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ARBEC Forest Products

OSB Mill Visit

May 30th, 2013

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Corporate Profile

ARBEC Forest Products is a company which manufactures OSB and softwood lumber. Its activities are carried out in Quebec and New Brunswick. They consist of two OSB mills and four saw mills. We sell our products on the North American, and European markets. ARBEC employs approximately 600 employees and another 400 people are employed indirectly or through forest contractors.

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Corporate structure

BOSCUS

50%

ST-GEORGES

OSB MILL

Miramichi

OSB MILL

PÉRIBONKA

SAW MILL

PORT-CARTIER

SAW MILL

PH LEMAY

SAW MILL

BERSCIFOR

SAW MILL

JOHN LEWIS

SAVCO

ST-AMANT

LA TUQUE

GROUPE REMABEC

50%

ARBEC

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Mill Locations

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Time line (St Georges OSB)

1979 Plant Construction by Panneaux Malette 1980 First « waferboard » produced 1995 Conversion of production to OSB 1998 Capacity increase with the addition of GTS furnace, 2nd Strander, and a 3rd Dryer Oct 2000 Plant acquired by Tembec Feb 2006 Acquisition by Produits Forestiers ARBEC

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Wood Supply (St Georges OSB)

Main Wood Species

Aspen 88% Birch 12%

FSC Certification (2010)

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Employees : 123

Annual production capacity : 250 000 m3

250 000 m3 20 000 to 25 000 4’x8’ panels per day

Products: ¼’’, 3/8’’, 7/16’’, 15/32’’, 19/32’’, OSB/3 (10-18mm)

Certification Agency : TECO (PS 2.10, CSA-0325)

HFB ENGINEERING GMBH ( )

Plant information (St Georges OSB)

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Time line (Miramichi OSB Mill)

1972-73 Plant Construction by Airscrew Weyroc to produce particleboard. 1984-86 First « waferboard » produced. Mill ownership was Norbord / Noranda. 1996 Conversion to OSB. Mill ownership was: MacMillan-Bloedel, Temple Inland and a Native group. The mill was call Eagle Forest Products. 1999 Mill acquired by Weyerhaeuser. 2006 Mill closed by Weyerhaeuser. 2012 Acquisition by Produits Forestiers ARBEC

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Wood Supply (Miramichi OSB)

Main Wood Species

Aspen 40-50% Softwoods 30-50% Hardwoods 10-30% The desired amount of Aspen is >50% but at this point we are running at approximately 45% Aspen. The hope is to start receiving more private wood that will have a higher percentage of Aspen.

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Employees : ~ 110

Annual production capacity : ~ 450 000 m3

450 000 m3 30 000 to 40 000 4’x8’ panels per day.

The best month for Arbec Miramichi so far has been March 2013 (5 week

month). In March, the Miramichi mill produced 37 000 m3.

Products: ¼’’, 3/8’’, 7/16’’, 15/32’’, ½”,

19/32’’, 19/32” T&G, 23/32”, 23/32” T&G

Certification Agency : TECO (PS 2.10, CSA-0325)

Plant information (Miramichi OSB)

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Evolving from waferboard in the late 1970s, OSB is unique in that long wood strands are oriented, not randomly placed. Since its debut in 1978, OSB has been rapidly accepted. In fact, in many areas of North America, OSB has virtually replaced other types of panels in new residential construction. Today, all building codes in north America recognize OSB’s equivalency to plywood of the same thickness. OSB is primarily used as structural sheathing panels in residential, commercial, and industrial construction.

History of Oriented Strand Board

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Oriented strand board (OSB) is a structural panel product, composed of strands sliced from whole aspen, poplar, or other mixed hardwood logs.

The strands are sliced from the logs in the direction of the grain so that the inherent tree strength is maintained in the resulting panel.

After slicing they are dried, blended with wax and waterproof exterior type binders (phenolic resin binder), formed into a loose mat containing three layers and pressed under high heat and pressure into a rigid, dense structural panel.

What is OSB ?

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OSB Manufacturing Process

Logs are soaked in conditionning ponds, to remove ice and prepare wood for stranding, then sent up the jackladder.

Jackladder

After harvest, whole logs are hauled to the mill’s wood yard, then sorted by species.

Log Sorting

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OSB Manufacturing Process (cont.)

Logs are run though the debarker to remove bark. Bark is later used as fuel in the mill’s energy supply.

The strands are cut from whole logs into precise dimensions of up to six inches long.

Debarking

Stranding

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Strands are deposited into wet bins, waiting to be dried.

Strands are then dried in rotating driers, until the appropriate moisture content is reached.

Wet Bins

Drying

OSB Manufacturing Process (cont.)

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Strands are blended with resin binders and a small amount of wax, which improves the efficiency of the binder and enhances the panel’s resistance to moisture and water absorption.

Strands go through the forming line where cross-directional layers are formed.

Blending

OSB Manufacturing Process (cont.)

Forming Line

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Layers of cross-directional strands are pressed under intense heat and pressure to form a rigid, dense structural panel of oriented strand board (OSB). Presses are primarily multiple opening allowing 8 to 16 master panels to be pressed in one operation for increased efficiency.

Panels are cooled, cut to size, grade stamped, stacked in bundles and edge coated. All graded panels bear a mandatory certification agency stamp.

OSB Manufacturing Process (cont.)

Pressing

Finishing Line

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OSB Manufacturing Process (cont.)

Shipping

Finally, the panels ready to be loaded and shipped to destinations around the world. Panels can be ordered smooth, sanded for special uses, or with tongue and groove edges.

Panels are stacked into bundles and stored for a minimum of 48 hrs. This period is necessary to allow the panels to cool down sufficiently to be shipped.

Storage

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Main Applications

• Wall, Floor and Roof Sheathing

• Furniture Components / Packaging

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Thank you !

Questions ?