Forest producer upgrades to survive.

As a sign of heightened activity, Manitou Forest Products saw nearly $1 million worth of renovations this spring, doubling the size of its building and bringing new technology and new jobs to Emo Township.

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Future plans are likely to include the possible addition of a debarker and a chipper, as well as a larger gang-edger. This will enable the company to increase their potential output from five million-board feet per year to a possible six million.

While some would see this as an effort by the company to expand its reach, Dale Kaemingh, co-owner and general manager. says that such plans are all about surviving in an increasingly competitive market, rather than representing aspirations of grandeur.

"Every year, we try to add a little bit to try and keep it as efficient as possible and to try and keep in business," Kaemingh says

"We'd like to grow a little bit, but we like to just keep the clients and customers we got. Basically, that's the biggest thing right now, since we're in survival mode."

The expansion will allow for eight additional jobs to the 30-employee facility, located on the Manitou Rapids First Nations reserve. The community owns a 51 per cent stake in the business and nearly 75 per cent of its employees are of First Nations descent. Those numbers are rising on a regular basis Kaemingh says.

"If we had to rely on just cutting straight timber or shipping green lumber out, we likely would not be able to expand or afford new stuff."

"For us, value-added is very important because it creates more employment, and it gives you a little better return on your money."

Not only does the company convert master panels into rimboards of various widths for the housing industry, but they also have a specific line that converts off-grade panels into various wood pallets used to support loads.

The facility also features a sawmill dedicated to cutting red and white pine for specialty products such as wall paneling, flooring, and log siding.

Kaemingh estimates that as much as 80 per cent of the company's output goes towards value-added purposes. Much of their success is not only with value-added saleable material and their partnership with Ainsworth Lumber, but also with their stewardship policies.

Red and white pine must be properly managed to remain a sustainable resource, so Manitou Forest Products sets limits on how much can be removed from the nearby forests on an annual basis. They then gear production in accordance to the lumber supply.

Despite the company's continuing success Kaemingh says the market's general instability could one day mean that value-added operations such as his may also end up in the cold.

"When two-by-four and two-by-six markets go for crap, the big mills will be looking for something else to cut," he says. "Next thing you know, they're producing what the small mills are producing. If there's more supply than demand, then the price goes down."

General cost involved with specialized equipment, manpower, time, and suitable material, may render this kind of operation unprofitable for some, but Kaemingh says Manitou Forest Products has been around "for 25 years, and we hope to be around for another 25."

"We've had our ups and downs, but our strategy seems to work well for us."

www.manitouforest.com

By NICK STEWART

Northern Ontario Business