When Grant Led The Way

When Grant Led The Way

When Grant Led The Way

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

The story in this issue on Georgia-Pacific’s OSB plant in Clarendon County, South Carolina brings back memories. Not memories of Georgia-Pacific, but rather of Grant Forest Products, the Ontario-based company that built an OSB plant in Allendale, SC, then immediately started construction of the one at Clarendon, before undergoing financial pains during the recession and ultimately selling both OSB plants to GP (owned by Koch Industries) in 2010.

My memories go back to September 1989 when I visited Grant Forest Products’ new OSB line in Englehart, Ontario. The Grant connection to the GP story prompted me to look into my old files. I have thinned them out through the years, but some I’ve kept because the subject matter left an impression. Sure enough, the Grant file on the Englehart startup was there, fully intact, perhaps untouched in, could it really be, 30 years?

It’s a thick file. Much of the material is the literature that Grant produced for the grand opening of the OSB line, such as the layout of the plant, the history and current makeup of the company, and most impressively a colorful magazine that delves into the development of the project and its successful realization.

Another item in the file is a printout of an article, written by my predecessor Griff Griffin, that appeared in the February 1983 issue of Panel World on Grant’s new waferboard mill that had started up in 1982, one of several waferboard mills coming on line about that time. That article refers to 38-year-old Peter Grant as a “gutsy entrepreneurial.” He was the oldest of eight sons born to the late Morgan Grant, and most of them were involved in managing the various businesses founded by their father, including farming, trucking, construction and sawmilling.

Another reason the Grant file was so thick was that 30 years ago people still used typewriters, and so there are pages of my typed up interview with Peter Grant from when we sat in his office for a good hour before I toured the new OSB line.

Grant, educated in civil engineering at Michigan Tech, had worked in construction in the U.S. before returning to the family business. He became general manager of Grant Lumber’s planing mill at Elk Lake, before venturing into waferboard.

Grant told me the new OSB line cost about $75 million. It was located adjacent the waferboard line, each with their own dryers, blenders, forming line, multiple-opening press, and trim saw lines.

Peter Grant was known for his innovations and I recall the new OSB line using a combination of liquid and powdered resins, longer (6 in.) strands in the board, fines put back in the board. “We do things much much differently than anybody else does. I can assure you that,” Grant told me.

I had interviewed another waferboard/OSB pioneer, LP’s Harry Merlo, four years earlier. About the time I interviewed Grant, LP seemed to be building an OSB mill every year. I wondered then if Grant would follow such an accelerated path. He didn’t go that route, seemingly content on what he had built at Englehart, until his 2005 announcement to build two OSB plants in South Carolina.

Those didn’t pan out for Grant, but his legacy is all over them today. Meanwhile I hear that Grant has recovered nicely in the farming industry.

 

 

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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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The Year Of The Composite Board

The Year Of The Composite Board

The Year Of The Composite Board

Article by Rich Donnell, Editor-In-Chief, Panel World, January 2019

Plywood mill and OSB mill project startups in the U.S. have received a lot of attention during the past couple of years, and more are forthcoming this year, but 2019 has all the makings as the year of the composite board. Three upcoming board mill startups—with one occurring in each of the first three quarters—come quickly to mind.

Arauco is currently pushing through commissioning toward first quarter startup of its $400 million greenfield particleboard plant in Grayling, Mich. Situated on 160 acres, the 820,000 sq. ft. main building houses a 10 ft. wide by 172 ft. (52.5 m) continuous press and will produce more than 450MMSF annually, complemented by two lamination lines. Log intake began last September.

One of the cool things about this project is that Arauco has been very visible with its progress, sending out periodic updates with site photography and the status of equipment installation.

Swiss Krono is probably looking at a second quarter startup of its new $230 million HDF plant at Barnwell, SC. It’s expected to produce 170MMSF annually beyond what the existing plant there already produces. The new line will also operate a continuous press—this one 10 ft. by 101 ft. (30.5 m). The project has also added a fourth lamination line.

Expected to hit startup in the third quarter is the greenfield CalPlant I (CalAg) rice straw-based MDF plant in Willows, Calif. The $315 million plant will have a production capacity of 140MMSF annually.

Wait. Did I just say rice straw? I did, and it makes me think back to the mid 1990s when ag fiber surged out of the gate—the premise being that instead of farmers burning their crop waste and contributing to carbon dioxide and smoky haze, they could actually sell their waste to board manufacturers.

