Doug Ducker – an industry icon retires

Doug Ducker has seen more than two consecutive forestry plantations grow to full harvest, having worked for Pan Pac for nearly 46 years. Doug started as a process engineer and in 2004 became the businesses Managing Director.

Pan Pac began as a Joint Venture involving Carter Holt (60%) and two Japanese companies, Oji Paper and Sanyo Kokusaku Pulp in 1973 and under Doug’s leadership it operates one of New Zealand’s largest sawmills with lumber output around 500,000 m3/a, a pulpmill producing 270,00adt/a, retains tree ownership for around 35,000Ha and supports harvest and util- isation of over 1.5 million tonnes of logs. In 2016 it established a second sawmill, currently producing 100,000m3/a in Milton, Otago.

Total assets involved are close to S1Billion NZ with annual sales around $400Million/a. The business which is now owned by Oji Paper employs around 420 staff and has over 450 people involved as full time contractors through our forestry planting, harvesting and cartage programs.

Doug has been a significant contributor to the Hawke’s Bay Business community serving on the board of the Chamber of Commerce and Business Hawke’s Bay. Pan Pac is also the lead sponsor of the Chamber’s business awards.

Tell us about your career?

I joined Pan Pac in December 1974 and, save a brief period working in Sydney, Australia in 1984, have been with the company since then.

I was initially employed as a process engineer to support the expanding pulp mill operation and over the next 30 years assumed roles covering technical services, environmental management, project development and production management. In October 2004 I became Managing Director (CEO) of the company taking responsibility for our Forestry, Sawmilling and Pulping operations.

Pan Pac is Japanese owned – what were some of the challenges in bedding down the relationship in the early days?
The relationship with Japan has always relied strongly on TRUST eg original contracts for the formation of the company were very simply written.

Over the first 20 years as a JV company executive direction came via Auckland, in the latter years and particularly since 2007 the management relationships are direct between Whirinaki and Tokyo. On occasions the processes of Japan, particularly the need for detail, are frustrating for the New Zealanders however the outcomes are generally stronger for it.

Pan Pac has maintained a program of continuous growth over the decades with annual capex spend exceeding $30 million a year over recent years.

What have you learned in a business sense from the Japanese partnership?
A strong characteristic of the Japanese has been the long- term commitment to their investment. While there is the deep monthly analysis of company performance, it is underpinned by the understanding that our products are subject to commodity pricing rules. These can see cycles that on occasion may cause one to question viability to continue; however, a capacity to ride through the low is usually applied. Having said this, the drive to improve efficiency and reduce unnecessary cost is always there.

Pan Pac has always retained some secondees from Japan to support liaison and technical/administrative understanding – results of which being some lifelong associations between New Zealand and Japanese people have developed and cultural understanding enhanced.

Pan Pac has been a keen supporter of the community – both in general and business – why has it been important to contribute?

Most of Pan Pac’s markets are conducted on a Business to Business level with over 85% to export customers. As such we do not maintain a strong market presence in either Hawke’s Bay or New Zealand. We are however very dependent upon the support of locals for log supply, engineering services, transport capacity along with a trained and capable workforce. As a result support of local activity has been exercised as appropriate – this includes over 15 years sponsorship of the Rescue Helicopter, sponsorship of the HB Business Awards, participation on the HB Chamber of Commerce and Business HB along with community support over the greater Hawkes Bay region.

What have been some of the toughest challenges you’ve faced?
Responding to the need to ensure from the managing director’s desk that our employees and contractors are secure both in terms of their financial position as well as their family needs. Stable employment conditions are key to this objective, with many staff working with the company for more than 20 years.

In 2013 the company posted an operating loss, which resulted in a need to review some conditions. This was a difficult time but the outcome has seen ongoing security for all.

Health and safety performance remains an ongoing challenge and is a continuous process as the risks, while minimised, remain high in various parts of the business.

What are the things you’re personally proud of in your involvement with Pan Pac?
Participating in and then providing for sustained growth of a greenfield development in my home region with the securing of shareholder support not only for the region but also for the country.

The respect for our company amongst the local community, suppliers, customers and local and national government has had to be earned and feedback indicates that it is there.

What’s the future look like for Pan Pac?

Pan Pac has a bright future with substantial regional log resources available with staff and plant capability strengthening across the board.

