“Future Proofing our Industry”
……………
Ron Eddy
Managing Director
TimTech Chemicals Limited
The Value of Strong Competition
over the
Last 20 Years
But, before we carry
on…………………
……………………...
.............
© R C Eddy 2005
© R C Eddy 2005
“Tell them what you are going to tell them,
Tell them, Tell them what you’ve told them”
•
History over last 20 years
–
–
–
–
–
–
•
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?
–
–
–
© R C Eddy 2005
Hickson & Rentokil
Chemicca
La Porte
Quantum
Protim
TimTech Chemicals
Learn from history
TimTech & CRC Wood Innovations
New products, processes &
technology
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%
© 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
© 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……………………………………………….
–
–
–
–
–
–
© R C Eddy 2005
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
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…..
© R C Eddy 2005
TimTech’s Rachel
© 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
© 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
© R C Eddy 2005
Industry Benefits from Strong
Competition
• New Technology e.g.
–
–
–
–
–
–
–
© R C Eddy 2005
Spray Borons
Oil based carriers
New solvents
CuN formulations
Azole LOSP’s
Advanced automation
State-of-the Art Plants
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
© 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
•
–
•
•
–
•
No need for offline handling
–
•
Very rapid CCA Fixation
Significant environmental benefits
Sludge free
Elimination of dripping
Very rapid treatment turnaround ~ 2 min
High speed treatment plant
–
–
Long term outdoor decay trials with
environmentally benign preservatives
Incorporated into dry mill, straight after
planer
Delivers uniform treatment with defined
amount preservative online
New Treatment Schedules
–
–
–
–
–
Patented single board treatment plant
–
© R C Eddy 2005
Douglas Fir treats very well
•
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
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
© R C Eddy 2005
• 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
Strong Competition
is
Good for the Industry
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.
© R C Eddy 2005
“Competition brings
out the best
in products &
services
&
the worst in
people”
David Sarnoff
© R C Eddy 2005
That’s All Folks.
Thank you!
© R C Eddy 2005