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

• f 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