Adaptability of products for markets will always be needed; however, the use of a sustainably managed resource will assist in expansion of the existing base.

Are there any transformations on the horizon?

It’s always a difficult call; for example, the advent of the smartphone has decimated demand in Japan for newsprint (the end use of Pan Pac pulp) and saw a significant $70 million development to make a higher-quality pulp for markets in China and India. The transition was successful yet demand patterns are still volatile.

On another front, a recent visit to China saw the use of 3D printed veneers being applied to doors, which could enable substitution of the frame to our lumber.

The management of carbon issues both for forestry and energy has new focus.

What does retirement look like for you?

The freedom to make the call on how my time is spent. As I approach my 70th birthday, it feels right to pass on my corporate responsibilities and to explore (and in some cases complete) new projects involving family and friends.

Hawke’s Bay Airport achieves first step towards carbon neutral status

Hawke’s Bay Airport has succeeded in its first step towards carbon neutrality, gaining Level 1 of the internationally recognised Airport Carbon Accreditation programme.

Hawke’s Bay Airport chief executive Stuart Ainslie said the airport has completed the mapping stage of the Airports Council International (ACI) Airport Carbon Accreditation programme and is well underway to becoming New Zealand’s first carbon neutral airport.

“We are very pleased to gain Level 1 as we work towards realising our aspiration to be New Zealand’s most sustainable and innovative airport,” Mr Ainslie said.

The programme independently assesses and recognises the efforts of airports to manage and reduce carbon emissions through 4 levels of certification – Mapping, Reduction, Optimisation and Neutrality. Two other New Zealand airports – Palmerston North and Christchurch have also joined the programme along with around 300 others from around the world

With the mapping stage now complete, the focus moves to reduction and optimisation. Since it began tracking its emissions the airport has already seen a noticeable improvement due largely to design improvements delivered by the redeveloped terminal.

“Although it’s early days, the new building is already delivering some impressive results in terms of energy efficiency. In January our electricity usage was down significantly on the year prior, due largely to LED lighting and efficient cooling systems being operational in the new arrivals and departures halls. We expect this trend to continue beyond completion of the project at the end of the year,” Mr Ainslie said.

The airport will be moving to a carbon neutral certified energy supplier and is currently undertaking due diligence on a large scale renewable energy solar farm onsite, which Mr Ainslie said will greatly contribute towards carbon neutral status. There are also plans to incorporate carparks for EV’s and charging provision and parking for E bikes.

The Airport Board has committed to an ambitious Sustainability Framework which is underpinned by the four key pillars of financial return, environmental excellence, social responsibility and operation efficiency, he adds.

“Our aim is to be New Zealand’s most sustainable airport and our framework is at the forefront of us achieving this. It anchors our medium and long term strategic imperatives and provides the foundations to our updated masterplan that will be released for public comment over the coming months. Sustainability will be at the heart of everything we do.

ABOUT Airport Carbon Accreditation

ACI launched the Airport Carbon Accreditation in 2009 after member airports adopted a landmark resolution on Climate Change to reduce carbon emissions from their operations with the ultimate goal of becoming carbon neutral.

Airport Carbon Accreditation is an independent, voluntary programme administered by WSP, an international consultancy appointed by ACI EUROPE to enforce the accreditation criteria for airports on an annual basis.

Airports applying to become accredited must have their carbon footprints independently verified in accordance with ISO14064 (Greenhouse Gas Accounting). Evidence of this must be provided to the programme administrator (WSP) together with all claims regarding carbon management processes which must also be independently verified.

The definitions of emissions footprints used by Airport Carbon Accreditation follow the principles of the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI) “Greenhouse Gas Protocol” Corporate Accounting and Reporting Standard. When considering the emissions from aircraft within the airport perimeter and on final approach and initial departure, Airport Carbon Accreditation uses the International Civil Aviation Organisation’s (ICAO) definition of the Landing-Take Off cycle and requires airports to comply with these definitions.

Municipal Building – what will it become?

The redevelopment of the Municipal Building got underway in January 2019 and is expected to be completed in early 2022.

At this stage the final make-up of what will operate in the building hasn’t been finalised, but it is certain that the Assembly Dining Hall and the Shakespeare Room will remain and it will be promoted as a commercial, community and education facility.

