Diverting C&D Wood to Fiberboard

Opportunities for Massachusetts

Diverting C&D Wood to Fiberboard

Opportunities for Massachusetts

Sylvain Martel

Wood supply manager

Sylvain MartelSylvain Martel

Wood supply managerWood supply manager

Who are we?Who are we?

TafisaTafisa CanadaCanadaTafisa Canada Overview

• Member of Sonae Industria, based in Portugal

• Largest multi-regional composite panel producer globally.

• Mill began operations in 1992

• Major expansion in 2000: 2nd Particleboard line (being rebuilt

in 2007)

• 325 employees

• Product line: Particleboard and Melamine surface board

• Largest integrated Particleboard plant in North America

• 2 Particleboard Continuous Presses, 9’ and 10’ widths

• 4 Melamine Presses

TafisaTafisa CanadaCanada

Tafisa Canada Overview

• ISO 9001 manufacturing certification

• ISO 14001 environment certification (1st in North America)

• EPP certified by the Composite Panel Association

• 92% Recycled and Recovered wood fibre

•FSC certified

• Have made capital investment to process « urban wood residues » within strict physical quality parameters.

Plant Location in relation to Boston MA and Montreal QCPlant Location in relation to Boston MA and Montreal QC

The grey shaded region denotes The grey shaded region denotes TafisaTafisa’’ss natural market for Particleboard & natural market for Particleboard & Melamine panels.Melamine panels.

Massachusetts and New England are in the Massachusetts and New England are in the ““heartheart”” of our market. of our market.

TC

Boston 275 miles

Montreal 140 miles

Tafisa Canada

TafisaTafisa CanadaCanada• New England represents an important market for Tafisa.

• We ship $7 million worth Particleboard and Melamine panels per year to Massachusetts and New England.

• With the rebuild of our Particleboard Line 2, we expect to build substantially on this volume in 2008.

• Our volume in New England is sold primarily through Distributors such as Baer Supply Company , North Pacific Corporation and other valuable customers.

• Our products are used primarily to manufacture Kitchen & Bathroom Cabinets, Interior (Walk-In) Closets, Residential and Office Furniture, Kitchen & Retail Countertops.

• Our New England customer base would widely embrace the concept of Tafisa purchasing « urban wood residues » from within their own market.

Why use recycled wood?Why use recycled wood?MotivationsMotivations: :

-- Increase demand for Increase demand for «« green productsgreen products»» by our by our clients (EPP, LEED, etc.)clients (EPP, LEED, etc.)

-- Limited natural resourcesLimited natural resources

-- Increase the life cycle of woodIncrease the life cycle of wood

-- Protect the environment by stopping disposal of Protect the environment by stopping disposal of woodwood

-- Prohibitive cost for waste disposalProhibitive cost for waste disposal

TafisaTafisa specification for woodspecification for wood

KRUGERKRUGER• THE KRUGER ORGANIZATION

• Kruger is a major pulp and paper company engaged in the manufacturing and sale of newsprint, specialty grades, lightweight coated paper, directory paper, tissue, recycled linerboard, corrugated containers, lumber and other wood products, includingDRIcore, the most recently patented unique engineered sub-flooring system. Kruger Energy Inc.is a producer of green and renewable energy. Kruger Products, a member of the Kruger Company, is the leading tissue manufacturer in Canada. Scott Paper serves the Canadian consumer market with well-known brands including Cashmere, Purex, SpongeTowels, Scotties, White Swan, White Cloud, as well as away from home products for industrial and commercial use across Canada.

•• The Kruger company has operations in Québec, Ontario, Alberta,

British Columbia and Newfoundland and Labrador, the United States, United Kingdom and employs over 10,000 people.

In compliance with Kruger authorization for energetic recovery for our cogeneration plant in Sherbrooke, the received materials

must meet the following norms (mass analysis of residue will be done to evaluate residue compliance):

1.Total halogen content (fluorine, chlorine, bromine, iodine and

astatine) must always be less than 0.15% of the wet weight2.The supplied material will contain a minimum of 75% biomass

(wood residue with no treatment and no paint)3.The following materials may be included in the mix but are not

considered as biomass−Carton fiber panels, paper, paperboard, pressed wood panels

(MDF, HDF, etc.), plywood

−Contaminants other than wood (total mass of contaminants must always be less than 5% in dry weight):

-Asphalt shingle-Gypsum, metal, glass, ceramic

-Stone, sand, ash and/or concrete

-Acoustic products & insulation material-Plastics (styrofoam, urethane, vinyl, vapor barrier, ABS, etc.)

