Nothing Like Going Back

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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Roseburg announced that Tony Ramm has been named Senior Vice President of Human Resources and Labor, overseeing the company’s human resources, benefits and compensation, recruitment, and environmental health and safety teams.

Oregon Truckers File Suit Against State

Rob Freres, president of Oregon-based Freres Engineered Wood, a manufacturer of lumber, veneer, plywood and mass timber, has thrown in his support for a lawsuit filed by the Oregon Trucking Assn. and three Oregon-based trucking companies against the state of Oregon for overcharging truckers under the weight-mile tax.

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.

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Latest News

Roseburg Names Tony Ramm Senior VP

Roseburg announced that Tony Ramm has been named Senior Vice President of Human Resources and Labor, overseeing the company’s human resources, benefits and compensation, recruitment, and environmental health and safety teams.

Oregon Truckers File Suit Against State

Rob Freres, president of Oregon-based Freres Engineered Wood, a manufacturer of lumber, veneer, plywood and mass timber, has thrown in his support for a lawsuit filed by the Oregon Trucking Assn. and three Oregon-based trucking companies against the state of Oregon for overcharging truckers under the weight-mile tax.

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.

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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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Roseburg Names Tony Ramm Senior VP

Roseburg announced that Tony Ramm has been named Senior Vice President of Human Resources and Labor, overseeing the company’s human resources, benefits and compensation, recruitment, and environmental health and safety teams.

Oregon Truckers File Suit Against State

Rob Freres, president of Oregon-based Freres Engineered Wood, a manufacturer of lumber, veneer, plywood and mass timber, has thrown in his support for a lawsuit filed by the Oregon Trucking Assn. and three Oregon-based trucking companies against the state of Oregon for overcharging truckers under the weight-mile tax.

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.

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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.

 

Latest News

Oregon Truckers File Suit Against State

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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.

Endowment Welcomes New Board Members

U.S. Endowment for Forestry and Communities announces that Fritz Mason, Paul Hossain and Anna Torma were elected as new directors at the organization’s fall board meeting. “Drawing upon diverse backgrounds, they each bring a distinctive perspective and unique vision. We look forward to collaborating with them to further the mission of the Endowment,” comments Pete Madden, President and CEO of the Endowment.

FPIC At Louisiana Tech Receives Donation

Martin Sustainable Resources LLC of Alexandria, La. has donated $1 million to Louisiana Tech as a leadership gift toward construction of the University’s new Forest Products Innovation Center (FPIC), with the assurance of another $1 million to be presented by this June. The Center will be on South Campus and provide space for a transdisciplinary approach to solving the challenges…

Kadant Completes Key Knife Acquisition

Kadant Inc. has completed its previously announced acquisition of Key Knife, Inc. and some of its affiliates for approximately $156 million in cash, subject to certain customary adjustments. The acquisition was financed primarily through borrowings under Kadant’s revolving credit facility. Key Knife, a global supplier of engineered knife systems for custom chipping, planing, and flaking solutions for wood product industries, is headquartered in Tualatin, Ore. with…

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Sweet Sixteen

Sweet Sixteen

Sweet Sixteen

Taking Stock Panel World May 2019Article by Rich Donnell, Editor-in-Chief, Panel World May 2019

No, the headline doesn’t refer to the NCAA basketball tournament and the prestige of reaching the tournament’s Sweet Sixteen finalists. Rather it tells the number of Ligna shows in Hannover, Germany I will have attended, if indeed I make the upcoming one at the end of May as planned.

There are certain things in life that serve to remind us of our advancing years—birthdays obviously, marriage anniversaries, the news of a forthcoming grandchild, the age of an old truck still in the driveway. Another indicator for me is the Ligna show.

The number 16 doesn’t sound that many, except that Ligna is held every two years, and so it’s 16 x 2, and that equals 32 years, which is half of my age. In other words, I’ve been attending Ligna shows the vast majority of my adulthood.

1989 was the first one I attended. My post-show report on it spent a lot of words on Bison, the Springe, Germany manufacturer that was selling a good number of presses, including continuous, into North America then. The continuous press was overall a hot topic at Ligna. LP was cranking up several Siempelkamp versions in the U.S. Speaking of Siempelkamp, the 1989 Ligna was where it introduced the company logo it continues to adorn today. A Küsters continuous press was going in at John Godfrey’s new gypsum fiberboard plant in East Providence, Rhode Island.

Our issues of Panel World around that time were also heavy with articles on OSB. In fact 1989 was in the middle of the OSB boom in North America. We visited Huber’s new OSB mill in Commerce, Ga., and Peter Grant’s new OSB line with Dieffenbacher multiple-opening press in Englehart, Ontario, headquarters of Grant Forest Products.