Architects Matthews & Matthews Architects collaborated with Dena Aroha Bach to develop concepts for the Hastings Municipal Building.

The concept is based on a Story of Light: to allow a reopening of the place; to bring back into the Hastings Municipal Building the light and energy of the community as a place of creativity and innovation that serves the community.

The aim is to re-engage the collective memories that already exist through this place, and for these memories and knowledge to be handed down to the youth and coming generations.

The building will resemble some of its original form when it was first built in 1916, such as opening up the central foyer area that will be entered from a laneway between the building and the Opera House, as well as from Hastings Street and Heretaunga Street. Retail and commercial spaces will be part of the new look.

Gemco is expected to finish all the structural strengthening by the end of April 2021, followed by a fit-out for the confirmed use.

Eddie says the strengthening is a huge undertaking due to how the building was originally built. “It was entirely made from bricks and mortar with no lateral seismic stability, and it was of a lower quality than the Opera House. We’ve virtually removed all the brick columns and replaced them with concrete.”

Engineering feats steal the show

Such a crucial role was taken up by two engineering consulting firms Holmes Consulting and local experts Strata Group with Red Steel providing 163 tonne of structural steel across the Opera House, Functions on Hastings and the Municipal Building.

Holmes Consulting completed the structural designs for the Opera House and the Municipal Building, while Strata Group was the on-the-ground consulting firm that has regularly checked off that what was designed has been implemented by the Gemco construction team.

Strata Group then stepped up and carried out the structural design for the new Functions on Hastings building (the former Plaza) as well as being the lead firm in reviewing the construction process for the redevelopment undertaken by Gemco.

Structural engineer David Plowman has made the 200-metre walk from Strata Group’s office in Queen Street to Hastings Street many times over the past couple of years.

“Being local and so close to the project has really helped. We would get a call from Eddie at least once a week, but sometimes up to four times a week, and we could walk across and check things quickly.”

The role comes with significant responsibility as the buildings are of national heritage status, together with the fact that Hastings ratepayers are footing much of the bill to reopen the Opera House.

“It’s really exciting to see the Opera House come back to life. A lot of what has been done is behind the walls to ensure it is standing strong well into the future. In part, most of what has been done people won’t even notice; however, we’ve kept some of the structural steel exposed in one of the bathrooms so that people can get an idea of the complexity of the work.”

Bob Hawley, managing director of Red Steel, says 95 tonnes of steel was used, a key element to the project.

Structural steel bracing was integral to the project, with bracing diaphragms installed at various levels – both internally and externally – to provide the lateral support necessary to meet design parameters.

Bob says the challenge was in the execution – installing the bracing without removing the roof.

The solution required precision planning and careful execution as the steelwork had to be craned through holes cut in the roof and the walls of the building, then manually lifted into place with custom- made rollers, gantries and chain blocks.

“We had to devise innovative temporary lifting systems to manipulate the large steel components into these tight spaces.”

Red Steel was a finalist in the 2019 Steel Construction NZ Steel Awards $1.5 million to $3 million category for the work they did on the Opera House.

The judges’ comments were: “This redevelopment showcases a stunning use of steel, creating an aesthetically pleasing, open structure. The strong architectural concept was followed through via contractor engagement and the methodology around fabrication and installation was very impressive.”

What is Toitoi?

Toitoi – Hawke’s Bay Arts and Events Centre is the new name for the centre that includes the Opera House, the Municipal Building, the Cushing Foyer and the former Plaza space is “Toitoi”.

The name Toitoi, with its Māori and English components, gives an identity to the complex that conveys a sense of people, place and purpose to audiences and future users on a local, national and international stage.

Toitoi is a Māori word meaning the pinnacle of achievement, and is linked to ideas of excellence, encouragement and motivation. It is also ascribed to the quick movements of fish and birds and, from there, styles of dance and song that mimic them.

There is an extra special link for Hastings and the Ngāti Kahungunu legacy waiata Pōkarekare Ana composed by Paraire Tomoana.

In one of its earliest written versions Pōkarekare Ana was described by ethnologist Elsdon Best as a “toitoi”, a ditty or light-hearted love song that echoed the sound of birds cooing to each other.

It was a type of waiata popular in the 1920s and 30s, particularly in Heretaunga, giving it a unique link to both this place and a time in the district’s history that was significant.

