Report on Cosmopolis Mill - School of Environmental and Forest ...

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4. Obviously, Western Canadian producers have also been impacted by the
strengthening 'loony' (Canadian Dollar).
2. Southern U.S. pulp producers must increasingly compete with new, more
productive and (recently) far more profitable OSB producers for their softwood
and hardwood fiber supplies. More stringent harvesting restrictions and increased
demand have especially (as mentioned in the executive summary) impacted
hardwood fiber costs.
6. Saiccor does not appear to have gained much of a position in acetate, possibly
because of significant quality and processing issues.
Ethers and Moldine Com~ounds (see Graah 2)
With the exception of Saiccor, this 1999 chart is pretty flat. One would think that the
weakening of the U.S. currency, the shutdown of the competitive GP-Bellingham, Wa
mill and the improvements in the Cosmopolis mill's relative cost position would offer
attractive opportunities in these markets for the mill. It may simply be a globally oversupplied
market. Saiccor does not seem to have the high brightness capabilities nor the
interest in the top end of the molding compound market.
Methodolow for Comaetitive Anahrsis
I. Weyerhaeuser Data Base
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Start with published literature for total tons per day.
Run a backward fiber balance to the wood source.
Consider the type of process and number of lines.
Quarterly update of regional fiber costs.
Add mill specific species/chiplround wood knowledge.
Use an energy balance based on mill type and age.
Consider hog boiler contribution fiom wood supply.
Make up with fossil fuel and regional fuel costs.
Consider turbine generator capability.
Chemical use depends on mill type and bleach sequence.
Model is not refined for P11K so bleaching costs were increased.
No byproduct credit for 1000/c hardwood.
Labor, salary, and material costs driven fiom people counts.
Cosmopolis Pulpmill Project- Competitive Analysis
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