Certification Comes Under Fire

Certification Comes Under Fire

Nine U.S. domestic plywood producers, calling themselves the U.S. Structural Plywood Integrity Coalition, have filed a Lanham Act claim of false advertising against three U.S. certification bodies: PFS-TECO, Timber Products Inspection and International Accreditation Service. The essential point of the claim is that structural plywood panels produced in Southern Brazil are being fraudulently stamped as compliant with U.S. Product Standard PS1-09 for structural plywood, when the panels in fact do not meet minimum structural requirements for stiffness and deflection, according to the coalition’s claim.

The complaint, which was filed with the United States District Court for the Southern District of Florida (Fort Lauderdale Division), seeks preliminary and permanent injunctions requiring PFS-TEC and TPI to immediately revoke the certifications of certain Brazil plywood producers to manufacture PS 1-09 structural plywood, and $300 million in damages from PFS-TECO, TPI and IAS, plus any additional amounts proven at a trial by jury.

“The product standards for American plywood have serious real-world implications for all homes constructed using wood panel products,” explains Tyler Freres, VP of Sales with Freres Lumber. “Inferior products can endanger the health and safety of everyone who depends upon their homes to provide shelter and security for their families and loved ones. It is incumbent upon engineered wood products manufacturers to ensure that we meet all codes and that U.S. certification agencies have consumers’ health and safety as their primary concern when providing their certifications.”

The nine companies include: Freres Lumber, Coastal Plywood, Scotch Plywood, Veneer Products Acquisitions (Southern Veneer Products), Hunt Forest Products, Hardel Mutual Plywood, Murphy Co., SDS Lumber and Swanson Group.

They claim that 30 companies operating 35 plywood plants in two states in Southern Brazil (Paraná and Santa Catarina) are falsely stamping millions of square feet of structural plywood imported into the U.S. as meeting the U.S. Voluntary Product Standard PS 1-09 for structural plywood. They say that tests by the American Plywood Assn. in 2018 commissioned by the coalition show that the Brazilian plywood panels produced in Southern Brazil experience massive failure rates with respect to the stringent strength properties of the PS 1-09 standard, specifically bending stiffness and deflection.

They also claim that the testing demonstrates the PS 1-09 quality plywood cannot be consistently produced from the two fast-growing non-native plantation species, loblolly pine and slash pine, used by the Brazilian plywood producers.

“As the certifiers of all 35 Brazilian plywood plants exporting PS 1-09 stamped plywood panels to the U.S., defendants PFS-TECO and TPI provide the gateway into the United States for these falsely advertised panels,” the complaint states. “The only explanation for the pervasiveness of the false advertising and the number of years over which it has persisted, is the intentional or negligent failure of PFS-TECO and TPI to rigorously perform their certification obligations…” The complaint also says that International Accreditation Services, as the accreditor of PSF-TECO and TPI, “has been grossly negligent in failing to perform its accreditation function.”

The complaint says that consequently millions of square feet of “falsely advertised off-grade Brazilian plywood” has moved into the U.S. and is being incorporated into residential and commercial buildings. “U.S. residents who live or work in (these buildings) are exposed to significant risk of serious injury or death, particularly in the event of a hurricane or significant earthquake.”

In a September statement PFS-TECO says it intends to vigorously defend its reputation, says the coalition’s testing approach is not permitted to be used under PS 1-09 as an alternative to conducting the uniform load test, and notes that PSF-TECO has more than 15 years of data showing that plywood from Southern Brazil and produced by those manufacturing facilities certified by PFS-TECO can meet PS 1 requirements.

Timber Products Inspection says the allegations in the lawsuit are absolutely false. “Despite the claims of the plaintiffs, our experience and testing indicate that Brazilian plywood meets all objective industry and regulatory standards outlined by the PS 1-09 standard. Clients in Brazil and elsewhere who do not consistently meet the applicable industry standard do not remain as TP clients. In 50 years of service, TP has never been accused of such negligence and we stand by our team, our clients and our processes. We intend to vigorously defend our reputation in court—and as necessary, in public—in the months ahead.”

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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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