Economic feasibility study: integrated industrial complex for the utilizatiion of aspen, birch and cottonwood in northeastern British Columbia

• Main Author: Sourial, Farag Anis
• Format: Text
• Language: English
• Published: The University of British Columbia 1981
• Subjects: Fort Nelson
• Online Access: https://dx.doi.org/10.14288/1.0075404; https://doi.library.ubc.ca/10.14288/1.0075404

The feasibility of utilizing the aspen, birch and cottonwood stands which are found in large volumes in northeastern British Columbia was investigated. The study included raw material analysis, plant design of five integrated production lines, market study and model of investment. The integrated complex was designed to produce aspen and cottonwood dried veneer with an annual capacity of 70 000 m³, 3 mm thick, 13 500 m³/year of sliced - dried birch face veneer, 0.8 mm thick, 40 billion splints for match manufacture, 10 000t of pelle- tized aspen bark and 50 GJh of thermal energy. The aspen, cottonwood and birch veneer production was chosen because of its higher profitability than other products and its market potentials. The residue utilizing lines were included to add manufacturing values in addition to the main products. The complex is expected to consume 140 000 m³ of aspen and cottonwood and 30 000 m³ of white birch yearly. This volume is considered a fraction of the species annual allowable cut in the Fort Nelson Forest Unit. A total capital investment of $29 373 000 is required; of which $17 083 000 would be for fixed investment and $12 290 000 for annual operating cost. The expected after tax profit on investment would be $10 910 000/year, based on annual sales of $3k million. Projected annual return on investment is expected to reach 6k% of the fixed investment with a payout of 1.6 years. Sixty eight tables and 1+9 figures in addition to plant layout for the entire integrated industrial complex are included in the study as illustrating material.