Pulp, Paper & Wood Industry Offers Near or Immediate Term Opportunities for Suppliers and Contractors, a Feature of "Navigating the Currents of Change" on Industrialinfo.com

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Researched by Industrial Info Resources (Sugar Land, Texas)--Once looked upon as a fading industry, the forest products industry has something to offer those vendors and suppliers that backed away after the spending spree of the 1980's slowed to a trickle. Capital investments may never return to the pre-millennium levels, however, the current flow of expenditures represent a significant amount of investments, considering the current economic climate. Industrial Info has identified over $1.4 billion in capital and maintenance projects in North America that will require request for quotations (RFQ's), bid documents, and purchase orders over the six month period ending August 2009.

The bulk of project activity will fall within the U.S. with 100 projects worth $1 billion and Canada with 31 projects with a combined value of $217 million. In Mexico, a $240 million Greenfield tissue mill is the only project identified for the period. Projects range in value from $1 million and go up to $300 million. Capital expenditures account for $1.2 billion while expenditures geared towards maintenance shutdowns represent $207 million.

The tissue sector continues to be strong and most resistant to market forces. Several new projects, including new machines are under development or near the construction phase and have immediate needs for contractors and equipment suppliers. J. D. Irving plans to break ground this spring on a $120 million tissue machine addition at a mill in Fort Edward, New York. Procter and Gamble's "Gold Rush" project in Utah is under construction and has several major contractor bid packages left to be awarded. Moreover, the company has already started planning for a second machine at the Bear River site.

The wood sector has been hit hard by the downturn in the housing industry. While most mills will continue to scale back production and keep expenditures to a minimum, there are several projects that are moving forward. Roseburg Forest Products plans to proceed with expansion plans at two facilities in Oregon later this year and possibly invest in operations in the South. Site work will be underway in a couple of weeks for a $90 million medium density fiber line in North Carolina. Additionally, the project owner of a $300 million oriented strand board (OSB) complex planned for Arizona may release purchase orders for long-lead equipment beginning in August.

Much of the industry's previously planned capital and maintenance activities for 2009 have already been delayed. Projects included in the estimates were recently confirmed to be going forward.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.