4 Growing F.N. firm bucking the trend.

Manitou Forest Product's recipe for success is good management.

"You gotta know what you're doing today," says Bob Loerzel, office manager and employee of 27 years.

"You have to keep your fingers on everything at all times. You cannot say this is good enough--you have to strive to be better."

Any time a forest product company is performing well in spite of the high Canadian dollar, the increasing costs of energy and wood supply, they must be doing something right.

The Manitou plant, located in Emo, is a 30-minute drive from Fort Frances. It is 51-per-cent owned by Rainy River First Nation and 49-per-cent owned by Dale Kaemingh. Returns from the First Nation's share are subdivided into two categories. Twenty-five per cent is saved for a rainy day while the remaining 75 per cent is allocated into other community development projects.

"This has given us more flexibility in planning," Chief Jim Leonard says.

"Dividends build more houses and allow us to expand on infrastructure."

Total profits average $400,000 annually.

Twenty-five years ago, Ted Kaemingh, Dale's father, and Tom Judson, resurrected the Manitou Lumber sawmill after it had been closed for a year. Once under new ownership and a new name, Manitou Forest Products began diversifying its product line.

Today, the company annually produces four million board feet of specialty wood products such as log siding, knotty red and white pine paneling, birch flooring and small amounts of cedar siding, when the wood supply is available.

"We like to finish everything here," Loerzel says.

In fact, market demand for such products is increasing, he says.

"If we can increase production by 2,000 board feet a day by changing a few machines to help things along a bit, we would still have the same costs, but produce that much more," Loerzel says.

The workers at Manitou Forest Products know their market share ultimately depends on the quality of the company's products.

Each board is graded on strength and appearance, so the end product has a quality finish. High production mills concentrate on producing a product of strength, but are not so concerned about aesthetics.

The automated rim board plant located on company property is engaged in partnerships with other local forest operations.

Ainsworth Lumber Co. Ltd. transports oriented strand board to Manitou Forest Product to be cut into various sizes, painted and packaged.

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"It's another segment of the business that keeps eight to 10 people working," Loerzel says.

Manitou also uses some of Ainsworth's reject material to make wood separators. Each separator is inserted between large stacks of wood to allow for easy forklift access. This saves time and labour.

Nothing from the company is wasted. Even the bark and sawdust are sold to Marvin Windows, a Warroad, Minn. company, which uses it for their boiler system. In light of high energy prices, forest product companies such as Abitibi-Consolidated are considering utilizing their own biomass to create energy. Manitou Forest Products is no exception. It is working on a solid plan to make use of its waste products in-house.

"You want to make sure you do it right the first time," Loerzel says.

The company possesses a small timberland license from the provincial government. Any other wood required is obtained from the open market. Thirty-five employees (75 per cent First Nation) harvest the wood, then dry it in a boiler-heated kiln. The wood is transferred to either of the two planers and graded for scale. At peak times, both planers work around the clock.

www.manitouforest.com

By KELLY LOUISEIZE

Northern Ontario Business 

QUICK FACTS

Manitou Forest Products was founded in 1981 by Ted Kaemingh and Tom Judson in Emo. It has diversified its quality-focused product lines to include flooring, paneling and siding.