Projects: Here, There and Everywhere

Projects: Here, There and Everywhere

Article by Rich Donnell,
Editor-In-Chief

You may recall that the major theme of the Panel & Engineered Lumber International Conference & Expo (PELICE) held last year in Atlanta was “new plant development and construction.” Several speakers addressed ongoing plant projects that were in various timeline stages. We featured the startup of one of those plants, Winston Plywood & Veneer in Louisville, Miss., in the last issue of Panel World. We hope to write about a couple of others that were addressed at PELICE in upcoming issues, such as Swanson Group’s new plywood mill in Springfield, Ore. and RoyOMartin’s new OSB plant in Corrigan, Texas.

You may be aware that Panel World is the host magazine of PELICE and its editors are heavily involved in the planning of PELICE. So when the subject of PELICE 2018 came up recently, it took about two seconds to come up with a major theme: New Plant Development and Construction, Part II.

How could it be anything else? For example, this issue of Panel World reports on Roseburg’s announcement to build a new LVL mill in Chester, SC, and Egger’s plan to build a particleboard mill in Lexington, NC. And for a different (non-wood) twist, how about the Calag rice straw based MDF plant in Willows, Calif. that is approaching construction following 20 years of trying to get there?

There’s plenty more going on: Arauco’s construction of a particleboard mill in Grayling Mich.; Swiss Krono’s construction of an HDF plant in Barnwell, SC; Kronospan’s construction of a particleboard plant in Oxford, Ala. And for another different (product) twist, how about Freres Lumber’s construction of a MPP line in Oregon. MPP? That stands for Mass Plywood Panel, a veneer-based competitor of lumber-based cross-laminated timber.

Then there are the “re-starts” that will require considerable investment, such as Huber’s OSB mill in Spring City, Tenn.; Tolko’s OSB mill in High Prairie, Alberta; and possibly Norbord’s OSB mill in Chambord, Quebec, among others.

And these don’t take into account the dozens of mills that are making incremental upgrades.

So, New Plant Development and Construction, Part II, it is.

By the way, PELICE 2018, which is scheduled for April 13-14 again at the Omni Hotel at CNN Center in Atlanta, will be the sixth PELICE, and it will mark the 10th year since the first one was held in spring of 2008.

You remember the spring of 2008 don’t you? The theme of that first PELICE was definitely “not” New Plant Development and Construction.

Ten years later, and not surprisingly, the resiliency of the wood products industry and the American economy has won the day. Panel World and PELICE don’t mind riding those coattails at all.

Settlement Looks Good For Huber

Settlement Looks Good For Huber

Settlement Looks Good For Huber

 

Huber Engineered Woods LLC (HEW) reports it has “achieved” a negotiated settlement with Georgia-Pacific Wood Products LLC in the patent infringement lawsuit filed by HEW in the United States District Court for the Western District of North Carolina.

The lawsuit, filed in June 2016 by the Charlotte, NC-headquartered manufacturer of OSB, alleged that GP’s ForceField products infringed HEW’s patents for its ZIP System sheathing and tape products. The settlement includes a license under HEW’s patents granted to GP to cover sales of GP’s ForceField products, as well as a payment by GP to Huber of an undisclosed upfront amount and ongoing royalties paid to Huber.

“For more than two decades, Huber Engineered Woods has provided innovative, premium products to our customers,” says HEW President Brian Carlson. “Investing in the continued development and protection of our intellectual property portfolio is central to our company’s strategy and success. We are pleased to resolve this issue with GP and will continue to be vigilant in the defense and protection of our brands and intellectual property.”

Introduced in 2006, ZIP System sheathing and tape is an innovative exterior wall and roof system consisting of a high-performance engineered wood panel with a built-in, water-resistive barrier that eliminates the need for housewrap or felt, Huber states. Completed with taped panel seams using advanced, acrylic-based ZIP System tape, the system helps achieve quick rough dry-in, while providing a continuous air barrier to protect against unwanted air leakage.

Huber Engineered Woods has manufacturing operations in Maine, Georgia, Virginia, Tennessee and Oklahoma, as well as research and development facilities in Georgia.

Specifically, Huber alleged that the ForceField products marketed by Georgia-Pacific infringed two patents when used to sheath the walls of homes during construction; that the use of multiple ForceField panels to sheath the wall of a home, when sealed together with water-resistant tape such as GP’s ForceField Seam Tape, created a panel system that infringed the two Huber patents.

