Pandemic Felt Bad, Profits Felt Good

Pandemic Felt Bad, Profits Felt Good

Pandemic Felt Bad, Profits Felt Good

Article by Rich Donnell, Editor-in-Chief, Panel World November 2021

Given that Panel World is published six times per year, the November issue before your eyes represents the final issue of 2021. I’ve read through the six issues and pulled a few highlights of what went on in the panel world in 2021 as reported by Panel World. Actually, given that as I write this it’s only October 5, let’s call it a fiscal year dating back to October 2020.

West Fraser purchased Norbord and its 15 OSB mills, one MDF plant and two particleboard facilities for $3.1 billion.

Alex Hunt, Jr., who formed Hunt Plywood and Hunt Forest Products in Ruston, La., and before that oversaw Willamette’s operations in the South, died November 17, 2020 at age 90.

—After an impressive rise through most of pandemic-ridden 2020, structural panel prices shot through the roof.

Great Plains MDF announced it selected a site in Kneehill County, Alberta for building a wheat-straw based MDF plant.

—Ben Crim retired as VP of Engineering & Environmental Management at Hood Industries.

—Longtime Valon Kone representative and former part owner of Valon Kone U.S., Jerry Gordon, died at age 82.

RoyOMartin celebrated 25 years of operation at its softwood plywood mill in Chopin, La.

—APA—The Engineered Wood Assn. named Mark Tibbetts as president, succeeding retiring Ed Elias.

—Many forest products companies reported record sales and profit in the second quarter.

—Go Lab, Inc. relocated a wood fiber insulation board plant from Germany to Madison, Maine.

Huber Engineered Woods announced plans to build an OSB facility in Cohasset, Minn.

Ligna cancelled its September show, which had been rescheduled from May, and said it would wait to do the next one in May 2023.

Ashlee Cribb moved from her VP roles at Roseburg Forest Products and became Vice President, Wood Products, at PotlatchDeltic Corp.

Mercer International, based in Vancouver, BC, purchased the bankrupt Katerra CLT business for $50 million through a bidding process.

—Charlie Hamilton, who helped to build and run Fulton, Ala.-based Scotch Plywood’s three veneer/plywood mills, died on July 18 at age 83.

RoyOMartin announced it would build an OSB plant adjacent its current one at Corrigan, Texas.

CalPlant I, which produced its first rice straw-based MDF at its new mill in Willows, Calif. late last year, declared Chapter 11 bankruptcy with intentions to sell the company.

Godfrey Forest Products and its proposed OSB plant in Winslow, Ariz. was one of the bidders for a large national forest timberlands stewardship contract in Arizona, but the Forest Service cancelled the process before awarding the bid.

Panel World’s cover stories during 2021 were Coastal Plywood at Havana, Fla.; Katerra CLT in Spokane, Wash.; Egger’s new particleboard and lamination facility in Lexington, NC; Swiss Krono’s new particleboard and lamination facility in Barnwell, SC; Timber Products Co.’s veneer operation at Yreka, Calif.; and Hardel Mutual Plywood’s operation at Chehalis, Wash.

 

 

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“It’s hard to believe it has been four years since TP&EE was held, and what a strange trip it has been,” comments Rich Donnell, TP&EE Show Director and Editor-in-Chief of Panel World. “The important thing is that we’re back face-to-face. ‘Virtual’ is okay, but it’s not like being there.”

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Sherwin-Williams Enters Resin Game

Sherwin-Williams Enters Resin Game

Sherwin-Williams is acquiring Specialty Polymers, Inc., a leading manufacturer and developer primarily of water-based polymers used in architectural and industrial coatings and other applications. The business operates production facilities in Woodburn, Ore. and Chester, SC and employs 150.

In addition to Specialty Polymers’ significant current resin capacity, the opportunity arises to add millions of pounds of additional capacity to its footprint in the near term with relatively minimal investment.

Specialty Polymers is the parent company of Roo Glue and TorZo Surfaces.

 

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NESTEC Names Jaymie Deemer President

NESTEC Names Jaymie Deemer President

NESTEC Names Jaymie Deemer President

NESTEC, Inc. has hired Jaymie Deemer as President.

