Find commercial uses for 1200 tons per day of hardwood supplied by over one hundred small logging and sawmill businesses which will be displaced in the June to September 1999 time frame by the closing of our sulfite pulp mill.Background Information:
Procter and Gamble will be shutting down pulp making operations over
the next 12-16 months. Affected employees at Procter and Gamble will be
re-deployed within our manufacturing operations.
Our community wants to work with these wood suppliers to develop new
markets. A strong business development strategy can turn this situation
into a win for everyone involved. The Northern Tier Regional Planning and
Development Commission is leading a regional coalition to deal with this
issue and Jon Howard, an experienced manager in our wood supply organization,
has been appointed to work full time for the next year with the coalition.
A unified approach which cuts across government agencies and the private
sector is needed to create new opportunities for hundreds of our citizens.
The ideal solution would create new businesses and expand existing businesses
to utilize all the logs and chips currently produced. Timing is a critical
factor. The sawmills and logging operations have payrolls to meet and equipment
financing costs which must be met.
The greatest potential impact will be on the wood businesses which
supply our plant. About 75 logging businesses and 75 sawmills located within
100 miles of our Mehoopany operations supply us with about 1,200 tons of
logs and chips each day. They employ hundreds of people and use millions
of dollars worth of equipment in supplying us. In addition many other businesses,
their customers and suppliers are also affected.
1. The current pulp mill is located in Mehoopany, PA.
2. Logging companies and sawmills which supply the pulp mill are located primarily within a 100-mile radius of the pulp mill. Many of these companies use the most modern, productive, environmentally sound approaches with a sustainable forest philosophy.
3. The costs of transporting the logs and chips become prohibitive after 150-200 miles.
4. The hardwoods currently used for pulp are native species (beech, ash, maple, oak, etc.). The less desirable logs and chips are used for pulp while better logs are used for saw logs.
5. Because of ever-increasing environmental requirements, no new pulp mills have been started up in the U.S. in several years. It is unlikely that a hardwood pulp mill would be sited in the region.
6. The Pennsylvania Hardwood Association is an excellent resource on new and innovative uses for hardwoods. Some of these products include Oriented Strand Board, Engineered Structural Wood, Particle Board, Veneers, etc.
7. Several incentives are available for companies wishing to locate
in the area or companies wishing to expand existing operations in the area.
These include low interest loans, training for new employees, tax relief,
technical assistance and many others which are coordinated by the Northern
Tier Regional Planning and Development Commission located in Towanda, PA.
The interests of the region as a whole will be best served by value added wood processing industries which have track records of stability, sound business practices, good environmental practices, modern management practices and strong community involvement.
Because of the critical timing, student proposals which have a higher probability of being implemented within six to eighteen months will be most valuable.
Identify five of the most promising products which could be produced and successfully marketed to utilize the 1,200 tons per day of surplus hardwood. Provide a basis for your recommendations (i.e., what would the demand be for the product? Why? What would the likely selling price be? Raw material cost? Manufacturing costs? Transportation and marketing costs?).
List the incentives available through the Northern Tier Regional Planning and Development Commission which could be used to assist a new or expanding business.
Identify potential areas for new businesses to locate. Share your reasons (i.e., access to transportation, employees, power, water, zoning, etc.).
Develop schedules which realistically predict the major activities to implement your proposals. Also predict timing and quantities of hardwood utilized as the result of your proposal.
Detail the next steps and key resources needed to implement your proposals.
1. General Wood Products Research
a. PA Hardwood Council
b. Manufacturers' Associations
c. University Resources
d. Trade Associations
2. Get input from Regional Resources (list attached)
3. Brainstorm options
4. Analyze options by listing expected outcomes in all areas of interest (i.e., How much hardwood could be utilized? Would demand for product and economics meet needs? How soon could the option be implemented, etc.?)
5. Recommend product options and for each one suggest manufacturers,
incentives we would offer, sites available, schedule, next steps, and key
resources needed.
Kevin Abrams, Director
Northern Tier Regional Planning and Development Commission
507 Main Street
Towanda, PA 18848
717-265-9103 (Office)
717-265-7585 (FAX)
PA Hardwood Association
Jon Howard
Procter and Gamble
P.O. Box 32
Mehoopany, PA 18629
717-833-3219 (Office)