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.
Latest News
CalPlant I Nears The Finish (Or Starting) Line
One of the many intriguing tales to emerge from the Panel & Engineered Lumber International Conference & Expo held March 12-13 at the Omni Hotel in Atlanta was the plight of CalPlant I, the new rice straw-based medium density fiberboard plant…
Xylexpo Announces New 2020 Dates
Xylexpo, the premiere Italian woodworking trade show that sees visitors from around the world, will move away from its traditional date in May due to the disruption caused by the COVID-19 pandemic. The show will be held November 10-13, 2020 at…
Roy Martin III Paints Refreshing, Positive Picture
On March 20 RoyOMartin Chairman, CEO and CFO Roy O. Martin III provided a state-of-the-business message on the company’s COVID-19 response and company operations moving forward to employees and stakeholders…
Find Us On Social
Newsletter
The monthly Panel World Industry Newsletter reaches over 3,000 who represent primary panel production operations.
Subscribe/Renew
Panel World is delivered six times per year to North American and international professionals, who represent primary panel production operations. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative. Contact us today!