osB 20rr

Atttswontx, Vancouver, B.C., completed the purchase of the remaining 50% of Footner Forest Products and its OSB facility in High Level, Alb., from Grant Forest Products.

Ainsworth will continue to keep the High Level mill on a care and maintenance basis until market conditions support restarting production, which was indefinitely curtailed in December 2007. The company's three other 0SB mills have been operating at above 90% capacity.

C.e.o. Rick Huff said, "ln the first quarter of 2011, we continued a strategic plan that advances our ability to deliver innovative, value-added products, increases the geographic diversity of our sales, and positions the company for longterm growth. As part of this plan, we are targeting growth through key overseas markets, particularly Japan and China."

According to Robert Fouquet, v.p. of marketing & sales, sales to Japan increased after the March 2011 earthquake and tsunami. 'The phone lines in our office in Tokyo started to ring and there was an onslaught of inquiries coming in about buying our OSB, because it disrupted Japan's plywood mills, with a 30% loss in capacity,'he said. "We reacted immediately by ramping up volumes of Japanese-grade OSB at our mills and met the demand."

Geonen PlclFlc, Atlanta, Ga., reports that three of its six OSB mills continue running. lts mills have been idle in Skippers, Va., since June; in West Hope, W.V., since February, and in Grenada, Ms., since last year.

G-P is spending $30 million to complete construction of a new 0SB mill in Clarendon, S.C., which it acquired last May from Grant Forest Products. Also included in the sale were OSB mills in Allendale, S.C., and Englehart, Ont.

"We expect it will take most of this year to complete construction on the plant," said Mark Luetters, president of wood products. "Having now operated an identical plant at Allendale, we believe we will be able to quickly and efficienlly begin producing OSB.' as significant OSB-producing regions, which will have a major impact on the dynamics of the market'

"In the past decade there has been massive substitution of less expensive and more resource-efficient OSB in place of plywood, especially for sheathing in housing construction in North America," says Neufeld. "It is unfortunate that many of the OSB facilities in North America were closed as a result of the housing downturn. This would not have happened if producers had aggressively developed export markets as a hedge to downturns in North America. Over the next five years, producers will need to be more

osB 20rr

Huaen Elclneeneo Wooos, Charlotte, N.C., oontin' ues to opemte ib five OSB mills, while launching a new marketing campaign for its ZIP System 0SB wall sheathing that focuses on the energy-efficient performance benefits of the sheathing when installed with ZIP System tape.

"Building performance has become increasingly important to builders due to new energy code requirements and homeowner preferences for energy savings and comfort,' said general manager Charlie Robinson. "You can reduce air leakage by 99% compared to housewrap by taping panel seams with ZIP tape, to reduce air leakage into and out of the home. This helps protect the R-value of insulation, which reduces heating and cooling costs by an average of 10%''

RovOMmrtN, Alexandria, La., is moving into its fifth year of operation at its 0SB facility in Oakdale, La.

"Manufacturing and selling high quality value-added products is an important facet to accomplishing our longer-term operating objectives," said Terry Secrest, vice president of the OSB unit. "We focus considerable time and energy on manufacturing, marketing, and selling radiant barrier roof panels, Eclipse-Energy Guard wall panels, and WindBrace extended length panels."

The company's radiant panel products are available FSC-certified and have earned third-pafi verification from Reflective Insulation Manufactures Association International.

"Emphasis has been placed on translating the Eclipse radiant barrier product from a singular roof decking application to a wall sheathing application, which replaces traditional housewrap," said Tony Rocha, senior field sales and business development representative. "Eclipse-Energy Guard is gaining recognition in the market as a housewrap replacement. Builders are saying they save time and money by using Eclipse-Energy Guard panels."

Totxo, Vemon, 8.C., now offens T-Grade, a now, re' engineered OSB flooring for the residential market. The product is the first result of a $3.2 million upgrads to its Meadow Lake OSB facility, which began in he last quafter of 2010 and was completed in March 20'l 1

"We asked our customers how we could help them be more successful and T-Grade is the result," said Michael Sivucha, manager of strand-based marketing and sales. "Builders tell us they're looking for reliable, versatile products for use in custom, semicustom, and production homes-TGrade meets their needs " aware of global developments as the closed facilities are brought back into production."

LlNcgolRo continues to produce 0SB products at its plant in Quitman, Ga.

