Loading...
HomeMy WebLinkAboutCOM 1155.013 2004-2006 Nov 22 06 09:56a Tradewinds Forest Product 808 962 6803 P.1 TRADEWINDS FOREST PRODUCTS LLC ~iS' NUIJ 22 f°" i 7 UPDATE NOV. 21, 2006 INTRODUCTION Tradewinds Forest Products is a Limited Liability Company founded by Don Bryan and a small group of private investors. The O'okala mill is the fruit of eight years of research, planning, organizing and preparation. Initial funding was obtained in September of 2005. The next phase of funding was completed in October of 2006. The remaining funding including debt and equity is projected to be completed by February of 2007. We have applied for our air permit from the Department of Health The air permit will be followed by the storm-water and sanitary permits. We have also started a series of permits with County Planning and Building Departments. When these permits in hand, construction will begin and will take approximately one year. BUSINESS BASICS - Why does this work? The key to establishing a veneer mill on the Big Island is plentiful high quality raw material. Eucalyptus plantations are ready to harvest for veneer production between ages 8 and 10 allowing 4 or 5 crops to be harvested in the time it takes to grow one in temperate forests. This means using abandoned agriculture land in Hawaii for forestry uses much less land to produce the needed wood which can help to preserve native forests. The Tradewinds veneer mill will process 150,000 cubic meters of logs each year. Tradewinds owns the cutting rights on 8,300 acres in the Waiakea Timber Management Area, is acquiring 3,800acres of PruTimber plantations and several other privately-owned tracts. Together these areas grow enough trees to meet the needs of the mill sustainably. immediately after harvest, the fields will be replanted. Tradewinds will use about one third of the eucalyptus now growing annually in Hawaii. Veneer is a high value, high employment product, making it very appropriate for Hawaii. Comm. No. Ref. To.. Ref. u at f OV 2 g Nov 22 06 09:56a Tradewinds Forest Product 808 962 6803 p.2 PRODUCTS Tradewinds Forest Products is a veneer mill. Veneer is the product resulting from peeling a thin layer of wood from a log. Our mill will produce 1/8" thick veneer tosell to plywood and LVL producers. Plywood is made by layering three to seven sheets of veneer with alternating grain orientation with glue between the layers. Plywood is sold in 4' x 8' sheets. Manufacturing laminated veneer lumber, or LVL, is a similar process, but on a much larger scale. This material is produced in "billets" 4 feet wide by 60 feet in length. The billets are then cut to size to produce beams, headers, joists and other load-bearing timbers. The advantages to LVL and plywood over solid wood lumber are significant, including strength, stability and utilization of less wood to carry a given load. After the veneer business is running steadily we will investigate the possibility of making plywood for local use. Veneer can be produced from small diameter trees, resulting in excellent utilization of the resource. The LVL and plywood manufactured from eucalyptus is more stable than dimensional (solid) lumber which can be prone to warping. LVL is the fastest growing market segment of the timber products industry. PRODUCTION PROCESS - How is it made? Eucalyptus is cut in the plantations using high tech machines designed to have minimal impact on the soil and to handle the trees carefully to avoid damage. The machines used eliminate much of the danger of logging in the old style with chainsaws. The machine operator sits in a cab and operates computer controls to manipulate the machine. These machines hold the tree upright while cutting, then turn it sideways and strip the branches off. The branches and leaves are left on site to replenish the soils and provide a surface for the machine to move forward on. The machine automatically measures the tree and calculates the best places to cut lengths for timber production. All of this happens in seconds. Logs are then transported to the mill for processing. Eucalyptus must be treated with care to prevent checking. Time is of the essence in processing to maintain optimal recovery levels. Processing should occur within 24 hours of the tree being cut. At the mill, the logs may be put into a steam vat for conditioning, a process of heating to improve lathe performance. After steaming, the logs will go through a debarker which will strip the fibrous bark from the surface. At this point, the logs are cut into 8 foot "blocks" which are ready for the lathe. Individual logs are placed in the lathe mechanism where they are laser measured at several hundred different points. The machine calculates the best position for the log to ensure optimal performance and the log is presented to the Nov 22 06 09:57a Tradewinds Forest Product 808 962 6803 p.3 lathe blade. The blade cuts a single continuous sheet 8 feet wide by as much as 60 long. This veneer ribbon is then cut to size, sorted by grade and sent to the dryer. The veneer is then run through the dryer. Logs enter the dryer at 50% water. In 9 minutes when the veneer emerges from the dryer, the water content has dropped to only 8%. After drying, the stacks of dried veneer are shrink wrapped and prepared for shipping to plywood and LVL manufacturers. ENVIRONMENTAL CONCERNS - What is the environmental impact? Clean Air Six different processes are used to remove 95% of the wood smoke particulates from the air. Comparable plants show no visible smoke emerging from the stacks. Emissions are significantly below Hawaii and US EPA stringent standards. Clean Water Water used in the mill will come from the well already in existence on the millsite. This is situated makai of the water supply for the town of O'okala. Tradewinds will use only a small percentage of the water previously used by the sugar mill. Water used in processing will be recycled, cleaned and returned to the ecosystem using cooling towers and