Opportunities for Underutilized Wood Regional Symposium May 1, 2018 - PowerPoint PPT Presentation

Opportunities for Underutilized Wood Regional Symposium May 1, 2018

• Chips • Bark • Sawdust Secondary Manufacturing Residuals • Dry Sawdust

 No manufacturing plant is in business to make residuals.  Residuals are produced every day as a part of your process whether you want them and have markets for them or not!  Consistent markets are an absolute necessity.  Consistent markets are not always available!

 Primary market for sawmills in the region?  Paper mills  Secondary markets?  Hardwood pellet mills  Metallurgical processes  Hardwood chips typically have the most stable market of the sawmill residuals  AWP produced approximately 190,000 tons in 2017

 Primary market for sawmills in the region?  Dependent upon mill proximity to markets  Possible markets?  Hardwood pellet mills  Charcoal  Boiler fuel  Activated carbon  Sawdust markets are generally less stable than chips  AWP produced approximately 115,000 tons in 2017

 Primary market for sawmills in the region?  Dependent upon mill proximity to markets  Possible markets?  Hardwood mulch  Seasonal business  Market demand depends upon season  Charcoal  Hog fuel  Extra expenses may be involved  Addition of bark hogs and loadouts may be necessary  Hardwood bark markets are generally the least stable of the sawmill residuals  AWP produced approximately 96,000 tons in 2017

 Primary market for wood processors in the region?  Dependent upon mill proximity to markets  Possible markets?  Hardwood pellet mills  Hardwood briquettes  Hardwood composite lumber  Animal bedding  Boiler fuel  Secondary residuals can vary widely depending upon process  Dry residuals tend to be either very valuable or worthless depending upon market availability

 Market Viability  Is this market real? Is it a viable business?  Is the customer financially stable? Can they pay within terms?  Can the customer accept delivery on a consistent year-round basis?  Logistics  What are the transportation needs required to deliver to the customer?  Will specialized equipment be necessary?  Does the customer have adequate delivery hours and facilities?

 Price  Can you cover the cost of processing material to the proper form and delivering it to the customer?  Will serving this customer require plant modifications?  What is the payback for those modifications?  Will modifying your process for this customer enhance or detract from your ability to serve other customers?  Profit???

Steps AWP has taken to better utilize Underutilized Wood?

 Long-term commitments with reliable customers  Contractual agreements  Maintaining quality products  Always living up to commitments

• Pulpwood • Some areas of the region are too far from markets to be economically viable

 Random width pallet lumber