A Good Quote Is Easy To Find

A Good Quote Is Easy To Find

A Good Quote Is Easy To Find

Article by Rich Donnell, Editor-in-Chief, Panel World November 2019

As the year winds down, already, a quick glance back through the pages of Panel World reveals several articles on wood products plants that found new life, and some memorable comments from key players in the industry.

• “I was probably the last guy they called about acquiring the plant. I didn’t know anything about particleboard.”—Todd Brinkmeyer, owner, Plummer Forest Products, who grew up in sawmills and forestry, on when Potlatch called him about acquiring the particleboard plant in Post Falls, Idaho, which he subsequently did.

• “We’re constantly trying to make a better workplace for our employees and they’re involved in that process. We want people to slow down, think, and do it safely.”—Jedd Smith, environmental and safety manager, Plummer Forest Products, Post Falls, Idaho

• “That’s one of the joys of working for a private company—we can be reasonably agile. This is one of those cases where we were reasonably agile.”—Greg Johnston, general manager of Strand Board Business, Tolko Industries, on re-starting the OSB plant in High Prairie, Alberta

• “I’d say there’s no doubt Hardel is the largest specialty plywood mill in the U.S. We do 8, 9, 10 ft., sanded one or two sides, hardwood, marine, sheathing, you name it—and now customers can get units of MDO and HDO. Where else could a customer get that?”—Emmanouel Pilaris, general manager of Hardel Mutual Plywood, Chehalis, Wash.

• “Every company has principles and visions up on their walls, but the thing with Koch is we do live by them. It becomes a way of life, a way of doing business. It’s not all that difficult. A lot of it is basically how your parents tried to raise you.”—Clarence Young, vice president and general manager of OSB, Georgia-Pacific, on GP’s parent company Koch Industries

• “The challenge process, earning decision rights, the principle of entrepreneurship—I had never been given the leeway to think about business that way. But they’re also going to hold you accountable. At the same time you can go out and do some unique things, take some risks. We did a lot of that when we started up this facility.”—Tobey Elgin, director of OSB operations, GP, on re-starting the OSB mill in Clarendon County, South Carolina

• “It’s not just something we say. We live it. Our entire management team here lives it and I know upper management lives it as well.”—Robert Willett, technical manager, Martco Chopin plywood mill, on regularly receiving APA’s safety and health award

• “It was depressing to come by this plant every day for the local people. Once we announced it was coming back, there was lots of excitement, and lots and lots of applicants to go through. We’ve given them the confidence that we’re here to stay.”—Bryan Little, plant manager, Huber OSB, on re-starting the OSB plant in Spring City, Tenn. following more than six years of downtime

• “We will miss him, but I know that his legacy will live on in the hundreds of lives he has touched so deeply and will endure through the family business that is approaching its 100th anniversary. A tall tree has fallen in our forest products industry.”—Roy O. Martin III, president and CEO of RoyOMartin, on the death of his cousin Jonathan E. Martin, chairman of Martin Sustainable Resources

 

 

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U.S. Court Says China At Fault

U.S. Court Says China At Fault

U.S. Court Says China At Fault

 

U.S. Court of International Trade in June upheld a U.S. International Trade Commission determination that the People’s Republic of China is injuring the U.S. hardwood plywood industry by exporting hardwood plywood supported by unfair subsidies and selling it at below market value (otherwise known as dumping) in the U.S.

The decision stems from a petition filed by the Coalition for Fair Trade of Hardwood Plywood with the U.S. Dept. of Commerce and ITC in November 2016. In its preliminary determination, Commerce found that hardwood plywood from the PRC was being sold at less than fair value and that the PRC industry was receiving countervailable subsidies.

Concurrent with Commerce’s proceedings, the ITC investigated whether the domestic industry was materially injured or threatened with material injury by the imports. ITC issued a preliminary determination find that there was reasonable indication of injury to the U.S. industry, and subsequently in a final determination concluded that the U.S. hardwood plywood industry is materially injured by the PRC imports because they’re subsidized and sold in the U.S. at less than fair value.

