Economic Feasibility Analyses 



CONCLUSIONS AND DISCUSSION 



3563 



Except for mills with smallest annual capacity using roundwood, all flake- 

 board plants could be profitable at all locations using any of the forms of wood 

 supply. If wood costs are similar, large plants will be more profitable than small 

 plants. 



The amount by which estimated fob mill sales price exceeds (or falls short of) 

 estimated mill cost, including 15-percent after-tax profit on entire capital re- 

 quirement, varies with location (table 28-11). 



Table 28-1 1 . — Amount by which estimated fob mill sales price' exceeds (or falls short 

 of) estimated mill costs^ including 15-percent after-tax profit on entire capital require- 

 ment, for various mill locations and capacities 



Raw material entering mill 



Mill location and Flakes Flakes Logs and 



annual capacity and chips 



(MMSF) chips 



Dollars/MSF, '/2-inch basis 



Texas-Louisiana border 



37.5 31 17 (4)^ 



75.0 — 54 42 



112.5 — 67 57 



150.0 — 70 61 



Arkansas-Missouri border 



37.5 36 22 (3) 



75.0 — 58 48 



112.5 _ 71 64 



150.0 — 74 68 



South Georgia 



37.5 41 27 (4) 



75.0 — 63 48 



112.5 — 76 63 



150.0 — 79 68 



West Virginia 



37.5 28 11 (15) 



75.0 — 48 31 



112.5 — 61 46 



150.0 — 62 49 



'Average of values in last column in table 28-9. 



¥rom column "Total mill cost" in table 28-9. Should wood cost increase $15/ovendry ton from 

 the values indicated in the center column of table 28-9, values tabulated above would be diminished 

 by about $20/MSF. 



^Values in parentheses represent costs that exceed sales price. 



