Jack DiMaggio - Innovations in Gum Rosin - Fiji

Transcription

Jack DiMaggio - Innovations in Gum Rosin - Fiji
PCA INTERNATIONAL MEETING
SEPTEMBER 21-23, 2014
Callison Pacific Pine Chemicals , LLC
Jack A DiMaggio
FIJI
 South Pacific, 1,300 miles
Northeast of New Zealand
 Formed over 150 million years
ago
 332 islands of towering
mountains, coral seas and white
sand beaches
 Settled 5000 years ago by
voyagers
 Island trade established long
before European contact
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
MODERN FIJI
 Mosaic of indigenous Fijian, Indian and European traditions
 Value family, respect for others, music & faith
 Idyllic setting masked the challenges
 Geography, culture, geopolitics and finance access to opportunity
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
THE FUTURE
Today in the hills of Fiji, close to its indigenous people, lies an
opportunity as clear and as good as the nature of its islands
PINE FORESTS
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
PINE FOREST
RESERVES
 Over 800 square kilometers of pine forest
– Fijian Pinus Caribaea variety
Hondurensis
 Suitable for wide variety of wood product
applications
 Advantaged as a source of pine resin, the
feedstock for gum rosin and gum
turpentine.
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
ACCESS & INFRASTRUCTURE
 Central Pacific temperate climate
 Developed industrial infrastructure
 Maintained roads
 Reliable trucking and logistics support
 Modern ports
A consistent, efficient supply of forest products to the world’s industrial
markets
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
FOREST ECONOMY
 Stable and growing forest economy
 Large-scale pine chip production to Asia
 Saw log production for the domestic
market
 Government initiative to pursue highervalued forest products
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
FORESTRY MANAGEMENT EXPERTISE
 Mature and experienced forestry workforce
 Limited land: Damaging ecosystem has direct, lasting
consequences
 Sustainable forest management practices
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
WORKFORCE READINESS
 Skilled, accessible and bi-lingual
 English is compulsory in the schools
 Close proximity to harvest areas of the pine
forests
 Workforce integrity with safety, wage & labor
laws
 Productive services economy
 A stable, invested population
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
OPPORTUNITY FIT
 Government established long-term strategic objectives
 All forest sector development is facilitated by Fiji Pine Limited
 Commercial applications from pine forests fits strategy for Social,
Economic and Environmental health.
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
STRATEGIC ALIGNMENT
RENEWABLES
 Develop a sustainable environment and economy for Fiji
REVENUE
 Realize the vast reserve of commercial value from domestic resources
 Leverage existing forestry infrastructure
RESPONSIBLE
 Develop complementary, non-competing use for wood products
 Create clean, high-yield manufacturing processes
 Further the stewardship of resources for indigenous landowners &
stakeholders
 Pursue proven, reliable markets
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
OUR PARENT COMPANY:
IP CALLISON & SONS
 Founded 1903
 Seattle based –agricultural global leader in premium mint oils, flavors
and ingredients
 Supplying chewing gum, oral care, confectionary and personal care
industries
 Superior products, technical knowledge and innovative flavor solutions
 Global distribution capabilities, and unsurpassed service
Seeks to enhance the competitiveness of its clients in the global
market
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
OUR NEW DIVISION:
CALLISON PACIFIC PINE CHEMICALS,LLC
 Early 2012 -began to assess potential for large-scale production of
gum rosin and gum turpentine
 Vertically-integrated supplier of gum rosin and gum turpentine:
-Tree & forest management
-Harvest workforce logistics
-Quality control : Labs/testing
-Manufacturing/operations
-Marketing
-Service & support
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
OUR PRODUCTS
The Market opportunity is clear and established
 Crude Gum (pine oleoresin) - Main product further distilled to:
- Gum Rosin: Building blocks of the poly terpenic resins industry, rosin
resins (pharma, packaging adhesives, printing inks)
- Gum Turpentine: Building blocks of the fragrance industry:
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
THE OPPORTUNITY DEFINED
MEETING CUSTOMER NEEDS:
 Traditional supply sources declining-Speculative suppliers create price
swings and supply disruptions
 Significant disruption to customer budgets and supply chains
 Double-digit increases for feedstock, 30% of total raw material costs to
fragrance industry
 Bring long-term stability in pricing and supply of sustainable
high-quality products
 Allow customer to budget / plan with downstream customers
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
RESOURCE AGREEMENT
 Agreement with Fiji Pine Limited (FPL) to harvest forests for pine resin
 October 2012 complete a full yield analysis: Six separate forests on two
main (Large) islands of Fiji (Vanua Levu and Viti Levu)
 Today fully operational in all six forests.
-Ra
-Bua
-Lololo
-Macuata
-Nadi
-Nabou
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
PARTNERSHIP
PARTNERS IN AGREEMENT:
 FPL (Fiji Pine Limited) holds a long-term licensing agreement with Fiji Pine
Trust (FPT) to harvest & renew the forest resources
 FPT (Fiji Pine Trust -the overseer of the land) represents indigenous
landholders, entrusted with sustaining natural resources
 Under Royalty Agreement with FPL, Callison Pacific Pine Chemicals,LLC
works with forest-based service companies to maintain, harvest and grow the
resource
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
OPPORTUNITY
INFRASTRUCTURE INVESTMENT:
 Plans to invest in commercial plant by end 2014
 Phase one (now) - 30,000 mt / yr of crude resin through 2016
 Further processed to 24,000 mt / yr of gum rosin and 4,000 mt / yr of gum
turpentine
 Anticipate having commercial operations fully engaged with a GR Facility
processing products delivered to the market by 4th qtr 2015
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
OPPORTUNITY
OUR MARKET STRATEGY: Delivers on client mandates for:
Callison Pacific Pine Chemicals, LLC
Sustainable Forest Management
OPPORTUNITY
OUR MARKET STRATEGY: Delivers on client mandates for:
AVAILABILITY : Provide a steady supply of product
 Vertically integrated supply chain
 Strategic alignment with government
 Geography and resource management
QUALITY : Customer & consumer trust
 Forest typology
 Business structure
 Investments in modern infrastructure
 Sustainable development
 Accountability of material throughout the supply chain
PRICE
 Significant operational and material cost advantage in Fiji
 Sell Pine Oleo-Resin and derivative products at a fair re-investment level price
 Isolate from fluctuation due to speculation.
NETEnvironmental sustainability & equity in global economic development
Callison Pacific Pine Chemicals, LLC
Sustainable Forest Management
THANK YOU!
Callison Pacific Pine Chemicals, LLC
Sustainable Forest Management
Our Market Strategy : Delivers on client mandates for:
AVAILABILITY : Providing a steady supply of product
 Vertically integrated supply chain
 Strategic alignment with government
 Geography and resource management
QUALITY : Customer & consumer trust
 Forest typology
 Business structure
 Investments in modern infrastructure
 Sustainable development practices
 Accountability of material throughout the supply chain
PRICING:
 Operational and material cost advantages in Fiji
 Sell Pine Oleo-Resin and future derivative products at a fair re-investment level price
 Insulate clients from fluctuation due to speculation.
Creating Environmental Sustainability and Equity
in Global Economic Development
Callison Pacific Pine Chemicals, LLC
Sustainable Pine Tapping Management
THANK YOU!
Callison Pacific Pine Chemicals, LLC
Sustainable Forest Management