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Welcome to OSB #6 Mill Sale

Welcome to OSB #6 Mill Sale. February 2007. AGENDA. History Mill Performance Leadership Team Process Flow & Equipment Environmental Capital Investments Wood Supply. Site History. First board - Aug 96 At capacity - Dec 96. Properties in view: 40 hectares (approx).

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Welcome to OSB #6 Mill Sale

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  1. Welcome to OSB #6 Mill Sale February 2007

  2. AGENDA • History • Mill Performance • Leadership Team • Process Flow & Equipment • Environmental • Capital Investments • Wood Supply

  3. Site History • First board - Aug 96 • At capacity - Dec 96

  4. Properties in view: 40 hectares (approx) Other properties: 40-50 hectares (approx) Paved main routes Rail Access (inside) Warehouse 5975 sq m Z o n e d I n d u s t r I a l Fire Protection System Pond Reservoirs Warehouse 5017 sq m Process Buildings 13750 sq m (approx) Shipping Wharf Dock Length: 100 m

  5. Mill Performance

  6. Safety Performance 1998 - 2006 RIR- Recordable Incident Rate

  7. Annual Production (net) * 2001 - 1 week market downtime * 2004 – 17 day major press component replacement

  8. Productivity Asset Utilization 2000 - 2006 Asset Utilization = Calendar Hours - (unscheduled downtime + scheduled downtime + lost opportunity) / Calendar Hours

  9. Product Mix

  10. Recovery Recovery = gross MSF / green ton delivered wood

  11. Leadership Team

  12. Organizational Structure

  13. Maintenance & Operations

  14. Technical Dept

  15. Operations Manning Hourly & Salary Positions • 74 production workers • 34 maintenance workers • 30 salary (leadership & admin • 10 salary (forestlands) • Average Age = 41 • Hourly turnover rate <1% • Education – avg 2 yr Post Secondary

  16. Process Flow & Equipment

  17. Process Flow & Equipment Log Yard • Log yard Contract • Handle all 8’ delivered wood • Species Sort – Aspen, Mixed Hardwoods (including some softwood)

  18. Weigh Scale Cube Tank Scalehouse

  19. Hot Pond Charger Loading Hot Pond Chargers

  20. Whitewood Infeed Decks

  21. Process Flow & Equipment Green End & Dryers • 2 - 200 ft hot ponds • 2 - A5A Nicolson 27” Ring debarkers • 3 - CAE Disc Flakers (3rd in 1999) • 85 MMbtu GTS Heat Energy Unit • 3 – triple pass dryers (new Westec in 2003)

  22. Jackladder Jackladders

  23. Debarkers

  24. Stranders

  25. 13 ’ x 60 ’ Triple Pass Dryer (3)

  26. Process Flow & Equipment Forming, Pressing & Finishing • 2 – Blenders – liquid PF • Schenck Forming Line • Retro-fit Dieffenbacher on original Pathex press frame • Globe finishing end • Lower & Upper Warehouses

  27. Blenders (2)

  28. Mat Forming Line

  29. Mat Forming Line

  30. Hot Pressing ( Press)

  31. 1st Pass Saw Infeed

  32. 2nd Pass Saw

  33. Stacking

  34. Tongue & Groove

  35. Strapping

  36. Locomotive (Upper Warehouse)

  37. Environmental

  38. Environmental Highlights • EMS Certification to ISO14000 (Operations & Woodlands) • Environment Control Technology • Primary & Secondary Cyclones • Durr WESP (new High Frequency Rectifier) • Customized designed Velocity Reduction Unit • 200ft stainless Stack (single emissions source) • PM Monitoring devices • Hi-Vol (2) & PM 2.5 & PM 10 monitors (2)

  39. Original Stack Configuration 90’

  40. Main Stack Bypass Stack Idle Stack GTS Emergency Dump Stack WESP Stack New Stack Configuration (2002)

  41. PM 2.5 Monitors

  42. Capital Investments

  43. Capital Improvements Major Capital (Cdn$) • 2006-2007 – Secondary Cyclone Replacement $1MM • 2004 – Press Rebuild $5MM • 1997-2003 – Environmental $15MM • 1999-2000 – Woodroom Upgrade (3rd strander) $12MM

  44. Capital Projects Completed to Date 2006 • Plant Security Upgrades (CTPAT) • CL Flaker Disc Assembly Replacement • Flaker motor control upgrades/replacements • Woodburner Control Upgrade • Substation Switchgear Upgrades

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