Composite Panel Industry Continues To Adjust

From: Panel World Staff

A report conducted by Forest Economic Advisors and released by Composite Panel Association says that in 2015, the total (direct, indirect and induced) impacts of U.S. CPA-member composite panel manufacturing on the U.S. economy were $7.05 billion in output, employment of more than 22,500 and wages of $1.45 billion. The Canadian composite mills’ impact on the Canadian economy were $3.41 billion (Can), employment of almost 11,500 and $724 (Can) in wages.

Economic Impact of U.S. and Canadian Composite Panel Mills” also reveals that in 2015 37 U.S. CPA-member mills had sales of $2.30 billion and 12 Canadian mills had sales of $1.34 billion (Can).

The report estimates that U.S. and Canadian composite panel facilities consumed 8.3 million dry tons of residual fiber in 2015, out of total residual supply of 76 million dry tons. On a regional basis, composite panel mills in the U.S. South consumed the most wood fiber, accounting for 2.8 million dry tons, 34% of the total in 2015.

Other findings:
— Resin costs account for 30% of composite panel production costs.
— Energy costs account for 10-20% of costs.
— Value-added shipments accounted for 31% of North American particleboard ships in 2014 and 18% of MDF shipments. For particleboard, the biggest value-added product was thermally fused laminate panels, accounting for 66% of value-added particleboard shipments.
— In 2015, the 42 composite panel mills operating in the U.S. and 12 in Canada had total capacity of 8.15 billion SF (five of these U.S. mills were not CPA members).
— In 2015, North American composite panel shipments hit 5.97 billion SF, 31% below the pre-recession mark of 8.64 billion SF, but a gradual improvement over 5.23 billion SF in 2009.

Read more in the November issue of Panel World magazine…

Composite Panel Plants Awarded For Safety Records

Fourteen composite panel facilities and one corporation as a whole were recognized for their safety achievements during the Composite Panel Association’s annual spring meeting held last week in Tucson, Arizona.

Louisiana-Pacific Corp. received the Safety Innovation Award for its Behavior-Based Safety Observation Program.

Awards were also given to participating manufacturing plants with exemplary safety records, including acknowledgments for long-term, annual, safety improvement, and safety achievement.  Awards were given to plants with low/less than 277,000 worker-hours per year (Class I) and high/more than 277,000 worker-hours per year (Class II).

The awardees for the best long-term safety record over the past three years were Arauco North America, Malvern, Arkansas (Class I) and Louisiana-Pacific Corp., Roaring River, North Carolina (Class II).

The annual safety award for having zero incidents among Class I plants during 2015 was shared by Arauco North America (MDF), Bennettsville, South Carolina; Kronospan LLC, Eastaboga, Alabama; Plummer Forest Products, Post Falls, Idaho; Roseburg, Taylorsville, Mississippi; and West Fraser Mills Ltd. (WestPine), Quesnel, British Columbia.

From Woodworking Network: https://www.woodworkingnetwork.com/wood/panel-supply/composite-panel-plants-awarded-safety-records?ss=news,news,woodworking_industry_news,news,almanac_market_data,news

Composite Panel Market To Grow 4.21% In 2016

Capacity for the North American composite panel industry is expected to increase 4.21 percent in 2016, Composite Panel Association Chairman Steve Stoler told a record crowd at the CPA’s spring meeting in Tucson, Arizona. Increased usage of engineered wood panels in cabinetry, furniture, flooring and other products is helping spur the growth.

The upward trend follows a three-year capacity decline, reported Stoler, general sales manager of Boise Cascade. Capacity is defined as the amount of panels produced, based on maximum press utilization.

“I’ve been encouraged by signs of growth an new investment in our industry after a long period of inactivity,” Stoler said, citing recent announcements of plant upgrades and new lines. The addition of three mills in Mexico also is projected to increase North American MDF capacity by 10 percent.

The CPA also projects shipments of particleboard and MDF to grow 3 percent in 2016. Last year’s shipments of U.S. and Canadian panels hit 5.561 BSF, which was up 3 percent from 2014 figures.

More than 300 people from more than 100 companies attended the April 17-20 CPA event.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/composite-panel-market-to-grow-4-percent?ss=news,news,woodworking_industry_news,news,almanac_market_data,news

Composite Panel Association Pinpoints Policy Positions

From: Panel World Staff

Jackson Morrill, president of Composite Panel Association, updated the executive committee’s recommendations on “policy positions” with regard to energy/biomass issues that impact wood fiber supply during the September Fall Meeting in Banff, Alberta.

CPA opposes government policies that distort the market for woody biomass raw material, Morrill noted, adding that market forces should determine all uses of wood and wood residuals for renewable energy; policies that have the direct effect of diverting biomass supply to subsidized energy should be avoided; and governments that choose to initiate policies intended to increase demand for biomass energy production should couple them with policies that increase the available long-term supply of wood to meet future demand of composite wood panels as well as new and growing markets for energy and other uses.

Morrill said CPA will stay silent on the carbon neutrality of wood-to-energy, noting however that forest derived biomass should be treated as carbon neutral where there is a sustainable growing forest; within carbon accounting frameworks, the composite panel industry’s use of wood residuals to make long-lived products should be treated as a higher value use than energy recovery; the composite panel industry’s use of wood residuals is an important alternate use that should be considered when determining the scope of “qualified biomass” under the U.S. EPA Clean Power Plan.

Morrill said CPA will advocate that composite wood products be recognized for their carbon sequestration benefits; that public policies should recognize that sustainably managed forests and forest products sequester and store carbon and reduce CO2; the use of biomass in creating long-lived products that serve as carbon sinks should be formally recognized in any carbon calculations that might be referenced in a future carbon economy.

13 Composite Panel Plants Named Best In Safety

Thirteen composite panel facilities and one corporation as a whole were recognized for their safety achievements during the Composite Panel Association’s annual spring meeting held last week in Bonita Springs, FL.

Arauco North America received the Safety Innovation Award for the Safety Leadership Program implemented at its particleboard and MDF mills in Moncure, NC. Arauco’s use of leadership training, monthly safety updates communications, and procedure and policy development resulted in the facilities recording their lowest incident rate in the last 15 years, while the severity and frequency of incidents also decreased. Workers’ compensation claims also dropped 90% in 2014.

Composite panel plants in the Class I (low worker-hours) and Class II (high-worker hours) were also recognized for:

• Best long-term safety record over the past three years: Del-Tin Fiber LLC, El Dorado, AR (Class I) and Louisiana-Pacific Corp., East River, NS (Class II).
• Having zero incidents among Class I plants during 2014: Arauco North America (MDF), Bennettsville, SC; Arauco North America, Malvern, AR; Arauco North America, Sault Ste Marie, ON; and Del-Tin Fiber LLC, El Dorado, AR.
• Safety improvements: West Fraser Mills Ltd. (WestPine), White Court, AB (Class I) and Langboard Inc., Willacoochee, GA (Class II).
• Achieving an incident rate of less than 50% of the industry average, over the past three years.  Class I plants were: Arauco North America, Malvern, AR; Del-Tin Fiber LLC, El Dorado, AR; SierraPine, Martell, CA; West Fraser Mills Ltd. (Ranger Board), White Court, AB; and West Fraser Mills Ltd. (WestPine), Quesnel, BC.  Class II plants were: Arauco North America, Albany, OR; Louisiana-Pacific Corp., East River, NS; Louisiana-Pacific Corp., Roaring River, NC; and Roseburg, Missoula, MT.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/composite-panel-plants-recognized-safety-achievements