Redgum case-study

Young redgum dried using conventional drying technology.

The sawmiller that dries the above material saved $20,000 on his kiln purchase price by purchasing a cheap and poorly controlled variety of conventional kiln. This saves to around $1/ M3 on his unit capital costs. He suffers massive penalties of 15-20% loss of volume in splits, consumes over 80% more costly energy, adds to his final trimming and processing costs, and devalues his timber quality markedly due to fine checks and twist.

In simple terms, he saves $1/ M3 in his kiln outlay, adds $60 in energy costs, loses equivalent of $250/M3 in sales volume and a further $350 in average selling price (product value). As every year passes, the cost difference increases.

Young kiln dried redgum using Solarkilns technology- Melbourne 2008

This manufacturing operation routinely uses solarkilns technology to dry run of log material including heartwood that comprises up to 25% of its production.

• End split losses less than 1% of total volume. (cf 20%)
• Little or no preparation before dressing or sales.(-$35/M3)
• Value Difference; high select grade proportion vs low grade products.(+30%)
• Energy input saving (-$60/M3)

Based on only 500 M3 of production annually from one small kiln, the value difference and savings equate to over Au$350,000 per year on today’s prices. Did the $20,000 saving on the cost of the single cheap kiln unit save money?