ITC Rules China Dumped Subsidized Plywood, Injuring U.S. Mills

The International Trade Commission (ITC) issued its final determination, activating significant tariffs – nearly 200 percent – on some on imports of Chinese hardwood plywood, voting 4-0 that the domestic industry is materially injured, or threatened with material injury, by reason of these dumped and subsidized imports.

The trade group Coalition for the Fair Trade of Hardwood Plywood, which initiated efforts to get tariffs on Chinese plywood twice before times, commended the unanimous decision by the ITC, as “meaningful relief” for the U.S. hardwood plywood manufacturers. The Coalition says 42 mills have closed many more have had to reduce capacity, with a loss of 52,000 jobs in the U.S., and $2 billion in wages.

“Today’s decision demonstrates that the U.S. Government will not tolerate unfair trade practices and will support American manufacturing and workers,” said Kip Howlett, president of the Hardwood Plywood Veneer Association. “This puts American interests first by standing up to the illegal imports of Chinese hardwood plywood.”

Less exuberant are furniture and kitchen cabinet makers that favor the less expensive plywood from China, including members of  Kitchen Cabinet Manufacturers Association (KCMA), and other buyers who have lobbied against the ITC decision, which will lead to high tariffs. KCMA and other members of American Alliance for Hardwood Plywood – mostly distributors of Chinese plywood – expressed shock at the punitive tariffs that were not disclosed until President Trump returned from his recent trip to Asia following meetings with China’s President Xi.

From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/verdict-china-dumped-subsidized-plywood-injuring-usmills-says-itc?ss=news,news,woodworking_industry_news,news,almanac_market_data,news,canadian_news

Raute Receives LVL Line Order From Roseburg Forest Products

Raute Corporation has received an order worth over EUR 11 million for an LVL layup line for Roseburg Forest Products, Inc. (RFP) of Roseburg, Oregon, USA.

The present order received by Raute consists of a very high capacity LVL layup line. The line will be delivered to RFP’s new LVL mill in Chester, South Carolina, USA late 2018. The capacity of RFP’s new LVL mill will be 285,000 m3 per year and will be one of the largest capacity single LVL lines in the world. The equipment will be engineered and produced in Raute’s North American unit in Delta, Vancouver area, Canada.

The cooperation between RFP and Raute has continued for many years. Raute has delivered projects of various sizes to RFP’s plywood and LVL mills. The largest project was RFP’s first LVL line in Roseburg, Oregon, USA delivered in the year 2000.

The demand for LVL in the USA has been growing steadily in recent years. By building this new LVL mill Roseburg will be responding to that demand and intends to maintain their strong market position. Raute was selected as the supplier for the LVL layup line because of its extensive experience from earlier deliveries as well as Raute’s leading LVL process technology.

The present new order has no impact on Raute’s outlook for 2017, but it will strengthen the order book for 2018. Raute’s net sales will grow clearly and operating profit will improve clearly over the levels of 2016.

From GlobeNewswire: https://globenewswire.com/news-release/2017/07/31/1064708/0/en/Raute-receives-an-order-worth-over-EUR-11-million-to-USA.html

Oregon’s Swanson Group Plywood Mill Rises From Ashes, Will Employ 200

A plywood and veneer mill being built in Springfield will provide 200 full-time jobs once fully operational.

Glendale, Oregon-based Swanson Group is building the new mill on the site of its former facility, which burned in a 2014 fire. According to information from the company, total costs, including permitting, construction and equipment, could exceed $55 million.

While the plant is expected to be up and running in April, it likely won’t reach full capacity until August. The new mill will be roughly 345,000 square feet, located at 1651 S F St., according to company spokesperson Cameron Stewart.

Several factors pushed the company to rebuild rather than lease a different facility, including Springfield’s “proven and dedicated workforce” and its nearby timber sources, according to Stewart.

When at full capacity, the plant will produce about 20 million square feet of veneer each month, which will be turned into 10 to 12 million square feet of plywood products. Annually, it will produce some 120 million square feet of finished plywood products.

From the Portland Business Journal: https://www.bizjournals.com/portland/blog/sbo/2016/01/springfield-plywood-mill-rises-from-ashes-will.html

Slow Demand, Rising Production Stalls Lumber And Panel Markets

New WOOD MARKETS five-year forecast calls for continued volatility as North American and global lumber markets continue to recover and grow.

In WOOD MARKETS’ new five-year forecast, the short-term outlook is that North American and global economies, as well as softwood lumber and panel markets, are all forecast to improve, but at a much slower pace than has been expected. What has also short-circuited the prospects of stronger demand is a slowdown in China and Japan, impacting export markets. And the new wildcard that caused U.S. dollar prices to plunge in 2015, especially in softwood lumber, was the rapid currency devaluations of almost all major lumber producers as compared to the U.S. dollar. All of these factors have changed the WOOD MARKETS outlook to one that expects more lacklustre demand and corresponding price growth through 2018. After that, it starts to look very good.

These details and further analysis of commodity lumber and panels was released last week in the report, WOOD MARKETS 2016 – The Solid Wood Products Outlook: 2016 to 2020 by International WOOD MARKETS Group, Vancouver BC.

The supply-side dynamics feature eroding sustainable timber harvests in key provinces in Canada, resulting in dramatically lower lumber production than in the previous decade. Canada’s total lumber output will start to flatten out by 2018 with no further increases expected – just as U.S. and global demand are expected to gain momentum.

On the U.S. side, the U.S. West Coast region continues to watch log export prices in China and Japan, as many domestic log prices are correlated with export prices – this can quickly tighten the wood supply for sawmills and plywood mills as export prices rise. The U.S. South is forecast to be the only region where any significant lumber and panel production will occur, mainly due its ample, under-utilized timberland base of southern yellow pine. As lumber and panel demand increases, it is forecast that the current depressed log prices will start to move higher to feed incremental wood consumption of the expected additional panel and sawmill production.