The word ‘toi’ means art and is often used alongside other words in the naming of arts-based organisations. “Toi Toi Toi”, an Italian expression derived from Old German, is an exclamation in the performing arts world (most often in opera) used by performers to wish each other good luck.

Blockbuster project delivered on time and budget

Herman Wismeyer of Focus Project Management has the huge task of ensuring the biggest and most complex project ever carried out in the Hastings CBD is delivered on time and to budget.

To complicate the challenge, two of the three buildings are classed Heritage Place Category 1, having been built during World War One.

“You’re dealing with heritage buildings that are over 110 years old and you assume a lot of things, but it’s not until getting underway that you realise things are not what they seem.”

It also meant that when any setback occurred, everyone would rally together.

The biggest setback – a costly fire in the loading bay behind the theatre stage – required a significant amount of fire repair work but also provided an opportunity to carry out work that was never planned.

“What we saw as a team was an opportunity and we were lucky that the location of the fire reduced the potential damage significantly, with the fire protection curtain doing its job and stopping smoke entering into the auditorium.”

The fire damage, covered by insurance, was $750,000 and enabled the rebuild of the loading bay as well as the painting of the stage walls.

The two months prior to the planned handover to council, Herman and the team discovered that the auditorium plaster ceiling was in a state of deterioration and would need to be repaired.

With the Opera House now back up and running, Herman‘s energy is focused on the Municipal Building strengthening, with a budget of $8.75 million, and the management of the designs for the refurbishment and fit-out. The budget for this next stage is subject to council approval.

“This is a bigger and much more complex project as the building wasn’t built as well as the Opera House.”

Herman says if it hadn’t been for a decision by Hastings District Council to enter into an early contractor agreement with Gemco, there almost certainly would have been a budget blowout.

The arrangement was quite unique for a council, differing to the conventional approach where a project is put out to tender for a fixed price and carries the greater risk of costly variations and ultimately a budget blowout.

“With buildings like this it is very hard to predict what’s going to happen and this puts pressure on the budget and build programme, so it was refreshing to see council enter into an early agreement.

“We were able to do a lot of the physical investigations at the design stage, to check what we assumed was correct or not and then make changes accordingly, with input and understanding of those involved in the construction.

“For example, we could see if beams were actually where we thought they were and if not, we then had a process to deal with it and not run into extremely costly variations placing the budget under constant pressure.”

Herman says bringing a strong local business presence together on the project was also a huge success, with over 90 percent of the businesses based in Hawke’s Bay.

“These businesses had a vested interest in the project and took immense pride in their roles.”

Community support drives investment into doors reopening

The redevelopment of the Opera House precinct, now called Toitoi – Hawke’s Bay Arts & Events Centre, is one of the largest construction projects council has been involved in for many years.

The Opera House has played an important role in the community since 1915. It brings our people together to celebrate, to be entertained and to enjoy each other’s company. That’s why the community fully supported the redevelopment, they recognise that the complex is at the heart of our community.

After six long years of closure, we will be able to watch and enjoy our children and grandchildren dance and sing as families have done for the past 100 years. We will again enjoy national and international performing arts and most importantly, we will have a place to discover and develop our very own local Hastings talent.

Hastings is alive. We are seeing a huge rejuvenation of our CBD with many new businesses, retail, hospitality and professional

From left Scrapit HB owner Des Bristow, foreman Tim Knight and Hastings mayor Sandra Hazlehurst with the trowel that was found in a safe at the Opera House.

services establishing or relocating. We will also see our first hotel open in the CBD and this will complement the many events that Toitoi will host, including regional, national and international conferences.

For the first time in its history, Hastings will have a purpose- built events venue – Functions on Hastings. The functions venue will host up to 600 people for conferences and special functions.

Toitoi will bring the heart and soul back to Hastings and create an arts renaissance as well as ignite a new era of vibrancy and prosperity for our district.

Encore for build team

Gemco Construction manager Eddie Holmes will know how good a job the team of over 100 tradespeople has done when he sits down to enjoy one of the 30-plus shows scheduled for the Hawke’s Bay Opera House stage in 2020.

Eddie has been on-site in a porta-office since 2017 and when the project is fully completed with the handover of the Municipal Building, he will have been leading the project for over four years. It will bring down the curtain on what will be the longest, largest and most complex projects of his career.

