We’ve got tons of great content coming at you this week from our partners, including WorkSafeBC, BC Forest Safety Council, the Wood Pellet Association of Canada, Dust Safety Science, and our sponsor experts.

The Dust Safety Week landing page, hosted on Canadian Biomass, is the year-round hub to learn best practices and find the latest information on wood dust safety.

Find the landing page here and enjoy Dust Safety Week!

The measures includes funding for eight new regional “Forest Landscape Planning (FLP)” tables focused on old-growth management, with participation from around 50 First Nations. The tables will determine if and where old-growth harvesting happens in those regions, the province said in a news release.

The announcement included news the province is doubling and expanding eligibility of its BC Manufacturing Jobs Fund. The now $180-million fund will support projects such as sawmill retooling for smaller-diameter trees or higher value wood products.

“As we work to protect more old growth, we know we need to accelerate our efforts to build a stronger, more innovative forestry industry that better shares the benefits with workers and communities. Forestry is a foundation of B.C.’s economy,” Forests Minister Bruce Ralston said in the release. “That’s why we are doubling provincial investments to help mills retrofit to get off old-growth logs and manufacture more high-value wood products right here in B.C., so we create more jobs from every tree.”

The province is taking further actions to implement its Old Growth Strategic Review this year, including:

• “developing and implementing alternatives to clear-cutting practices, such as selective harvesting techniques, that better support forest resiliency, ecosystem health and climate adaptation, through a new $10-million silviculture innovation program;
• repealing outdated wording in the Forest and Range Practices Act regulations that prioritizes timber supply over all other forest objectives, like water quality, wildlife habitat and biodiversity;
• increasing Indigenous participation in co-developing changes to forest policy through $2.4 million provided to the First Nations Forestry Council;
• protecting more old-growth forests and biodiverse areas by leveraging hundreds of millions of dollars of philanthropic donations to fund conservation measures supported by the Province and First Nations, through a new conservation financing mechanism to be set up within six months;
• enabling local communities and First Nations to finance old-growth protection by selling verified carbon offsets that represent long-term emission reductions through the new Forest Carbon Offset Protocol 2.0, which will be finalized this year; and
• completing the Old Growth Strategic Action Plan by the end of 2023, to be developed in collaboration with First Nations and in consultation with stakeholders.”

Read the province’s full backgrounder here.

B.C. First Nations Forestry Council CEO Lennard Joe said in the release the council is looking forward to working with the province to modernize forest policy.

“The province’s commitment to continue implementation of the Old Growth Strategic Review and to increase forest landscape planning opportunities for First Nations are both vital to increasing the participation of First Nations in the forest sector as full partners,” Joe said.

In a separate news release, BC Council of Forest Industries (COFI) president and CEO Linda Coady welcomed the positive steps in investments, frameworks and relationships to advance old-growth management in B.C.

“In addition to important capacity funding for Indigenous Nations and the First Nations Forestry Council, actions being taken to accelerate the old growth review process will also support land use planning at the local level. Strengthened Indigenous and local engagement on land use planning at the regional level will help ensure goals for forest health and biodiversity are met while also creating more predictability for workers, communities and forest-related businesses across B.C.,” Coady said.

Deadwood Innovations and the Nak’azdli Development Corporation (NDC) have received $1.14 million to build a pilot-scale facility that will use an innovative process to manufacture value-added engineered wood products from underutilized dead and damaged wood fibre. The pilot plant at the Tl’oh Forest Products mill in Fort St. James, B.C., has also received funding through B.C.’s Indigenous Forest Bioeconomy Program.

“The IFIT program has provided our partnership with essential contributions to design, build and develop our wood modification technology from concept to pilot. The funding closed a gap for our forest technology startup and helped position us to prepare for commercialization due diligence,” Deadwood Innovations president Owen Miller said in a news release. “Deadwood and Nak’azdli Whut’en are on the precipice of driving sustainable, valuable change in forestry; we are sincerely grateful for the support of the knowledgeable IFIT team.”

Tolko Industries is using $4.25 million in funding to expand and diversify its production beyond commodity plywood products to include specialty, industrial and engineered wood products.

“Tolko is grateful to receive funding from the IFIT program as we continue to develop innovative new products for our customers. This investment by the Government of Canada demonstrates its commitment to the future of Canada’s forest industry, and it will allow Tolko to continue to meet market demands for sustainably produced forest products while maintaining jobs in B.C.,” said Tolko president and CEO Brad Thorlakson.

Ashlee Cribb, vice-president of wood products for PotlatchDeltic Corporation, has been elected to serve as chair on APA’s Board of Trustees, succeeding Roy O. Martin III. Cribb steps into this position after being elected vice-chair earlier this year. Her areas of expertise include sales, marketing, strategic planning and operations management. Before joining PotlatchDeltic, Cribb was senior vice-president and chief commercial officer for Roseburg Forest Products. She previously held leadership positions at Georgia-Pacific, including vice president of industrial packaging. She also has 21 years of experience working in the chemical industry at Imerys Performance Minerals and Solutia, Inc. (formerly Monsanto). Cribb earned an MBA from Washington University and a bachelor’s degree in chemical engineering from Georgia Institute of Technology.

Doug Asano, senior vice-president of sales and marketing for Roseburg Forest Products Co., has been elected to fill the vice-chair position. Asano leads Roseburg’s sales, marketing, logistics, customer service and fulfillment teams. Asano joined Roseburg in 2020 as the director of sales excellence, focused on process and systems improvements and sales training. Before joining Roseburg, he worked at Huber Engineered Woods for more than 16 years in multiple commercial leadership roles, most recently as vice-president of sales and marketing. Asano started his career in investment banking at JP Morgan & Co. and then private equity at Berkshire Partners. He earned his bachelor’s degree in economics with honours from Dartmouth College and his MBA from The Tuck School of Business at Dartmouth College.

Two new members to the board include:

Stephen Williams, executive vice-president and chief financial officer of Western Forest Products. Williams joined Western Forest Products in May 2014 to assist with implementing Western’s strategic initiatives. He leads the company’s corporate finance, corporate development, investor relations, IT, shared services and legal teams. Williams is a strategic leader with more than 25 years of experience in the forest industry and extensive experience in acquisitions and divestitures. Before joining Western Forest Products, he worked at Interfor. Williams is a chartered professional accountant and holds a bachelor’s degree from the University of British Columbia. Williams is filling the vacancy left by Doug Calvert after Calvert Co., Inc. was purchased by Western Forest Products.

Richie LeBlanc, president and CEO of Hunt Forest Products. LeBlanc has been serving the forest products industry for 22 years. He began his career with Willamette Industries in Ruston, La., which Weyerhaeuser later acquired. He initially served on the integration team, charged with merging the cultures of Willamette and Weyerhaeuser. He went on to become the land adjustment program manager of Weyerhaeuser’s North Louisiana timberlands organization. In 2015, he was named director of U.S. real estate operations for Weyerhaeuser. LeBlanc was appointed president of Hunt Forest Products in 2016 and now oversees operations at the company’s Louisiana mills. He earned his bachelor’s degree in business administration and management from Louisiana Tech University. LeBlanc is filling the vacancy left by Travis Bryant as Coastal Forest Products was purchased by Boise Cascade Company.

“The engineered wood industry, like so many others, is experiencing tremendous change,” said APA president Mark Tibbetts. “We are grateful for our volunteer leaders’ service to the industry and APA.”

The company says the investments will allow them to develop new markets focused on high-quality shelving products for big box stores.

The expansion project will break ground in Q4 and extend into next year.

“We are highly integrated and these advancements allow us to add efficiencies and realize economies of scale. The two projects create further synergistic effects on sales integration, allowing us to expand our product base. Additionally, we will need to focus on hiring more skilled workers to handle the increased capacity. We are excited to break ground!” John Langstroth, San Group’s senior vice-president, said in a news release.

The company’s Port Alberni mill expansion will see the installation of an Anthem Line – a fully automized system designed to develop edge glued panels extending to eight feet.

“Anthem line’s advanced manufacturing process not only helps improve San Group’s product portfolio, but also increases the company’s push to create downstream high value products for global export,” the company said.

The Acorn Forest Products expansion will see a new auto grader and dry kilns installed. The projects are expected to enhance the mill’s output capacity and reduce waste.

San Group purchased the mill from Interfor in Q2 of this year.

Editor’s note: Read our latest profile on the company, Reman redefined: Checking in on San Group’s Port Alberni operation.

“We are thrilled to welcome Calvert’s employees to Western,” said Don Demens, Western’s president and CEO. “This acquisition is an exciting new chapter for Western as we seek to position the company as a market leader in the growing solid wood engineered product segment. The acquisition is consistent with our strategy of moving up the value chain by adding to our portfolio of value added products.”

Calvert is one of the oldest glulam manufacturers in the U.S. and has more than 60 years of experience producing high quality glulam beams in multiple species, including Douglas fir, southern yellow pine and yellow cedar, for industrial, commercial and residential projects around the world.

Calvert has manufacturing facilities in Washougal, Wash., and Vancouver, Wash., with a combined annual glulam capacity of approximately 35 million board feet on a two shift basis. Calvert’s operations employ approximately 60 employees and produced approximately 13 million board feet of glulam in 2021 on a single shift basis.

WorkSafeBC’s investigation for both incidents pointed to a combination of the concentration of dispersed wood dust in the air and friction from moving equipment. Ineffective dust control measures and maintenance oversight were found at both sites.

It’s an important reminder that complacency can be fatal, especially in industries that process a combustible material.

For the sixth year in a row, Canadian Biomass and Canadian Forest Industries turned the spotlight on dust with our annual Dust Safety Week. Over the past five days, we’ve shared on our website and social channels (#DustSafetyWeek) new and archived content from our partners to highlight best practices when it comes to dust management in wood processing facilities.

Here’s a snapshot of what we learned during the week:

1) Don’t wait for an incident: WorkSafeBC’s Alexandra Skinner wrote about the importance of reviewing dust management programs regularly. She quotes WorkSafeBC prevention field services manager Budd Phillips, who says the pandemic likely drew away resources from proper maintenance and evaluation of those programs. Now, he says, is the time to revamp dust management programs to reflect evolving operational needs.

2) Need to vent? Talk to an expert: Biomass Engineering & Equipment’s Joel E. Dulin shared practical advice on conveyor explosion venting, specifically diving into the questions about whether to choose active or passive mitigation methods or whether or not you can mitigate explosion risks without expert assistance.

3) Fire prevention strategies: Tom Burniston with Fagus GreCon wrote an overview of field-proven automated fire prevention solutions to help protect people, premises and enable uninterrupted process and production in the wood pellet industry.

4) Lessons from the past: DustEx Research’s Rose Keefe shared the story of the Murray Grain Elevator explosion. “… the events that led up to the disaster continue to replicate themselves today, and not just in the grain handling industry. Every year several people are injured and even killed in explosions at sawmills, pellet production plants, and woodworking facilities, and if lessons aren’t learned, more lives and livelihoods are likely to be lost,” she wrote.

5) Deciphering the dust hazards analysis: Jeramy Slaunwhite, a senior explosion safety engineer with Rembe, explained the what, when, why, where and how of dust hazards analysis in facilities that deal with combustible particulate.

6) Stop high-pressure compressed air dust cleaning: John Bachynski with EPM Consulting has a cautionary message for wood processing facilities: stop using high-pressure compressed air to cleanup your mill. Bachynski explains why compressed air blowdowns are the easiest way to blowup your wood manufacturing facility.