From Wood Markets: https://www.woodmarkets.com/global-malaise-in-demand-coupled-with-rising-production-stalls-price-movement-in-north-america/

PELICE Will Address Greenfield Projects

PELICE Will Address Greenfield Projects

Written By: Rich Donnell

Organizers of the 2016 Panel & Engineered Lumber International Conference & Expo (PELICE) have announced several keynoters from the structural panel segment of the industry. Keynoters from the non-structural composite side will be announced soon.

The fifth biennial PELICE will be held April 7-8, 2016 in the Grand Ballroom North of the Omni Hotel at CNN Center in Atlanta, Georgia, USA. Hosted by Panel World magazine, PELICE in 2014 attracted 420 industry professionals who enjoyed 10 keynote presentations as well as forecasts and technical presentations delivered by 45 industry experts, supported by 75 equipment and technology companies that exhibited in the Ballroom.

PELICE will be immediately preceded by the fourth biennial Wood Energy Conference & Expo on April 5-6.

“The 2014 PELICE was refreshing because it was the first one going back to 2008 where all the talk wasn’t about the recession,” comments Rich Donnell, co-chairman of PELICE and editor-in-chief of Panel World magazine. “There was a lot of enthusiasm about projects-in-the-making. I believe that enthusiasm will continue into PELICE 2016 as housing and remodeling markets continue to climb. There will also be a definite buzz in the air at PELICE because it will be held right in the middle of the primary season for the 2016 presidential election.”

Donnell also notes that since the last PELICE there have been a number of production technology developments that will be addressed at PELICE 2016, as well as developments in engineered wood products, such as cross laminated timber, and in composite panels.

“We’ve rounded up a great lineup of keynote speakers from the structural segment of the industry,” Donnell adds. “We’ll now turn our attention to the non-structural side for additional keynoters.”

Donnell says two keynoters—Jonathan Martin, chairman & CEO of Louisiana-based Martin Companies, L.L.C.; and Steve Swanson, president and CEO of Oregon-based Swanson Group, will speak under the heading: “If I Could Build a New Plant In 2016, Here’s What I Would Do.”

Martin will address the development of Martco’s new oriented strandboard plant being built in Corrigan, Texas. The company currently operates an OSB plant in Oakdale, La., which it built and started up in 2006. Its history with OSB dates back to 1982 when it built and started up a plant in Le Moyen, La. It also operates a softwood plywood plant in Chopin, La., another greenfield project.

Martin
Swanson will address the new plywood and veneer facility Swanson Group is building in Springfield, Ore. to replace the plant that a fire destroyed in July 2014. Swanson Group operates veneer, plywood and lumber operations in Glendale and Roseburg, Ore. Swanson Group also purchased Olympic Panel Products in Shelton, Wash. in March and is relocating those assets to the new Springfield facility.

Swanson
Also on tap is Kurt Liebich, CEO of RedBuilt and New Wood Resources, both companies part of Atlas Holdings. RedBuilt manufactures I-joists, open web trusses and LVL at several manufacturing plants primarily in the Western U.S.

Liebich joined RedBuilt’s predecessor, Trus Joist, in 1994 and served in numerous senior management roles. He remained with the company when Weyerhaeuser acquired it in 1999, and was appointed vice president of Trus Joist and later VP of marketing for Weyerhaeuser’s iLevel division. When Atlas Holdings acquired the former commercial division of Trus Joist from Weyerhaeuser in 2009, it appointed Liebich as president and CEO of the company, which they named RedBuilt.

Atlas Holdings also appointed Liebich as president and CEO of Wood Resources LLC, which later sold with two plywood mills to Boise Cascade. Atlas subsequently formed New Wood Resources with Liebich as CEO. New Wood Resources operates the long-running plywood plant in Omak, Wash., and is also building a new plywood plant in Louisville, Miss., known as Winston Plywood & Veneer.

Liebich
Brian Carlson, president of OSB manufacturer Huber Engineered Woods LLC, will also join the keynoters lineup. Huber operates five OSB plants. Carlson has worked at Huber for 20 years and in various capacities prior to his promotion to president, including as product and field sales director, VP of sales & marketing and overseeing business development and strategy.

Carlson
The remaining keynoters as well as the complete agenda of speakers and technical session topics will be released in September.

As of early August, numerous equipment and technology companies had already signed on as exhibitor sponsors of PELICE. Leading the way is Babcock & Wilcox MEGTEC, which is a Gold sponsor not only for PELICE, but for the preceding Wood Energy Conference & Expo.

Early Silver sponsor exhibitors for PELICE include Baumer Inspection, Biele Wood, Brunette, Cogent Industrial Technologies, Con-Vey, Dieffenbacher, Electronic Wood Systems, Evergreen Engineering, GP Chemicals, Globe Machine Manufacturing, Hexion, Imal-Pal, M-E-C, Merritt Machinery/Meinan Machinery, Mid-South Engineering, MoistTech, Raute, Sweed Machinery, TSI/ Sigma Thermal, USNR, Venango Machine, Veneer Services, Westmill Industries, Willamette Valley, as well as Bronze sponsors Ventek and GreCon.  (Brunette, Cogent, Con-Vey, Dieffenbacher, Evergreen Engineering, GreCon, Imal-Pal, M-E-C, Mid-South Engineering, MoistTech, TSI-Sigma Thermal, Veneer Services/Bio­mass Engineering & Equipment will also join B&W MEG­TEC as exhibitors in the Wood Energy Conference & Expo.)

For more information visit https://pelice-expo.com/.