Deemer brings nearly 20 years of experience in emission control technologies and nearly 25 years in the industry. He has worked with several OEMs during his career in multiple roles including team management, business strategy, product development, applications and field service.

Jim Nester, CEO of NESTEC, Inc., comments, “We’re very excited and privileged to have Jaymie join NESTEC, further broadening our capabilities and enhancing our corporate vision moving forward. His depth of knowledge and experience, dedication and management capabilities, and focus on long-term customer partnerships will ensure NESTEC remains a valuable resource for industry.”

NESTEC, Inc. provides service and emission controls technologies including regenerative thermal/catalytic oxidizers (RTO/RCO) and wet electrostatic precipitators (WESP).

E-mail: [email protected].

 

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

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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

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PELICE Adds Keynoters, Exhibitors

PELICE Adds Keynoters, Exhibitors

Organizers of the eighth Panel & Engineered Lumber International Conference & Expo (PELICE) have announced a partial list of keynote speakers for the event, which will be held Thursday-Friday, March 31 to April 1, 2022 at the Omni Hotel at CNN Center in downtown Atlanta, Georgia, USA.

Keynoters signing on early include Scott Poole, president and chief operating officer of Louisiana-based RoyOMartin. He’ll talk about confronting the less than predictable variables in today’s business environment, and will also address the construction progress of the company’s second OSB plant at the site in Corrigan, Texas.

Jake Elston, senior vice president of Operations at Oregon-based Roseburg Forest Products, will discuss the company’s growth through geographic diversification, including project development and timberlands acquisition on the Eastern side of the U.S.

Wedig Graf Grote, chief operating officer of Swiss Krono USA, will speak about the successful evolvement through the pandemic of the new MDF facility in Barnwell, SC and address Swiss Krono’s enhanced position in North America and worldwide.

Doug Pauze, president of Coastland Wood Industries, will address the company’s continuing expansion in British Columbia and trends in veneer-plywood markets.

No building products conference is complete without an economics forecast, and Roger Tutterow, highly esteemed director of the Econometric Center and Professor of Economics and Kennesaw State University, will provide his insights and forecasts on the economic, business and political climate, including recent implications of the COVID-19 pandemic.

Several additional keynoters will be announced in the coming weeks.

In addition, PELICE will include numerous technical sessions encompassing subjects such as: Air Emissions Control; Resins & Wax; Veneer & Plywood Technologies (Green & Dry); Greenfield & Brownfield Project Planning & Implementation; Quality Control through Board Scanning & Analysis; Fire Prevention & Suppression; Press Technologies & Components; Digital Capabilities & Integration; New Normal Supply Chain. A special session will address Cross-Laminated Timber—Where It Stands Today.

The number of exhibitor sponsors for PELICE had already reached 65 by early October and nearly 100 exhibitor companies are ultimately expected to fill up the Grand Ballroom North of the Omni Hotel. The exhibitor floor is located immediately adjacent the speaker-meeting rooms.

All PELICE exhibitors are either Gold, Silver or Bronze sponsors, and this PELICE has already has signed on more Gold sponsors than any PELICE in history, with more expected.

Gold sponsors include Dürr Systems (Megtec), IPCO, TSI-Sigma Thermal, Dieffenbacher, Siempelkamp, Meinan Machinery, Cogent Industrial Technologies, Timber Products Inspection, Hexion, Raute, Biomass Engineering & Equipment and Georgia-Pacific Chemicals.

A complete list of Gold, Silver and Bronze exhibitor sponsors can be viewed at www.pelice-expo.com.

PELICE is hosted by Panel World magazine and Georgia Research Institute.

Immediately preceding PELICE will be the seventh Wood Bioenergy Conference & Expo on March 29-30 also in the Grand Ballroom North of the Omni Hotel. Many PELICE exhibitors participate in both events because their products and technologies apply to both the panelboard and wood energy industries.

Exhibitor Information: E-mail [email protected]

Presentation Information: E-mail [email protected]

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

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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

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Forest Service Says 4FRI Is Still Alive

Forest Service Says 4FRI Is Still Alive

Following its cancellation of the Phase 2 Request for Proposal (RFP) and bid selection in September, which caught everybody by surprise, the Forest Service “has gone back to work” on how to move forward with stewardship and treatment of the 520,000 acres that was included in Phase 2, which was part of the 4 Forests Restoration Initiative (4FRI) seeking to improve forest health conditions on more than 2.5 million acres across four Arizona national forests while establishing wood products manufacturing and biomass processing infrastructure.

