E-Newsletter - A Publication of Interstate Resources

Thursday, April 10, 2008

RB Lumber Assumes Newport Timber's Chipmill Operations

Interstate Resources News homepage: http://news.interstateresources.com/  

Source: Interstate News, Spring 2008

RB Lumber LLC assumed operation of the Newport Timber chipmill on 21 August 2006. Currently, the chipmill operates 24 hours per day/six days per week, producing 14-15,000 tons of wood chips per week. This is more than 80% of the Interstate Paper weekly chip needs.

Due to the unavailability of purchased chips on the open market, the percentage of chips furnished by the chipmill has increased 30% over the last 8 years. As Interstate Paper increases production, the chipmill will be required to keep pace.

The chipmill, which was built in the late 1990’s, was designed to run 9-10,000 tons per week. It is currently producing 50% more tons at essentially the same cost per ton without any significant improvements to the mill since conception.

Although chip production has significantly increased, we continue to require a high standard of chip quality. Newport Timber maintains an independent contractor on-site to take chip samples of both internally made and externally purchased chips.

If chip quality falls below standard, Newport Timber requires that RB Lumber shut down and fix the chipmill in order to make chips of the required quality, the same requirement expected from our former contractors and external chip sources.

Our goal at the chipmill is to produce the highest quality chips at the lowest possible cost.

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