Today is the final day of Dust Safety Week 2022, and we’ll continue to share archived content from years past, which hold just as much relevance today. And don’t forget about the Wood Pellet Association of Canada’s webinar on deflagration isolation, happening Monday, July 18.

Dust safety should be top of mind year-round. That’s why our landing page (find it here – or on CanadianBiomassMagazine.ca’s top menu, under Information) is continually updated throughout the year with relevant lessons learned, solutions, and technical information to keep facilities and operators safe.

And I’d like to once again thank this year’s Dust Safety Week sponsors for making it all possible: Biomass Engineering & Equipment, Fike, VETS Group, Fagus GreCon and Rembe.

NFPA (National Fire Protection Association) 664, Standard for the Prevention of Fires and Explosions in Wood Processing and Woodworking Facilities, restricts the pressure for localized compressed air usage to 30psi and this is only after the surfaces are cleaned as much as practical with vacuum and brushes with minimum dust suspension. However in real life cleanup procedures, mill plant compressed air exceeding 100psi is more likely used. As NFPA is the fire code of Canada, violations to the fire code can cause serious injury and in some cases criminal prosecution.

The main concerns on high pressure blow down for cleanup include:

1. The high-pressure compressed air breaks down the dust particles into smaller particles creating a higher risk of explosion and increased levels of respirable suspended particulates.
2. Dormant dust is not explosive until it has been disturbed, i.e. by the compressed air. The easiest way to create a dust explosion is to use compressed air to suspend combustible dust into a flame/spark. This is exactly what is happening every time compressed air is used to suspend and distribute the fine dust.
3. NFPA (National Fire Protection Association) is recognized by the Canadian fire code and limits the accumulation of combustible dust on flat surfaces to 1/8”. This is recognized as the minimum dust depth required for the suspended dust to create a flash fire/explosion. So consider every time someone using compressed air for cleanup, it only takes a spark to create the sequence of events that can led to a catastrophic explosion.

For explosion risk, inspectors reference primary and secondary explosions. For wood shops and wood processing facilities, dormant dust is not a risk until disturbed and suspended. Once a pocket of dust becomes suspended (this could be as small as a handful of dust), The expanding fireball gains enough energy during expansion to dislodge larger quantities of dust, in some cases catastrophic. This is called the secondary explosion and can and has been deadly in wood processing facilities. The question is why would someone knowingly use compressed air to start the sequence of a catastrophic and deadly dust explosion.

The answer is human nature takes the easiest route. When using compressed air, the combustible dust appears to be cleaned as it “disappears.” This could not be future from the truth. All the compressed air has done is relocate dangerous combustible dust to another area. The combustible dust did not leave the building.

Perhaps education on the science of dust explosions would help. The math is easy, if the suspended dust reaches a concentration of 40 grams/cubic metre, it has reached what is called the minimum explosion concentration (MEC). As it is difficult for the lay-person to identify the air-borne concentration, safety professionals and NFPA have determined that 1/8” of dust depth when suspended can reach the MEC. In reality, the 1/8th inch MEC suspended dust concentration is thick enough that you could not see a 25w bulb six feet away or you could not see beams and columns on the opposite side of the facility. All are good examples, however, when doing cleanup activities and to error on the side of safety, it should be considered that any suspended dust cloud can be explosive and certainly exceeds OSHA’s STEL or TWA for respirable suspended particulate.

How do we solve this problem?

The best way to solve this problem is to install a dust extraction hood at every location where combustible dust is liberated under normal operating conditions. This is also a requirement of NFPA. For this solution, dust is captured at the source and does not leak and deposit to unsafe levels. A properly designed and installed dust extraction system can provide dust capture at the source where no dust levels exceed 1/8” between cleanup. It is expected that some dust will leak into the plant air space even with a properly designed and operating system as the complexity of some capture areas, such as a CNC machine, cause multidirectional dust patterns with sometimes complex moving hoods. It should also be noted that some hoods, for example at head pully of a conveyor, capture nearly 100 per cent of the dust.

In the absence of a properly working dust extraction system, manual cleanup will be required. The best method is by vacuum. The vacuumed dust is captured in an explosion protected enclosure and is physically removed the plant, which 100 per cent lowers the MEC and explosion risk. The main issue with vacuums is the accessibility and cost of larger vacuum trucks. Although perfect for the job, the cost can be prohibitive.

The second best manual solution is to install a vacuum system just for combustible dust. For this system, the vacuum receiver is located outside due to explosion risks and metal piping is distributed throughout the building with connections to which vacuum hoses can be attached. These systems can also be cost prohibitive.

The third solution for manual cleanup is the use of explosion proof portable vacuums, which are less costly than vacuum systems, however, they are heavy and difficult to move around the plant.

The most cost-effective temporary manual cleanup system is the use of portable vacuums (shop vacs). The use of portable vacuums can be safe, providing acceptable operating conditions for the hazardous area classification exist. Hazardous area classification follow three main guidelines.

• Zone 20 would be an enclosure where a combustible dust concentration is normal. For example, inside a dust collector. A shop vac could not be used inside these type of enclosures.
• Zone 21 is where combustible dust layers are above 1/8” and can be easily suspended, shop vacs could not be used.
• Zone 22 is where dust layers are normal under 1/8” and no suspension would result in an explosive suspended mixture.

Shop vacs cannot be used in zone 20 or 21. Shop vacs could be used to vacuum zone 22 areas providing the shop vac motor is in an unclassified area and only the hose is brought into the zone 22 area. In the case where a portable shop vac is the chosen solution it is important to recognize that over 50 per cent of ignition sources in wood manufacturing occur from a hot bearing. If the bearings are covered with dust, this is a perfect condition for a flash fire which can be the catalyst for a catastrophic secondary explosion. So if a shop vac vacuum program results in no dust is on the bearings, the risk of a primary/secondary explosion is significantly reduced.

How do we change human nature?

Once an operator has used compressed air for cleanup, it is unlikely they would be amicable to reverting to a push broom and shovel, even when they have been educated that the air hose is a major hazard. Imagine if a cleanup crew did not have any experience or even knew that an air hose was available for cleanup and they were trained to only use brushes, brooms and shovels, the cleanup would be done many times safer than blowdown.

This exact scenario is unfolding in western Canada, where facilities are successfully eliminating, due to the high risk, compressed air blowdowns and replacing it with manual cleanup with vacuums, brooms and shovels. The new hires have never seen blowdown and hence are quite happy doing the cleanup as trained without compressed air. The problem continues to be the false convenience of operator blowdown versus the harder, more effective manual cleanup, hence the new hires and new methodologies. In some cases, manual cleanup programs have been modified where manual cleanup is faster than blowdown. Considering that high-pressure blowdown does nothing to reduce the potential dust concentrations in the plant, we should consider that the new manual cleanup programs are significantly safer and many times more effective removing the dust from the building versus blowdown.

The methodology and examples described in this article are for illustration purposes only. As with any modified safety program, it is advisable to seek the experience of combustible dust specialists to assist and advise what works best for your facility.

John E. Bachynski, P.Eng, is the president of EPM Consulting Ltd.

There are multiple advantages of a having a DHA performed including due diligence towards ensuring a safe workplace; demonstrating hazard mitigation progress to authorities having jurisdiction; support for developing a plan to address and manage hazards and investment in preventative/protective safety to mitigate higher costs of combustible dust fires and explosions.

A thorough DHA will identify combustible dust hazards (fire, flash-fire and explosion) in both process equipment and plant/processing areas along with possible ignition sources for each hazard and/or area. Recommendations to reduce risk associated with the hazards should be practical and support compliance with industry standards. Practical recommendations can include options for varying levels of risk tolerance, personnel and financial resources, process/facility compatibility and reliability. Limited or overly specific recommendations as well as highly broad recommendations can be misleading, especially with reference to a specific brand or code/standard without any guidance on how to achieve compliance.

Using a common example of an unprotected dust collector located inside a plant, ranges of recommendation examples are as follows:

• Overly specific recommendation: Install Brand ABC, Model XYZ explosion protection system.
• Broad Recommendation: Protect according to NFPA 68/69
• Practical recommendations: Install explosion protection such as deflagration venting with vent ducting, (if close to an exterior wall with safe discharge area), flameless venting or chemical explosion suppression system.

The recommendations of a DHA should assist with understanding options for hazard management not necessarily the engineering for sizing and application of specific explosion protection systems. The goal at this stage is to identify and evaluate hazards and possible solutions with a plan to implement controls. Hazard control methods can be inherent hazard avoidance, engineering controls and administrative/procedural controls.

Inherent hazard management involves modification or removal of material, equipment or actions that prevent a hazardous scenario from occurring. Inherent hazard removal options are often not obvious and require an ”outside the box” perspective of typical processes and procedures. Some examples can include eliminating redundant material handling equipment or vessels and process or material handling changes to avoid unnecessary introduction of combustible particulate; If the fuel is not present, the hazard is controlled.

Engineering controls are considered any type of equipment, new or modified, that either reduces the chance of a combustible dust atmosphere occurring, prevents formation of ignition sources or reduces the consequences of a fire, flash-fire or dust explosion to a tolerable, manageable level. Some examples of engineering controls are explosion prevention, protection and isolation systems, active dust extraction, sensors, monitors and interlocks and physical barriers to limit occupancy in hazard zones. While highly effective at reducing risk, ignition source control alone is not adequate control for explosion prevention according to NFPA 69.

Administrative or procedural controls can include work tasks, operating methods and other human interactions that either reduce the chance of a combustible dust atmosphere occurring, prevent formation of ignition sources or reduce the consequences of a fire, flash-fire or dust explosion to a tolerable, manageable level. Some examples of procedural controls include site smoking policies, manual rotating equipment lubrication schedules, safe compressed air use, hot work programs and manual fugitive dust cleaning.

While arguably not a direct legal requirement of the fire code of Canada or most provincial fire codes, many organizations and authorities are performing and requesting DHAs. The objective and results of a DHA can in some cases satisfy local requirements for hazards identification and control solutions. Unfortunately, in some cases the lengthy DHA report gets shelved or filed and figuratively collects dust because it is not clear how to interpret or proceed with the hazard management recommendations. It can be daunting and intimidating trying to figure out where to start with a collection of NFPA references, technical jargon about combustible dust testing and a lengthy list of safety recommendations. While the simple answer may be to do everything, this is rarely possible due to time and budget limitations.

Most often, once the DHA is completed, the starting point should be developing a plan based on prioritization of hazards and the effort of hazard management technique implementation. The prioritization of hazards can be evaluated by risk assessment that considers the imposed consequences and the likeliness of occurrence.

The five requirements for a dust explosion. Image: Rembe.

A common approach to risk assessment is by applying a scored risk matrix where both the hazard consequences and probability of occurrence are assigned numerical values based on severity and frequency respectively. The corresponding risk ranking can be compared to a risk tolerance threshold. If the risk tolerance threshold is exceeded, it triggers an action to reduce the hazard consequence severity and/or occurrence likelihood through safety controls.

The risk scoring can be used to define priority categories and to organize an implementation plan for hazard management actions. The implementation plan, in turn, aids in planning and budgeting work to to address the most significant hazards with top priority. In some cases, this evaluation can help to identify items where a temporary solution can be considered until a permanent solution can be implemented.

