Mercer Purchases Katerra CLT Facility

Mercer Purchases Katerra CLT Facility

Mercer International Inc., a global forest products company based in Vancouver, BC, reported it received approval from the applicable Bankruptcy Court for the purchase by its subsidiary, Blue Varsity, of the cross-laminated timber (CLT) manufacturing facility in Spokane, Wash. formerly owned by Katerra for $50 million through a bidding process.

Katerra, a mass timber and modular turnkey construction business founded in 2015, filed Chapter 11 bankruptcy in early June. The $150 million CLT plant, which was commissioned in May 2019, was subsequently shut down.

The facility is located on 54 acres and is equipped with extensive automation technologies including one of the largest CLT presses in the world. The plant has capacity of approximately 13MMSF of 5-ply panels annually or 140,000 m3 of annual production.

David Gandossi, CEO of Mercer, states, “We are very pleased with our impending acquisition of the facility. It represents an attractive entry point for us into the CLT business with a near new state-of-the-art facility. It fits well with our strategy to expand in the solid wood products space and aligns with a core value to provide sustainable and carbon reducing alternatives for a warming planet.”

Mercer International has operations in Germany and Canada and reports a consolidated annual production capacity of 2.2 million tonnes of pulp and 550MMBF of lumber.

Another new facility formerly owned by Katerra, a component manufacturing plant in Tracy, Calif., was acquired through a bidding process by Philadelphia-based Volumetric Building Companies (VAC). The company defines itself as a “volumetric modular business that simplifies complex issues by integrating architecture, logistics, manufacturing, and construction into a single package to produce multifamily housing solutions in less time at a greater return.”

Katerra went through $3 billion in equity investments since its founding. In the bankruptcy filing Katerra estimated liabilities of $1 billion to $10 billion

Katerra wasn’t shy about wanting to shake up—and speed up—the conventional construction industry. In addition to building manufacturing plants, it bought everything from architectural firms, to construction firms to dirt contractors. But many of the projects it entered into appeared to experience the same hiccups and cost overruns that conventional on-site construction projects sometimes encounter, and perhaps with less quality, as Katerra tacked on substantial costs related to re-work issues.

Katerra experienced nearly $2.8 billion in financial losses in 2018, 2019 and 2020.

Both Mercer and VAC were stalking-horse bidders whose original bids prevailed for their respective acquisitions.

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September 2021

September 2021

September 2021

Cover: Flexibility Prevails At TPC-Yreka

LOUISVILLE, Mississippi – YREKA, California – Watching the new Meinan 10 ft. lathe system in action at Timber Products Co.’s (TPC’s) northern California veneer plant, TPC California Operations Manager Chris Chase says he believes it’s “the most versatile lathe in America.”

Article by Dan Shell, Senior Editor, Panel World

Inside This Issue

Taking Stock: There’s No Time Like The Future

As I write this, several of us on the editorial staff are about to head to Atlanta, Georgia where we will be exhibiting our sawmill magazine, Timber Processing, at the Southern Forest Products Association lumber machinery exposition in the Georgia World Congress Center. In fact we’re also putting on a one-day sawmill Productivity & Efficiency conference in collaboration with SFPA.

READ MORE

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

UPDATE
Laminated Veneer Lumber: The Future Of Construction, Market Opportunities

The 19th century was the era of iron. The 20th century? Concrete. But the 21st century may well be the golden era for one of the world’s oldest construction materials: timber.

Article submitted by Raute.

What’s New

EDITOR’S NOTE: The following companies submitted editorial profiles and images to complement their advertisements in Panel World September 2021.

