The Australasian wood processing industry is poised for a substantial expansion over the next twenty years. Australia, which is presently an importer, is developing plans to become a net exporter of forest products,while New Zealand's wood supply is expected to double over this period. In both countries, the expansion of processing capacity will be required to occur in a sustainable and environmentally sound manner. For example, the Australian Federal government has developed environmental guidelines for new bleached Eucalyptus kraft pulp mills,while the New Zealand government is presently enacting a comprehensive Resource Management Act. The implications of these developments for the Australasian wood processing industry is discussed.

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