Economic Feasibility Analyses 



3565 



Koenigshof s (1981) analysis of an enterprise utilizing 15 percent dense 

 southern hardwoods, 35 percent low- or medium-density hardwoods and 50 

 percent southern pine, assumes the cost of tree-length wood delivered to the mill 

 at $0.54/green cubic foot. In addition to the tree-length wood, some additional 

 wood is purchased in chip form at $30/ton, ovendry- weight basis. About 2,01 1 

 pounds of wood and 157 pounds of bark, ovendry- weight basis, plus 131 pounds 

 of resin and wax (dry solids basis) are required to yield 1 Mbf of 2 by 8 's with 

 ovendry weight of 1,983 pounds (fig. 28-33). 



Net, fob-mill sale price of the COM-PLY joists is estimated at $270/Mbf for 

 the 2 by 8's and $317/Mbf for the 2 by lO's. 



An investment of $49.2 million is required for production of 185,200,000 

 board of feet of these composite joists annually, and $31 .6 million for annual 

 production of 99,600,000 board feet. Respective manufacturing costs of the two 

 factories are $171/Mbf and $182/Mbf of joists. After-tax internal rate of return 



VENEER 



FLAKE BOARD 



Wood 

 1809 lbs. 



Bark 

 157 lbs. 



Tree Length 

 Timber 



Tops and 

 Barking 



Peeling and 

 Drying 



Gluing Lay-Up 

 and Pressing 



Cutting 



1407 lbs. 



X 



Feed Stock and 

 Other Wood 



Other Wood 

 202 lbs. 



RMS Screens 



Drying and 



Blending 



Resin Wax 



and Solids 



131 lbs. 



Forming 



Mat Trim 



and Pressing 



Cutting 



1310 lbs. 



97 lbs. 



450 lbs. 



Lumber 



1533 lbs. 



205 lbs. 



110 lbs. 



Figure 28-33.— Flow plan and materials balance, ovendry-weight basis, for manufac- 

 ture of 2- by 8-inch COM-PLY joists. (Drawing after Koenigshof 1981.) 



