by Web Editor | Nov 2, 2016 | News
Louisiana-Pacific Corporation (LP) recently announced that it has reached an agreement with Norbord Inc. to exchange OSB mills in Quebec, Canada. LP will swap ownership of its Chambord, Quebec, mill for Norbord’s Val-d’Or, Quebec, mill. The asset exchange is expected to be complete in early November 2016.
This transaction, along with the recent acquisition of a former OSB site in Cook, Minnesota, is part of LP’s strategy to increase siding capacity, an area of the business that has delivered consistent sales growth over the past decade.
“The Canadian mill exchange, coupled with the recent Minnesota acquisition, provides us flexibility and increases our ability to optimize our capacity for sustained business growth,” LP Chief Executive Officer Curt Stevens said.
“We have seen tremendous growth in our siding business and anticipate this growth to continue as we look to meet increasing demand,” he said. “The aim of these transactions is to provide additional siding capacity by the end of 2018.”
LP’s immediate priority will be to conduct a detailed evaluation of the Cook site and Val-d’Or mill. The assessment will determine the operational feasibility, including access to timely and adequate wood supply, the work required to convert the sites into fully operational siding mills, as well as conversion costs and annual operating expenses.
From LP Corp.: https://investors.lpcorp.com/phoenix.zhtml?c=73030&p=irol-newsArticle&ID=2217033
by Web Editor | Dec 21, 2015 | News
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/
by Web Editor | Nov 2, 2015 | News
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.
by Web Editor | Feb 2, 2015 | News
From: Panel World Staff
Arauco is investing $30 million to expand particleboard and TFL (thermally fused laminate/melamine) capacity for its Carolina Particleboard Mill in Bennettsville, SC.
The particleboard expansion, with a scheduled startup in the fourth quarter of this year, will increase production by 60MMSF (¾ in. basis or 100,000 m3) annually through increased dryer capacity. This project will also improve the plant’s flexibility to source a broader range of raw material in response to regional changes in the wood supply mix.
To complement the panel expansion, Arauco is also investing in a next generation fast-cycle press for TFL production, which is also scheduled to start in the fourth quarter. The new installation will add to the three existing fast-cycle TFL presses in the region.
The new line will further equip the particleboard and MDF site with a state-of-the-art press featuring higher throughput, faster changeover capabilities, higher pressure for deep textures and paper alignment technology for registered emboss designs. The company’s goal with these investments is to meet the growing demand for particleboard, and to broaden its TFL design offering in the region.
“These capacity and value-add investments translate into improved product sourcing options for our customers, and in turn generate additional long-term jobs for this manufacturing complex and the Bennettsville community at large,” states Mike Reardon, Regional Manufacturing Director.