I visited several of those plants during startup back then—the PrimeBoard wheat straw particleboard plant in Wahpeton, ND; the Isobord wheat straw p’board plant in Elie, Manitoba; the Acadia Board sugar bagasse board plant in New Iberia, La. Prairie Forest Products started up a wheat straw board plant in Hutchinson, Kans. Some other companies built them and some companies announced they were planning to build them but never did.

Why did they fail? Expensive resin? Poor machinery? Weak market promotion and distribution? The scientists got it wrong?

It was about this time that the CalAg principals began researching rice straw MDF, following California state legislation that prohibited farmers from burning rice straw waste. CalAg never gave up on it, through years of trying to tie the financing shoestring but never able to tighten the loops.

At least not until last May, when the money did come together—the majority of it in revenue bonds and the rest in cash equity with an assortment of investors. This plant, too, will operate a continuous press—10 ft. by 116 ft. (35.4 m). The plant will process 275,000 tons of rice straw annually.

Maybe where others failed, this ag fiber plant has a strong sales agent going in, namely Columbia Forest Products, which was one of the minority investors.

Maybe all of those problems from 20 years ago have been solved.

 

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The Year Of The Composite Board

The Martins Do It Again

The Martins Do It Again

Article by Rich Donnell, Editor-In-Chief, Panel World November 2018

Nearly ninety-five years after Roy Otis Martin purchased Creston Lumber Mill in Alexandria, Louisiana for $32,000 and renamed it Roy O. Martin Lumber Company, the Martins have started up a $280 million Greenfield oriented strandboard plant in Corrigan, Texas.

Let that one sink in a while.

Much has been written in the pages of this magazine and elsewhere through the years about the Martin family and its remarkable forest products business, which we know best as RoyOMartin or even Martco. The family itself published a book some years ago, but as demonstrated by the new Corrigan OSB plant, it’s a story that apparently has no ending.

My familiarity with the company and its current chairman, Jonathan Martin, goes back to when he was focusing less on their pine sawmill in Castor, La., where he had been plant manager, and more on the startup in 1983 of their first OSB plant in Lemoyen, La. The company had started up the Castor sawmill way back in 1933, and the founder’s son, Ellis, who was Jonathan’s father, became plant manager there in his early years.

Many years later Ellis led the company into OSB and Jonathan took the lead on the construction of the OSB plant. Martco’s mill at Lemoyen, GP’s OSB mill at Dudley, NC and LP’s “waferwood” mill at Corrigan, Texas were the first three in the South, all reporting production in 1983. Unique to Lemoyen however was that its raw material was hardwood, as the Martins owned considerable timberland in the area packed with low grade hardwood. The company also started up a hardwood sawmill at Lemoyen shortly after.

Speaking of sawmills, as the company continued to invest heavily in OSB—starting up a second one in Oakdale, La. in early 2007 and of course the Corrigan facility this year—sawmills always had their place: Alexandria, La.; Castor, La.; Lemoyen, La.; Mexia, Ala.—all of them since sold, but now running a timbers mill adjacent the Martin softwood plywood mill in Chopin, La.

And speaking of Chopin, by the time it began production in 1996, Jonathan was president and CEO, and his cousin Roy III was executive vice president and CFO. While I had conversed with Jonathan many times, it wasn’t until 2004 when I visited the new and very impressive headquarters in Alexandria that I had the good fortune to converse with Roy. Their official titles have changed through the years, not that anybody ever had their titles straight anyway.

I don’t recall ever asking them if they felt they were lumber guys or panel guys, but I’m guessing they would respond that they are simply forest products guys and point to the 550,000 acres of certified timberland the company owns. They are also very spiritual guys, philanthropical guys and employee-centric guys. At the fear of leaving somebody out, I won’t even begin to name the talented personnel they’ve always surrounded themselves with.

I’ve always been very appreciative that they have continued to let our editors into their mills so we could write and publish articles such as the one that starts on page 10 of this issue.

May many more chapters be forthcoming.

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Arauco-Grayling Is Paving The Way

Arauco-Grayling Is Paving The Way

As of the end of August, Arauco reported 1,526,355 total project hours completed since April 2017 at its particleboard plant under construction in Grayling, Mich. The company also reported the use of 802 contractors and the hiring of 175 employees. The plant is built on an 160 acre site. The main building is 820,000 SF. In addition to the particleboard production line, which will feature a 10 ft. wide by 52.5 m continuous press, the plant will operate two thermally fused laminating lines. The photo below was taken in September, showing the paved wood yard in the foreground. The facility has received its first load of FSC wood. (Photo courtesy of Arauco)