The beginning of the year saw the successful commissioning of the company's flag ship, the "Harc" carriage, in addition to the "Flux Vector" feed works, a slabber installation and a chip handling system at Pacific Pine's Putaruru sawmill.

During the year, further development of PTEL's Edger Guide (Button) system proved to be a success story in itself, with seven sawmills now enjoying the benefits of the new guides. One of these systems is operating in Fiji and the eighth set is scheduled for installation before the end of the year.

We were proud of our involvement in phase one of the Waiete Sawmill upgrade which culminated in the commissioning of a rebuilt Edger imported from North America. This lifted Waikete's production from 92m3 to 125m3 per day in a few weeks.

This Edger boasts our latest pre-positioning system which operates in conjunction with Automation & Electronics "Edger View" system. This is a joint development between the two companies.

Another first, is our retro fit carriage bunk upgrade using chromed bar knee slide way system to be installed during the Christmas period, this system is identical as used on the HARC carriage, providing low maintenance with high accuracy.

Overall 2002 has been a very satisfying year in which we have enjoyed immensely working on the various sites, the strong relationships built during the year and the results achieved.

We take this opportunity to extend our best wishes and good fortune to you all for the coming New Year.

The Directors, Pacific Timber Engineering Ltd.