Kruger specifications for woodKruger specifications for wood

•• The following materials must never be delivered (0% The following materials must never be delivered (0% --non detectable visually)non detectable visually)

•• Dangerous goodsDangerous goods•• Asbestos and/or Magnesium Asbestos and/or Magnesium •• Paints, oils, solvents, glues & other similar materialsPaints, oils, solvents, glues & other similar materials•• Treated wood (0%) with creosote, copper arsenate Treated wood (0%) with creosote, copper arsenate

(CCA), or pentachlorophenol (PCP)(CCA), or pentachlorophenol (PCP)•• Any other materiel not listed aboveAny other materiel not listed above•• All combustibles will be delivered shredded with a All combustibles will be delivered shredded with a

maximum dimension of 15 cm (6 inches) and a target maximum dimension of 15 cm (6 inches) and a target of 0 to 10 cm (0 to 4 inches)of 0 to 10 cm (0 to 4 inches)

•• The maximum humidity will be 35%, if this limit is The maximum humidity will be 35%, if this limit is crossed, then Kruger could refuse the delivery or crossed, then Kruger could refuse the delivery or reduce the paid price.reduce the paid price.

•• The sampling will be taken at the delivery as per The sampling will be taken at the delivery as per received Kruger instructions.received Kruger instructions.

Kruger specifications for wood (2)Kruger specifications for wood (2)

TAGERTAGER• The TAGER project is basically the creation of a

purchasing group between Tafisa Canada and Kruger inc. TAGER is the abbreviation of Tafisa and Kruger

• The need for such a group comes from a synergy between the companies regarding recycled wood. Tafisaneeds good quality recycled wood and Kruger needs low quality recycled wood for fuel in their cogeneration plants. In the market, this new entity would be able to purchase and use all the grades of recycled wood.

• This synergy will grow and some new projects will be created were we see fit

Our Our needneed for for woodwood

•• For For TafisaTafisa in 2009 the in 2009 the woodwood needneed for for boardboard materialmaterial isis goinggoing to to bebe 150,000 GT 150,000 GT and for boiler fuel 40,000 GTand for boiler fuel 40,000 GT

•• For Kruger the For Kruger the needneed for for cogenerationcogeneration willwillbebe 200,000 GT200,000 GT

•• A grand total of 390,000 GTA grand total of 390,000 GT

ConclusionsConclusions-- Wood products, such as particleboard and medium density fiberboaWood products, such as particleboard and medium density fiberboard, offer rd, offer

opportunities as an ecoopportunities as an eco--efficient material for the mitigation of climate efficient material for the mitigation of climate change. Over ninety percent (90%) of the total panel compositionchange. Over ninety percent (90%) of the total panel composition is wood is wood fibers derived from a renewable source and most importantly offefibers derived from a renewable source and most importantly offering a ring a recyclable store of carbon. By increasing the use of wood for enrecyclable store of carbon. By increasing the use of wood for energy ergy production derived from sources traditionally flowing to the comproduction derived from sources traditionally flowing to the composite posite industry will create severe distortions in the carbon cycle.industry will create severe distortions in the carbon cycle.

•• All instruments (including government incentives) to enhance theAll instruments (including government incentives) to enhance the use of use of wood, wood residues and wood wastes as a renewable raw material wood, wood residues and wood wastes as a renewable raw material or a or a renewable energy source should:renewable energy source should:

•• Consider all wood residues and wastes that are suitable for the Consider all wood residues and wastes that are suitable for the production production of woodof wood--based products in the first place for material recycling;based products in the first place for material recycling;

•• Consider all wood residues and wastes not suitable for recyclingConsider all wood residues and wastes not suitable for recycling as biomass as biomass fuel.fuel.

•• It is estimated that we create 54 man hours per dry ton of wood It is estimated that we create 54 man hours per dry ton of wood in the in the panel and resulting woodworking industry as opposed to 2 man houpanel and resulting woodworking industry as opposed to 2 man hours per rs per dry ton when used as a biomass.dry ton when used as a biomass.

•• Only burn wood after it has been fully and soundly usedOnly burn wood after it has been fully and soundly used

ConclusionsConclusions•Sourcing urban wood residues (waste) from Massachusetts and New

England represents an economic fibre re-use strategy with distinct

environmental benefits.

•Superior to land-filling, burning as co-generation, etc.

• Tafisa and Kruger are long-term players committed to the New

England marketplace.

• Sourcing urban wood residues from New England makes long term

sense to both our companies, and, not a short-term/opportunistic

transaction.

• By working together, Massachusetts, New England and us can

benefit by solving long-disposal and sustainable fibre supply issues.

• This relationship would make a strong sustainable environmental

statement based on a sound economic foundation.