The economic feasibility of locating an OSB plant in western Oegon [i.e. Oregon] Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/ht24wm58j

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  • 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.
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