The amount of effort, downtime and cost of hazard management solutions can vary widely and should be considered when developing a post DHA recommendations implementation plan. Some low/no cost recommendations can be implemented almost immediately. Even if ranked as a lower priority than other budget heavy items, the easy fixes help to get the ball rolling, reduce the overall site risks and build a mindset of safety culture. These small fixes can add up and demonstrate starting progress while waiting for budgets, equipment and labour resources. For example, dust explosibility testing is useful and highly recommended for the optimized design and development of explosion protection systems although not a prerequisite to managing fugitive dust accumulation and leaks.

Some of the largest risks from combustible dust are excessive dust layer accumulations in building and process areas which, if suspended and ignited, could create a large catastrophic explosion. Dust accumulation layers are typically a result of fugitive dust leaks in material handling and processing equipment. One of the most effective hazard mitigation strategies is to actively fix and manage fugitive material and dust leaks along with targeted cleaning programs to maintain dust layers below critical thresholds.

Other top priorities should be areas and equipment with a history of sparks, smoulders or fires and inherent heat sources such as mills and dryers. Other top priority items include high consequence hazards specifically on personnel. High consequence examples are explosions in equipment located inside the plant, explosion vent discharges to occupied areas and secondary explosions from unisolated equipment such as dust collectors, bins and silos.

Fire and explosion risks will rarely be completely eliminated but taking the first steps following a DHA to get started with a prioritized plan can quickly start reducing likelihood and potential consequences of combustible dust hazard events.

Jeramy Slaunwhite, P.Eng, is a senior explosion safety engineer with REMBE Inc.

Passive or active mitigation?

Where an explosion hazard exists, the facility owner has the choice to address it with active or passive mitigation devices. Active systems are more complex. These rely on a sensor to trigger a suppressant-containing device and are set up with electrical controls that can include fault modes to prevent unwanted release of the suppressant.

However, the complexity of these systems is a downside, as more can go wrong. Also, technicians may need to clean their conveyors after the suppressant has been released – a chore that can lengthen the downtime of an already disruptive event.

Passive mitigation is simpler and arguably safer than active systems. Jason Krbec, engineering manager at CV Technology, advocates for passive devices for this reason. In an interview with Dr. Chris Cloney on the Dust Safety Science podcast, Krbec insisted passive systems are “readily available” and “failsafe,” which gives them an advantage over tuned, active systems. Passive devices, he said, are “designed to open at a preset pressure. … And once that pressure is exceeded, they open, whether it’s for a deflagration event, explosion event, or a process reason.” In other words, there is no off mode for a passive system. The system is always ready to perform. Its simplicity makes it reliable.

Cloney followed up on Krbec’s point by comparing passive and active systems. “A passive system doesn’t need a controller,” he said. “No wiring. No redundant sensors. If it’s failsafe, it’s even better. It has less chance of things going wrong.”

But simplicity is also the downside of these systems. Because passive systems are designed to open whenever the pressure reaches a certain threshold, process changes that affect airflow may cause the vents to open when a deflagration has not occurred. Vents are getting better in this regard, however. Krbec said vents are configured to higher tolerances nowadays to avoid them opening when they shouldn’t, though expert engineering is required to make a passive system a “set it and forget it” solution.

But those tolerances are only as good as the data a conveyor manufacturer provides about the pressure capabilities of their system. Getting that data takes effort, and not all conveyor manufacturers go through the rigorous testing required to obtain it, which can include computer analysis, field testing, and third-party evaluation.

Engineers who design blast vents for conveyors need accurate information because the pressure characteristics affect the mitigation system’s design. A conveyor with a strong frame, for example, needs fewer and smaller vents than a conveyor with a weaker frame. So, if a conveyor manufacturer provides inaccurate information, such as overestimating the strength of their equipment, the vents designed for it may fail to prevent an explosion.

Can you DIY a mitigation system?

These concerns underscore the fact that mitigation is too specialized to attempt without consulting an expert. Yet we know that wood-industry professionals prefer to do things themselves. If they can strap a solution together, it’s what they do. Large companies are no exception. Plus, they have engineers on staff to handle complex issues.

But the knowledge required to design a reliable mitigation system that conforms to NFPA standards is highly specialized. NFPA 68 alone has some 84 pages of codes, tables, calculations, and exceptions for explosion mitigation devices, and missing one detail can put a facility out of compliance. Worse, it may nullify the system’s effectiveness.

Bernardo Sanson, a sales engineer with CV Tech, spoke to this point on a recent call, saying, “Ventilation requires expertise in the sense you’re required to know and be able to determine the burst pressure of the explosion panels. In the past, they were manufactured without much control for bust pressure. So, without knowing that, you don’t know the side effect a deflagration would have on your conveyor or the atmosphere. That’s only determined with testing. Plus, you have to be compliant with ATEC’s approvals in quality and protocol (as they relate to testing and manufacturing controls).”

Army Test and Evaluation Command approval isn’t likely something a wood processor will get from a panel designed by a staff engineer and manufactured in a company fab shop. Manufacturing intricacies are yet another reason to rely on professionals for this service and not attempt a do-it-yourself solution.

Post-installation care

DIY efforts do come into play post instalment, of course. While passive systems require less care than active systems, they still need attention. As with other systems, plant personnel must know how post-instalment work may affect them and how they wear over time.

According to Krbec, it’s not uncommon for technicians to add insulation to blast panels on their equipment. This is a problem, as insulation adds inertia to the panel and affects how it will perform in the event of a deflagration. The same idea holds for changes to the conveyor the vents protect. For example, replacing a top or bottom panel with material thinner than original equipment manufacturer specifications makes the conveyor weaker. Because the system’s parameters have changed, the vents may no longer adequately protect it.

Adding components around a blast panel likewise can affect how the system performs. Objects placed to the side of a panel may deflect energy up and increase the distance the fireball travels. Changes to the material inside the vessel may also affect the system, as can process changes that add vibrations or alter the air pressure. Due to the complexities associated with mitigation it’s best to consult the blast panel’s manufacturer before making changes.

Plant personnel must also maintain blast vents to ensure they remain functional. Panels must be kept free of debris, snow, ice, and large amounts of dust. They may also need protection from pests and precipitation. Furthermore, panels are not rust-proof, and vibrations will weaken them over time. A panels manufacturer can provide the best estimate for a panel’s expected lifespan.
Because mitigation systems are so nuanced, it’s best to talk to an expert before altering anything that may affect them.

Professionals understand the ins and outs of these systems – what’s required, what to avoid, and how to manufacture devices to code. The forest of information on mitigation and dust safety may be thick, but such experts can help you navigate it. Speak to one to ensure the safety of your facility. It’s the most practical advice you can get.

Joel E. Dulin is the director of marketing for Biomass Engineering & Equipment.

“Tragically, we know too well that if combustible dust is not managed properly, it can catch fire and burn or cause a deflagration and explosion, potentially resulting in serious and life-threatening injuries to workers,” says Budd Phillips, prevention field services manager at WorkSafeBC.

Over the past decade, WorkSafeBC has seen significant progress to ensure the hazards associated with combustible dust are effectively managed, by working alongside industry partners and employers to share and promote tools, techniques and knowledge about wood dust mitigation and control.

However, recent factors such as the COVID-19 pandemic and timber supply issues have impacted plant operations and changed the work environment in many mills and wood processing facilities. In addition, the risks can be hard to spot. Combustible dust can accumulate in out-of-site areas like basements, ceiling beams, and trusses.

“Over the past couple of years, manufacturers have been impacted significantly. Many have had to vary their production levels or reduce their workforce, which may draw resources away from proper maintenance and evaluation of dust management programs — leaving them vulnerable to potential hazards,” Phillips says. “Employers need to stay focused.”

Regular assessment is key

Phillips says now is the opportune time for all employers to revisit their dust management programs. “Dust management programs should be constantly evaluated to ensure they meet the needs of current operations and keep workers safe.”

This begins with a risk assessment to determine what operations are generating dust and where vulnerabilities exist in any given workplace. Find someone qualified – such as a health and safety professional or industry representative – to assess the fire and explosion risks associated with combustible dust.

“Look at your processes, equipment, and buildings to ensure you can accurately evaluate your current handling practices, equipment, fire extinguishing systems, and other dust mitigation efforts,” Phillips says.

Risks should be logged in a comprehensive report that is readable and well-presented. When the risks are clearly defined and understood, optimal controls can been identified, and implemented – typically through a combination of robust cleaning programs and engineering controls – to mitigate dust build-up when it exceeds allowable limits.”

“While cleaning processes are important, there is also a human factor to consider,” adds Phillips. “Ensuring cleaning crews are conducting proper assessments and can keep up with the pace of work can sometimes be challenging in a plant that generates lots of dust.”

Capture dust at its source

Phillips says that high-speed chainsaws can generate 33 pounds of sawdust per minute in multiple locations, which is why capturing dust at its source is critical to a successful dust management program.

Employers should examine ventilation systems to ensure proper airflow and have mechanisms to encapsulate dust such as covering conveyers. Employers should also ensure proper electrical cabinetry is in place and cleaned properly so it does not become an ignition source.

Phillips notes that technology for dust management has improved over the years.

“There are many engineering controls available that extract excess dust more effectively and also help monitor dust levels. For example, some mills have comprehensive monitoring systems that include new sonic fans that help remove dust from high elevation surfaces.”

However, enhanced technology does not replace the need to consistently evaluate dust management programs to ensure they’re sustainable. Plans should be re-evaluated and new risk assessments should be done if any of the following occur:

• Staffing changes
• New or different work duties for staff
• Equipment changes: including new equipment, upgrades, or downgrades.
• Structural changes to the facility
• Operational changes, including changes in production levels or processes.

“The smallest change in personnel or operations could make a difference, so employers must regularly evaluate their programs to ensure they have the capacity required to keep dust levels below the allowable limits,” says Phillips.

Even if nothing changes in a workplace, employers should review their programs at least once a year to ensure they meet occupational health and safety standards, and do not put workers at risk.

Phillips says most employers know their business and are aware of where and when dust is generated. The challenge is determining how best to control it and mitigate it.

Engineers that specialize in ventilation can also provide employers with a detailed assessment of a system’s effectiveness.

Updating legislation to reflect the risk

WorkSafeBC’s prevention efforts, inspection initiatives and collaboration with industry partners have been successful in combating combustible dust in wood manufacturing.

One of the challenges, however, is providing guidance and regulation to support smaller operations and other industries that face similar risks.

“Current legislation does not address all industries that are generating hazardous amounts of combustible dust, like cabinet shops for example,” Phillips says.

Pulp and paper waste, commercial laundry facilities, iron fillings, and sugar plants are just a few examples of the thousands of manufacturers that could experience catastrophic outcomes if dust levels from those products accumulate over certain levels.

“Our current regulations for combustible dust are minimal in terms of what we can require for combustible dust programs, and are limited to specific employers groups,” explains Phillips. “Since our combustible dust strategy was developed in 2012, we realized that there is a significant risk in many industries that needs to be addressed to keep workers safe.”

New proposed legislation changes are being considered right now in B.C., and are currently in the consultation phase, with input welcome from employers, workers, and industry groups. These revised regulations that will become part of the B.C.’s Occupational Health and Safety Regulation providing WorkSafeBC prevention officers with the opportunity to enforce safety programs in a broader range of industries.

A decade of lessons learned

In the 10 years since the sawmill explosions in Burns lake and Prince George, there has been significant progress and tangible improvements in managing hazards associated with combustible wood.

As other provinces across the country embark on their journeys to create combustible dust programs, Phillips encourages collaboration so industry partners and employers all benefit from the lessons learned.

