Huber Seeking Turn-Key EPC Vendors for $125 Million OSB Mill

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The site of a new oriented strand board (OSB) mill to be constructed by Huber Engineered Woods, a unit of family-owned J.M. Huber Corporation (Edison, New Jersey), in Georgia or South Carolina is still undetermined. Huber expects to complete the site selection process by the end of the year. Meanwhile, development plans for the $125 million project are still progressing towards groundbreaking in the first quarter of 2006. Once online in late 2007 or early 2008, the plant’s annual output of oriented strand board products will be approximately 700 million square feet per year.

Huber will select an engineering firm that will prepare bid packages to entail engineering, procurement, and construction of key segments of the plant. The packages will be based on the green-end, energy systems (dryers, heaters, etc), forming and press line, finishing area, and balance of plant (BOP: civil, underground, roads, and buildings). The company anticipates that bid packages will go out in December, with pricing due back in February or March of 2006.

Currently, there are three operational oriented strand board (OSB) plants in Georgia and only one in South Carolina. However, aside from Huber’s planned project, there are two new OSB plants scheduled to come online in 2006 and 2007 in South Carolina. See related news article dated October 11, 2005 Grant Forest Products Breaks Ground on OSB Mill in South Carolina.

According to Randy Godet, Pulp, Paper and Wood Group Manager at Industrialinfo.com, "Announcements of new oriented strand board plants or expansions of existing capacity, may begin to taper off in the coming year as companies redefine their market strategies in light of the size and number of plants that are under construction or scheduled to come online 2006-2007."

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