceptional trainer to carry wood construction through to the next generation.
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During the course duration students contributed more than 2,000 man-days to build a pair of single storey triplex houses, which will be donated to Inje County and used to house local seniors.
Jae Chol Choi
QA Consultant, Canada Wood Korea
Email: choi@canadawood.or.kr
Jae has extensive wood frame construction experience as a Wood Building Designer, having worked on a wide range of projects such as hotels, schools and multi-storey buildings in the UK. Jae is now able to share his wood knowledge with fellow Koreans by recently joining the Canada Wood Korea team in April 2009.
Structural wood products used in this 300m² building approximated 12% of the total cost. Over 20,000 board feet of Canadian SPF lumber and 350 sheets of plywood were used to frame the structure.
Hybrid Multi-use Structure Built in Pangyo
Hybrid with wood and concrete structures
Neighbours surprised with the fast speed of wfc
Exterior finishes completed
A mixed use three storey building in Pangyo new town development site was recently completed. The hybrid building comprises two storeys of light wood frame construction above a one storey concrete ground floor. Ground floor is to be used as commercial space along with three residential units on the second level and one residential unit on the third floor.
“The owner recently concluded lease agreements with tenants. He was able to charge 30% more for these wood framed residential units compared with similar sized concrete units,” said Ms. Yoon, site manager for Hams Design LTD. “Many people toured the project and they are unanimous that it is more spacious and the interior walls are more precise and smoother than concrete buildings.”
Originally the building was to be built in concrete. “When we reviewed the concept and architectural form of the building, considered utilization of the attic space, energy conservation, building cost, etc. with the owner, wood frame construction seemed to be best way to meet his requirements,” Ms. Yoon added. “He finally agreed with our proposal.”
This was Hams Design’s first mixed-use project, so they lacked knowledge in fire and sound design and code compliance. “In particular, Korean people are extremely sensitive to noise between units.
We had to find the right solution to limit sound transference between separating walls and floors. Without the fire and sound approvals secured by Canada Wood via testing, we would not have been able to make this project happen. Canada Wood’s breakthroughs in fire and sound design were” said Ms. Yoon.
Structural wood products used in this 300m² building approximated 12% of the total cost. Over 20,000 board feet of Canadian SPF lumber and 350 sheets of plywood were used to frame the structure.
Pangyo new town is sited in metropolitan Seoul and is popular with commuters being only 15km away from downtown Seoul. A total of 30,000 households will be accommodated within two years.
Canada Wood intends to publish a case-study of this project. Interestingly, this building form has great appeal as well for rural China.