“We owe it to those who lost their lives or were injured to never forget the impact those explosions had on their families, their job sites and their communities – and to remain vigilant in order to prevent a tragedy like that from ever happening again,” Phillips says.

Resources

To support employers in evaluating their dust management plans, WorkSafeBC has developed several resources that are available on their website.

• Combustible Wood Dust Management Program Development Guide | WorkSafeBC
• Combustible Wood Dust Mitigation and Control Checklist | WorkSafeBC
• Managing risks in manufacturing workplaces: Assessing risks — Combustible dust | WorkSafeBC

Alexandra Skinner is a manager of government and media relations with WorkSafeBC.

Fagus Grecon
Common causes of fires are heat, sparks, embers, and hot particles. One of the most efficient measures to prevent fire or dust explosion is the early identification of the ignition source. Fagus GreCon’s new DLD 1/9 Spark Detector offers additional protection to industries with new intelligent detection technology (IDT). IDT not only identifies hazardous moving ignition sources before a fire breaks out, but the DLD 1/9 detector is also able to differentiate between dangerous sparks or harmless incidence of extraneous light due to leaky/damaged pipes or an opening of an inspection flap.
www.grecon.us 

IEP Technologies
IEP Technologies provides a complete range of cost-effective industrial explosion protection for explosion protection solutions and is pleased to introduce the IV8 Flameless Vent. The IV8 provides an explosion protection solution for process vessels which are located inside a building or other areas where standard explosion venting cannot be safely employed. The IV8 utilizes a stainless steel explosion relief vent and flame arresting mesh enclosed in a durable carbon steel coated frame. The integrated vent burst detection sensor allows plant personnel to respond accordingly in the event of an explosion within the protected application.
www.ieptechnologies.com 

Kice
Kice Industries has been designing and building dust control systems and equipment for over 70 years, giving them valuable insight as to what works – and more importantly – what doesn’t work. When designing a dust control system, one must consider many factors ranging from the amount of dust emissions being created to the overall layout of the plant they are designing the system for. Every application is unique, and so Kice’s dust control systems and industrial air filtration systems are all designed and constructed specifically to meet clients’ needs.
www.kice.com  

BossTek
A new equipment design has been engineered to provide an unmatched level of mobility and performance, delivering effective particle suppression for new and existing applications.  The DustBoss Atom from BossTek is a fan-less, self-contained unit that incorporates remote control and 4G LTE telematics technologies to deliver an unprecedented combination of suppression and monitoring. The Atom is well suited to biomass handling, bulk material processing, demolition projects, recycling operations, transfer stations, ports/shipping applications, quarrying/crushing, concrete curing and even indoor operations.
www.bosstek.com  

CV Technology
CV Technology’s Interceptor-HRD Chemical Suppression System comes with the advantage of utilizing the latest advances in consumer electronics. The Interceptor-HRD Suppression System is capable of protecting very large dust collectors that are common throughout the biomass industry. The controller of this system is called The CONEX and it features the ability to operate up to eight independent operating zones at a time. A user interface is provided by an LCD screen, push button navigation, and signaling lights on the front of the controller enclosure. The interface includes a searchable data log and electrical lockout key switches for each zone.
www.cvtechnology.com  

Fike
For indoor applications, explosion vents as a form of explosion protection often requires flameless vents. A flameless vent consists of a box with a flame filter which is placed over a vent panel. When the vent opens, the pressure is relieved through the wired mesh of the flameless vent while cooling the flames below their MIT (minimum ignition temperature) so they are extinguished. Fike FlamQuench vents feature a variety of shapes and sizes available, minimizing required surface area on equipment; virtually zero safety distance due to effective particulate retention; and performance validated with many dust types, including fine, coarse and fibrous dusts.|
www.fike.com  

Advanced Cyclone Systems
Advanced Cyclone Systems is a company exclusively dedicated to the development and commercialization of high efficiency cyclone systems, worldwide. The company works in a very close cooperation with its clients in order to design custom made cyclone systems that really solve their unmet needs. ACS became a worldwide reference in cyclones, with over 350 successful installations in 37 countries and with several installations in Canada for biomass boilers applications with companies like KMW Energy, Clermond Hamel, Deltech, Fontaine Lumber, among others.
www.advancedcyclonesystems.com  

Scientific Dust Collectors
Scientific Dust Collectors offers a free third edition publication on dust collection titled, A Scientific Review of Dust Collection – Third Edition . It reviews the history, theory and application of all types of dust collection equipment. This third edition contains updated information on system design, filter media, explosive dust control and additional information on the new standard in measuring dust collector performance: ANSI/ASHRAE Standard 199.  This is the first and only standard as it relates to dust collection equipment, and is a valuable tool in reviewing dust collection equipment for your facility.
www.scientificdustcollectors.com 

VETS Group
VETS Sheet Metal celebrated a century of business in 2021. VETS provides industrial, light industrial and institutional HVAC systems. Whether make up air or cooling MCC rooms or a specialization in dust collection and pneumatic conveying, every application requires a unique approach. VETS’s experienced trades coupled with our specialized in-house Engineering department (P.Eng & E.I.Ts) can help engineer, design, fabricate and install a system that meets or exceeds a plant’s comfort, safety and environmental requirements.
www.vetsgroup.com

Allied Blower
For wood processing facilities demanding larger system capabilities, Allied Blower & Sheet Metal has a certified line of Back Blast Dampers (BBD’s) that reach sizes up to 50 inches in diameter. The BBD can resist a vented dust collector explosion reaching a Pred of five psi (0.35 bar) for dusts with a Kst of up to 200 bar-m/second. This range provides safe operation for a large range of deflagrable dusts used in industry. When comparing the options of using a passive mechanical system or an active chemical suppression system, the mechanical systems are perceived to have less maintenance costs due to simplicity in function, design, training requirements, and the low frequency of inspections.
www.alliedblower.com

We’ve got tons of great content coming at you this week from our partners, including WorkSafeBC, the Wood Pellet Association of Canada, Dust Safety Science, dust safety expert John Bachynski, and others.

The Dust Safety Week landing page, hosted on Canadian Biomass, is the year-round hub for pellet plant operators and sawmillers to learn best practices and find the latest information on dust safety.

Dust Safety Week 2022 is generously sponsored by VETS Group, Biomass Engineering & Equipment, Fagus Grecon, Fike and Rembe.

Find the landing page here and enjoy Dust Safety Week!

After a $28 million investment, Tafisa officially inaugurated its new 70,000 sq. ft. plant and announced new investments of $34 million to expand its main plant.

“The Government of Canada is pleased to be providing $4 million in investment for this innovative project in partnership with Tafisa. This represents an investment in jobs, clean growth and innovative forest technologies and products in Lac-Mégantic, Quebec, and across Canada,” said Jonathan Wilkinson, Minister of Natural Resources.

A new plant to better serve the market

Dedicated to the production of a collection of lacquered panels called LUMMIA, the new Tafisa plant offers manufacturers and consumers a product with unparalleled characteristics and superior to any other offer currently available.

In addition to having the capacity to manufacture two high-end finishes, the plant is equipped with state-of-the-art technology unique in North America. To carry out this major project, Tafisa received the support of various agencies such as:

– Natural Resources Canada through its Investments in Forest Industry Transformation (IFIT) program, which aims to create a more competitive and resilient forest sector by focusing on low-carbon projects that result in new or diversified revenue streams.

– Ministry of Forests, Wildlife and Parks within the framework of the Programme Innovation Bois Wood Innovation Program, which aims to support innovative projects for the processing of forest products while promoting the diversification of the supply of factories by encouraging the processing of wood of inferior quality.

– Town of Lac-Mégantic which aims to support investments in new capital assets made in the Lac-Mégantic industrial park.

– Investissement Québec through its Essor Program.

“We are very proud of these innovative projects, which will allow Tafisa to continue to distinguish itself in the market, pursue its commitment to its North American customers and offer them innovative and quality products. A special thank you to our partners and our team for their efforts and energy, without which these achievements would not have been possible,” said Louis Brassard, CEO of Tafisa.

Sixth TFL line: additional investments of $34 million

Tafisa’s main plant. Photo: Tafisa

Always striving to better meet future market needs, Tafisa is also expanding its main plant, a project that calls for additional investments of $34 million. The installation of a sixth TFL production line and the expansion of the finished product warehouse are an integral part of this phase of the project.

The new production line will be in operation in the fall of 2023 and will increase the proportion of panels that will be laminated with the ability to produce decorative panels with two-sided synchronized embossing texture, improve internal flows and service reliability to North American customers.

These new investments allow Tafisa to remain the manufacturer offering the most comprehensive range of decorative surfaces to industry professionals. Tafisa also offers particleboards, decorative panels, laminate panels and mouldings for the manufacture of cabinet doors, all available under one roof.

“The Town of Lac-Mégantic is a proud partner of these innovative projects. By providing financial support for companies in the industrial park equivlent to 15% of the added value to the assessment roll, we are consolidating the companies present in our territory and thus, working towards the industrial dynamism of our community,” said Julie Morin, mayor of Lac-Mégantic.

Learn more: www.tafisa.ca.

Now in its sixth year, Dust Safety Week’s landing page is the year-round hub for pellet plants and solid wood product manufacturers to learn best practices and find the latest information to keep their operations and operators safe.

Follow along all week as we will highlight feature stories, columns and research reports both from our archives as well as brand-new stories from contributors across Canada.

Find the landing page here, and stay tuned to our websites and social media (#DustSafetyWeek) for more information as we approach Dust Safety Week 2022!

Thank you to our generous sponsors for making Dust Safety Week possible: VETS Sheet Metal, Biomass Engineering & Equipment, Fagus GreCon, Fike and Rembe.

The Val-d’Or mill’s new continuous press will feature the latest in particleboard production technologies. Construction will begin in the summer of 2022 and start-up is targeted for 2025. Approximately 190 people will be employed at the plant when the project is completed.

This investment is the third phase of Val-d’Or’s investment plan and affirms Uniboard’s leadership in the North American engineered wood products sector, said Lionel Dubrofsky, chairman of Uniboard.

“When completed, we will have invested over $350 million in the Val-d’Or plant over the course of three phases, making it the most advanced particleboard plant in North America. Uniboard will rank as one of the leading integrated producers of TFL, particleboard and MDF. Val-d’Or is renowned for its black spruce fiber making our particleboard unmatched in the North American market,” added Dubrofsky.

In announcing CED’s repayable contribution of $10 million for Uniboard, Minister Pascale St-Onge, Member of Parliament for Brome–Missisquoi, Minister of Sport, and Minister responsible for CED said, “Quebec businesses are at the core of our communities as they develop and are part of our government’s economic recovery plan. We are determined to help them prosper and become more competitive and productive. Our government is proud to support Uniboard, especially since its project includes a major environmental component. This forestry business’s contribution to the economic vitality of Val-d’Or is undeniable! Without a doubt, the spinoffs of this project will be felt right across the region and throughout Quebec and Canada.”

The funds have been granted under CED’s Regional Economic Growth through Innovation program.

The modernization is an important milestone for Uniboard and its operations team, said James Hogg, president and CEO of Uniboard. “This investment continues a 45 year success story and will play a large role in strengthening relationships with existing clients and developing new customers, markets and business opportunities. It will broaden our product offering and availability, ensuring Uniboard as the supplier of choice,” Hogg said.

In addition to having the latest in particleboard production technology, the Val-d’Or plant will be carbon negative through carbon sequestration in long lasting products and low carbon intensity production. Beyond this, Uniboard will enter the market for thin panels, a biocomposite in high demand in the North American market.

