THE JOINT FORCES OF CSIRO & SCION Ensis – Joining Forces for Trans-National Benefit.

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Presentation transcript:

THE JOINT FORCES OF CSIRO & SCION Ensis – Joining Forces for Trans-National Benefit

THE JOINT FORCES OF CSIRO & SCION Australasian Forest Industries R&D Landscape  R&D Supply Fragmented  Multiple Stakeholders  Breadth vs Depth – Science Capability  Strategic Engagement  Industry vs Government Investment

THE JOINT FORCES OF CSIRO & SCION Our External Environment Natural Resources (air, land, water, forests etc) Forest Establishment Forest Management Primary Processing Manufacturing (timber, composites pulp, paper, packaging) EnvironmentAgribusinessManufacturing The Breadth vs Depth Challenge for our Science

THE JOINT FORCES OF CSIRO & SCION Scale Locally AustraliaNZ Roundwood M m Plantation M ha Turnover $M188 Exports $M % GDP13.2

THE JOINT FORCES OF CSIRO & SCION ….but not globally  ‘Australasian Forestry Inc’ (if it existed) is about the same size as Weyerhaeuser…  Combined NZ & Australian forest industries R&D spend about equal to the R&D spend of International Paper.

THE JOINT FORCES OF CSIRO & SCION …and has some distinctive features  Government ownership of majority of plantations (in Aus) – but this is changing  New owners are ‘non-traditional’  Diverse mix of production species  Broad geographical distribution  A mandate for expansion in Australia via the Plantations 2020 vision  Pushing the survivability boundaries in some regions (< 600 mm rainfall threshold)  Tangible opportunities for tradeable environmental services

THE JOINT FORCES OF CSIRO & SCION ….And we are too small…  The Australasian forest sector is under stress from globalisation…and so is the research community  Organic growth difficult  science capacity & quality issue across a broad value chain  Growth by partnership was the best choice  But with whom?  Key issues were alignment of objectives, freedom to operate & depth of commitment

THE JOINT FORCES OF CSIRO & SCION The Two Partners  NZ Forest Research Institute Ltd (Scion) - a Crown Research Institute  340 staff – 2 sites  CSIRO FFP - A business unit of a large statutory authority (6500 staff)  220 staff – 6 sites

THE JOINT FORCES OF CSIRO & SCION Our Mandate  Delivering benefit to respective nations through provision of science & technology outcomes to our respective forestry & related sectors (industry and government)  Financial viability is important, but financial success is a necessary but not sufficient condition!

THE JOINT FORCES OF CSIRO & SCION Success Defined  Ensis is the forestry & allied industries science delivery organisation for both CSIRO and Forest Research  Operationally it acts like a merger – combined science teams under a single management team  True 50:50 (contributions of staff, resources, financial performance) joint venture, no project-by- project negotiations  National interests are protected through structure & joint venture agreement  We make a difference…

THE JOINT FORCES OF CSIRO & SCION Key Enablers  Unincorporated JV  Focus on science delivery, parents to provide support services  Staff remain on parent employment contracts  Assets & IP owned by the parents  Parent science investment processes retained  Partnership with other R&D organisations and industry are a critical success factor

THE JOINT FORCES OF CSIRO & SCION Ensis 1 July 2005  Fully integrated forestry industries science delivery organisation  Around 350 science delivery staff, almost 400 personnel (contractors, students, Hon Fellows etc)  $55M turnover, around $26M from ‘external’ sources  Matrix structure  A child of its parents but rapidly developing its own personality  CEO Larry Little commenced 1 August 2005

THE JOINT FORCES OF CSIRO & SCION Letting Go…  Both CSIRO Forestry & Forest Products and Forest Research have let go their ‘old’ names  CSIRO Forestry & Forest Products will cease to be used as a ‘brand’ externally and within CSIRO – it’s Ensis  Forest Research rebranded to Scion in May 2005, as part of their broader Biomaterials Strategy

THE JOINT FORCES OF CSIRO & SCION Strategic Business Units  ensis Papro: Optimising process and products  ensis Genetics: Breeding better forests for maximum returns  ensis Wood Quality: Linking quality to value  ensis Wood Processing: Ensuring the place of wood in a modern market  ensis Forests: management systems for productive and sustainable plantations, and managed natural forests  ensis Environment: Protecting and enhancing the environment with forests  ensis Forest Biosecurity and Protection: Protecting our forests

THE JOINT FORCES OF CSIRO & SCION Our Current Locations Canberra Cooroy Melbourne Rotorua Perth Mt Gambier Albany Hobart Christchurch 5400 km