The Coalition for Fair Trade of Hardwood Plywood includes Columbia Forest Products, Commonwealth Plywood, Murphy Company, Roseburg Forest Products, States Industries and Timber Products Co., all domestic producers of hardwood plywood.

American Alliance for Hardwood Plywood and related companies subsequently challenged aspects of the ITC final determination of injury. These companies include Far East American, Inc., Northwest Hardwoods, American Pacific Plywood, Canusa Wood Products, Concannon Lumber and Plywood, Fabuwood Cabinetry Corp., Hardwoods Specialty Products, Holland Southwest International, Liberty Wood International, McCorry & Co., MJB Wood Group, Patrioit Tmber Products, Richmond International Forest Products, Taraca Pacific, USPly Trade Co. and Wood Brokerage International. A separate complaint against the ITC ruling was filed by Zhejiang Dehua TB Import & Export Co. and affiliated plaintiffs.

The complaints against the ITC injury determination challenged the ITC’s findings that imports from PRC are substitutable with domestic hardwood plywood; that the volume of imports from PRC are significant; that imports from PRC undersold domestic hardwood plywood and resulted in price suppression; that imports from PRC significantly impacted the domestic industry.

U.S. Court of International Trade denounced these challenges and upheld the ITC determination of injury. On the specific challenge as to the degree of volume of imports from PRC, the Court pointed to the ITC finding that between 2014 and 2016 the market share of imports from PRC increased from 37.9% to 40.1%, while the domestic industry decreased from 21% to 17.3%. And specifically in the cabenetry end use segment, hardwood plywood imports from China increased from 224MMSF to 301MMSF, increasing its market share by 6.9%, while the domestic market share decreased by 5.1%.

The Court emphasized that ITC overall noted that the domestic industry’s production, capacity utilization, end-of-period inventories, shipments and market share all declined during the investigation period, as did net sales revenues, cost of goods sold, ratio of operating incomes to net sales, gross profit, operating income and net income.

 

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A Good Quote Is Easy To Find

Nothing Like Going Back

Nothing Like Going Back

Article by Rich Donnell, Editor-in-Chief, Panel World September 2019

Through the course of time, as we editors travel to wood products mills around the world, we begin to view some mills as more than just a mill, but rather as a member of our editorial family.

Take this issue’s cover story for instance—the RoyOMartin southern pine plywood mill in Chopin, La. Panel World editors have visited this mill and written articles on it four times since it started running in 1996.

I went there almost exactly 23 years ago, several months after it peeled its first block in February 1996. After considering the construction of a southern pine sawmill, Martco (Jonathan Martin and Jerry Buckner in particular) realized a plywood mill would better address its wood utilization situation. Martco officially announced the project in 1994 at a cost of $50 million and with a stated production capacity of 250MMSF (3⁄8 in.).

It was very special to be able to visit with these gentlemen and tour the mill for the article. Martco had gone with Durand-Raute for most of the machinery, having come away impressed with some similar equipment it had seen in action at Plum Creek Timber’s plywood mills in Montana.

The next time Panel World went back to Chopin was in 2007. Our senior editor Dan Shell made that journey, mainly because the mill had started up a second plywood line—heavier to USNR (Coe) and SparTek this time (including a seven ply foam glue layup line—and had increased annual production capacity to 470MMSF, going after smaller logs in longer lengths.

It was my turn again in 2011, and while the mill had made some equipment improvements, boosting production to nearly 490MMSF, the brunt of the article was on the company’s Living With Wellness Program, which emphasized the idea that a healthier employee is also a safer worker. Looking back on it, I think I went back mainly because I just wanted to see how the mill had evolved since my initial visit.