“We would like to thank the Government of Canada for its contribution to this key project [that] will allow us to operate the most modern particleboard manufacturing plant in North America,” said Uniboard’s CFO and vice-president of finance André Lemire. “It will be instrumental in developing new markets and product lines while ensuring that we remain competitive and reduce our carbon footprint.”

The Val-d’Or plant is geographically well located to service core markets in Quebec and the United States by truck and rail. In addition to its ability to produce value-added TFL products, the Val-d’Or plant also leverages the capabilities of its onsite Unires resin plant, making it one of the most integrated production sites in North America.

The provincial government looks to defer up to 26,000 square kilometres of old-growth forest, redistribute timber harvesting rights to First Nations and communities, and give government greater oversight with a view to making the province “the landlord of the forests again.”

All the while, the government is looking to the value-added sector to drive the industry forward, while cracking down on log exporters.

The irony of this, according to the industry, is that remanufacturers depend on high-value old-growth logs. Some feel the government simply does not understand the forest industry.

Following much doom and gloom at the annual Truck Loggers Association conference, Canadian Forest Industries visited one of the most forward-looking value-added forestry companies in the province – San Group – in February to find out how they are reacting to this paradigm shift.

“It’s going to impact us in a very big way,” San Group’s CEO Kamal Sanghera says of the old-growth deferrals, while noting that they are looking for clarity from the government on its direction. “We’re looking for what the government’s definition of value-added is.” 

For several years, San Group has been pouring millions of dollars (approximately $200 million by this point) into creating a tight ecosystem in Port Alberni. With the purchase and expansion of the Coulson mill, the creation of a remanufacturing facility, an agreement with the Catalyst paper mill next door to purchase pulp logs while providing waste fibre for hog fuel, a deep-water port, and now a biomass facility in the works to turn shavings and sawdust into pellets, San Group plans to do it all within a handful of kilometres.

This is all to keep costs for the business and the environment down, says Sanghera, and making the best use of every log they can get their hands on. “We use less to create more – this is the philosophy that is working here,” he says.

Kamal Sanghera, executive director for San Group, shows the results of their Microtec Goldeneye 502 Quality scanner, removing knotted wood from otherwise clear 2x4s.

This is achieved in many ways, including with major changes to what had been a large-diameter mill at Coulson, but which now processes every available tree species down to a 12-inch diameter; adding a HewSaw R200 line that can process lower-grade timber down to three inches in diameter (now in production); a Fezer Slicer, supplied by Quebec’s Industrial Machinery Sales, at the reman facility to make veneers with little waste; creating engineered products with high-value veneers atop low-grade wood cores, and more.

Giving an example as we walk through the reman facility, Sanghera points to some clear 6×6 old-growth lumber. You could get about six pieces of siding or other product out of one 6×6 normally, he says. But by slicing it into veneer and using lower-grade wood for the core, San Group gets 48 to 50 pieces.

Achieving San Group’s vision requires a dependence on cutting-edge technology (literally and figuratively), bringing in computer scanning and automation with tools like their Microtec Goldeneye 502 Quality Scanner to add speed and precision to their operation. Unfortunately, pandemic-induced supply issues mean the reman facility has been awaiting some components for months, leaving staff to run machinery manually.

Kamal Sanghera, executive director for San Group, shows the results of their Microtec Goldeneye 502 Quality scanner, removing knotted wood from otherwise clear 2x4s.

Those issues combined with an industrial fire in April 2020 in which San Group lost their Conception finger jointer (now replaced with a Western Pneumatic finger jointer) have caused some frustration. But Sanghera says the company is in good spirits as far as their Port Alberni project goes, with their reman facility currently at about 70 per cent capacity with 80 staff. They are looking to increase to 105 staff at full production. The Coulson mill’s new small log line has one shift now fully running, with aspirations for a second shift as fibre is secured.

Overall, the company expects their Port Alberni operations to be an example of best practice in the maximum use of available fibre while achieving a low-carbon footprint. And, though not yet quite fully realized, it’s a feat they hope to replicate elsewhere.

“Honestly, what the San Group has done, they are defining a lot of what the modernization policy speaks to,” says Kevin Somerville, vice-president of operations on Vancouver Island. “We are re-defining what value-added means to the coast, and how it should be defined.”

But the question is whether San Group’s redefinition fits with what the government is looking for. That is a question the company is looking to answer.

“Our calls are already out there to … understand what direction [the government is going in] and how we can help and how we can create the ecosystem which the government wants,” Sanghera says. 

As far as the government’s decisions relating to old-growth, some amount of it will always be needed, he says.

“We depend on a very small fraction of old-growth,” Sanghera says. “But we have to have some in order to make other components out of the low grade.”

Despite this reduced dependency, Sanghera says “the sword is hanging on our head, too,” with Somerville adding that exactly how much old-growth fibre has been removed from the harvest remains difficult to know.

But Sanghera makes it clear that an over-reliance on second and third growth would be, in his view, both ecologically and economically problematic. “If we’re going to eliminate the second growth, third growth in one generation out of the forest ecosystem, what will become old-growth?” he asks. “And if we’re going to leave the old-growth … it’s going to rot and it’s going to die. What good is that for us?

While San Group is committed to getting the most out of every log (their stance on waste is that no amount of waste is acceptable), Sanghera says they believe in a working forest where second and third growth has the opportunity to grow into old-growth, rather than being over-harvested to maintain existing old-growth.

While that may sound in contrast to some of the government’s recent decisions, San Group said it sees positives in the direction the government seems to be going, and notes there may be some opportunities as well.

Currently, San Group has about a year of fibre supply built up, but after that, supply becomes a question as they hold no licences, Sanghera says.

However, with the redistribution of timber harvesting rights, San Group is looking at prospective partnerships with local First Nations and communities to secure a consistent fibre supply. Greater certainty in their fibre supply would of course be a major boon to the business.

And, while others have decried this tenure redistribution to smaller players as a loss in efficiency, San Group begs to differ. 

It’s more efficient, Somerville notes, to mill logs and manufacture products in the regional areas in which the trees are grown, rather than shipping logs to another country or to other parts of B.C.

It’s also more efficient to make use out of every available tree in a given cut-block, rather than selectively logging high-value trees from a single species and leaving the rest to become fuel for forest fires.

“I think with the system we’ve got in place, you can create the jobs, you can have the working forest, you can have something which is sustainable for a long time to come,” Sanghera says.

And, in San Group’s opinion, their system fits very well into what the B.C. government and British Columbians are calling for.

“We’re re-defining the industry,” Sanghera says. “We have already done that, it’s already happening, in real life.”

But only time will tell if the government’s vision will align with San Group’s re-definition.

Now in its 29th year, Canada’s Best Managed Companies remains one of the country’s leading business awards programs recognizing Canadian-owned and managed companies for innovative, world-class business practices. Every year, hundreds of entrepreneurial companies compete for this designation in a rigorous and independent process that evaluates the calibre of their management abilities and practices.

“The pandemic has changed the way businesses operate and these winners have responded by transforming and pivoting their companies so that they are leading the way forward for the future,” said Dino Medves, senior vice-president and head, CIBC Commercial Banking.

Applicants are evaluated by an independent judging panel comprised of representatives from program sponsors in addition to special guest judges. 2022 Best Managed companies share commonalities that include (but are not limited to) putting their people and culture at the forefront, focusing on their ESG strategies and doubling down on accelerated digitization.

“It is an absolute privilege to have been recognized for the eighth consecutive year as one of Canada’s Best Managed Companies,” says Steve Rhone, president and CEO of Weston Forest. “The credit goes to our exceptional team of people that consistently take on the challenges they face and deliver for each other. This results in a great experience for all of our stakeholders. Thank you to our amazing team once again.”

“To become a Best Managed Platinum Club winner is a huge accomplishment,” said Lorrie King, partner, Deloitte Private and co-leader, Canada’s Best Managed Companies program. “These companies demonstrate resilience, versatility, and strategic acuity. They have consistently proven their ability to thrive in a competitive, rapidly changing market. This year’s winners should take pride not only in this prestigious recognition but also in the important contributions they make to the Canadian business world.”

2022 winners of the Canada’s Best Managed Companies award will be honoured at galas across the country. The Best Managed virtual symposium will address leading-edge business issues that are key to the success of today’s business leaders. The Best Managed program is sponsored by Deloitte Private, CIBC, The Globe and Mail, Salesforce, and TMX Group.

The funding will help the company build a new state-of-the-art OSB plant. Wawa OSB is investing $181 million to build the OSB plant, which is the third OSB manufacturing facility in the province.

“This assistance is a key first step in financing our project to reopen the Wawa OSB mill,” said Yolaine Rousseau, executive vice-president, Wawa OSB Inc., in a press release. “The Cossette family is very excited about creating jobs in Northern Ontario and increasing our production capacity to better serve North American customers. I would like to reiterate our commitment to working with the various stakeholders, including the First Nations in the territory. Our team is proud and grateful to the Government of Ontario for recognizing the importance of this project to the province, and we will continue our discussions with the Government of Canada to obtain their support as well.”

The funding is provided through the Forest Sector Investment and Innovation Program, and is conditional on Wawa OSB completing several key project milestones including working with local Indigenous and municipal communities and Sustainable Forest License holders.

“This expansion and new machine is our commitment to our expanding industry and our industry partners. Combining both the most advanced K2i 1300 with an in-sequence 6-axis robot, this new machine allows us to meet the growing requirements of the mass timber industry, while simultaneously increasing our capacity to produce authentic timber frame products,” says Jeff Bowes, president and owner of CTF. This announcement is accompanied by the news that CTF is increasing the size of their facility by 50 per cent, adding an additional 10,000 sq. ft. to their facility, to accommodate this machine and further optimize production.

The purchased CNC machine with a 6-axis robot is one of the most efficient and comprehensive solid wood processing machines for heavy timber and glulam in the mass timber industry. With over 34,000 sq ft of manufacturing capacity to come, this new machine enables them to run larger timber sections (18 x 51 x 70’), handle more complex & larger scale commercial projects in both timber & mass timber, and deliver results that align with CTF’s reputation of excellence.

Timber and engineered wood products are a strong, low-carbon building alternative to concrete and steel.

Twenty-two years after Canadian Timberframes brought Canada’s first Hundegger K2 machine to the country, they are once again innovating. “We congratulate Canadian Timberframes on the upcoming installation of the largest and most advanced K2i in Canada, and one of the largest & most advanced installations in North America,” says Hans Hundegger, founder and president of Hundegger.

View CTF’s facility video with a virtual 3D model of their expansion and new machine.

“We are preparing for the future of this organization; our success has been built on quality products and services. This investment back into the company is not only for our clients but our employees. This investment allows CTF to remain competitive, strengthening our market position and offering world class Timber Frame products, while growing within the mass timber and tall wood construction industry” says Stephanie Bowes, vice-president of CTF.

“Canadian Timberframes promises extraordinary quality and professional service; it is our highest priority, focus and my promise!” says Jeff. “As far as our customer service is concerned, construction will not affect our regular operations”
Canadian Timberframes works closely with Clients, Architects & Builders throughout North America – Servicing the entire United States; and beyond.

The letter of intent entered into for this transaction was previously announced on Nov. 24, 2021.

