Thermo-treatment Equipment and Technology

1. Thermo-treatment Equipment and Technology 612-308-3953 e-mail: wood@westwoodcorporation.com http: www.thermotreatedwood.com Pittsburgh PA, 2010

2. Underlying Magic VS • The thermo-treatment concept (gradually heat wood to 400° F in an oxygen-free environment for several hours) is well known (over 100 years), but the first industrial equipment for softwood was built in Finland just 15 years ago. Westwood expanded the technology capabilities to treat both - softwood and hardwood. • Steam or inert gas is introduced to prevent the wood from burning or cracking and helps to generate the molecular changes. • Thermo-Treated Wood became a new generation of wood material that combines such unique properties as water repellency, weather resistance, and increased dimensional stability. • The visual characteristics are also enhanced giving it a beautiful brown tint and natural wooden grain. These new properties are achieved without the use of chemicals, making this material an ecologically friendly alternative to pressure-treated wood.

3. Why it’s happening? Wood is a three-dimensional polymeric composite made of cellulose, lignin an hemicelluloses, with a small amount of extractives and ashes. A mild pyrolysis (T<500° F) of wood mainly cracks hemicelluloses and begins to modify lignin. By products of hemicelluloses pyrolysis condense and polymerize on lignin chains hence the notion of reticulation (creation of chemical bonds between polymeric chains) which gave its name to "retification" (an abbreviation between reticulatio and torrefaction). These reactions create a new "pseudo-lignin" which is more hydro phobic and rigid than the initial one. An infrared spectroscopy study has indeed revealed a modification of chemical bonds in treated wood: the number of oxygen containing groups (mainly hydroxyl groups) decreased while the number of C= double bonds increased. Cellulose cristallinity does not seem to be affected. • Essential Durability - The reason being that the equilibrium moisture content is reduced by 50% - 90% compared to untreated wood. Thermo-Treated wood is also less susceptible to decay because 95% of the polysaccharide are removed during the process. • Repels Moisture - This is due to the reorganization of carbon-hydrogen chains in the wood structure that occurs during treatment. • Increased Dimensional Stability - As wood is thermo-treated, the molecular structure is changed and the wood assumes it’s minimal size. These factors substantially reduce moisture related swelling and shrinkage. The wood becomes stable enough that moisture related size variations are virtually eliminated. This amount of stability also ensures a surface that is highly resistant to cracking and checking. The results are a real wooden material that is sturdy, easier to maintain and will uphold a beautiful appearance for many years. • Visual Characteristics - The thermo-treatment process enhances the woods color creating an even brown tint that is consistent beyond the surface. The natural wooden grain is accentuated, given the appearance of exotic wood for a fraction of the cost. A UV protector should be used to shield the wood from the sun and prevent fading. In the event a UV protectant is not used and fading occurs, the color can be easily restored by sanding. • 100% chemically free - Chemicals are never used during the thermo-treatment process, so the material remains environmentally safe. You and your children can walk barefoot across a thermo-treated wooden deck with certainty and piece of mind that the surface is free from harmful chemicals.

4. Created by NatureImproved by Westwood • Developed in 2003 Westwood technology has modified the Finland and French softwood technologies and specifically treats hardwoods (needs more exact temperature control than softwood treatment). • Igor Danchenko, Westwood owner, holds one of the world’s five major patents for the thermo-treatment process, specially developed for treat hardwoods. • Westwood was developed the process based for a 3-Dimensional Heat wave control inside the Chamber, which is the most advanced thermo-treatment technology in the world now.

5. Westwood 3-D technology® The Westwood technology – is the third generation technology, which improved the existing European thermo-treatment processes in 2003. Westwood was developed the process based for a 3-Dimensional Heat wave control inside the Chamber. This new technology doesn't have a comparison in the world. All treatment technologies use the turbulent air flow inside the chamber and can be considered as 1-Dimensional heat wave technologies. The precise 3-D heat wave control of the processes is especially important for treating hardwoods, compared with softwoods. The 3-D control not only allows to get a predictable result for hardwood treatment, but also to produce the specific products, such as colored parquet and other design products (the precise control of the heating in 3-D allows to get the boards with the predictable color deviation in the limited space - see photo of the design floor).