A few things caught our attention for this latest visit for the article in this issue. The trip to the mill had brought in some dryers since our previous visit, and had recently undergone considerable upgrade to its automation systems and controls throughout the mill. Production had hiked again to 510MMSF, more than double the original output. But what really caught our eye was that a couple of years ago the mill had implemented a timbers sawmill line, utilizing the non-plywood stems from the optimized multi-saw bucking line.

The editor who visited the mill and wrote the story in this issue, Jessica Johnson, was all of eight years old when I visited the new mill in 1996. Maybe now you can begin to see how a mill can traverse our editorial landscape.

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Arauco Gets Graying PB Mill Going

Arauco Gets Graying PB Mill Going

Arauco Gets Graying PB Mill Going

 

ARAUCO held a ribbon-cutting ceremony April 16, 2019 at its new particleboard and lamination facility in Grayling, Mich. Executives from ARAUCO, ARAUCO North America, as well as customers and public officials from Chile and the state of Michigan attended the ceremony, which also included a plant tour. The Grayling mill represents a $450 million investment toward supporting ARAUCO’s North American customer base and increasing the company’s ability to meet the furniture manufacturing industry in the U.S. Midwest market area and beyond.

The 820,000 sq. ft. operation is the company’s first greenfield facility in the U.S., its 11th North America manufacturing site and the largest of its kind globally. The operation is designed to be one of the most productive in the world and houses North America’s highest-capacity, single-line particleboard press, two thermally infused laminating (TFL) lines and a large stocking warehouse for just-in-time service delivery. The plant currently staffs more than 200 full-time employees and has generated 700 additional jobs in related supplier and logistics industries since construction commenced in spring 2017.

“This is a historic day and milestone for our company,” said Matías Domeyko, CEO, ARAUCO. “The official start of production at Grayling exemplifies the outstanding innovation and sustained growth ARAUCO is known for globally, and what has been central to propelling our positive business results. The Grayling mill achievement also is the culmination of unwavering commitment from our valued investor who shared our vision for capturing significant market opportunity in North America.”

Kelly Shotbolt, President of ARAUCO North America, acknowledged the significant contributions of the Grayling project managers, and praised state of Michigan officials and local Crawford County representatives for creating an environment conducive to undertaking such a large-scale business endeavor.

“We are grateful for the incredible support received both from Grayling community leaders and the state of Michigan. It has been vital to enabling ARAUCO to renew our industry in North America through what is arguably the most advanced, automated and large-scale facility of its kind anywhere in the world,” Shotbolt said. “While known for automobile manufacturing, Michigan also is the office furniture capital of the world. We are pleased to substantially expand our production capacity to assure a strong, sustainable supply of quality, raw and finished product for this growing region.”

With an annual production capacity of 452MMSF, the Grayling plant will soon produce the full breadth of the company’s high-quality raw particleboard in a variety of thicknesses, as well as ARAUCO’s PRISM TFL collection.

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Timber Industry Feels Wrath Of Michael’s Aftermath

Timber Industry Feels Wrath Of Michael’s Aftermath

 

As one forest products company timberlands official who worked in the vicinity of last year’s Hurricane Michael and 2005’s Hurricane Katrina observed, Michael made Katrina “look like a thunderstorm,” with regard to the unprecedented damage to timberlands. (Katrina inflicted a far greater death toll as it came into Louisiana and Mississippi.)

The Florida timber industry is truly seeing the consequences of Hurricane Michael nearly seven months after the storm hit.

Rot, bark slippage and blue stain are beginning to settle in as timber salvage efforts continue in the wake of Hurricane Michael.

Michael came ashore October 10, 2018, the eye crossing Mexico Beach and then moving inland and northeast, causing catastrophic or severe damage to 2.8 million acres of Florida timberland according to the Florida Forest Service. A Category 4 hurricane with winds reaching 155 MPH, Michael cut an 80-mile wide swath across 11 counties in the Florida Panhandle, where conservative estimates put timber loss in the state at $1.3 billion and total damage expenditures at $39 billion. According to the Florida Forest Service, 72 million tons of prime timber were broken or blown over—imagine 2.5 million loaded log trucks—affecting 16,000 private landowners.

