Abstract:
The development of an OSB (oriented strand board)
industry in Western Oregon would prove to be a real boost
to the economy of an area that has suffered from the
earlier recession of the forest products industry. Past
studies have shown that it is technically feasible to
produce OSB from alder which is a major hardwood species
growing in Western Oregon, but the economic feasibility of
producing OSB in Western Oregon is undetermined.
The purpose of this study is to determine if a
sufficient raw material base is available, that a market
exists or can be developed, and that the total costs of
production would be competitive with other structural
panels. It includes a raw material analysis, a market analysis, and a financial analysis.
The raw material analysis involves analyzing detailed
U.S. Forest Sevice timber inventory data to determine the
volume, ownership, and availability of raw material. The
market analysis involves the collection and analysis of
data to identify and quantify the markets that are
available or can be developed. The financial analysis includes
raw material requirements, production costs, prices,
and the analysis of an example case. The example case is an
OSB plant with an annual capacity of 75 MMSF, 3/8-in, basis
producing panels with a density of 40 pcf and resin and wax
contents of 5% and 2%, respectively.
Sensitivity analyses on several major variables show
that, although wood cost and labor cost are the largest
components of cost, the selling price is the variable which
has the greatest effect on the feasibility of the venture.
In addition, the interest rate and capital costs have
greater effect on the feasibility than do any of the production
costs.
Based on the resource data, an area consisting of
Clatsop, Columbia, and Tillamook counties is best suited to
supply an OSB plant. The study also shows that a market can
be developed and the project has a high probability of
generating a profit.