The agency hosted an industry roundtable of 4FRI stakeholders on October 12 in Heber, Ariz. that addressed restoration strategies and “lessons learned.”

“Our critical work will continue with the goal of increasing the pace and scale of forest restoration across the 4FRI landscape,” the agency said, adding that the cancellation of Phase 2 does not affect any ongoing forest restoration or fuels reduction work, including stewardship agreements in place and plans to issue new timber sales in 2022.

“It was a surprise for sure,” comments John Godfrey, principal of Godfrey Forest Products, after the FS cancelled the Phase 2 RFP, just when it appeared the agency was about to award the winning bid on the 20-year, 520,000 acres stewardship contract.

Godfrey’s bid, apparently one of two in serious contention, included the construction of an 850MMSF oriented strandboard plant in Winslow, Ariz. Godfrey has developed several OSB facilities through the years.

The Forest Service cited “performance risk” concerns as a reason for the cancellation. The Phase 2 contract award announcement had been delayed several times since 2019 due to 13 contract modifications including reductions in stewardship acreage from as high as 800,000 acres during initial discussions. Upon the cancellation, the FS stated, “The requirements for meeting the restoration objectives (as currently defined in the RFP) are not reasonably aligned to industry needs. In addition, significant financial and investment risks remain which ultimately represents a performance risk to the government.”

In so many words, over a 20-year period what happens if FS timberlands dedicated to the project are somehow made unavailable due to fire damage or administrative withdrawal? How does the FS replace those resources and how are Phase 2 investors to be placated or compensated?

The FS statement added, “It is in the best interest of the government to thoroughly reassess the requirement so that any new solicitation issued would better address all risks to offerors and the government, including financial and investment risks.”

Gofrey remains committed to the process. In addition to a site for the plant, Godfrey’s OSB project has completed an engineering design, preliminary air work, and he has a number of contractual relationships lined up.

“It’s a great place to build a mill,” he says. “It’s in the middle of a big market. It’s also meaningful to be part of forest restoration, fire reduction and preserving the water supply. There’s no reason to throw this away. If it takes another year then that’s what it takes.”

News of the cancellation brought outcries from several stakeholders, including politicians and others. Arizona Gov. Doug Ducey and other elected officials slammed the decision, citing the federal government’s inability to step up to address wildfire risks and protect Arizona communities.

The Phase 2 setback continues a tough run for the 4FRI effort: Phase 1, initially awarded in 2012 then transferred in 2013 to its current owner NewLife Forest Restoration, and including 300,000 acres over 10 years, has been hampered due to lack of logging and conversion capacity and is just now appearing to turn the corner on infrastructure needs while the number of acres actually treated remain well below initial projections.

NewLife, which is in the process of installing a sawmill at Bellemonte, Ariz., was apparently the other major bidder for the Phase 2 contract. There was some speculation that both Godfrey’s and NewLife’s bids would be partially or fully awarded.

A big sticking point in operating the Phase 1 contract (and the same for Phase 2) is a lack of biomass markets in the state, while the overall 4FRI will require producing mountains of the low-quality material. There’s only one dedicated biomass power producer in Arizona, Novo Power, which has utilizing material produced in ongoing forest health operations in the White Mountains area, but at 24 MW can only process so much.

Novo Power, operating at Snowflake, Ariz., participated in both the sawmill and OSB bids to take the biomass resulting from those two projects.

“I was stunned by the cancellation,” comments Novo Power President Brad Worsley. “I knew that there was always a possibility of cancellation but the stated reasons for cancellation were true a year ago; the US FS should have cancelled then if the gap could not be bridged.”

Novo Power has less than two years remaining on its current PPAs. “At this point we need resolution on our PPAs so that we can move forward, invest and maintain the critical employee base that we have today,” Worsley says. “We will support whatever comes in the future but our future needs certainty now.”

Funding for forest health and forest fire prevention programs and contracts is included the Biden administration infrastructure bill that is still under debate.

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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!