Florida’s estimated monetary timber loss is just less than double that reported by the Georgia Forestry Commission, which stated that 2.37 million acres of Georgia forestland sustained damage valued at $763 million.

In packaging an emergency landowner assistance funding request of $583 million, the Florida Forest Service indicates the potential for significant increase in wildfires over the next 10 years. Usually, the Panhandle has 4.87 tons per acre of available fuel; post-Michael, the average is 58 tons per acre, a 10-fold increase, and in the catastrophic areas of Bay, Calhoun and Gulf counties there is more than 100 tons per acre of fuel on the ground.

Wildfires aren’t the only major concern for the Panhandle. Reforestation remains uncertain for the 16,000 private landowners who make up nearly 80% of the devastated timber base, as they watch family investments, college funds, retirement funds and other generational security rot away. Florida Forest Service notes that without guidance and financial support many of the private landowners will not clean up and will definitely not replant.

Florida Forest Service Director Jim Karels told a Senate committee it could take a decade or more for Florida’s timber industry to recover as he recommended that the state provide funding to help nonindustrial private forest landowners clear fallen trees and start replanting the forests, and for equipment and programs to help reduce the fire threat.

Coastal Plywood in Havana, Fla. lost about a week of production following the storm due to power outage, but the mill held up well during the storm. Officials expect to see some increase in raw material costs, and without question an increase in haul distance.

Rex Lumber’s SYP sawmills in Graceville and Bristol, Fla. had to cut production in January due to weather and log flow. Winter rain hampered the recovery effort, and an official there said the window to salvage wood had moved into weeks.

Sapp’s Land & Excavating, Inc., based in Chipley, Fla.—about 70 miles north and slightly west from where Michael’s eye came ashore—reduced number of operating crews from five to four due to losing a few employees to the demand for equipment operators in the area for the cleanup effort.

Sapp purchased and implemented a John Deere 2554 log loader with a dangle sawhead that allows the operator to cut wood parallel to the ground.

For Sapp, whose main chips market is Enviva’s large wood pellet mill in Cottondale, production has shifted to a higher concentration of standing timber, as opposed to timber already blown down from the storm.

Morris Timber Products of Lynn Haven, Fla. made machine purchases following the storm to aid operators and bring efficiency to its peak. Morris has two Barko 595 track shovel machines outfitted with topping saws in order to clear up standing trees that are broken. Morris has his shovel operator trying to handle cutting and pushing stumps as best as he can—with the realization that stumps are going to be one of the biggest challenges to those who decide to replant.

His crew is also making heavy use of two Caterpillar 521 track cutters with 360 degree rotating sawheads, which allow operators to flip the head over and cut trees on the ground.

WestRock, which operates a corrugated packaging mill in Panama City, returned to full production of containerboard during November 2018; however, given the damage to the facility, the company didn’t expect the mill to return to full pulp production until the end of June.

In early April, the Florida legislature was nearing passage of a $90 billion budget that included $1.6 billion in emergency funds and another $220 million for Hurricane Michael.

Forest2Market, a global provider of timber prices, market data and in-depth analytics for suppliers and consumers of wood raw materials, believes overall the damaged timber inventory represents about a 12-year equivalent of current annual removals and more than a 15-year equivalent in the severe and catastrophic damaged areas.

The impact of the initial loss of inventory combined with the intense harvesting in areas only moderately damaged, or those left luckily unscathed, will result in an age/class imbalance. Forest2Market believes this will help intensify competition for available timber and result in some strain on supply that will drive prices higher for years. It is possible this will also affect the current oversupply of sawlogs.

Federal government aid could also come in the form of timber sales and harvesting in the Apalachicola National Forest, which is east of where the storm came in. Some tonnage could be flowing out by the end of this year.

 

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