SmartLam Eyes $22 Million Maine Expansion For CLT Production

SmartLam Eyes $22 Million Maine Expansion For CLT Production

 

The nation’s first manufacturer of cross-laminated timber plans to set up shop in Maine, with a goal of creating 100 jobs at a $22 million mill, officials said Friday.

SmartLam, LLC of Montana still seeks a mill site, but has committed to building a factory in Maine within 18 months. Founded in 2012, the company produces more than 1 million board feet of the engineered wood product per month and employs 40 people in Montana’s Flathead Valley, SmartLam President Casey Malmquist said. “It is down to two sites right now,” Malmquist said in a telephone interview on Friday. “I’m just waiting to get further feedback on both of those sites and then we will be making our decision.”

“I don’t want to disclose them because I don’t want to influence the deal,” he added. “I think if they can kind of come up organically on their own rather than be influenced by one another it would be a more straightforward deal.”

SmartLam is the second maker of cross-laminated timber, a composite wood strong enough to replace steel and concrete in some types of high-rise buildings, to announce Maine expansion plans this week.

LignaTerra Global LLC of Charlotte, North Carolina announced plans at Husson University on Tuesday to build a $30 million, 300,000-square-foot factory to produce CLT in Millinocket. The company hopes to break ground in July and start production in 12 months with more than 100 workers.

From Bangor Daily News: bangordailynews.com.

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Metsa Wood Calls For Collaboration In Timber Innovation

Modular construction, using timber as a key element, is a credible solution to fast and sustainable house building. However, Metsä Wood believes that more needs to be done in terms of sharing knowledge and innovation in wood construction to further advance the use of this material in mainstream construction.

In order to help facilitate this process, Metsä Wood has launched its Open Source Wood initiative at www.opensourcewood.com. Metsä Wood’s Executive Vice President, Esa Kaikkonen, explains: “Not enough knowledge about modular wood design and building is shared, so wood construction remains niche. There is plenty of innovation but it is difficult to find, so Open Source Wood is our solution. We believe that with open collaboration the industry can achieve significant growth.”

The potential of wood is undeniable and today, offsite construction has major aspirations. Prefabricated wood elements enable fast, efficient and environmentally sound design without reducing quality. Reports on the benefits of such a lean approach are compelling: In a study of companies that have applied lean construction methods, 84% report higher quality in construction and 80% experienced greater customer satisfaction.

The report also highlights that almost 70% of projects that used prefabricated elements had shorter schedules and 65% had decreased budgets. Timber prefab construction also reduces other inconveniences such as the constant unloading of building materials, as well as the amount of on-site waste and the need to transport it.

Innovation in the house building sector is key, and offsite timber construction could be key in achieving the high volume of housing required. Using new and innovative products like Metsä Wood’s Kerto LVL (Laminated Veneer Lumber), homes constructed offsite can be turned around in a matter of weeks. Modern engineered wood products can be used for a variety of housing projects ranging from terraced and detached homes through to apartment blocks several stories high.

From Business Insider: https://markets.businessinsider.com/news/stocks/Metsa-Wood-Calls-for-Collaboration-in-Timber-Innovation-1012195818

More Record-Level Lumber Prices Expected In 2018 From U.S. Import Duties

In WOOD MARKETS’ new five-year softwood lumber forecast, the continuation of U.S. duties on Canadian lumber exports to the U.S. are expected to cause more short-term market and price volatility. The preliminary duties launched earlier in 2017 rocked the U.S. market and more of the same is expected in 2018. As we predicted one year ago, the headline for last year’s WOOD MARKETS 2017 news release was bang on: “U.S. Import Duties on Canadian Lumber to Cause Market Chaos and Soaring Prices.” Indeed, they did. The WOOD MARKETS 2018 Outlook Report predicts more chaos and the chance of further record-breaking prices.

These details and further analysis of commodity lumber and structural panels was released earlier this week in the report, WOOD MARKETS 2018 – The Solid Wood Products Outlook: 2018 to 2022 by WOOD MARKETS/FEA Canada, Vancouver BC.

The recent announcement of final countervailing (CVD) and anti-dumping (ADD) duties on Canadian lumber exports to the U.S. will cause lumber prices to remain near record levels in 2018 and even higher at various points over the next five years. This is because Canadian exports to the U.S. are forecast to ease in 2018.

“Simply put,” indicated Russ Taylor, Managing Director, WOOD MARKETS/FEA Canada, “by restricting incremental Canadian lumber exports via import duties, there may not appear to be enough lumber supplies to adequately balance with projected U.S. demand. There will need to major increases in U.S. lumber capacity (which is starting to build), more offshore imports, and/or record-level prices to stimulate more supply. The question that we have seen coming for a number of years is: Where will the U.S. get all of the lumber it needs, and at what price?”

