From The Kodiak Daily Mirror (Alaska, Aug 31, 2005)

Chinese look to cut middleman for Afognak wood
Article published on Wednesday, Aug 31st, 2005
By KRISTEN INBODY
Mirror Writer
Bad weather on Afognak Island sank plans for a visit from a Chinese trade delegation to Kodiak this week.

The 15-member group, looking to up softwood timber imports from Alaska, intended to be in Kodiak on Monday and then fly by charter to Afognak.

“We were all disappointed,” said Patricia Eckert, a trade specialist with the Alaska Department of Community and Economic Development.

Instead, the group stayed in Anchorage. They are in Alaska for four days of meetings with timber industry officials, among them some from Kodiak.

The burgeoning relationship between Alaskans and officials from Putian, China, could improve market prices for local timber, said Tony Drabek, chairman of Koncor Forest Products. Koncor is a partnership of the Ouzinkie Corp. and Natives of Kodiak.

Drabek met with the Putian delegation in Anchorage.

“They’re trying to make contact with state and potential business entities,” Drabek said.

“It was a very cordial meeting, very warm,” he added.

Last spring, Drabek and other Alaskans visited Putian to encourage the Chinese to open their ports to untreated North American softwood.

Putian could make that a reality.

One of the main barriers to increasing the export of Alaskan logs to China has been the expense of treating the lumber to ward off the pinewood nematode.

Pinewood nematode is a microscopic parasite that feeds on tree tissues, turning the needles red and killing the tree.

Putian, on China’s east coast and southwest of Beijing, has the country’s first fumigating facility, which means it can treat logs.

Now, Alaska lumber must go through Japan first for pest eradication before it can be imported into China.

Cutting out the middleman — Japan — would make Alaska logs cheaper for China to import and therefore a more desired commodity, Eckert said.

She said the delegation is strategizing with Alaska timber industry and state officials on how to convince the U.S. and Chinese governments to allow the logs to go to Putian directly.

“They want to see more Alaska product coming into their ports,” Eckert said.

Drabek, who has toured the Putian plant, said it could mean a significant boost to the Alaska timber industry into the huge Chinese market.

“This could open some doors for folks,” he said. “Putian is a test site. The Chinese are exploring with this facility.”

The Kodiak timber industry brought in $6.1 million in gross revenue in 2001, according to the most recent figures from the Chamber of Commerce.

China is a key market for Alaska wood. Total export of Alaska logs to China was $2.9 million in 2004 and is on an upward swing.

The governor’s international trade office arranged the visit.

 

 

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