  • ANDRITZ
  • BÜTTNER
  • CMC TEXPAN
  • CROW ENGINEERING
  • CUSTOM ENGINEERING
  • DIFFENBACHER
  • HYMMEN
  • IMAL PAL GROUP
  • IPCO
  • JOHN KING CHAINS
  • LOTUSPRO
  • PESSA IMPIANTI
  • RAUTE
  • SAMUEL PACKAGING
  • USNR
  • WEST COAST INDUSTRIAL SYSTEMS
  • WEMHÖNER
  • WEKO
  • WOODMAC
  • YALIAN MACHINERY
  • WESTMILL
Projects
  • Metro & Siempelkamp: Togetherness Is The Key – Article submitted by Siempelkamp
  • Segezha Orders From Raute
  • Merino Leaps Into Particleboard
  • Shandong Huan Makes First Board
  • Arboreal Plans CLT Facility
  • Coastland Orders Drying Line
  • VMG Group Gears Up For LVL
  • Roseburg Sells Piece Or Oregon Timberland
Supply Lines
Clippings
  • Hamilton Was Key Man For Scotch
  • MSU Model Depicts Market Variables
  • Forest Service Names Associate Chief

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New 10 Ft. Lathe Line At TPC-Yreka Veneer Plant: Better Quality, More Wide Sheets

Article by Dan Shell, Senior Editor, Panel World

YREKA, California – Watching the new Meinan 10 ft. lathe system in action at Timber Products Co.’s (TPC’s) northern California veneer plant, TPC California Operations Manager Chris Chase says he believes it’s “the most versatile lathe in America.” With the ability to peel 8, 9 and 10 ft. blocks, and handle logs from 6 in. to 40 in. while peeling a variety of species, the new lathe is making a strong case for its versatility since it went into full production early this year after starting up in late December 2020.

The primary drivers for the new lathe project were to increase the quality of veneer produced in terms of smoothness and thickness consistency and also to better align veneer production with demand from TPC’s two southern Oregon plywood plants.

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Katerra’s Vision Was Lost In Big Money

Katerra’s Vision Was Lost In Big Money

Katerra’s Vision Was Lost In Big Money

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

We are saddened by the demise of Katerra, the company that stormed in like gangbusters to put a totally new spin on how building construction is managed and completed. We’re very aware that many people in our industry are chuckling and saying “I told you so,” because many people took offense at Katerra’s brashness and many people didn’t see any way in heck that Katerra could pull off what it said it was going to do.

Katerra blew through $3 billion in a heartbeat, and we’re not feeling much sympathy for the massive Japanese holding company that kept feeding money to Katerra. They’ll be okay, considering they reported a net profit of nearly $46 billion for the recent fiscal year. And we’re not feeling too bad about the Katerra leadership who brought a Silicon Valley flavor to the endeavor. They’ve already landed on their feet just fine.

But we do feel sorry for the Katerra public relations team of people who performed duties like keeping up the web site and sending out press releases and conducting plant tours. And we’re upset over all of the workers who have quickly lost their jobs at the new cross-laminated timber facility in Spokane, Wash. and the wood components plant in Tracy, Calif. Katerra’s problem was much bigger than those plants, but the workforce suffers the consequences. And what about all of those communities with Katerra construction projects now on hold?

As this is written, the Spokane and Tracy plants and lots of other Katerra affiliate companies up and down the supply chain were planned to be put up for bid or auction toward the end of July. Maybe (and it could have already happened as you read this) somebody will step up and purchase those facilities and get them rolling again, with many of the same workers. Perhaps such a buyer will be a little more focused on the real world of the construction industry, instead of trying to defy it and reinvent it. After all, the plants themselves seem to have run okay. Our magazine visited the CLT plant in Spokane and came away impressed at the diverse technologies in there and with the supervisory team overseeing it.

Unfortunately a major roadblock the Katerra CLT plant ran into has been the tremendous rise in lumber prices. Every other U.S. CLT plant is in the same boat, unless they had developed a remarkable prearrangement of their lumber procurement pipeline.

Katerra could have had a better handle on their lumber raw material costs if it had also built a sawmill; you know, one of those $150 million, 300MMBF a year sawmills that seem to be popping up with some regularity in the U.S. It did put in dry kilns and a planer mill, which alleviated some of the lumber processing costs it would have encountered were those tasks also farmed out. But owning a sawmill to manufacture green lumber would have been nice. Then it would have been more about log procurements and log costs, and the circle would have been completed.