The first two stages are now complete with the opening of the Opera House, which was first built in 1916, and the new multi-use venue called Functions on Hastings (formerly the open air Plaza building).

For Eddie, he’s seen the Opera House reemerge from a dark, wet and cold building to an enhanced version of its former splendor.

“I would come in during the early days of the rebuild and unlock the doors to a dark, damp and spooky building. The walls were running with water, the seats were moldy, it was like a freezer, and the early stages of the strengthening work did nothing to improve it, it just added dust and noise to the equation,” Eddie says.

Life has slowly returned to the Opera House, which has been strengthened to 75 percent of the Building Code. It’s been carpeted and painted throughout, including significant repairs to the failing ornate plaster ceiling and surrounding detailing. The stage floor structure has also been strengthened and new toilets and refreshment bars have been built. Many areas have been returned to their former glory, or as near as possible, while incorporating the upgrade and ensuring the building remains functional.

What hasn’t changed is the buildings’ acoustics. It’s still one of the best opera houses in the Southern Hemisphere.

Eddie says that after two-and-a-bit years of hard work by the Gemco team and all of the subbies, the character and personality of the building have come back to life.

“When we reached the stage of final clean-up and rebooted the air conditioning, it was a real milestone. I now find it a really stimulating building to walk through, particularly when I go through to open up and turn the lights on in the morning while all is quiet and nobody is around. It’s very invigorating.”

Like many, Eddie can’t wait to sit down and enjoy his first show. He is in no doubt that the council made the right decision to invest $32 million (including $23 million of council funding and $9.5 million of external funds) in this magnificent Category 1 classification heritage building.

The initial brief was to strengthen the building to 75 percent of the Building Code but the work was to be done in

such a way that nobody would notice the difference. Partway through the project, the decision was made to increase the initial investment and give it a ‘50-year makeover’ at the same time. This has resulted in a truly amazing outcome.

“The timing is perfect for the Opera House to reopen. We have so many entertainment options these days with online streaming services and hospitality options but I think there’s a real demand by the public to attend live shows, and what better way to enjoy a live performance than in either the Opera House or the new function facility.”

To get to the end of the first stage has been one of the biggest challenges of Eddie’s career, but it’s also helped prepare him and his team for the next stage, which he says is more difficult: the rebuild of the Municipal Building.

“Nothing is harder than this sort of work, it’s a logistical challenge. You can preempt as much as you like but you don’t actually know what you’re dealing with until you open it up and get started. It has been an extremely hard, dirty, noisy job in a dingy environment, but because of the unique character of the building and a remarkable team to work with, we got stuck in and pulled it off, and surprisingly, not one person asked to be moved off the job to another.”

When the entire Toitoi complex is finally revealed in 2021 and the credits start rolling, Eddie says there will be many unsung heroes who can celebrate the roles they’ve played in breathing new life back into Hastings’ CBD.

“We have had some people put in outstanding commitment. There’s been some very clever people involved and everyone has bought into the project, from the project leads to the Gemco team to all of the subcontractors. A huge thanks to all!”

Strong foundations – The efficient and eco-friendly building solution

A construction boom has been sweeping across Hawke’s Bay over the last few years and it’s not predicted to decline any time soon.

As hundreds of new houses are needed due to population growth, there’s greater pressure on builders to complete projects more efficiently as well as adopting greater sustainable building products and practices.

This all starts with the foundations, and experienced businessman Mike Teddy of MPT Concrete, and Cupolex Solutions has been using the proven foundation flooring solution, Cupolex, since he was first asked by a homeowner to source it 16 years ago.

Not only did Mike find the product, he became an exclusive reseller for the lower North Island and has since acquired the New Zealand license to manufacture and sell Cupolex nationwide. Cupolex is a cost-effective, eco-friendly alternative to a polystyrene/raft foundation, using Italian designed structural domes to replace hard fill or polystyrene concrete formwork.

When Mike first started using Cupolex the domes were manufactured in Italy, then Australia, now here in NZ, but once he’d bought the license and dies, he went local and partnered with Napier plastics manufacturer NTD Plastics.

“It’s great that we can now manufacture 75% of the components in Napier; it was important to me that we looked to source local and it’s been great to partner with NTD Plastics,” he says.

