Region Archives: US East

Michigan State legislatures previously approved legislation to grant Billerud investment support of up to USD 200 million in funding to support Billerud’s investment plans. On January 31, 2o23, Michigan Governor Gretchen Whitmer signed the legislation, approving the Michigan Economic Development Corporation’s (MEDC) appropriation of the funds. The transformation of the Escanaba Mill is planned to be the cornerstone of Billerud’s expansion into North America, one of the largest and growing markets in primary fiber premium cartonboard. This funding follows additional incentives recently approved by the State of Michigan Administrative Board, including approval of the Forest Products Processing Renaissance Zone. The zone exempts Billerud from paying almost all state and local property taxes at the Escanaba Mill. The final amount of the funding will be relative to the company’s actual investment.

PISCATAWAY, NJ – Cascades, a leader in the recovery and manufacturing of green packaging and hygiene products, is pleased to announce that it has purchased a new printing press at its Piscataway, New Jersey, corrugated packaging converting facility. “The purchase of an EVOL press, one of the fastest technologies in the world, will allow us to continue our growth in the Northeast and increase our ability to serve our current and future customers. This US$9 million investment is part of our 2022-2024 strategic plan and is aimed at increasing our integration rate by adding additional converting capacity in the United States,” said Mario Plourde, President and CEO of Cascades. The Piscataway plant, started in 2018, currently serves the distribution and food processing markets. 

MEMPHIS, Tennessee — International Paper has been named to Fortune magazine’s list of World’s Most Admired Companies for the 20th time. Fortune’s World’s Most Admired Companies list is the definitive report card on corporate reputations. Korn Ferry has collaborated with Fortune annually since 1997 to identify, select and rank the World’s Most Admired Companies. “International Paper celebrates 125 years this year, and throughout that time we have played an essential role in manufacturing sustainable products that people depend on every day. Our founders would undoubtedly be proud,” said Mark Sutton, chairman. “Fortune congratulates all of the companies whose competitors and peers recognize their achievements and voted them onto the 2023 Fortune World’s Most Admired Companies list,” said Fortune Editor in Chief Alyson Shontell.

AHOSKIE, North Carolina State environmental officials have agreed to allow an Ahoskie biomass facility to increase production in exchange for upgrading air filtration devices at its Hertford County plant. …The long-awaited permit renewal requires the wood pellet manufacturing facility in Hertford County to install new air pollution control devices that DAQ said “will substantially reduce emissions of volatile organic compounds and hazardous air pollutants.” …According to the state agency, Enviva’s permit limits the plant’s volatile organic compound emissions to fewer than 250 tons per year and hazardous air pollutant emissions to fewer than 10 tons per year. Enviva will be allowed to increase pellet production, DAQ said. It also will be allowed to increase the percentage of softwood used at the plant to 100 percent. Testing requirements are being put in place to ensure compliance. …Enviva said that it is pleased with DAQ’s decision.

JPMorgan Asset Management’s timber-investing arm has acquired about 250,000 acres in the Southern pine belt for more than $500 million, Wall Street’s latest big woodlands purchase made with an eye toward carbon markets. The wealth manager said its Campbell Global unit will manage the commercial forests in Mississippi, Oklahoma and Arkansas for wood production as well as carbon capture. …”For large timberland purchases carbon is an integral part of valuation, just as timber is,” said Anton Pil, for J.P. Morgan Asset Management, which manages $2.45 trillion and acquired Campbell in 2021. “Management of these lands longer term is a balance of wood harvesting and carbon capture.” …There haven’t been enough carbon deals yet to affect the flow of logs to mills, forest-products executives say, though the presence of carbon-counting buyers has begun to significantly influence the market for timberlands, which topped $5 billion last year. 

