3550 Chapter 28 



Key statistics for the two enterprises are as follows (costs of general adminis- 

 tration, working capital, interest, and investment tax credit are not included): 



Structural 

 Plywood flakeboard 



Statistic plant plant 



Capital investment $20,360,000 $24,650,000 



Operating cost, annual $16,401,000 $11,510,000 



Sales, annual $16,933,390 $16,589,100 



Net profit, annual (before income tax) $532,390 $5,079,100 



Return on sales 3.1 percent 30.6 percent 



Return on investment 2.6 percent 20.6 percent 



Employees 108 67 



28-26 $28.0 MILLION— CONVERSION OF WHOLE 

 STEMS INTO PALLET PARTS AND COMPOSITE PANELS^^ 



On a daily basis, 36,201 cubic feet (bark not included) of tree-length stems of 

 southern hardwoods — mostly oak and averaging less than 12 inches dbh — are 

 converted by shaping-lathe headrigs into cants (fig. 28-30 top) for remanufac- 

 ture into lumber pallet parts (fig. 18-104D top), and into cylinders (figs. 18- 

 104C and 18-252) yielding rotary-peeled veneer. Flakes from the shaping- 

 lathes, together with other flaked residue, are pressed into 4- by 8-foot oriented- 

 strand core sheets. These are combined with veneer faces and backs to yield 

 structural composite panels (fig. 24-53) for use as sheathing or pallet decking. 



Daily output is based on two-shift operation of log decks and green veneer 

 production and three-shift production of lumber and composite panels. It is 

 expected to amount to 12,254 cubic feet (150,672 pieces totaling 196,063 board 

 feet) of lumber pallet parts plus 1 1 ,250 cubic feet (180,000 surface square feet, 

 or 5,625 sheets) of y4-inch-thick 4- by 8-foot composite structural panels (fig. 

 28-30 bottom). Recovery of lumber pallet parts and composite panels is about 

 10.4 square feet surface measure (y4-inch basis) per cubic foot of log input. 



If lumber pallet parts are sold (fob mill) for $ 1 60/thousand board feet and the 

 composite panels at $300/thousand square feet (y4-inch basis), operating results 

 and other essential data would be as follows for operation 350 days per year: 



Capital investment, including working capital $28,024,200 



Operating cost, annual $19,691 ,804 



Sales, annual $28,172,000 



Net profit, annual (before income tax) $ 8,480, 196 



Return on sales 30. 1 percent 



Return on investment (before income tax) 30.3 percent 



Employees 353 



Energy requirement, annual 



Electrical energy purchased 20,961 ,408 kWh 



Oil purchased (Bunker C, boiler standby) 50,000 gallons 



Diesel fuel and propane for lift trucks and front-end loaders 



(oil equivalent) 170,000 gallons 



Wood residues burned (O.D. weight basis), all available from 



mill residues 67,000 tons 



^^ Abstracted from Roubicek and Koch (1981). 