While plywood is still a preferred product for many applications on the basis of its quality, other regions will increasingly use OSB as a substitute where cost and resource constraints are a factor. BIS Shrapnel predicts OSB could be the next new product to emerge in China and other Asian countries.

The firm forecasts global consumption of plywood to grow at an average rate of about 57o per year, and OSB at llo/o over the five-year forecast period. The rate of growth projected for plywood consumption is higher than the fore-

Lights! Camera! OSB!

Ainsworth has released a series of short, educational videos on working with engineered wood products.

"Today's builders are certainly knowledgeable, and to some, these tips may come as refreshers," said Robert Fouquet, vice president of marketing and sales at Ainsworth. "There's always value in looking at essential tips that can ensure a successful installation. Our goal is to share some valuable howto information that can save builders time and money."

Hosted by John Wagner, a nationally recognized green building expert, the six short videos are designed for all levels, from beginners to seasoned pros.

The Tightest F/oors; Irps for Framing with Rim Board

So/rd Subf/oors.' Irps fo Reduce Catlbacks

, Prepping for Perfection: Underlayment lrps I lechnlques

, OSB 101: Irps for Successfut Watt Sheathing

, Rough Openings: Tips to Make Them Accurate Every Time

Stai Master: Tips for Buitding Sfarrs Rrghf fhe First Time casts for production, while the rate of growth for consumption of OSB is lower than forecasts for production. This suggests that there may be an undersupply of plywood and an excess supply of OSB, which will likely result in considerable substitution of OSB in place of plywood.

The entire series is available online at www. ainsworthengineered.com/tips-videos or on YouTube's Ainsworth Engineered channel. Smartphone users can also download the videos by scanning QR codes found in Ainsworth print ads.

"Builders and contractors are increasingly using portable technology in the field, and we expect this hend to continue," said Fouquet. "These videos will be available to viewers on the jobsite-right when and where they're needed."

Production of plywood is projected to increase from 2.5 billion cubic ft. in 2010 to 2.97 billion cubic ft. in 2015. and OSB from 636 million cubic ft. to 989 million cubic ft. respectively, based on current expansion plans and estimated capacity utilization rates. By 2015, North Asia will be producing 54Vo of the world's plywood, down marginally from 56Vo in 2010, and North America will be producing 77Vo of the OSB.

"However, Asia is facing a shortage of forest resources, which will only become more severe over the forecast period, and this will eventually have a negative impact on the production of plywood in the region," says Neufeld. "As resource supply tightens, there will be an opportunity for producers of resource-efficient engineered wood products, such as OSB, to export to North Asia, or to establish OSB production facilities in that region as a substitute for plywood.

"On the other hand, Russia has a huge potential resource of logs, which have traditionally been exported to North Asia and, to some extent, Europe. This supply will dwindle as Russia implements strategies to add value to its forest resources by taxing the export of logs. This will also present opportunities for establishing plywood and OSB production facilities in Russia with a view to supplying domestic and export markets."

BIS Shrapnel Forestry is forecasting strong growth in prices as the global economy moves into an upward phase. Over the five years, from 201 I to 2015, plywood prices are expected to increase by an annual average of between 6Vo and 8Vo , and OSB prices between I l%o and l2%o The price increases will be driven by much stronger demand in all regions. OSB producers could be caught short when housing construction moves into a stronger upward phase over the forecast period, considering the many plant closures in North America over the past five years.

"Upward pressure on prices is also expected to come from rising input costs as companies voluntarily, or are forced to, shift to more stringent emissions standards," says Neufeld.

The key plywood importing regions are North America (mainly United States and Mexico), Europe and Australasia. Although Japan and South Korea are net importing countries, China is a major exporter, and North Asia as a region is a net exporter. South Asia is also a major net exporting region, although India and Vietnam are net importers. These patterns are not expected to change significantly over the forecast period, although production in Africa may increase as a result of taxation on the export of logs, which will enhance export capacity.

The increased production of softwood radiata pine plywood in South America and Australasia will have a positive impact on future supply to importing regions. North America has been a small net exporting region of OSB over the past five years, but is expected to revert to a net importer over the forecast period, as the capacity that has been closed will not be brought back into production quickly enough to meet rising demand.

There is also expected to be a shortage in Europe and North Asia, based on BIS Shrapnel's production and consumption forecasts.