The impact of U.S. import duties on Canadian lumber production and exports has been developed from building a cost curve of Canadian producing regions from WOOD MARKETS’ Global Timber/Sawmill/Lumber Cost Benchmarking Report. From this, WOOD MARKETS has overlaid a cross-Canada timber supply availability map with delivered log and sawmill costs to determine which producing regions (and mills) are most impacted by 20.23% (“all-others”) import duties.

Read more on this from International Wood Markets at https://www.woodmarkets.com/news-release-record-level-lumber-prices-expected-2018-u-s-import-duties/.

Moody’s: Wood Product Growth Supports 2018 Stable Outlook

The likelihood of strong profits from the wood products business, alongside higher prices and growth in paper packaging from increased e-commerce demand, will help to offset the secular declines in the printing and writing paper segment, says Moody’s Investors Service in its annual sector outlook published recently. As a result, the outlook for the global paper and forest products sector will remain stable in 2018.

“The stable outlook for paper and forest products globally next year is underpinned by an expected 2%-4% growth of our rated paper and forest products companies, as strength in the wood products and paper packaging subsectors offset decreased demand for commodity paper as the shift to digital-first alternatives continues,” says Ed Sustar, a Moody’s Senior Vice President and author of the report.

On a subsector basis, the positive outlook for wood products and timberland is buoyed by improving strong end-market demand for timber, lumber, oriented strand board (OSB) and engineered wood products as US housing starts increase about 6%, or approximately 1.28 million units, in 2018.

Bolstered by the robust demand emanating from the US homebuilding market, average lumber prices are expected to remain strong, with increased production capacity aligning to support the demand, Moody’s says. Nevertheless, analysts caution that the tight lumber markets will allow countervailing anti-dumping duties assessed on Canadian lumber exported to the US to be passed on to consumers. The issuers most expected to benefit from a combination of higher lumber prices and little-to-no lumber tariffs include Potlatch Corporation, Georgia-Pacific, Weyerhaeuser Company and Rayonier Inc.

From Moody’s Investors Service: https://www.moodys.com/research/Moodys-Wood-product-growth-supports-2018-stable-outlook-offsetting-commodity–PR_377021

Congress Gears Up For A Fight Over Mass Timber Legislation

Congress Gears Up For A Fight Over Mass Timber Legislation

 

The battle over the 2017 Timber Innovation Act is gaining momentum in Washington, D.C., where two new Senate sponsors and four new Congress members have signed on to it since this past May. The pending legislation would provide funding for research into innovative wood materials and mass timber structures above 85 feet. The bill’s proponents are hoping that it will be an impetus for transforming cities and towns across the country with a bevy of mid-rise and high-rise mass timber buildings.

“I am very impressed with the large cross-aisle support,” Chadwick Oliver, director of Yale University’s Global Institute of Sustainable Forestry, said. “You have Bruce Westerman, a Republican congressman from Arkansas and Peter DeFazio, a Democrat from Oregon who has been on the side of environmental groups. This looks like a bill that is quite serious about moving forward.”

However, the concrete and steel industries are vigorously lobbying to derail the legislation, and have established a website called Build with Strength that contains a detailed critique of the new generation of wood buildings. “It is a piece of legislation that props up one industry over another and we think that it is misguided and dangerous,” Kevin Lawlor, a spokesperson from Build with Strength, said. “We don’t think that it is safe in three-to-five story buildings, and we don’t think that it is safer in taller buildings.”

The wood products industry, the U.S. Forest Service, and other advocates claim that technological advances make the new generation of tall timber buildings more fire resistant. In fact, according to Dr. Patricia A. Layton, director of the Wood Utilization + Design Institute at Clemson University, that is because of the way it chars in a fire: By insulating its interior, an exposed wood beam can actually be structurally stronger than a steel one. “Steel loses its strength at a lower temperature than does wood,” she explained. “If you expose concrete or steel it is combustible, and it does feel the effects of fire.”

Many of the act’s supporters say that allowing buildings to be built from wood technologies such as cross-laminated timber (CLT) will result in a host of economic and environmental benefits. Most of the Timber Innovation Act’s sponsors hail from states where the wood industry is struggling to recoup from the recent housing downturn and also suffering from the decrease in demand for paper that is a result of the increasing digitalization of the economy.

From The Architects Newspaper: archpaper.com

 

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