Jaffrey, New Hampshire, USA, 07 August 2009 -- /PRNewswire/ -- New England Wood Pellet LLC (NEWP), and Norbord Inc.(TSX: NBD
) today announced that NEWP will acquire Norbord's Deposit, New York, land and property and build a new 100,000 ton-per-year state-of-the-art wood pellet manufacturing facility.
NEWP and Norbord expect to close on the purchase and sale by 05 November 2009. Norbord's intentions are to continue manufacturing of medium-density fiberboard until closing.
"We are excited to work with Norbord toward the transition of this facility to a new era of renewable biomass fuel manufacturing," said Steven J. Walker, president and CEO of NEWP. "The Deposit site represents an attractive growth opportunity because of its outstanding location relative to northeastern demand for pellet fuel, its well-established wood supply, its excellent highway and rail access, and its exceptional labor force. We look forward to working with Deposit officials and local citizens to ensure a successful transition."
The demand for wood pellet fuel is expected to increase as consumers move toward renewable heating resources, and as government enacts policies to reduce demand for foreign fossil energy for heating and to promote low carbon energy resources. New stove and boiler technology allows use of pellets fuels to provide clean, high efficiency heating for residential, commercial, and industrial customers.
NEWP currently owns plants in Jaffrey, New Hampshire, and Schuyler, New York. The company will ship an estimated 155,000 tons in 2009, making it the largest manufacturer of wood pellet fuel in the northeastern United States. A wholly-owned subsidiary, Propell Energy, sells and services wood pellet boilers for municipal and commercial heating. The company currently employs 75 people at its various locations.
NEWP expects to complete construction of its Deposit plant in the fourth quarter of 2010. The company expects to reach full production capacity in the first half of 2011. The plant will employ an estimated 20 people, with indirect employment in wood supply, transportation, and retailing of product estimated at more than 100 jobs. Construction of the plant will use local labor and employ dozens of skilled workers at various points during the 9-12 month construction period.
For more information regarding New England Wood Pellet, visit www.pelletheat.com. For more information regarding NEWP's subsidiary Propell Energy, visit www.propellenergy.com.