Laserfiche WebLink
<br />~~ <br /> <br />Stone Forest Industries <br />Stone Forest Industries (Stone) has purchased about half of the total sawtimber sold in thc timbershed. <br />Be"""'" Stone has been such a predominant purchaser, c:onsidcrabJe attention is giVCII below to an analysis <br />oftbc structure oftbcir purchasing and recent history. The current miIlloca1ion in South Forie has a long <br />and rich history. Our sketch ofthc recent histol)' indicates that Southwest Forest Industries purchased the <br />mill &om Douglas Studs in the late 60's or early 70's. Stonc Containcr purchased the mill from Southwest <br />in 1987. In 1988, Stone mwnedall the wood products c:ompanies they bad Wjuircd (a1cmg with <br />Southwest's paper-making facilities) to Stone Forest Industries, IDe. <br /> <br />I <br /> <br />Until 1938, Stolle ran 24 MMBF 00& scale) through their mill. When thc Rio Grande forest plan came out <br />ill 1985 with an ASQ of33 MMBF, Stolle adjusted to this by installins a new planer, boilcr and dry kiln. <br />This ICrics of investments totaled about 4.8 million dollars and allowed them to ND the mill throughout the <br />year (they would Dot have to air dry). With more numing time, they iIIcreased their lDDuaI capacity by six <br />milliOll feet to 30 MMBF. Also, in 1989, Stone began processing logs to a fivc inch top instead ofa SCVCII <br />iIIcb top. Processing smaIIcr diameter logs meant that at the samc speed. their capacity was lowered to 29 <br />MMBF per year. There have been DO other substantive changes since. <br /> <br />The mill NIlS a singlc shift at this level. It is designed technically and financially to operate a single s1ili\. <br />The mill produces 2x4's in 4 to 8' tally, 2x6's, in 8' tally, lx4's in 4 to 8' tally, and 3x4's in 8' tally. About <br />92 percent of all they maJce is 2x4 (studs). The way the mill is structured. it cannot process III)'thing <br />Jongcrdlan 8' or anything wider than 6". The 1x4's are a by product of producing studs. StoDe has a <br />strcmg prefcrence for Englemann spruce because i1 maJces the best studs. They also mix ill lodgepole and <br />subalpine fir to keep the volume in the mill up. Their dead spnce volumes are often used by other <br />processors with interests in specialty products like house logs. <br /> <br />The following two charts show sawtimber purchased by Stone in the timbcrsbed and on the Rio Grande <br />forests. <br /> <br /> __r v......... 'urchI.ed by Stone In the Tl_.hod <br />.. .. <br />.. <br />.. .. <br />(. " . <br /> .. <br /> .. <br />I: " <br /> .. <br /> .. <br />. . \ <br />. <br />. <br /> .. II .. . . t7 . . . .. <br /> ..... V.r <br /> <br />The above chart shows a highly variable sale purchasing pattern over time. To look for pote:Dtial trends we <br />smoothed this chart by cransfonning it into a three year rolling averagc. This average is illustrated in the <br />chart below. <br /> <br />(I r, 2 ~ 4 ~ <br />,.,,, OJ :::> <br /> <br />12 <br />