Product and Process

ECO Manufacturing Company, inc. (EMCi), a joint venture of Fort Vancouver Plywood and International Resources Unlimited, has developed this new, environmentally safe, fully recyclable, building construction and value-added panelboard product composed of Grade 1 Mixed Paper. Grade 1 Mixed Paper currently represents the largest segment of recyclable materials being disposed in our nation's landfills. Recycled Panelboard meets the industry specifications of Plywood, Particleboard, Medium Density Fiberboard, Hardboard, Oriented Strand Board and value-added products such as furniture, consumer goods, paper and wood veneer overlays and edge banding.

Each EMCi Recycled Panelboard manufacturing facility will reclaim and transform a minimum of 27.2 thousand tons of Grade 1 Mixed Paper into over 27 million square feet of building construction and value-added panelboard per year. Underutilized reclaimed materials such as other recycled papers, poly-coated paperboard, and PET and HDPE plastics are also suitable feedstocks for the Recycled Panelboard product. EMCi has transferred the technology of the virgin wood reconstituted panelboard industry to the waste reclamation and transformation industries and developed a viable substitute product which is manufactured in a clean air, clean water and formaldehyde-free process.

Industry and Markets

Environmental issues have negatively impacted the ability of the virgin timber industry to meet the demands of a recovering national economy. Reductions in annual U.S. federal timber harvests have substantially increased structural panelboard prices, contributed to 44 flat panel manufacturing plant closures, 4,800 lost panelboard industry jobs, and a decrease of over four billion square feet of flat panel production in this region between January, 1990 and September, 1992. This increase in the price of virgin timber and the related closure of panel manufacturing plants is likely to continue, and possibly accelerate, in the future.

Target markets for recycled panelboard exceeded $50 billion in sales in 1992. The five year forecast for products used in new building and construction activities shows a three percent to seven percent growth per year. This includes the increased growth in the repair and remodel segments of the consumer markets, as well as those for value-added products.

Management and Financing

EMCi is a development stage company registered in the state of Washington, comprised of industry experts from the wood products and resource recovery industries, individual financial investors, scientists, and engineers.

The cost of the EMCi-Recycled Panelboard manufacturing pilot plant is estimated at 7.2 million dollars. After-tax earnings in the first full operating year of the pilot plant are estimated at over 40% of the plant's capital cost. A full-scale commercial production plant can be constructed for an estimated 18 million dollars. The full-scale commercial plant, through greater product diversity, may achieve an even higher rate of return than the pilot plant.

Conclusion

A market opportunity exists for Recycled Panelboard products. Diminishing virgin wood supplies, heightened consumer awareness, and demands for recycled materials are bringing this opportunity to the forefront today. Recycled Panelboard is building trades "friendly," requiring no new training or tools. Further, Recycled Panelboard is consistent with current construction industry practices and will supplement traditional structural panel products.

Recycled materials supplies continue to grow. The demand for higher grades of recycled fiber is growing as well. The manufacturing process for recycled panelboard, however, will utilize the lowest grade papers that are not in demand by other industries. The economic value of recycled panelboard will continue to grow as further restrictions are placed on timber harvest levels and available virgin raw materials decrease.

If you would like to order a copy of the full report (Report No. C1), please call the Clean Washington Center's Information Line at (206) 587-5520.