E-mail this page Reader Comments (below)

By MATT WICKENHEISER, Staff Writer Sunday, February 25, 2007

The New Limerick wood products plant was headed down a familiar Maine story line.

Plant makes natural resource-based product. Companies around the world invest hundreds of millions to build bigger, faster, newer plants. The plantÕs product becomes a commodity.

ThatÕs the last chapter for many businesses. Most canÕt compete in a commodity market Ð the margins just arenÕt there Ð and the Maine plants shut down.

The workers in New Limerick were well aware of their precarious situation in the global marketplace. Since 1982, the plant had made oriented-strand board Ð commonly seen in construction, this is the plywood-like stuff thatÕs made up of woodchips. It was an older, small plant, not well-equipped to compete with newer, massive operations.

ÒReality hits you in the face. You see the size of this mill, the writingÕs on the wall,Ó said Skip Cleary, the plant manager. ÒWeÕve got to do something with it or itÕs not going to be there.Ó

But the New Limerick plant saw a chance to rewrite the plot four years ago, before the final chapter.

Its owner, Lousiana-Pacific Corp., asked for log samples from the New Limerick site to be sent for testing for a new product. The company was looking to start making oriented-strand lumber. Instead of panels, the company would take wood chips, orient and press them together to make structural pieces, two-by-fours, roof rafters, floor stringers, headers, beams and other items.

Tests determined MaineÕs wood Ð aspen and poplar Ð would be ideal for the new product. The Aroostook plant began lobbying to be the sole oriented-strand lumber site for Louisiana-Pacific. The strategy worked. The company broke ground last September on a $100 million expansion in New Limerick. The 149,000-square-foot plant will add 200,000 square feet, along with the machinery needed to make the lumber.

The work force of 118 will grow to 154, and the jobs have an average salary of $16.70. The company will make the lumber and, when the market is profitable, board too.

The infusion of capital at the plant is an example of what often needs to be done to keep manufacturing in Maine on the cutting edge.

ÒThe OSB (oriented-strand board) mills weÕve had in the Northeast were some of the original ones built Ð theyÕre old, small,Ó said Lloyd Irland, industry consultant and head of the Winthrop-based Irland Group. ÒThose mills have to convert to a product to get out of the way of commodity panels or shut down. ThereÕs no other choice.

ÒIt is very good news weÕre going to get an investment and conversion of this plant instead of a shutdown of it.Ó

Cleary said he and others made several strong points in lobbying for the expansion in New Limerick. The plant was the top example of cleanliness in the corporate family, he said, and is LPÕs best running plant, in terms of lowest amount of unscheduled down-time.

The plant has a good safety record, and a strong environmental background, he said. And 30 percent of the work force had been there since the plant opened; those workers have 20-plus years of experience.

ÒExperience speaks to a lot of it,Ó said Cleary. ÒThereÕs no substitution for knowledge.Ó

But the plantÕs location is also a challenge, said Cleary. ThereÕs no natural-gas pipeline, so propane has to be brought in on freight trains. Everything, actually, has to be brought in or shipped out by freight, Cleary said, and thatÕs expensive. In addition, he said, the electricity rates Òare ungodly.Ó

But according to Brian Luoma, LPÕs vice president and general manager for engineered wood products, the New Limerick location didnÕt pose any challenges that cause Òany significant concerns.Ó

ÒThe work force is outstanding. The community is very supportive and the plant is located well to serve eastern markets,Ó Louma wrote in an e-mail. ÒLong-term sustainable fiber supply is the one area that we studied closest. A sustainable wood supply to the (New Limerick) mill is a key to ensuring its success over the long term. We are comfortable that MaineÕs forests are well managed and are sustainable over the long term.Ó

Habib J. Dagher, professor of civil/structural engineering at the University of Maine, said researchers at the school identified oriented-strand lumber as a potential growth area for the state.

ÒIt matches our resources well in terms of wood species,Ó said Dagher.

In fact, noted Irland, this type of plant fits Maine in more ways than one.

ÒWe couldnÕt support a modern, world-class-size pulp or OSB plant, the fiber isnÕt there to do it,Ó said Irland. ÒWhat we need is technologies, mills, opportunities that work at scales consistent with what we have.Ó

To help support the industry, the university invested in an oriented-strand lumber pilot plant in Orono, and itÕs now operational, said Dagher.

The goal is to allow companies like LP to use OronoÕs facilities to test out new fiber combinations, species mixes and other factors, said Dagher.

ÒWe believe this product has a big future in the construction industry and will continue to grow,Ó said Dagher.

Staff Writer Matt Wickenheiser can be contacted at 791-6316 or at: mwickenheiser@pressherald. com