6. Why Westwood developed the technology to treat hardwoods? vs. Poplar Pine Ash Maple

7. How does thermo-treatment technology work? Process: • Lumber is placed in the specially designed heat isolated stainless steel chambers. • The wood is preliminarily dried under water-saturated conditions to allow residual stress relief. • The lumber is then exposed to temperatures between 380-420° Fin several hours. • The lumber is cooled with condensation, saturating it with moisture. • The total process takes anywhere for 12 to 18 hours. Westwood Equipment Features: • The process is completely digitized and fully automatic. It can be remotely controlled via the Internet or from a cellular phone. • The system automatically adjusts to the type, size, humidity, chemical composition, and geometry of the primary wood. • Cycle time is optimized by the system itself. System shuts off automatically. • Every 5 seconds the system automatically monitors and manages more than 20 parameters, producing controlled and predictable results. • Westwood's technology was specially designed to manage the thermo-chemical reactions that occur when treating hardwoods (3-D thermo-treatment technology®). If treat softwood, the thermo-chemical reactions are not occurred. • The kiln uses a special air purification system that meets environmental requirements.

8. Westwood Kiln Specification • One load capacity: 5,000 – 6,000 BF. • Species - any dried hardwood or softwood (6-10% moisture). • Treatment temperature – 370°- 450° F. • Treatment time per cycle: 11 - 16 hours. • Theoretical Year’s Output: 3,500,000 BF. • Chamber net dimensions - 5’ х 6’ х 38’. • Operational kiln dimensions - 8’ х 15’ х 85’. • Controls – fully automatic, plus Internet and cell-phone management.

9. SII Dry Kilns – manufacturer of Westwood Equipment in USA SII Dry Kilns Company (Lexington, NC), has been family owned and operated since their inception in1969 and are now one of the leading manufacturers of lumber drying facilities. Their company consist of more than 60 employees and they’ve already manufactured more than 1,000 different drying facilities across the country. Facilities manufactured at SII include, conventional package-loaded kilns, single and double track-loaded kilns, various types of fan sheds, as well as multi-zoned pre dryers. Every facility SII manufactures is in full compliance with the standards set by the American Lumber Committee. At the beginning of 2009, SII Dry Kilns Company and Westwood Timber Group, entered into an exclusive manufacturing agreement, giving SII the only manufacturing rights for Westwood’s technology in the U.S. The decisions where made after several months of research done by both parties. Westwood’s decision was based upon SII’s superior reputation throughout the lumber community. SII came to their conclusion quickly after discovering that Westwood’s technology was far more advanced than it’s competitors. As of now, there is no other company in the U.S. manufacturing equipment with thermo-treatment capabilities.

10. www.siidrykilns.com

11. AppendixEuropean Thermo-treatment technologies

12. European thermo-treatment technologies All the European heat processes have in common the treatment of sawed softwood at elevated temperatures in the range between 160 °C and 260 °C (320-450° F). The main differences between the processes are seen in the process conditions (process steps, oxygen or nitrogen, steaming, wet or dry process, use of oils, steering schedules etc.) and published in several patents.   Plato-Process (PLATO BV, The Netherlands) uses different hydrothermolysis step with a dry curing step. In the first step of the process, green or air dried wood, is treated at temperatures typically between 160 °C - 190 °C under increased pressure (super atmospheric pressure). The process time depends on the wood species used, the thickness, shape of wood etc., and uses a thermolysis step (4-5 hours ) followed by an intermediate drying step (3-5 days) and a final curing step (14-16 hours). In some cases, a conditioning step (2-3 days) is needed. 

Retification Process (NOW New Option Wood, France) starts with relatively dry wood (approx. 12%) and heats up the material up to 200 °C – 240 °C in a nitrogen atmosphere (below 2 % oxygen). Bois Perdure Process (BCI-MBS, France) starts with fresh wood, subsequently a fast drying process and heating up to 200°C – 240°C under steam atmosphere. The first step of the process consists of an artificial drying in the oven. Then the wood is heated under steam atmosphere (steam generated from the water of the wood). OHT – Process (oil-heat treatment, Menz Holz, Germany) is performed in a closed process vessel. After loading the process vessel with wood, hot oil is pumped from the stock vessel into the process vessel where the hot oil is kept at high temperatures circulating around the wood. Before unloading the process vessel, the hot oil is pumped back into the stock vessel. For different degrees of upgrading, different temperatures are used. ThermoWood Process (Stora, Finnforest, Stellac, Jartec, Finland) has been developed at the Finnish Research Center VTT. Today the process is licensed to the members of the Finnish Thermo Wood Association. The Thermo Wood process is divided into three main phases: Phase 1 - The kiln temperature is raised at a rapid speed using heat and steam to a level of around 100ºC. Phase 2 - Once the high temperature kiln drying has taken place, the temperature inside the kiln is increased to a level between 185ºC and 230ºC. Phase 3 - The final stage is to lower the temperature down using water spray systems. Then once the temperature has reached 80-90ºC, remoisturising and conditioning takes place to bring the wood moisture content to a useable level 4%. Finland method (Thermo Wood) Retification (France) Hot oil method (Germany)