“We are excited to announce the acquisition of Hi-Tec. Hi-Tec is a successful, well-run business and when this acquisition opportunity arose it was too good to pass up. The future synergies with our Atlas Building Systems location and additional customer base for product expansion is exciting and our team is looking forward to this integration moving forward,” said Hadi Abassi, AEPs CEO, president and founder. “AEP has completed the next step in expanding its footprint in British Columbia where seasonality and the effects of winter are not as impactful as the rest of Canada.”

Hi-Tec manufactures roof trusses and sells engineered wood products to a strong, loyal customer base on Vancouver Island in British Columbia. This location is just under 15 minutes north of AEP’s Atlas Building Systems location in Nanaimo, B.C., which will offer some unique synergies from labour to shipping to equipment and more.

During its last fiscal year ended August 31 2021, Hi-Tec earned unaudited revenues of just over $5 million, net income before taxes of just over $1 million and a normalized EBITDA of $1.25 million, resulting in a normalized EBITDA margin of 25 per cent. Over the last three years, Hi-Tec earned average unaudited revenues of approximately $4.6 million, net income before taxes of $751,000, normalized EBITDA of $1.16 million, with an average normalized EBITDA margin of 25 per cent.

Under the terms of the share purchase agreement, AEP has acquired all of the issued and outstanding shares of Hi-Tec for a purchase price of $5.8 million in cash, with a working capital adjustment to be determined and finalized within 60 days of closing date of the SPA. In addition, AEP has acquired the land and buildings on which Hi-Tec’s facilities are located for a price of $3.25 million in cash based on a completed independent appraisal. Stillwater Capital acted as the exclusive financial advisor to Hi-Tec for this transaction.

AEP has entered into a term loan for the $5.8 million and a mortgage for 75 per cent of the $3.25 million through the company’s existing banking relationships, with the remaining portion of the land and building purchase and working capital adjustment will be funded by internally generated cash. The company opted to fund this acquisition with debt given the current low interest rates and to preserve majority of its cash for future strategic plans and opportunities.

According to a government press release, the funding will enable Norquay Trusses to buy new equipment and upgrade their facility to increase capacity and create three new full-time jobs and five seasonal jobs.

Norquay Trusses Ltd. produces custom wooden roof and floor trusses, stock garage and shed trusses, structural builder’s hardware and wooden paneling for the building and construction markets in Ontario and the U.S.

“We were very pleased to receive the NOHFC grant from the Ontario government, which assisted us in developing our new manufacturing business in Sault Ste. Marie”, said Scott Beaumont, president and general manager, Norquay Trusses Ltd., in a statement. “We have been very busy with roof truss production and are looking forward to continued growth into new markets and with new product lines.”

Today, Resolute reached an agreement with Louisiana-Pacific Corporation to acquire the latter’s 50 per cent equity interest in two joint ventures that produce I-joists in the Lac-Saint-Jean region of Quebec for $50 million, subject to customary adjustments. Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership are located in Larouche and Saint-Prime, respectively, and are equity method investments in which Resolute has a 50 per cent interest in each entity. Resolute operates the facilities and its joint-venture partner, Louisiana-Pacific, sells the products.

“By acquiring the other 50 per cent of the I-joist partnership, we solidify our presence in the growing and attractive engineered wood products segment with assets we know well, staffed with a talented and dedicated workforce of more than 175 people,” said Remi G. Lalonde, president and chief executive officer. “In addition to locking in the downstream integration of over 60 million board feet of lumber capacity, the transaction allows us to consolidate the full value of the EBITDA it generates, 50 per cent of which had up to now been included in other income. I would like to acknowledge our successful partnership with Louisiana-Pacific that has spanned several decades, one that we dissolve amicably as we each pursue value-generation opportunities for our respective companies.”

Resolute will enter into agreements with Louisiana-Pacific to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations.

In a separate transaction, Resolute also announced an agreement signed on February 11 with Boralex for the purchase of a cogeneration facility in Senneterre, Que.

“The purchase of the 34.5-megawatt cogeneration facility, adjacent to our Senneterre sawmill, builds on our significant investments in the region, including the ongoing project toward a new planer and associated equipment we announced last summer, as well as operational improvements recently completed at our Comtois sawmill. With this cogen, we will maximize the use of biomass from our regional operations, generating green power and providing a platform for future growth and enhanced competitiveness in the Abitibi-Témiscamingue region. We are pleased to welcome the 30-plus employees of the cogeneration facility to Resolute,” added Lalonde.

The acquisitions, subject to regulatory approvals and certain closing conditions, are expected to close in the first half of 2022.

Resolute intends to pay for the purchases with cash on hand.

Founded in 1967, Mid-Am is a well-run business with deep customer relationships reaching over 1,600 ship-to customer locations and generating annual sales of over US$270 million. Mid-Am’s management team will continue to lead Mid-AM and HDI will welcome Mid-Am’s 364 employees.

Mid-Am is a leading wholesale distributor of building products to customers in the U.S. Midwest. Mid-Am focuses on home builder distribution yards (Pro Dealers), providing customers with an extensive portfolio of products and services including doors, millwork, and other diversified building materials.

Mid-Am brings new local presence in the Midwest to HDI’s existing network of 83 distribution centres. Mid-Am operates five distribution centres with 650,000 square feet of warehouse space serving 10 states, and located in: Moberly (MO), Chillicothe (MO), Spring Hill (KS), Mount Pleasant (IA) and Centralia (IL). Under HDI, Mid-Am will continue to operate under its current name and joining HDI’s other operating brands Rugby Architectural Building Products, Hardwoods Specialty Products, Novo Building Products, and Frank Paxton Lumber.

“We are very pleased to welcome Mid-Am’s capabilities to HDI, which we believe are complementary to our current operations,” commented Rob Brown, HDI’s president and CEO. “This acquisition is a natural geographic extension from our current locations, providing access to customers and markets in the U.S. Midwest that we do not reach today. Mid-Am comes with an experienced team, established customer relationships and a portfolio of specialty and associated products that complement our existing product mix.”

The acquisition is an important strategic addition to HDI’s capabilities in the Pro Dealer and home centre customer channel. The Pro Dealer/home centre customer channel represents a substantial addressable market opportunity for HDI to capitalize on its deep expertise in architectural building products. The acquisition of Mid-Am, combined with the HDI’s purchase of Novo Building Products (Novo) in August 2021, has repositioned HDI to meaningfully participate in this customer channel.

“With today’s announced addition of Mid-Am, plus the previous acquisition of Novo, we have achieved additional diversification for our business,” commented Mr. Brown. “Combined, we have acquired pro forma annual sales of US$950 million in the Pro Dealer and home centre customer channels in the last six months. Looking ahead, approximately 60 per cent of our sales mix will be focused on industrial customers, and 40 per cent on Pro Dealer / home centre. This customer channel diversity, combined with our national footprint and balanced product portfolio, positions HDI as a one-stop-solution for its customers.”

HDI believes that the Novo and Mid-Am acquisitions are well timed with respect to the company’s outlook for end markets. HDI expects favourable multi-year demand for its products from the new residential and repair and remodel markets, supported by low existing home inventories, favourable demographics, historically low interest rates, rising home equity levels and an aging US housing stock.

The building products distribution market is large in size and scope, but remains fragmented. HDI intends to remain active with additional acquisition opportunities. Mid- Am represents HDI’s eleventh acquisition in the last five years, on a pro forma basis adding over US$1.4 billion in annual revenues during this time period.

Completion of the acquisition is subject to a number of conditions customary for a transaction of this nature. The acquisition is expected to close in February 2022.

“The U.S. Department of Commerce’s decision to double the softwood duty further injures B.C.’s value-added wood industry, who are innocent bystanders in this long-standing dispute between American landowners and trans-national forest tenure holders,” says Brian Menzies, IWPA executive director. “During this month, B.C.’s value-added wood producers have been hit hard: first by the B.C. government’s immediate moratorium on raw materials from old growth trees; and now, by the U.S. government doubling the softwood lumber duty strangling Canadian manufacturers from selling their products to their major export market.

The U.S. Department of Commerce announced November 24 to increase the anti-dumping and countervailing duty on Canadian softwood lumber products from 8.99% to 17.9%.

“Every international dispute, including the many rounds of the Canada-U.S. softwood lumber dispute, ends in a negotiated resolution. Any further delay to negotiate a resolution only injures the people who work at small- and medium-sized manufacturers and consumers on both sides of the border, who deserve a fair and affordable price for climate-friendly building products,” says Menzies.

“To prepare for these inevitable negotiations, the B.C. and federal government should immediately form an industry working group that includes representatives from the real casualties of this dispute, the value-added wood producers. We urge both governments to listen to our plea to save the value-added industry and to act immediately before the last wood product we make is our own coffin,” says Menzies.

According to Rhone, “The secret to our strength and our competitive advantage has always been in our people-first culture, and our Great Place to Work certification confirms that our people believe in us as much as we believe in them. It is this dynamic that has fuelled our growth over the last several years.”

Nancy Fonseca, Senior Vice President of Great Place to Work Canada, says that a great workplace is about the level of trust that employees experience in their leaders, the level of pride they have in their jobs, and the extent to which they enjoy their colleagues. “Our data shows that great workplaces benefit from stronger financial performance, reduced turnover, and better customer satisfaction than their peers. What’s more, work environments with trust at the foundation are ripe for innovation, agility, resilience and efficiency,” Fonseca said.

Great Place to Work is the global authority on high-trust, high-performance workplace cultures. Through proprietary assessment tools, advisory services, and certification programs, Great Place to Work recognizes Canada’s Best Workplaces in a series of national lists including those published by The Globe & Mail (Canada) and Fortune magazine (USA). Great Place to Work provides the benchmarks, framework, and expertise needed to create, sustain, and recognize outstanding workplace cultures. Visit us at www.greatplacetowork.ca or find us on Twitter at @GPTW_Canada.

Weston Forest is a leading distributor and remanufacturer of softwood & hardwood lumber and specialty panel products, serving North America’s industrial and construction sectors. A trusted partner since 1953, Weston’s remanufacturing and inventory management services help customers create specified crating, packaging, pallets and boxes, and other niche wood products that are essential for the production or shipment of Industrial goods. The company’s logistics and just-in-time fulfilment capabilities support truss manufacturing, framing, lagging & shoring, concrete forming and other processes that are crucial to commercial and residential construction and large infrastructure projects.

The Quebec-based producer of industrial pressure-treated wood products, through its U.S. subsidiary, will shell out approximately US$66 million for Cahaba Pressure and US$36.5 million for Cahaba Timber. The two companies represent the largest wood pole production site in the U.S.

Cahaba Pressure’s wood treating facility in Brierfield, Ala., manufactures, distributes and sells treated and untreated wood poles, crossties and posts, and provides custom treating services. The company did approximately US$56 million in consolidated sales last year.

“This acquisition will enhance Stella-Jones’ offerings and expand our capability to supply the needs of North America’s utility pole industry,” said Eric Vachon, president and CEO of Stella-Jones. “The addition of Cahaba Pressure will add to our capacity, further support the preservative offering to our customers and optimize the overall efficiency of our continental network.”

Cahaba Timber, co-located in Brierfield, produces treated poles and pilings, primarily using CCA, CCA ET Clear and CCA ET Brown and engages in raw material procurement. Cahaba Timber’s 2020 sales were approximately US$41 million.

“The acquisition of Cahaba Timber will allow Stella-Jones to enhance its offerings in the North American wood treating industry and is consistent with our objective of continuing to increase shareholder value through accretive acquisitions,” Vachon said.

The purchases are expected to finalize before the end of the year.