At the time of the lawsuit, Georgia-Pacific stated: “Georgia-Pacific remains confident that ForceField does not violate the intellectual property rights of others, including those of Huber. ”

The Huber lawsuit stated that Huber’s inventions were the result of years of research and development, culminating with initial sales of Huber ZIP System sheathing in 2007. “The inventions represent a leap forward in roof and/or wall structural sheathing system technology, solving several problems exhibited by other sheathing systems that rely upon house wrap or felt paper that is used with structural wood panels as part of the weatherization of buildings,” Huber had stated.

The lawsuit stated that GP introduced its ForceField System in January 2016 as a competitor to Huber, and that “rather than put in the time and resources necessary to independently develop a sheathing product like HEW did, GP instead chose to take advantage of the innovative development work done by HEW.”

According to the lawsuit, GP hired a former Huber employee to help GP develop its product—the same person who is a named inventor of the Huber patents, and that this person was subsequently a named inventor on GP’s patent application for similar technology.

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Latest News

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Roseburg has annouced that Nadine Orozco has been promoted to Director of Strategic Business Development. She has served as manager of strategic business development since 2022, and has been deeply involved in key company projects, including the recent sale of Roseburg’s Simsboro, La., particleboard plant to Kronospan and the company’s historic $700 million investment in Oregon manufacturing.

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OSB Producers Looking Up

OSB Producers Looking Up

OSB Producers Looking Up

Article by Dan Shell, Managing Editor, Panel World May 2017

The LP Clarke OSB plant profiled in this issue and the story of its origin, derailment and ultimate resurgence serves as an analogy for the panel and home building products industry during the past decade: Big plans and a startup halted by a fire and historically bad panel markets, but an eventual rebound and restart in 2013 as business conditions grew more favorable.

Looking back now, with the benefit of hindsight, the warning signs of America’s biggest economic downturn since the Great Depression were already there a decade ago: By 2004, U.S. homeownership had peaked at 70%. Then, during the last quarter of 2005, home prices started to fall, which led to a 40% decline in the U.S. Home Construction Index during 2006. During February and March 2007, more than 25 subprime lenders filed for bankruptcy.

In late 2006, APA Chairman Jonathan Martin, CEO of RoyOMartin and whose company was about to start up a brand new OSB plant, saw the signs: At the APA—The Engineered Wood Assn. annual meeting, Martin exclaimed in a presentation that “We need more demand. Housing is slower. Capacity is rising.”

Going into the downturn, Martco started up its OSB plant at Oakdale, La. and LP started up about a year later in Thomasville, Ala. In previous years Huber had started up in Broken Bow, Okla., GP in Hosford, Fla., LP/Slocan at Fort St. John, BC, Tolko Industries at Meadow Lake, Saskatchewan, and some others as well.

In such a situation as the extreme downturn of 2007-8-9, there’s no hiding under a rock. Despite weakening markets, panel producers had to adjust and make the best decisions they could while hoping the worst didn’t get worse. Survivors from that period are well-versed in what happened next as a run of definite and indefinite plant closures was accompanied by widespread shift reductions.

And while it seemed every piece of industry news when describing bad markets, housing starts and overall business prospects during that period included the phrase “not seen since the Depression,” the sun did creep out again.

Markets returned—to an extent. Prices are certainly better. And while housing starts haven’t recovered from the highs of 2004-5, the current 1.2-1.3 million starts sure look better than 400,000 in 2010.

In recent years, several mills re-opened, such as Arbec Forest Products at Miramichi, New Brunswick, GP at Clarendon, SC, Tolko at Slave Lake, Alberta, LP at Thomasville. Other OSB operations jostled into position, including Norbord’s acquisition of Ainsworth. Now we’re hearing talk of possible restarts at Norbord in Huguley, Ala., Tolko at High Prairie, Alberta, Huber at Spring City, Tenn. And don’t forget Martco’s new greenfield OSB plant in Corrigan, Tex. that is expected to start up later this year.

Along the way, North America OSB production has rebounded, going from 16.78 billion SF in 2012 to 21.84 billion SF in 2016. There’s renewed optimism with what’s expected to be a pro-business administration in Washington, DC.

But actions speak louder than words, and in the OSB sector, companies like Martco, LP and others are letting their actions speak for themselves.

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Hasslacher Enters North America

Austria-based Hasslacher group is acquiring a stake in Element5, a mass timber producer specializing in the design, manufacture and assembly of modern engineered timber buildings. Based near Toronto, Can., Element5 employs more than 100 and produces cross-laminated timber and glued laminated timber for the North American market.