PHENIX CITY, Ala. — As more than 400 workers continue to be locked out of the WestRock paper mill in East Alabama, the company was looking to hire new employees Thursday during a job fair. The work stoppage as the result of a labor dispute between the company and three unions is in its 112th day. WestRock officials won’t say if today’s hiring event is related to the long-running labor dispute, but it didn’t stop hundreds of job seekers from showing up at a Phenix City hotel. While people lined up at the Courtyard by Marriott to apply for a job, some workers were still on the picket line 25 miles to the south in Cottonton. WestRock is looking for production workers to staff the mill that produces coated board, it is heavy-duty paper that is used in product packaging.

The new year brings new economic territory for Alabama’s forest industry. …Adam Maggard, an Alabama Cooperative Extension System forestry specialist shares an update for the timber market. The forest industry contributes approximately $28 billion to Alabama’s total economic output. More than 44,141 jobs help achieve this output, ranking Alabama in the top three nationally in timber production. Maggard said Alabama is still dealing with an oversupply of timber. In terms of softwood timber–mostly pine–this supply has negatively impacted an increasing demand for many of its products. It has also led to uncertainty among landowners about when they should see improvement. Maggard believes … there are some important cues to study. These include stumpage trends, the housing market, mills & capacity, and policy & trade. Overall, Maggard said Alabama’s timber industry is strong. Although the housing market is likely to be volatile through much of 2023, the demand trajectory has been on the rise for timber products.

ESPOO, Finland — Valmet will supply an extensive rebuild for Sappi’s Somerset paper manufacturing facility in Skowhegan, Maine. Previously, Valmet rebuilt the paper machine 1 (PM1) and with its success, Sappi has chosen Valmet again to rebuild the paper machine 2 (PM2). The order is included in Valmet’s orders received of the fourth quarter 2022. Its value will not be disclosed, but such an order is typically worth between EUR 90 and 120 million. As a result of the PM2 conversion from coated woodfree graphic paper to solid bleached sulphate board, the machine capacity will be increased from 240,000 tons to 470,000 tons per annum. The start-up of the rebuilt machine is scheduled for the mid-year of 2025.

ESCANABA, MICHIGAN — A proposed conversion of the Escanaba paper mill to produce paperboard was given a vote of support by the state Legislature this week, but a firm decision is still months away. The state House and Senate both approved $200 million to support the project in the state’s spending bill Thursday. The bill now heads to Governor Gretchen Whitmer’s desk for final approval… Billerud, which owns the mill, is considering three sites for its future paperboard making operations. Also in the running for the shift to paperboard production are the Quinnisec mill, which produces graphic papers and pulp, and the Wisconsin Rapids, Wis. facility, which now is a converting facility but produced graphic paper until 2020. The Wisconsin Rapids facility is supported by hydroelectric plants owned by Billerud on the Wisconsin River. This is not the first time the government has stepped in to make the Escanaba mill more appealing for the conversion. 

Michigan — State Reps. Greg Markkanen and Dave Prestin Thursday night announced they were able to secure new funding for a $1 billion investment in Billerud, an advanced paper manufacturer in the Upper Peninsula. While the two state reps made the announcement Thursday night, State Sen. Ed McBroom (R-Norway) was heavily involved in the process of getting the $200 million in state dollars to help the company with its expansion. It was included in Senate Bill 7 on Thursday. …The mill has been making paper since 1911. It’s one of the top employers in Delta County, and has an estimated $360 million annual economic impact on the area. Included in Thursday’s spending bill, Senate Bill 7, $200 million will be used to fund and facilitate the major investment. It will be used to help the paper mill to switch the type of products it makes and sends to the market.

BETHESDA, Md. –Enviva Inc., the world’s leading producer of sustainably sourced woody biomass, has been recognized as a “Sustained Distinguished Performance River Star Business” by the Elizabeth River Project for its energy savings efforts, metal recycling, and increased oyster gardening programs. …Partner businesses, known as River Star Businesses, contribute by supporting the overall health of the river by improving flood control and restoring crucial wetlands and wildlife habitat. …The committee unanimously agreed Enviva’s Port of Chesapeake terminal should be recognized for its achievements in removing more than 217,000 pounds of metal waste, recycling over 79,000 pounds of old conveyor belt, maintaining 20 oyster cages as part of the Bay Foundation’s Oyster Restoration program, as well as upgrading and implementing new energy-saving lighting throughout the port terminal.