Net sales for the third quarter of 2021 increased by $424 million (or 53%) over the prior year to $1.2 billion. Siding Solutions revenue increased by $49 million (or 19%) and OSB prices increased by $225 million over the prior year period. EWP revenue increased by $98 million (or 95%) over the prior year period, primarily due to increased pricing to offset increased input costs. Additionally, South America revenue increased by $31 million (or 69%) over the prior year period due to price increases.

Net income attributed to LP for the third quarter of 2021 increased by $188 million over the prior year period to $365 million ($3.87 per diluted share) primarily due to the growth in Siding Solutions revenue and higher OSB prices, partially offset by increases in income taxes, raw material prices, freight costs, and maintenance projects. Adjusted EBITDA for the third quarter of 2021 increased by $249 million over the prior year period to $522 million.

Read the full Q3 report here.

The company started out as a custom coated exterior wood siding business. In 1989, entrepreneur Jim Young bought Woodtone. He saw an opportunity to expand their operations for exterior finishing. Over the years, the company has acquired multiple businesses to expand its offering and is now overseen by brother’s Chris and Kevin Young.

Most recently, in 2016, Woodtone acquired Synergy Pacific Wood Products, a manufacturer of engineered wood products based in Spallumcheen, B.C. Now known as Woodtone Specialties division, the plant produces a range of engineered wood products, including structural posts and beams, engineered siding and engineered fascia as well as other structural components for I-Joists and truss.

Many of these products are coated or painted at Woodtone’s other divisions located in Chilliwack, B.C., and Everett, Wa. The company’s largest markets today are Pacific Nothwest, Texas and California, and their reach extends throughout North America and into Europe, Chad Richmond, specialties product manager at Woodtone Specialties, says.

The Spallumcheen division employs approximately 140 people, running two shifts per day. The plant produces about 1.5 mmbf of engineered, high-value wood products monthly.

Providing a solution
But unlike primary manufacturers of wood products, the company is not getting its fibre from logging contractors. Instead, their fibre comes from neighbouring dimensional and specialty lumber sawmills, Hal Hanlon, president of the Woodtone Specialties division, explains.

The company takes SPF, Western Red Cedar, and Yellow Cedar in a variety of sizes and lengths including other small pieces of wood that would often go to waste, and finger-joints and laminates the pieces into large pieces of engineered wood. The input size of the wood they take ranges from 2 x 3 to 4 x 6 and wider, and from one foot to 20 feet in lenth.

“One of the advantages for us in the design of this plant is to be a good takeaway for primary sawmills when they can’t get rid of odds and ends, the lower-valued products,” Hanlon explains.

“Our business plan is essentially to provide solutions to the sawmills,” Richmond adds. “We take lumber that’s often below value for sawmills and create solutions for our end-use customers.”

That business plan has been very successful for the company. In fact, in 2019, when sawmills across B.C. took downtime or shut down, Woodtone was hiring, Hanlon says.

“We’ve been on a pretty steady growth path for several years now,” he says.

“This is a really exciting dynamic that exists, and it really reflects what we feel the forest industry should look like in British Columbia – adding significant value to what’s being cut in the province, at scale.”

The process
But how do small pieces of wood from sawmills become engineered wood products?

There is a different process for each type of product, but, in general, the wood arrives at the plant, green, and then is kiln-dried through one of five Muhlbock dry kilns.

The wood is then optimized, goes through one of two Conception finger jointer lines, is laminated and resawn, profiled, and then packaged. 

The company uses an optimization line built in-house and has multiple resaws from different manufacturers, including Baker and McDonough, as well as several Weinig moulder lines.

One of the products Woodtone makes is siding from cedar trim-ends. For this product, the company has partnered with a number of nearby sawmills who sort their cedar trim-ends to certain specifications, which Woodtone buys in packs. Those trim-ends would normally go to chipper waste, because they bring little value to a sawmill.

“So, we pay them a better price for the trim-ends, which brings more value back to their mill,” Hanlon explains.

Once at the plant, trim-ends go through the optimizing line where they are cross-cut, horizontally defected and sized. They then go to a Conception finger jointer line, through one of several custom-built presses and are then dried in the dry kilns. The product is then surfaced for lamination, laminated and built into billets. These billets are then resawn and further processed into high-value finished products.

“Through the process, material goes through extensive quality control testing, some of which are for structural certifications, at our own in-house lab to make sure that the fingerjoints and laminations are stronger than the actual wood and will perform as well or better than solid wood product. Then, we have in-line re-work, so any defects are repaired through that manufacturing process,” Hanlon says. “In many cases we’ve taken basically waste from a sawmill and built specified high-demand finished product that gets packaged and shipped out to one of our other divisions, gets coated and goes to a distributor.”

Impact of COVID-19
And with the boom in the housing market and higher lumber prices brought on by COVID-19, there is more demand for Woodtone’s products than ever before.

“With the decrease in the annual allowable cut in British Columbia, there’s no way you can sustain the U.S. housing demand when the allowable cut will decrease by 25-30 per cent over the next 20 years,” Richmond says. “And the log profile is changing, so you’re left wondering ‘Where is that going to come from?’ The only way to fill that demand is through engineered wood products.”

COVID-19 has also accelerated the acceptance of engineered wood products in the construction industry, he says.

For example, Woodtone produces 1×12, 16-foot Cedar weatherboards for board siding applications.

In the B.C. Interior, “it’s almost impossible to make a 1×12 piece of solid Cedar anymore from a second-growth sawlog Cedar tree,” Hanlon says. “So, we created an engineered version of a 1×12, now available in retail box stores throughout North America, because people just couldn’t get that product as a solid wood product, so they’ve turned to value-added engineered wood products.

“We can’t keep up with the demand for that product now,” he continues. “So, that’s an example where we’ve taken narrow, short lumber from the mill that’s a problem for them to move, and we’ve created a solution for the market.”

More generally, engineered wood products provide an opportunity to use Western Red Cedar. In light of the dwindling fibre supply in B.C., and given that Western Red Cedar is a more expensive species than others, the industry is not able to offer all the different sizes and sku’s that people require, Hanlon explains. This impacts the takeaway of the species as a whole.

“So, even a lot of manufacturers – like the sawmills we work with – that might make a competing solid 1×12, love what we’re doing because they can’t make enough and it rounds out the entire species offering by continuing to provide the full dimensional sizes demanded of that species in the market. This product is just one example of a wide variety of engineered wood product solutions we manufacture,” he says.

In fact, the Western Red Cedar Lumber Association is now promoting engineered wood products because it helps Cedar as a species.

Woodtone has seen the same thing happen with their WRC and SPF 6×6 and 8×8 engineered hollow-core structurally certified wood posts, Hanlon says. It’s becoming harder and harder to get solid, high-quality traditional versions of wood posts in those sizes, so Woodtone is filling the gap with their engineered products.

Leading edge
As a result of this increased demand, Woodtone is expanding its plant in Spallumcheen, adding new production lines and modernizing equipment.

The company has invested in several new resaw lines, automatic stackers, a new trim line, and upgraded one of their main moulder lines. They have also invested in a new slasher optimizing line from Conception, and Baker is in the process of building a custom resaw line for the plant.

This is just phase one of the company’s modernization plan.

“We’re still trying to figure out what phase two looks like, based on available fibre and available labour force,” Hanlon explains. “The surge in the building material industry – it’s coming at us from all directions right now, so we’re trying to prioritize, so that’s delayed us looking at what phase two will look like.

“It’s been hard to keep pace with demand for our products for two reasons,” he adds. “One, fibre is pretty tight right now. The annual allowable cut in B.C. is going down. And two, COVID-19 has made finding hourly employees and growing the workforce tricky.

Ideally, Woodtone Specialties would currently employ 180 hourly employees, rather than the 140 they now have. But, the available workforce in the rural area where they operate is not large, and it takes time to train new workers, Richmond says.

“It’s good-paying jobs; you make a good livelihood and have a long-term career,” Richmond says. “That’s what we’re trying to do – build up to scale and create as many opportunities and as much stability for our people as we can.”

“We don’t want to make small volumes, but we don’t want to produce billions and billions of board feet as it is not sustainable,” Hanlon adds. “So, we’re going to continue to grow this business based on our business model of finding value-added solutions, both on the fibre side and for our customers.”

To address the fibre supply challenge, Woodtone is pursuing their own timber license and partnerships with nearby First Nations groups.

Looking ahead, Hanlon and Richmond believe the market for building materials will remain strong, given that the U.S. housing market is under-supplied. Consequently, the demand for engineered wood products in the construction industry will continue to grow, which spells good news for Woodtone.

“We really feel like we represent what the forest industry should look like in British Columbia, and what it’s going to need to look like. We’re on the leading edge of that, for sure,” Hanlon says.

Congratulations to our winners:

• Métis Crossing Cultural Gathering Centre – Smoky Lake, Alta., Manasc Isaac, Edmonton, Alta.
• University of Alberta Botanic Garden Welcome Centre – Devon, Alta., Manasc Isaac, Edmonton, Alta.
• The Confluence – The Summer Village of Waiparous, Alta., Southern Alberta Institute of Technology (SAIT) Green Building Technologies
• Bar U Ranch Work Horse Barn, Longview, Alta., 1×1 architecture inc., Winnipeg, Man.
• Calgary Central Library- Calgary, Alta., Dialog, Calgary, Alta., and Snohetta, New York, N.Y.
• South Haven Centre for Remembrance – Edmonton, Alta., Group2 Architects, Calgary, Alta., SHAPE Architecture Inc and PECHET studio, Vancouver, B.C.
• Maison 9732 – Edmonton, Alta., Ethos Engineering Inc., Edmonton, Alta.
• Beacon – Calgary, Alta., 5468796 Architecture, Winnipeg, Man.

“This year’s award winners showcase ingenuity and creativity in new construction,” said Rory Koska, program director of Alberta Wood WORKS!, “and an affinity for wood by not demolishing buildings but celebrating wood in the restoration of history through engineering and craftsmanship.”

Click here to watch a YouTube video of the winning projects.

So, despite the challenges posed by operating during a global pandemic, which required all forestry companies to implement new health and safety measures, the industry has once again proven its resilience, and is reaping the rewards. And the forest sector is poised to play a key role in the country’s economic recovery.

In fact, the federal government earmarked more than $3 billion for the forestry sector to help plant two billion trees and to offset costs associated with COVID-19 safety measures. The Ontario government also released its forest sector strategy in August this year, highlighting the need to increase the annual allowable cut for Ontario loggers, utilize more of the fibre from every tree, and develop new markets for wood products. And the Quebec government identified forestry as a key player in the fight against climate change and allocated funding to support innovation in forestry, including $2 million for FPInnovations.

But, there are still issues that need to be addressed, particularly in B.C. and Nova Scotia. In B.C., new government regulations regarding stumpage and export fees pose another challenge to an industry that is already in transition thanks to fibre supply challenges. In Nova Scotia, the shutdown of Northern Pulp at the beginning of the year caused shockwaves, effectively eliminating the pulp market for the region. While the Nova Scotia government has since created a forestry transition team and provided funding for those impacted by the change, its impact will be felt for years to come. All of these changes are reflected in the results of CFI’s 2020 Contractor Survey. On the whole, Canada’s loggers are facing mounting difficulties, especially when it comes to profitability, operating costs, harvesting volume and succession planning. You can find the collection of survey snippets here, and look for the full digital ebook in the new year.