Mike now sells Cupolex to like-minded and independent concrete contractors throughout New Zealand and to construction firms such as Gemco, as well as supplying to the likes of building supplies company ITM and Mitre 10.

Gemco general manager Chris Olsen says Cupolex has become their flooring system of choice.

“We first used it on a housing project and we immediately found the ease, cost efficiencies and programme advantages resulted in a quicker and better product for the client. We now endeavour to use it everywhere we can as it has proven to be a good addition in an always changing and challenging market for costs and programmes,” Chris says.

The dome designs aren’t new; they were invented in Italy over 20 years ago and have become a world-proven solution, predominantly for residential housing but now also starting to branch into commercial buildings.

Mike says the benefits of the dome system are many, including providing cost savings in concrete, steel, labour and freight as well as being a virtually zero waste solution. With a
global emphasis on the environment, all components are manufactured from 100 percent recycled/recyclable materials.

Since the Christchurch earthquakes, there has been greater focus on a building’s foundations, with geotechnical engineers designing the foundations and recommending the type of foundation system to use.

“Cupolex is a customised site-specific design and takes into consideration the unique ground dynamics, bearing in mind liquefaction and sheer twists, and Cupolex is pretty much a floating floor system.”

Mike says it’s not about supplying Cupolex and leaving the concreter or builder to it. “We’ve got a really good support service for the entire process and we put a lot of effort into training and showing how to use Cupolex.

“We’re not just selling a product. MPT Concrete use Cupolex on 99% of jobs so we have learned a lot and are only happy to pass on our experience to support our product.”

Cupolex is listed on www.productspec.co.nz and www.smartspec.co.nz.

Visit www.cupolex.co.nz 

Moving to the Cloud isn’t enough

Over the second half of the last decade we have seen the progression and growth of the tech sector all but explode and stamp its claim on the world’s business landscape. These developments have revolutionised the way that businesses operate and streamlined many of their day to day processes.

Accountants may appear to be on the endangered species list in this era of rapidly-increasing automation, but we’re finding that as Business Advisors we are adapting to the changing landscape, working diligently to stay ahead of the curve and thinking differently to stay relevant in order to assure demand for our services in the future….

The business landscape has gone through such significant changes over the last decade, particularly regarding the utilisation of technology in even the most basic of businesses that it wouldn’t be surprising to envisage a period of stability or cooling-off as business operators come to grips with the raft of tools now available to them – however this seems very unlikely. It is within the next decade that we are likely to see which businesses can thrive in this new landscape and those which may fall by the wayside through their own inactivity or inability to embrace change.

The really exciting element from our perspective is how Hawke’s Bay has managed to position itself at the forefront of this change. Hawke’s Bay is now seen as a booming business economy that has the required elements to expedite the achievement of business goals. This teamed with the Bay’s reputation for true work/life balance has ensured that the New Zealand business community stands up and takes notice of our little slice of paradise. This as well as our own local success stories such as the Napier Port, Ahuriri Tech Hub and the Airport expansion project has enticed a range of business investors and opportunities to our region.

Dynamism is a fundamental component of many successful businesses and the required strategy can dictate short timeframes for growth, sale & purchase and market penetration

opportunities. This means we really need compliance and reporting to run like clockwork, with the data available at our fingertips. Neither we as advisors nor you as business owners can afford to waste time on historical results.

One change by product is how we work to align the current business environment, technology and new generations entering the workforce together. This is a fundamentally important investment for every organisation, and our clients value good advice around what works and what to do when it doesn’t.

Futurists talk of the threat that Artificial Intelligence poses to so many businesses by manipulating the way in which we conduct our business. We see this advancement and evolution

signalling a somewhat inevitable move towards robotics and automation taking over the logical, predicable and monotonous tasks within society. And while the further development and future influence of AI is uncertain, it is another element of the change cycle that businesses will need to take heed of and build into their strategic planning in order to stay relevant.

To address these changes Businesses must embrace cloud- based accounting software in all its glory. Harnessing the cloud for efficient accounting compliance is not enough. The real benefit is in utilising apps and add-ons to provide privately- owned businesses with a broader, more integrated solution that is the envy of larger corporates. It is likely that within the first half of the next decade we will see who can succeed in taking their Business to the next level and those that have been weighed, measured and found wanting.

Which one is your business??