NZ Based Lumber Exchange First
NZ Based Lumber Exchange First
Lignus Exchange announced yesterday the opening of the first negotiation-based emarketplace for solid lumber outside North America.
With member applicants from 12 countries around the Pacific Rim, including the United States, Japan, China, Australia, Indonesia, Malaysia, and Korea, the Lignus Exchange (www.lignus.com) will be operational 24 hours a day, seven days a week.
"The New Zealand wood industry is worth around $6 billion NZD with about half going offshore," says John McVicar of Lignus. "With production predicted to double in the next five years, then triple by 2020, Lignus will greatly assist New Zealand forestry companies to profit from direct channels to market and increased operational efficiencies."
"Wood is a very complex and dynamic commodity that is ideally suited to an electronic marketplace," says John McVicar from Lignus. "As it is traded around the world by thousands of organisations of all shapes and sizes, a neutral electronic exchange linking multiple buyers and sellers in a secure trading environment is perfect for our industry.
Built in the New Zealand software JADE with technology company Cardinal, the Lignus Exchange has been 12 months in the making. "Being from industry," says McVicar, "we set out to build a serious business tool that would be of real value to wood traders. Lignus is a powerful exchange engine that allows members to operate with a great deal of flexibility in a highly sophisticated and secure electronic negotiation environment."
Industry advisors PricewaterhouseCoopers back up Lignus claims. "Our firm is involved with numerous B2B emarketplaces worldwide," says PricewaterhouseCoopers' Robbie Gimblett, Partner, Entrepreneurial Business Services. "The capability and functionality of the Lignus Exchange is as good, if not better, than anything available internationally. We expect it will be well patronised by both large and small industry players."
Members of the exchange can negotiate with multiple parties and conclude contractually binding deals within the system. All members are credit checked and vetted to uphold the integrity of the trading community.
McVicar says Lignus is founded on three concepts: neutrality, to provide a level playing field for all members; flexibility, so members can exercise personal business preferences; and security, to protect members' existing relationships and commercially sensitive information.
About Lignus - www.lignus.com
Lignus is Asia Pacific's first neutral negotiation-based online trading exchange for timber, logs and other forest products. Timber trading is now open. Membership is free to approved wood industry organisations. To buy on Lignus is free. 1% of the nominal value of a sale is levied on selling members. Currently headquartered in Christchurch during software development, a Sydney office will be operational from mid October 2000 to support the Australian market. The company plans to establish a presence in the Northern Hemisphere by Q1, 2001.
Development of the Lignus Exchange began in October 1999. Technology partner is Aoraki Corporation and the system has been developed in JADE. Industry advisors are PricewaterhouseCoopers. Lignus has strategic industry alliances with the New Zealand Timber Industry Federation which has 300 members and Australia's Forest Products Association with 800 members. Lignus is privately funded.
For more information contact:
Lignus Exchange Ltd
22 Sheffield Crescent
Canterbury Technology Park
Phone : 03 357 0560
Fax : 03 357 0562