We were also writing a lot about plywood in 1989, which was only beginning to feel the market pinch from OSB. Champion International renovated its plywood mill in Libby, Montana, giving the mill “new life” as our story said. Indeed the plant would run into the early 2000s under Stimson Lumber before giving out.

Information on new technologies for air emissions control began appearing with regularity, and so did advertisements from such companies as Geoenergy with its E-Tube wet ESP.

In the same issue as my post Ligna article, a barely noticeable news release reported that the U.S. Fish and Wildlife Service wanted to list the northern spotted owl of the Northwest U.S. as a threatened species. Industry interests said if that happened it would mean the loss of billions of board feet of timber harvest from federal lands per year and that the industry would tragically and permanently shrink. It happened.

One thing that hasn’t shrunk is the Ligna show. In a way, it’s like going back in time.

 

Latest News

Roseburg Names Tony Ramm Senior VP

Roseburg announced that Tony Ramm has been named Senior Vice President of Human Resources and Labor, overseeing the company’s human resources, benefits and compensation, recruitment, and environmental health and safety teams.

Oregon Truckers File Suit Against State

Rob Freres, president of Oregon-based Freres Engineered Wood, a manufacturer of lumber, veneer, plywood and mass timber, has thrown in his support for a lawsuit filed by the Oregon Trucking Assn. and three Oregon-based trucking companies against the state of Oregon for overcharging truckers under the weight-mile tax.

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.

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After All These Years GP Still Knows Plywood

After All These Years GP Still Knows Plywood

After All These Years GP Still Knows Plywood

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

Our friends Dick Baldwin and Rich Baldwin write about the North America softwood plywood industry in this issue. They note that about 28 plywood mills disappeared since pre-recession or basically in the past dozen years, leaving 58 or so in operation. They note that Boise Cascade and Georgia-Pacific have the two largest softwood plywood capacities in North America. But things happen quickly in the plywood industry, and I believe it has been since they wrote the article that Georgia-Pacific closed its plywood mill in Warm Springs, Ga. and Boise Cascade sold its mill in Moncure, NC.

Upon hearing that GP had closed Warm Springs, the editors at Panel World began guessing how many softwood plywood mills GP has left. How many do you think? Here’s a hint: They are all southern pine plywood mills. Here’s another hint: The list doesn’t include GP’s original plywood mill site in Fordyce, Ark., which started up in 1964 and was recognized as one of the first three southern pine plywood mills to start up that year (along with Kirby’s mill at Silsbee, Texas and Temple’s mill at Diboll, Texas). Neither GP’s mill at Fordyce or its mill at Crossett, Ark., which started up in 1965, made it out of the recession.

Our best educated guess is that GP’s oldest softwood plywood mill site still in operation is at Emporia, Va. GP started it up in 1966. We think the next oldest GP site still going is Taylorsville, Miss., which started up in 1969. Third oldest GP site still producing plywood? Perhaps it’s Prosperity, SC, which began production in 1975.

So that’s three GP plywood mills still ticking. But there’s more. As best as we can tell, GP still has eight softwood plywood plants in operation. In addition to Emporia, Taylorsville and Prosperity, there’s Dudley, NC, which GP started up in 1980; and plants in Corrigan, Texas; Camden, Texas; Madison, Ga.; and Gurdon, Ark., none of which, we think, GP actually started up but rather purchased.

GP started up the recently closed Warm Springs mill in 1974. The next year GP started up a mill in Talladega, Ala., which GP idled during the recession, then closed in 2016. But the Talladega site has had a resurgence. After the site sat motionless for 10 years, GP has recently started up a new sawmill there, and in fact was able to restore a couple of the barrel buildings that housed the plywood mill. I visited the sawmill in January, and a local at a nearby convenience store told me they were never so glad as when the log trucks started rolling again.

Of course it’s easy for us to toss around mill statistics, but rest assured we’re very sympathetic to the fact that each time one of these mills closes it’s a major life altering episode for the workers and their families. Unfortunately, mill closures has become a fact of life in the plywood industry, but there are signs that this segment is stabilizing, and in fact new plywood mill production has even come on in the past couple of years.

 

Latest News

Boise Announces New Investments

Boise Cascade has announced new investments in Alabama and Louisiana in support of its engineered wood products (EWP) growth strategy.

Hunt Modernizes Lathe Operations

In a significant step toward modernizing their production line, Hunt Forest Products in Pollock, La. is receiving new lathe controls and BlockLogix optimization from USNR, as well as a Bosch valve upgrade to the lathe spindles and replacing the lower portion of the core drive.

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