Of course the almost ridiculous escalation in lumber prices, coming off the pandemic, took everybody by surprise. But for a company that touted itself as the new frontier of construction, perhaps there’s no excuse for not having ownership of your raw material.

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Huber Announces Plans For New Mill In Minnesota

Huber Announces Plans For New Mill In Minnesota

Huber Engineered Woods LLC (HEW), a subsidiary of J.M. Huber Corp., has announced that it will build a new oriented strandboard (OSB) facility in Cohasset, Minn., representing a $440 million investment. The plant will increase the company’s production of ZIP System and AdvanTech structural panels.

“We look forward to being an integral part of the community and a key partner in the future success of the county and the state. We are pleased and excited to bring this new investment and set of employment opportunities to Itasca County and the surrounding areas,” says HEW President Brian Carlson. “It is our desire for our new Minnesota operations to be a shining example of our company’s commitment to building a diverse and inclusive workforce.”

Contingent upon site acquisition, approval of certain legislative initiatives and financial assistance from additional state entities, the Cohasset location will be HEW’s sixth mill in the U.S. and its first presence in Minnesota, as well as its largest capital investment to date. The new mill will expand HEW’s current production footprint of five mills located in Georgia, Maine, Tennessee, Oklahoma and Virginia and represent a production increase of 30%.

Carlson adds, “We’ve seen a strong start to 2021 and are optimistic for continued growth of our specialty products in the coming years. We are pleased to share our plans for increased production to help keep pace with the growing demands of our customers for ZIP System and AdvanTech products, as well as future innovative solutions that we strive to deliver.”

The new 750,000 sq. ft. HEW manufacturing facility will be located on more than 400 acres, and is located next to Minnesota Power’s Boswell Energy Center. Announced earlier this year, by 2035 the utility intends to close and convert Boswell’s remaining coal-fired units.

“This new chapter of growth for our company is the result of tremendous collaboration between our organization, Governor Walz and the state of Minnesota including Dept. of Employment and Economic Development (DEED), Iron Range Resources and Rehabilitation Board (IRRRB), and MPCA, and the local community, the city of Cohasset, Itasca County and Minnesota Power,” says Carlson.

“I support and recognize the significance of this project, as does my leadership team,” remarks Governor Tim Walz. “Minnesota’s state government commissioners are making the success and expedition of this project a top priority. Huber is an innovative and unique leader in the building products industry, and we are excited they are joining the successful companies that operate and thrive in northeastern Minnesota.”

This project coming to the state of Minnesota, and the selected Boswell site, is contingent upon financial assistance from IRRRB (which has voted to approve a $15 million forgivable loan requiring the plant employ at least 100 for its first six years), the state of Minnesota, DEED (which has committed to a $20 million investment in the project), the city of Cohasset, Itasca County and Minnesota Power. The manufacturing facility is projected to provide over 150 direct new jobs, while contributing growth opportunities in adjacent local industries including timber and trucking.

 

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2020 APA Safety and Health Award Winners Announced

2020 APA Safety and Health Award Winners Announced

APA–The Engineered Wood Assn. has announced the winners of its 2020 Safety and Health Awards, the industry’s premier safety award program encouraging and recognizing operation excellence with the goal of reducing injury and illness rates.

The 2020 average Weighted Incident Rate (WIR) for the industry was 7.14, an improvement over last year’s WIR of 8.11. The 2020 average Total Incident Rate (TIR) was 1.25, a nearly 22% reduction over last year’s TIR of 1.60, setting a new benchmark for the mills participating in the program. These 2020 values signify the industry’s commitment to injury prevention and the health and well-being of its employees. 2020 marks the fourth consecutive year the average TIR was below 2.00. The WIR is calculated using both the number and the severity of recordable incidents.