EIGHTY FOUR, Pa.  — 84 Lumber, the largest privately owned building materials supplier in the U.S., currently operates 310 facilities which include 234 stores, 14 component manufacturing plants, 28 engineered wood product (EWP) centers and 34 door shops. The company plans to open new facilities and make improvements to 54 existing locations to increase its market share by the end of 2023. …In addition to new stores, 84 Lumber is opening component plants in Winter Haven, Florida; Columbia, South Carolina; Boise, Idaho; and a second plant in Atlanta, Georgia. Regarding new EWP facilities, the current Atlanta facility is being relocated to a larger location in Cartersville, Georgia and new centers will be opened in the New Jersey and Boston markets. To round out the company’s extensive expansion plans, a new door shop is coming to Denver, Colorado.

BOISE, Idaho — Boise Cascade Company announced the planned addition of its 10th door shop. Located in Kansas City, this new 150,000 sq. ft. millwork facility is expected to begin production in June 2023. Boise Cascade’s Building Materials Distribution (BMD) division currently operates nine millwork manufacturing and distribution locations offering pre-hung doors and other products in some of the country’s fastest growing markets. …“The opening of this new facility demonstrates our ongoing commitment to add value for our customers,” said Jo Barney, Vice President, BMD Western Operations. …“We look forward to building on the relationships we enjoy with Therma-Tru, Simpson Door Company, and Steves & Sons,” said Shawn Egan, BMD Western Region Manager. 

ATLANTA — US LBM, a distributor of specialty building materials in the United States, announced that it has reached a definitive agreement to sell three of the company’s operating divisions, Feldman Lumber, Rosen Materials and Wallboard Supply Company, and their subsidiaries Coastal Roofing Supply, Eastern Wallboard Supply and Richardson Gypsum, to L&W Supply. L&W Supply is an operating unit of ABC Supply. …In total, these divisions and their subsidiaries currently operate 42 locations in 12 states and primarily sell and distribute interior building materials, including wallboard, acoustical ceilings and steel framing. …The transaction is subject to customary closing conditions, including regulatory review, and is expected to close in the second quarter of 2023.

Mark McHugh

Doug Long

WILDLIGHT, Fla.–Rayonier announced that Mark McHugh has been appointed to the position of President and Chief Financial Officer, effective January 20, 2023. In addition to his current duties as CFO, Mr. McHugh will take on a greater role in leading our strategic planning efforts as well as participating in broader operational and personnel decision-making. He will continue to report to David Nunes, Chief Executive Officer. …In addition, Doug Long has been appointed to the position of Executive Vice President and Chief Resource Officer, effective January 20, 2023. In this expanded role, Mr. Long will continue to oversee our global forestry operations, while also devoting more time toward developing business opportunities around nature-based climate solutions. 

ALICEVILLE, Alabama — As global demand for biomass continues to surge, Drax has announced a $50 million expansion at its Aliceville, Alabama wood pellet plant. Situated within an attractive supply of wood and timber, Aliceville is well-positioned as a growing hub for sustainable forestry and the biomass industry. The region boasts of a high concentration of existing sawmills that produce the residuals necessary to support sustainable wood pellet production. …The $50 million dollar investment at Drax’s Aliceville pellet facility will increase production capacity by nearly 50 percent, from 250,000 tons to 380,000 tons. …The expansion includes upgrades to existing systems as well as new truck dumps and pelletizer units, which will allow for an increase in the amount of sawmill residuals processed. The additional capacity is expected to begin commissioning in 2024.