GLOBAL LUMBER SOLUTIONS PLANTATION FIJI MAHOGANY GRADE DESCRIPTION

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1 GLOBAL LUMBER SOLUTIONS PLANTATION FIJI MAHOGANY GRADE DESCRIPTION

2 This grading guide has been produced as a brief, non-technical explanation, of the grades used by (GLSL). It is not a scientific reference document but a layman s explanation of the grades so an informed opinion of the pricing allocated to each grade by GLSL can be understood. GLSL requires that the pin knot characteristic of Fiji Mahogany be regarded a feature and not a defect when restricted in size and number. This important grade variation imposed on all international markets identifies Fiji Mahogany as a unique plantation product and a conservational option to the use of natural forest timbers. This makes it necessary to invest in a large marketing exercise to have our product accepted on world markets. Each page has a brief description of the grade and two examples of the defects allowable within that particular grade. The pieces are a range of what is allowable. US timber grades (NHLA) are determined by the size of the area around defects from which timber suitable for high-quality, clear finishing can be extracted. These areas are called cuttings grades. The grade is determined by the amount of clear wood obtained for each piece of timber. The aim of GLSL is to create grades and products that are suited to Fiji Mahogany rather than to simply adopt grades from other markets. This will be done by product creation and down stream processing. The intention of this document brochure is to inform the readers of the differences in the grades and the actually reality of the fibre we call Fiji Mahogany.

3 The breakdown of grade in Fiji Mahogany resource is approximately as described in the below chart. The grade in order of value as per US standards is as follows: 1. Select Grade (FAS) 2. Number 1 Common Grade 3. Number 2 Common Grade 4. Number 3 Common Grade 5. Fall down or Reject Reject, 5% FAS, 10% #3Common, 30% #1 Common, 15% #2Common, 40%

4 FAS or Select Grade The USA FAS Grade is a premium grade that heavily restricts pin knots and in general terms must yield a minimum 83.3% and in certain circumstances up to 97% of a board in clear cuttings. This product is only 10% of the available fibre in Fiji Mahogany resource and is the grade that all the American import trade figures on the native fibre are based on only.

5 Commons #1 Grade The USA Commons #1 Grade allows scattered small pin knots and must yield a minimum 66.6% of a board in cuttings. GLSL pushes the limits of this grade due to the natural occurrence of pin knot found in the Fiji based plantations.

6 Commons #2 Grade The Commons #2 Grade requires a board to yield 50% in an unlimited number of small size cuttings. The greatest percentage of the Fiji product falls within this grade category. This grade is the largest volume produced from Fiji Mahogany with yields from our log approaching 40% of the total timber grade. Being a lower grade fibre and the largest part of our production is why GLSL is working so hard on remanufactured product creation.

7 Commons #3 Grade The Commons #3 Grade requires a board to yield 33.3% in an unlimited number of small size cuttings. This is again a large percentage of Fiji grade production. Grades such as this are an excellent choice for remanufacturers or companies who further progress the material.

8 Fiji Select Grade Fiji Select Grade is a premium grade. It has similar specification as the US Select Grade but has allowances for more defect and larger knot structure. The US Select Grade is more of perfect clear specification than the Fiji Select Grade thus why all comparisons made between the two are informed and incorrect. It is a high end grade allowing for more natural feature.

9 Joinery Grade Joinery Grade specifications developed by GLSL and introduced to South East Asia in recent trials is a composite grade that can incorporate much of the Commons #1 and Commons #2 grades. The idea behind this grade is to create a product grade that utilizes all the lower grades of Fiji Mahogany into products and grades that yield a better return. We are creating a grade that suits our resource instead of grading to other standards with less than satisfactory results. Joinery grade is the basis for many of GLSL remanufactured products such as decking and cladding. The Asian markets accept it much more readily than USA styles of grading and the return to GLSL is higher due to grade recovery from the timber.

10 Reject Grade Reject Grade comprises all timber that does not meet all the other grade specifications and this includes miss-cut, cupped, bowed, twisted timber and firewood. Reject Grade is sold in the Fiji domestic market in structural grades or to be remanufactured in Fiji furniture industry. Fiji Mahogany having a density slightly higher than pine makes suitable construction framing. When assessing pricing of Mahogany in the local market it must be remembered that much of it is indeed the lower grades that are being remanufactured and any comparison made must take this into account.

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