13. Thermo-treatment technologies in figures

14. Thermo-treatment Technologies' comparison

15. European thermo-treatment manufacturers in the US In 2004 Westwood was the first and only company promoting the thermo-treatment idea in the US market. Now, together with four Westwood thermo-treatment chambers installed, there are three other softwood thermo plants of different European manufacturers in the US. Starting 2006 Stellac, a Finland based company, promoted decks made from thermo-treated pine in the US. In 2008 Stellac, started the plant in Indiana for manufacturing thermo-treated decks made of softwood, under the brand-name “PureWood”. However, the market for thermo-treatment softwood does not seem promising in the U.S. Softwoods in the U.S. are typically used for construction purposes, which demand completely different moisture standards than that of Europe. In the U.S., the moisture content for building materials is 20-25%, compared to the European standards of 8%. This is a significant factor for thermo-treatment processes. Anyway the presence of big European manufacturer in the US helps us to promote the thermo-treatment idea. Jartek, another Finland based company, installed their equipment in a plant located in Minnesota. Jartek, like Stellac, has the similar technology that is only capable of treating softwoods, limiting them with the difference of U.S. and European softwood market. The thermo-treatment process used by these companies was developed by Finland VTT Institution (“Thermowood”) and used under a VTT license. Perdure, a company using the first French technology (the next one was the French ratification technology NOW – see below), also predominately softwood manufacturing, launched their plant first in Quebec, Canada. In 2008, Perdure installed their equipment in the U.S. plant located in New Hampshire. Their products (mostly softwood) can be found in the US under the brand-name “Cambia”.

16. How much does it cost? Jartek, Finland (Canada/USA). Value-Added Manufacturing. A Wood Preservation Alternative. The thermowood preservation method has been marketed as an environmentally friendly alternative to chemical use, but the process has now been further moved forward by an Ontario company with an advanced dryer design. By Tony Kryzanowski A Northern Ontario company has spent in excess of $1.2 million and put in four years of research and development to introduce a proven Finnish wood preservation technology to North America, a technology that uses extreme heat instead of chemicals. Called Superior Thermowood, the company has just recently commissioned its first “ecodryer” near Thunder Bay, making it the first producer of thermowood on this continent. In addition to turning a profit for the company’s 32 private investors, company president and chief operating officer Arvo Tyrvainen says they hope the forest industry recognizes this process as one way to add value to commodity grade softwood and hardwood products, and a way to create forest industry jobs right here in Canada. “We believe that value-added processing should happen here,” says Tyrvainen, “and because it is a valueadded product being exported from Canada, our understanding is that Superior Thermowood will be exempt from softwood lumber duties.” Capital expenditures at the Iroquois Falls plant will cost $7 million, says Tyrvainen, and they will encompass manufacturing and installing the three heat-treat cooking units, infrastructure for milling and planing, raw materials for inventory, and startup capital. Stelac, Finland (USA) Published: April 12, 2007     New business to move into industrial park By Howard Greninger, The Tribune-Star TERRE HAUTE — A company that will use kilns as an ecological and chemical-free method to treat wood used for building outdoor decks is under construction in the Vigo County Industrial Park. Burkes Garden Wood Products will be housed in a new, 84,800-square-foot building directly east of Futurex Industries. The wood products company, owned by Melvin Stoltzfus, will invest $10 million for the building and three new kilns, and it plans to extend a rail spur from Futurex to the new facility. The building can accommodate up to 10 kilns, Witt said.

17. The other examples, showing the thermo-treatment business cost Stora Enso (Finland) Stora Enso Timber invests in ThermoWood production 30/01/2008 - 10:30 Stora Enso Timber has decided to increase its production of ThermoWood by building a new kiln in Bad St. Leonhard Sawmill, Austria. The investment value is EUR 5 million and the new kiln will be in operation in the 4th quarter of 2008. “This investment is the next phase in Stora Enso Timber’s goal towards becoming a leading supplier of ThermoWood. In conjunction with the investment, Stora Enso Timber has decided to organize the development of ThermoWood in a Product Line, headed by Nils Bergström,” explains Dieter Kainz, responsible for marketing and sales at Stora Enso Timber. NOW SA (“New Option Wood”) (France) In 2004 the French company “NOW,” who owned four (plus one building) thermo-treatment plants in France and the patent (similar to Westwood), was sold for EUR 100 M to the Consortium of three: Bank Paribas (France), EPMB Holding and Architect Company from Paris.