Find Us On Social

Newsletter

The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.

Subscribe/Renew

Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.

Advertise

Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!

Projects: Here, There and Everywhere

It May Have Seemed Like A Good Idea At The Time

Article by Rich Donnell,
Editor-In-Chief

The world’s largest producer of oriented strandboard isn’t holding back on its criticism of United Kingdom electricity produced with wood biomass.

Norbord’s European operation, which has been dogging biomass power for several years, has ramped up its attack in recent months, saying it’s not fair for UK taxpayers to have to foot the bill; that the burning of wood is not a sustainable source of energy but rather creates more carbon emissions than burning coal; that the diversion of wood raw material for this purpose distorts the traditional wood market and drives up prices for timber and residues; and that the wood pellet procurement chain poses a threat to bottomland forests especially in the Southeastern U.S.

It’s no secret that our publishing operations also produce Wood Bioenergy magazine, in addition to Panel World, and that we organize back-to-back conferences every two years in Atlanta, Georgia—the Wood Bioenergy Conference & Expo and the Panel & Engineered Lumber International Conference & Expo. Dozens of exhibitors participate in both conferences. You see many familiar faces at these conferences who have switched from one industry to the other. We tend to view this dichotomy as a family affair.

Norbord’s arguments above are valid, but we’ve all read counterpoints to each one of them. If a government is pushing for renewable energy, shouldn’t it be expected to provide some measure of subsidization at least for a period of time? Shouldn’t the fact that forests have been sucking in carbon for years be figured in the carbon emissions equation? Didn’t the emergence of OSB divert wood raw material away from the traditional pulp and paper industry? How much timber that’s to be used in wood pellet production is really coming out of bottomland forests?

The arguments on both sides of the fence seem to have lots of merit. We should know, since we have to straddle that fence.

We do have one concern, however. As we note in an article on page 8, Norbord teamed up with several organizations and signed a letter to the UK secretary of energy, registering their criticisms and asking that the UK review its bioenergy policy.

The letter is signed by a Norbord officer, as well as an officer from the Wood Panel Industries Federation, which represents several European structural and non-structural board manufacturers, including Norbord. Fair enough. But also signing the letter were representatives of the Natural Resources Defense Council and the Dogwood Alliance.

When I think of the Natural Resources Defense Council and Dogwood Alliance I think of organizations whose mindset is against real forest management and timber harvesting.

We have no problem with Norbord and forest products companies voicing their concerns about wood biomass power. That’s what’s in their best interests. We also understand that signing the dotted line along with preservation organizations in this matter is a temporary political alliance. But it still makes us uncomfortable. We all know that tomorrow these preservationist groups will be signing the dotted line in protest of our industry.

Panel Production, Housing Up

Panel Production, Housing Up

North America structural panel production increased 5% and consumption was up 5.8% in 2016, according to APA—The Engineered Wood Assn.

Structural panel production was 32.595 billion SF, continuing several consecutive years of increase. Production was 27.785 billion SF in 2012.

U.S. companies produced 22.731 billion SF, and Canadian producers recorded 9.864 billion SF, both amounts up slightly over 2015.

U.S. OSB production was 13.922 billion SF and Canada was 7.913 billion SF. U.S. plywood output was 8.809 billion SF, while was Canada was at 1.951 billion SF.

U.S. plywood imports from offshore totaled 1.077 billion SF, up 54.5% from 2015.

North American Glulam production was up 2.7%, while I-joist and LVL output were up 6.3% and 6.8%.

Glulam production for the year was 280MMBF. I-joist production was 730.1 million linear feet. LVL production was 71 million cubic feet.

APA also reported that housing starts totaled 1.166 million units in 2016, up 4.9% from 2015. Single-family starts were up 9.3% to 780,900, while multi-family starts were down 3% to 385,500.

APA forecasts total starts to increase to 1.285 million in 2017 (850,000 single family, 435,000 multi-family, and to 1.360 million in 2018 (890,000 single family, 470,000 multi-family).

APA notes that Fannie Mae offers the most optimistic forecast, expecting 1.308 million starts in 2017 and 1.461 million in 2018.

APA also reported that U.S. construction employment rose by 102,000 in 2016, considerably down from 296,000 in 2015, partially reflecting an increased scarcity of skilled construction labor.

Overall U.S. unemployment was 4.9%, down from 5.3% in 2015, marking the lowest annual average since 2007.

Canadian housing starts, including gains in both single family and multi-family, were 197,900, virtually unchanged from 2015. Single family detached starts were 74,090, up 8.8%.