Fed Co-op and Ainsworth plywood plants survive recession by concentrating on quality vs. quantity In the volatile world of plywood prices, two unionized operations in IWA-CANADA Local 1-417’s (Kam- loops) jurisdiction have been able to prosper. Both operations; Ainsworth’s Savona plywood division, and Federated Co-op’s Canoe B.C. mill have kept their heads well above the water line because they have been producing high value added plywood products. “These plants, although there have been some small downturns here and there, have been some of our steadier operations,” says Kevin Kelly, presi- dent of Local 1-417. “They have both been able to penetrate some very important markets with specialty products. This has kept our members on the job for the most part.” Ainsworth has been specializing in high-grade, high strength panel prod- ucts which are finished with overlays. Meanwhile Federated Co-op has been pumping out some of the best fir and spruce plywood that is offered by Canadian producers. Both plants have something in com- mon. They employ more people per unit production than most modern sawmills. The result is that there is more hands-on grading of the produc- tion which has resulted in higher qual- ity plywoods. The Ainsworth plant situated in Savona, about 40 km southwest of Kamloops, produces a number of ply- wood products of which their Medium Density overlay (MDO) and High Density overlay (HDO) plywood are the most popular. The mill mostly utilizes fir to pro- duce the panels which are covered in resin impregnated overlays, which leave hard and durable finishes. Most of the panels are sold to customers in ¢ At Ainsworth’s Savona plant patcher Gurpal Singh Litt carefully goes over veneer. the construction industry where they are used to pour concrete. The overlay gives the user a teflon- like surface which separates from dried concrete easier. Thus the ply- wood forms can be used repeatedly. In the old days, plywood sheeting was used with an oil application. These type of forms only lasted for 2-3 applications. The MDO overlay concrete form is good for 20-40 pours, while the HDO version can last up to 200 pours. Quality control specialist Gordon White says the MDO107, is the mill’s bread and butter. Sizes can range from 2’x8’ to 3’x8’ to 4’x8’ and slightly oversize panels. The mill puts 2 people (a grader operator and a grading assistant) to work grading the panel. Whereas most mills have one grader, each grader at Ainsworth is responsible for inspect- ing one end, one edge, and one face. The MDO products consist of kraft paper overlay that is impregnated with a resin and dye. It is pressed on to the plywood with a substrate glue line that bonds to the wood surface. The overlay is translucent - so light gets through to show the customers exactly what they are getting under- neath. The company’s “A” mill puts about 40-42 IWA members to work per shift. Meanwhile an old “B” mill provides 15 jobs per shift. The HDO product is a very labour intensive operation. Ainsworth uses 4 people on the layup line in addition to the core feeder. Mr. White says most plywood plants have more automated systems, but with the type of panel Ainsworth wants it is better to have a hands on approach. e At Federated Co-op’s plant in Canoe, B.C. local 1-417 member David Weil feeds core on layup line. “The more hands that handle and touch the veneer, the better we are in the long run,” said White. “Automa- tion removes people but it also takes away quality control.” Most of the HDO goes south to the United States. The company also sells in Canada and has begun to make some inroads into Japanese markets. The Japanese are learning about the advantages of using softwood ply- woods as their sources for Asian hard- wood plywoods have been dropping off. All concrete form and overlay pan- els are made of 100% Douglas fir from the B.C. interior. Fir gives the prod- ucts their maximum strength to value. The company also produces tradi- tional %” spruce sheathing sold in Canada and now in Scotland and Japan. To ensure that the sheathing is of top quality the face stock is fully patched and upgraded. In other product lines the mill pro- duces a medium density plywood used for signs, siding and shelving and also makes a reflective surface prod- uct used for highway signs. Ainsworth also does a “decking panel” for flat deck service trailers which is a non-skid panel. A wire mesh- green is applied during the hot press process between the cold plate and the panel. The company makes core for K2 skis which are manufactured in the US. It dries packages and ship’s cus- tom cut 4” Spruce used for downhill ski assembly. One hundred and twenty workers are on the IWA seniority list. Bernie Vanderwal, the union’s plant chairman says that the recession brought some down time and a short- ened work week. A UIC work sharing program was put into place a couple of times. It didn’t go too good the second time around. Brother Vanderwal says that most of the workers “would rather see a total shutdown and collect UI for a period of time. . . “ rather than go back to work sharing. ‘The workers had too many prob- lems waiting for their UIC cheques to come in. Another issue at hand is that of weekend clean up which the company is currently paying to casuals at straight rates. The union has taken the case before the Interior Forest Labour Relations Association. At Federated Coop’s specialty ply- wood plant in Canoe, about 120 km. east of Kamloops 140 IWA members are employed making high quality spruce and fir plywood. ’ Both companies believe labour inten- sive production inspection methods will ensure quality The plant holds the distinction of being the first one in the province to receive the JAS stamp of approval which enables it to directly ship to Japan. It received the approval in 1987 from the Council of Forest Industries. Over 18% of its total production goes to Japan, 5% to Europe and the rest is sold domestically. The company is operating a new tongue and groove machine which fits Japanese market needs. The tongue and groove machine also produces COFT's patented floor products. The mill can produce over 400,000 sq. feet per day on aX” basis. It’s lathe can peel a maximum of 600 lineal feet per minute. From the lathe the veneer goes to an automatic sort system where it is separated by moisture prior to stack- ing. Fish tail and random pieces are off-beared manually. Continued on page thirteen 12/LUMBERWORKER/SEPTEMBER, 1993