2006 and into 2007 saw some major restructuring and buyouts within the industry, with more changes imminent as the 2007 year progresses.

Other investment in sawmills has been by way of upgrades, incremental capital investments, refinement of operations, improvements and major maintenance in existing mills with little major new investment evident.

Projects that we have been involved with throughout this period include: manufacture and installation of new Log turners, Resaw systems, major log carriage and docking system upgrades, complete debarker rebuilds and building construction. We were very appreciative of the opportunity to perform this work. At Pacific Timber Engineering Ltd (P.T.E.L.), we are also increasingly working together with many mills in a partnership role in order to provide an overall maintenance regime in order to achieve less downtime and greatly improved accuracy, with resulting higher yields. Our focus at this time is to assist our clients to get the best out of the machinery that they possess in any way possible, and for us all to make a profit.

All of the team at Pacific Timber Engineering Ltd were saddened when partner Ian Lennane passed away in March 2006. Ian was a real character and an asset to the company. He will always be missed. Ian's passing meant that someone else needed to step up and assist in his role, that someone was Frank Yeoman.

Frank had already been working for the company and assisting Ian in his role since 2000. Partners Peter and Brendon welcomed Frank on board and in December of 2006 he became a partner and assumed the role of Director of administration and commerce. His 25 plus years experience in the timber processing and forestry sector, both in New Zealand and abroad, along with his CA Qualification is invaluable.

The Directors, Pacific Timber Engineering Ltd.