Competition Drives Oregon Mill Investments

To be competitive in the wood products industry, companies must stay on the cutting edge. But to get to the forefront, wood products companies must invest in their production facilities to increase automation and efficiency, and to lower manufacturing costs, experts say.

“It’s a competitive market,” said Jon Anderson, president and publisher of Random Lengths, a wood products industry trade publication based in Eugene. “Unless people are investing in their plants, they’re going to fall behind and, ultimately, fall by the wayside probably in the tougher markets.”

In the past couple of years, Swanson Group in Springfield, Seneca Sawmill in Eugene, Weyerhaeuser in Eugene, and International Paper in Springfield have made major investments in their facilities totaling about $273 million. Such upgrades are part of a trend throughout the North American woods products industry, Anderson said. Wood products companies in the Pacific Northwest, Canada and the southern United States have improved their operations, he said.

The improvements can help firms capture market share during strong markets and allow them to stay afloat when the economy weakens. “It’s the more efficient, more productive producer that is going to survive the downturns,” Anderson said. “We’re not in a downturn now, but most of these operators have gone through ups and downs in their time, and they are going to get ready for the next one.”

Seneca Sawmill on Highway 99 in Eugene is nearing the end of a major facilities renovation, including the installation of new kilns, revamping its shipping and loading facility and expanding its log yard. Early this year, the company plans to upgrade its planer, the equipment that smooths lumber. By the time it’s finished, the firm will have spent $63 million on improving its operations.

From The Register-Guard: https://registerguard.com/rg/business/bluechip/35084194-62/competition-drives-mill-investments.html.csp

Oregon’s Rosboro Announces Sale Of Wood Products Plants

Oregon’s Rosboro Announces Sale Of Wood Products Plants

 

Wood products manufacturer Rosboro of Springfield on Tuesday announced that it has sold its manufacturing business to Wynnchurch Capital, an Illinois-based investment firm. The sale for an undisclosed amount involves seven manufacturing plants in Oregon, including Rosboro’s main facility at South 28th and Main streets in Springfield.

Wynnchurch Capital, based in Rosemont, Ill., describes itself as a “value-oriented, operationally focused private equity firm that specializes in complex transactions in the U.S. and Canada.”

Last month, Rosboro announced that it had sold its 95,000 acres of timberlands to an investment group managed by Campbell Global, a Portland-based investment firm. Rosboro also declined to disclose the sale price of that deal. Wynnchurch Capital owns 19 companies, according to its website, including manufacturing, building materials and transportation firms.

In a joint press release with Rosboro, Wynnchurch Partner Ian Kirson said, “We are excited to partner with the management team of Rosboro to continue the company’s track record of customer service, quality and innovation. Rosboro has a bright future, and we look forward to supporting the company’s growth.”

Rosboro Chief Executive Scott Nelson said, “Wynnchurch has an outstanding reputation for supporting growth and providing management teams with strategic guidance that fits perfectly into the company’s focus for the future.”

From The Register-Guard

 

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Oregon Buildings Get $200K To Test Cross-Laminated Timber

Projects in Springfield and Portland have landed a collected $200,000 as leaders test the viability of cross-laminated timber.

The funding, awarded by the Business Oregon-backed cleantech champions Oregon BEST and the National Center for Advanced Wood Products Manufacturing and Design, will back research that fast-tracks CLT as a green construction material usable throughout the U.S.

Of that money, $155,000 will go to the planned four-story Glenwood Parking Structure in Springfield. The project’s developers will use the money for research, performance testing and code documentation. The team will measure such factors as vibration, moisture, post-tension loss in rocking shear walls and seismic instrumentation. The SRG firm designed the 360-space structure.

The National Center for Advanced Wood Products Manufacturing and Design, a collaboration between Oregon State University and the University of Oregon, will perform the research and testing functions. The Carbon 12 mixed-use condominium complex in Northeast Portland was awarded $45,000 for acoustic and moisture testing.

According to Oregon BEST, U.S. architects and builders wanting to use the new material in construction projects “must negotiate a maze of additional documentation, atypical performance modeling requirements, unfamiliar construction methods and building code hurdles that can delay CLT projects and has slowed adoption of the material.”

From the Portland Business Journal: https://www.bizjournals.com/portland/blog/sbo/2016/07/new-springfield-portland-buildings-get-200k-to.html

Washington’s Olympic Panel Products Announces Shutdown

The long awaited news that Olympic Panel Products in Shelton would be closing down has finally come.

The State Employment Security Department released a layoff notice the 217 employees will be out of work starting on July 22. The news was originally announced in March of 2015, when notice came that forest products company Swanson Group Manufacturing LLC purchased the assets of Olympic Panel Products and would be moving operations to a new state-of-the-art facility in Springfield, Ore.

Cheryl Fambles, CEO of Pacific Mountain WorkForce Development Council (PMWDC), said the transition process will look a lot like what happened with the Simpson Lumber mill closure, which took place right next door and resulted in about 275 layoffs. The only difference is that employees may have an even harder time finding work closer to home. “(Simpson Lumber and Olympic Panel Products) are located side by side,” Fambles said. “The impacts in the community are cumulative.”

Before taking action, Fambles continued, PMWDC will talk to employees and evaluate to find out their plans — whether they are relocating, retiring or need retraining. Then, the organization will look for funding, including Trade Act Assistance dollars, which aids workers who lose their jobs due to international competition.

From there, Fambles said, PMWDC will continue operating the transition center in Shelton — originally erected to help Simpson workers — and hire on new peer advisors from Olympic Panel Products. That will help with paperwork, resumes, interview skills, finding a job, finding a school and other forms of assistance.

From Business Examiner: https://www.businessexaminer.com/blog/May-2016/Olympic-Panel-Products-closing-soon-with-217-layoffs/

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