Here’s a look at the top 10 most-read CFI stories of 2020:

10) 2020 Contractor Survey: Regional View – BC Coast

Since CFI’s 2016 Contractor Survey, contractors on the B.C. Coast have made a comeback. According to the results of our 2020 survey, logging rates have improved for nearly half of all Coastal contractors, revenue is up, and more young people are entering the industry. But challenges remain, such as higher operating costs, which lead to low profit margins, and regulatory issues including export policies and stumpage fees. READ MORE.

9) The CFI Podcast: David Murray on working safely during COVID-19

Early on in the pandemic, forestry was declared an essential service across Canada, which meant workers needed to follow appropriate health and safety guidelines and employers needed to stay up-to-date as the situation rapidly evolves. But there is a lot of information out there to sort through and it can be difficult to know what best practices to follow. So, we spoke with David Murray, corporate safety, HR and environment manager for Gorman Group and co-chairperson of the Manufacturing Advisory Group, about how to work safely during COVID-19. READ MORE.

8) Final Cut: Advancing mass timber

In this Final Cut column from CFI’s Sept/Oct 2020 issue, Hardy Wentzel, CEO of Structurlam Mass Timber Corporation, takes a look at British Columbia’s role in promoting the mass timber industry. READ MORE.

7) The CFI Podcast: Tanya Wick on women in forestry
To celebrate International Women’s Day coming up on March 8, we spoke with Tanya Wick, Tolko Industries’ vice-president of people and services, about all things women in forestry: the importance of gender diversity hiring practices, industry initiatives to address gender diversity, advice for women looking to get into the industry, and more. READ MORE.

6) Dynamic operations: Ben Hokum & Son bets big on optimization
In 2016, Dean Felhaber, president of Killaloe, Ont.-based Ben Hokum & Son (one of the largest producers of white and red pine products in the region) began planning a number of modernization projects, including upgrading their small log sawmill to run larger logs, a new grading line and more. CFI gets an inside look at the upgraded operations. READ MORE.

5) Saw and guide lubrication considerations

In this article from CFI’s annual File Week, Supersaul Chemmex shares what saw filers should consider when it comes to saw guide lubrication. READ MORE.

4) COVID-19 and beyond: Global Softwood Log and Lumber Conference 2020 takeaways

While COVID-19 has created huge challenges for all players around the world, additional supply/demand shocks have affected the global softwood industry this year. Mid- to long-term factors have included trade disputes, domestic industry policies, log cost issues, and climatic events such as fires and insect outbreaks. Here are some of the major dynamics and outlooks from the 2020 Global Softwood Log and Lumber Conference. READ MORE.

3) Logger life: BC log hauler Tiara Seitz paves the way for women in the industry

Tiara Seitz has been a log hauler for over 20 years now, and says she loves what she does. But her start in the business wasn’t a traditional one. In fact, she “kind of stumbled into it,” she says. The owner of Woodrow Trucking in Lower Nicola, B.C., Seitz shares her experience entering a male-dominated industry at the time and how the industry has evolved over the years. READ MORE.

2) ‘Against the grain’: San Group looks to cut new industry path on Vancouver Island

As the B.C. lumber industry closed out a dismal 2019, punctuated by holiday shutdowns, shift reductions and shuttered mills, a Langley, B.C.-based company rooted in remanufacturing finished the year with optimism. Adding shifts and expanding its portfolio, in the spring of this year, San Group was in the midst of a $100-million project to reinvigorate the City of Port Alberni as a major player in the Canadian lumber industry. READ MORE.

1) Introducing CFI’s eighth annual Top 10 Under 40

The future for Canada’s forestry sector is bright, judging by this year’s winners of the Top 10 Under 40 competition from Canadian Forest Industries. We scoured nominations from across the country in all sectors, including logging, sawmilling, equipment and technology suppliers and associated industries. The result is a list of high-performing professionals who are well-equipped to lead the industry in the decades to come. READ MORE.

“The third quarter of 2020 was Norbord’s strongest quarter ever,” said Peter Wijnbergen, Norbord’s president and CEO. “The recovery in economic activity that unfolded in the latter stages of Q2 carried into Q3, driving strong new housing construction and repair-and-remodelling demand that helped lift North American benchmark OSB prices to all-time highs. Our European results also benefitted from higher quarter-over-quarter panel prices and continued recovery of UK panel demand that had been significantly impacted by the pandemic in the second quarter. Adjusted EBITDA increased nearly tenfold from year-ago levels and was 18 per cent above Norbord’s previous best quarterly result in the second quarter of 2018. I remain particularly pleased with our team’s ability to remain focused on working safely within the strict protocols required by the pandemic while at the same time containing manufacturing costs.”

“Customer demand has been significantly stronger than expected during this unusual period of economic uncertainty. We are optimistic, but we also recognize that our business is cyclical and that it is not yet clear whether the worst of the pandemic is behind us. Today we announce the permanent closure of the 100 Mile House mill in British Columbia, which will reduce Norbord’s North American stated capacity, as the ongoing wood supply shortage in that region makes the reopening of that mill uneconomic. As always, we will remain vigilant, focused on the health and safety of our employees as well as our customers’ needs, and we will manage the business to be resilient and flexible.”

Norbord recorded Adjusted earnings of $204 million or $2.52 per share (basic and diluted) versus Adjusted earnings of $31 million or $0.38 per share (basic and diluted) in the second quarter of 2020 and an Adjusted loss of $9 million or $0.11 per share (basic and diluted) in the third quarter of 2019. Earnings in the current quarter include $10 million of costs related to closure of the 100 Mile House, British Columbia mill.

Market conditions

In North America, U.S. new home construction activity, the single largest driver of OSB demand, has recovered from the economic impact of COVID-19 seen early in the second quarter. The September seasonally adjusted annualized rate of U.S. housing starts was 1.42 million, which is an 11 per cent year-over-year improvement. The pace of single-family starts, which use approximately three times more OSB than multi-family starts, improved 22 per cent to 1.11 million. The pace of permits (the more forward-looking indicator) was 1.55 million in September, an increase of eight per cent versus the same period in 2019. The 2020 consensus forecast from U.S. housing economists is approximately 1.36 million starts, five per cent higher than 2019 despite the pullback to a seasonally-adjusted pace of 0.93 million in April. Throughout the ongoing pandemic, demand from the repair-and-remodelling sector has continued at record pace.

Reflecting the stronger than expected recovery in North American OSB demand, North American benchmark OSB prices increased significantly as the quarter progressed. Average benchmark prices were higher than all comparative periods and were, for most of the quarter, at record highs.

In Europe, UK panel demand continued to recover from the COVID 19-related pullback in April and May. Continental demand, which was not impacted by the pandemic, particularly in Germany, remained steady throughout the quarter. In local currency terms, average panel prices were up 6% quarter-over-quarter and down nine per cent year-over-year.

Performance

In North America, third quarter shipments were up nine per centquarter-over-quarter but declined eight per cent year-over-year. Excluding the Chambord, Que., mill, Norbord’s North American mills produced at 86 per cent of available capacity in the third quarter of 2020 compared to 74 per cent in the second quarter and 92 per cent in the third quarter of 2019. Norbord’s third quarter North American OSB cash production costs per unit (excluding mill profit share and freight costs) increased by four per cent compared to the prior quarter and were unchanged compared to the same quarter last year.

In Europe, third quarter shipments were up 23 per cent quarter-over quarter, reflecting a strong recovery after the significant curtailments across the company’s UK mills in the second quarter in response to reduced customer demand due to government-imposed pandemic restrictions. Year-over-year, shipments were up 12 per cent, reflecting the continued ramp-up of the Inverness, Scotland mill. Norbord’s European mills produced at 97 per cent of stated capacity in the third quarter of 2020, compared to 70 per cent in the second quarter and 84 per cent in the third quarter of 2019.

The company generated net Margin Improvement Program (MIP) gains of $43 million year-to-date due to improved mill productivity and lower controllable manufacturing and overhead costs.

Investment in property, plant and equipment and intangible assets was $28 million in the third quarter ($67 million year-to-date), including $5 million ($44 million project-to-date) in the Inverness Phase 2 project and $1 million ($54 million project-to-date of the $71 million budget) in the Chambord mill rebuild project. At Inverness, the installation of the second wood room, heat energy and drying line is now complete and commissioning is well advanced, and the state-of-the-art continuous press is continuing to ramp up towards its targeted Phase 2 capacity of 945 million square feet (MMsf) (3/8-inch basis).

As part of Norbord’s initial COVID-19 Response Plan, Norbord’s budgeted 2020 investment in property, plant and equipment had been reduced from $100 million to $75 million. Based on the strong third quarter results and in line with Norbord’s capital allocation priorities, 2020 investment in property, plant and equipment is now forecast to return to its original budget of $100 million. Looking ahead to next year, while the company is still in the process of finalizing its capital plans, 2021 capital expenditures are targeted at approximately $150 million. This will include maintenance of business projects, projects focused on reducing manufacturing costs and enhancing process safety across the mills. It also includes further investments to support the company’s strategy to increase the production of specialty products for industrial applications and exports, as well as a portion of the Chambord mill rebuild. The company has not yet made a restart decision for the Chambord mill, and will only do so when it is sufficiently clear that customers require the production from this mill.

At quarter-end, the Company had un-utilized liquidity of $654 million, comprising $240 million in cash and cash equivalents and $414 million in unused credit lines. Operating working capital was $191 million compared to $139 million at the same quarter-end last year, owing primarily to higher accounts receivable, which were attributed to significantly higher North American OSB prices. The company’s tangible net worth was $1,183 million and net debt to capitalization on a book basis was 27 per cent, with both values well within bank covenants.

Operational update

Well positioned to respond to changing conditions

During the third quarter, North American demand for OSB remained extremely strong, resulting in significantly higher benchmark OSB prices. The key indicators for the U.S. housing market, including strong new home sales, housing permits and single family starts, minimal new home inventories, and low mortgage rates, provide a positive outlook for OSB demand. Similarly, repair-and-remodelling demand has been robust and demand from industrial customers has normalized following pandemic-imposed restrictions. Excluding the curtailed 100 Mile House and Chambord mills, Norbord’s operating North American mills ran as close as possible to full operating rates in the third quarter, producing at 92 per cent of capacity. In August, the company restarted Cordele Line 1 on a limited operating schedule to meet customer orders that Norbord would not have otherwise been able to satisfy. Notwithstanding these positive trends, there remains considerable uncertainty in the broader economic environment as a predicted second wave of the COVID-19 global pandemic appears to be underway. As the typical seasonally slower period for OSB demand approaches, it is not yet clear what impact this seasonality and the pandemic will have on the company’s core markets. Should conditions change, Norbord is well positioned to respond.

100 Mile House permanent closure

Earlier this year and in reaction to the pandemic, Norbord recognized the need to implement a more flexible operating strategy across its manufacturing platform. The objective was to be more agile in responding to changing market conditions and customer requirements while containing manufacturing costs through more efficient maintenance planning and execution. This strategy has proven to have significant merit and has been adopted as the company’s standard operating approach. At the same time, it became clear that the 100 Mile House OSB mill was unlikely to have a role to play in the future. As the company’s highest cost operation, this mill had been indefinitely curtailed since August 2019 in response to a wood supply shortage and rising fibre costs. The Cariboo region in which the mill is located has been under wood supply pressure for the past decade as a result of the mountain pine beetle epidemic and more recently significant wildfires, leading to a 50 per cent reduction in the region’s annual allowable harvest. Taken together, the current and expected ongoing wood supply shortage makes operation of the mill uneconomic and Norbord has decided to permanently close 100 Mile House.