settling ponds. All water drained from paved areas and roofs on the mill site will be channeled into the recycling process where any oils, etc. will be skimmed off and removed. Noise Tradewinds has performed extensive analysis of potential noise levels. We have committed to sign a binding agreement with the Department of Health that we will keep noise levels below 60Db during the day, 90% lower than the sound energy currently allowed by health regulations. Sound levels will be lower at night. Traffic Wherever possible, trucks will be routed off-highway on cane haul roads. Agreements have been made to trade timber more appropriate for other uses with processors located in other areas on the island to reduce truck traffic between harvest sites and the mill. Trucks will not go through the village, but will use the Old Church Road just to the west and enter and exit on old cane haul road. HISTORIC PERSPECTIVE In the early 1920s, Kamehameha Schools started exploring the concept of industrial forestry with extensive plantings at Honaunau. New plantations were also started on KS lands in 1997 on the Hamakua coast and at Pahala. These plantations have now reached a size suitable for harvest for processing as chips or veneer. Nov 22 06 09:57a Tradewinds Forest Product 808 962 6803 p.4 C Brewer Company, under the guidance of Tommy Crabb established 1,000 acres of eucalyptus plantations at Pepeekeo in the 1970s to explore the feasibility of biomass-based energy production. The research generated by Mr.Crabb has been invaluable to those following in his footsteps. The State of Hawaii has been working to establish a forest products industry for decades through research and tree planting. In the 1970s and 80s, the Department of Land and Natural Resources, under the leadership of Governor Burns and Governor Ariyoshi, planted a variety of non-native trees to determine which species would do best in this environment and to establish a raw material base to develop an industry. Thanks to their efforts, we also have a significant volume of standing timber now ready for harvest. In the 1990s, Governor Cayetano encouraged additional forestry research and sponsored a conference designed to help jump-start the industry. One outcome of his effort was a forestry "right to harvest" law. The Department of Hawaiian Home Lands now considering the dedication of their Nie Nie Forest to commercial forestry operations. The opportunity for DHHL to provide the raw material used to produce building products for use in Hawaiian homes is a natural fit. Senator Akaka and Senator Inouye also sponsored the Hawaii Tropical Forest Recovery Act of 1992. This Acts Guiding Concept # 8 is to "Support and expand the forest products industry and create sustainable commercial forest to promote economic development and diversification within the state". The efforts of these leaders have set the stage for development of a sophisticated, integrated, world class forest products industry. Tradewinds Forest Products and other companies are now well positioned to move forward to complete the vision of three generations of leaders and create a new economic resource on the Big Island. BENEFITS TO THE COMMUNITYASLAND We believe that following in the footsteps of these leaders in developing a forest products industry will help to provide answers to a number of Hawaii's pressing needs: Economic 1. Creating a $30 million per year economic engine that does not depend upon tourism or government spending helps address the need for economic diversity. Basic industry jobs are recognized as having very high impact on creating secondary and tertiary economic activity. 2. Career-path family wage jobs. Nov 22 06 09:57a Tradewinds Forest Product 808 962 6803 P.5 3. Rebalancing East/West Hawaii economic opportunities. 4. Rebalancing a very lopsided import-export relationship Environmental 5. Reduction of commuter traffic with less need for East Hawaii residents to go to West Hawaii for work 6. Production of environmentally sound, non-petroleum based electricity. 7. High value forestry supports maintaining green space on the Hamakua coast 8. Tradewinds can receive and burn up to 100 tons per day of clean waste wood, which would otherwise go into the county dump. NEIGHBOR RELATIONS Tradewinds is committed to being a good neighbor. We will meet or exceed all environmental requirements. We are dedicated to co-operating with the community to re-establish amenities and services such as a small store, a park, and day care for working parents. COMMUNITY SUPPORT Tradewinds was invited to locate in O'okala by two residents in November of 2005. We met with the community at Zirolli's woodshop in December where we received strong support. Based on this support we secured the old sugar mill site and began engineering. We held a follow up meeting at our home in O'okala in January of 2006 where we answered questions about the mill. A group of residents announced opposition to utilizing the industrial site for industrial purposes in July of 2006. In response, many of the long term, multi-generation residents have formed themselves into a group which favors economic development and the return of jobs to the Hamakua Coast. Our project has received support from: The Mayors office The 2006 legislature Department of Business and Economic Development Department of Labor and Industrial Relations Nov 22 06 09:57a Tradewinds Forest Product 808 962 6803 P.6 Department of Land and Natural Resources Senator Inoye's Office Kamehameha Schools Hawaii Forest Industry Association ILWU CURRENT STATUS General Arrangements and preliminary engineering are completed. Request for air permit is filed with the Department of Health. Three of the four major machine centers have been purchased or ordered. The fourth is in negotiations.' Preparations are underway for county plan approval. Construction contracts are well underway. Key employees have been hired. Thirty people are now working together to make Tradewinds a reality.