3566 Chapter 28 



for the larger factory is estimated at 36.9 percent and for the smaller factory 29.6 

 percent. Investment cost and prices used were those prevailing in 1979. 



Some key statistics describing the two proposed enterprises are as follows 

 (based on a production mix of 45 percent 2 by 8's and 55 percent 2 by lO's): 



Lager Smaller 



Statistic enterprise enterprise 



Capital investment $49,200,000 $31,600,000 



Annual production of joists, Mbf 185,000 99,600 



Manufacturing cost per Mbf $171 $182 



Sales price per Mbf, fob mill $296 $296 



Profit (before income tax) per Mbf $125 $1 14 



After-tax internal rate of return, percent 36.9 29.6 



Employees, number 233 161 



Annual cost of energy additional to wood residues from 



operations. Electric power assumed to cost $0.03/kWh 



and thermal energy $0.25/therm $2,577,600 $1 ,377,800 



28-29 $33.0 MILLION— MANUFACTURE OF THICK 

 ROOF DECKING FROM OAK PARTICLE9^ 



Roof sheathing and floor decking of hardwood structural flakeboard can 

 probably compete successfully in the residential building market (sect. 28-25 

 and 28-27). Hoover et al. (1981b) conclude that a somewhat thicker and less 

 dense panel {\-Vs- to 1 -3/1 6-inch thick with density of 40 to 45 pounds/cubic foot) 

 made from red oak flakes and particles can compete in the market for industrial 

 and commercial roof decking. The oak panel has face layers of oriented high- 

 quality flakes and a lower density core of particles cut on a ring flaker (fig. 24- 

 48). It is designed to support 45 pounds/square foot with a deflection limit of 1/ 

 180 of the span length for decking continuous over two 6-foot spans, thus 

 competing with 22-gage, wide-ribbed steel decking which sells (1980) in the 

 Atlanta, Ga. area for about $420/thousand square feet; cost of the steel decking 

 at the job site is $600 to $650/thousand square feet. 



Availability of an oak roof-deck panel would permit wood products manufac- 

 turers to assemble all-wood bulding systems more likely to be competitive with 

 steel systems, than is presently possible. 



The proposed manufacturing enterprise, sited in Georgia, would require an 

 investment of $33 million and would annually consume about 103,025 cords of 

 red oak (297,000 tons, green basis) purchased at an estimated cost of $35/cord. 

 Annual output for three-shift operation 325 days/year is estimated at 50 million 

 square feet, l-'/s-inch basis. Of total manufacturing cost of $41 1.72/thousand 

 square feet, resin binder accounts for about 25 percent and wood about 17 

 percent. If sold at $500/thousand square feet, l-'/s-inch basis, return on the $33 

 million investment would be about 13 percent before income taxes. 



'Abstracted from Hoover et al. (1981b). 



