From two-by-fours to biodegradable plastic.

David Ramsay expects to see some re-greening in Northern Ontario's forestry industry

The Natural Resources Minister predicts the industry will look very different from today in the coming years.

It will have a broader product mix, ranging from the ubiquitous two-by-four to the use of wood as an essential ingredient in biodegradable plastics.

Try this one on for size. How about building a car from a tree and a soybean?

"This is where it's headed," says Ramsay.

The Timiskaming-Cochrane MPP and provincial cabinet minister has taken sharp criticism for what some Northerners have called the government's slow response in rolling out $1 billion worth of aid and incentives to save forestry jobs and keep mills open.

High electricity costs, the strength of the Canadian dollar, the U.S. softwood lumber agreement, slumping sales and cheap lumber from global competitors have all been blamed for the industry's problems that have thrown many forestry-dependent communities into economic chaos.

But Ramsay argues, "There's never been as much support given to an industry in this country as what we've done for forestry."

Far from shoring up a "sunset" industry, Ramsay says he's been proactive in implementing almost every recommendation from an industry and communities-driven competitive council from two years ago.

"That report has been my road map. Everything I've done has come from that."

It includes last November's announced $140-million energy rebate market to prop up pulp mills, the last part of the provincial aid package.

In his overview of the industry of the future, Ramsay characterizes it as one producing less newsprint, but more value-added paper. There will be fewer sawmills, but more regionally-based plants with three shifts producing low-cost lumber.

While environmentalists may be pleased that more mill shutdowns mean more space for wildlife sanctuaries, Ramsay predicts the North will be a future source of energy as world fossil fuel reserves run out.

"In 25 years, this industry is going to be (wood-based) chemical industry.

"It's going to be our farmer's fields and our northern forests where Ontario's energy and materials are to come from."

Ramsay says the transition is already underway. Ethanol plants using wood waste will be springing up and technology companies are in the prototype stage of making car door panels from wood waste and soya bean oil. "That is the future. We're going to grow our energy and material. We're not going to pump it out of the ground."

Ramsay predicts in 15 years, a North American car will consist of 50 per cent organic material, replacing petro plastics. Lighter door panels means more fuel-efficient and recyclable cars.

"The Northern forest in the long term is going to be a very important asset to Ontario." That means growing more trees and crops to make up for the loss of petroleum.

But can Ontario compete against southern hemisphere countries with warmer climates that can grow trees faster? Ramsay says the North's dense wood fibre works in its favour in developing more high-end products.

However, he realizes the resultant turmoil has been hard on communities.

"Politically, it's very tough, but we've stepped up to the plate to make this transition happen. That's the message I've sent to colleagues. Some people think forestry is a sunset industry. Not at all. It has a bright future, but the products and jobs will change."

Ramsay sees some glimmers of hope with two previously closed mills taken over by home-grown entrepreneurs--Terrace Bay Pulp by Buchanan Forest Products and Thunder Bay Fine Papers by an investors group--who understand the markets and can make these plants work.

Now with the U. S. housing sector in free fall and companies like Bowater starting to feel the pinch of the softwood lumber export quotas, Ramsay wants to help them find other export markets.

Before Christmas, he gathered ambassadors from 16 Middle Eastern and North African countries at the United Arab Emirates embassy in Ottawa to "sing the praises" of Northern Ontario softwood.

Ramsay says there's big demand for lumber in these countries, which are sourcing wood from Russia and Scandinavia.

A big selling point is that Ontario wood is provincially-mandated to be third-party certified, unlike many global competitors.

Demonstrating Canada is the No. 1 jurisdiction for sustainable wood makes a big difference for many global Big Box retailers and catalogue producers.

Ramsay says the federal government can show its support by financing entry into new markets.

By IAN ROSS

Northern Ontario Business