The Equipment-Based Innovation in Safety Award went to Resolute-LP Engineered Wood in Larouche, Quebec, for its miniature nester. After a close call with I-joist manipulation at the rework station, the team chief envisioned a simple and compact leverage concept. The I-joist bundles that came from the rework station had been manually nested, as there was no automatic nester. Fortunately, there were no serious incidents, but hazards remained. Deep depth I-joists can weigh 200 pounds or more. The miniature nester is placed on the I-joist bundle and leveraged to raise the I-joist into the proper location. This innovation has eliminated crushing and entrapment hazards to employee hands in the manipulation process. Operators are now completely outside operations, resulting in zero contact between hands and I-joists. The first tests took place in June 2020, and after conclusive tests, the mill implemented the tool, and positive results were seen immediately. Since implementation, there have been zero related incidents reported.

The Jeff Wagner Process-Based Innovation winner was Boise Cascade Co. in Thorsby, Ala., for its Lock-Out Simulator Training Board. The innovation was sparked by the vision of the plant’s safety committee to build a lock-out training board to help new-hire team members understand how to control risks associated with energy sources. The board is powered through a 120 V system and is programmable, allowing the trainer to simulate different scenarios. Each lock-out point has a hidden switch, which is connected to a programmable logic controller. During the verification phase of the lock-out procedure, the control panel will show any mistakes made by a team member when the test button is pressed. The Lock-Out Simulator Training Board was put into effect June 2020 and is now being used for new-hire training, to teach employees where to stand to help minimize the safety impact should an arc flash occur and for supervisors to complete annual refresher training.

Sixty-nine APA-member structural wood panel and engineered wood product facilities in the U.S., Canada and abroad participated in the 2020 program. A total of 17 facilities representing seven APA member companies earned awards in various competition categories. Some mills were multiple award winners.

Besides the Safest Company and Innovation awards, other competition categories include Safety Improvement (2018-2020), Annual Safety and Health Award and Three-Year Safety Award. The annual award, three-year average and safety improvement categories are divided into three divisions based on the type of product manufactured at the mill (plywood; OSB; and glulam, CLT, I-joist, LVL and SCL).

While the program awards are limited to APA members, data is collected from both member and non-member mills to provide a broad-based industry performance benchmark. A total of 80 mills reported data for 2020.

The full list of award winners:

Innovation In Safety Award

  • Equipment-Based Innovation Winner: Resolute-LP Engineered Wood; Larouche, Quebec
  • Jeff Wagner Process-Based Innovation Winner: Boise Cascade Co.–Thorsby EWP; Thorsby, Ala.

Safest Company Award

  • Three or Fewer Mills: PotlatchDeltic Corp.
  • Four or More Mills: Norbord Inc.

Annual Safety And Health Award

  • Division I – Plywood
    1st Place: PotlatchDeltic Corp.; St. Maries, Id.
    2nd Place: Murphy Plywood Co.; Rogue River, Ore.
  • Division II – OSB
    1st Place: LP Brasil; Ponta Grossa, Brazil
    2nd Place: LP Chile S.A.; Lautaro, Chile
  • Division III – Glulam, CLT, I-Joist, LVL and SCL
    1st Place: LP; Red Bluff, Calif.
    2nd Place: Anthony Forest Products Co.; Washington, Ga.

Three- Year Safety Award

  • Division I – Plywood: RoyOMartin; Chopin, La.
  • Division II – OSB: Norbord Inc.; Nacogdoches, Tex.
  • Division III – Glulam, CLT, I-Joist, LVL and SCL: Boise Cascade Co.; White City, Ore.

Safety Improvement Award (years 2018-2020)

  • Division I – Plywood: PotlatchDeltic Corp.; St. Maries, Id.; 97.6% improvement
  • Division II – OSB: Norbord Inc.; Joanna | Kinards, SC; 100% improvement
  • Division III – Glulam, CLT, I-Joist, LVL and SCL: LP; Red Bluff, Calif.; 100% improvement

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