Baton Rouge, LA--May 10--According to a study of Louisiana’s forest population, the state has abundant timber resources available to establish the manufacturing of High Density Fiberboard (HDF) laminate flooring. The survey was conducted by Louisiana Economic Development (LED) in partnership with Evergreen Engineering of Eugene, Oregon.
A comprehensive business prospectus was developed by Evergreen Engineering to produce 350 million-square-feet of HDF substrate from southern yellow pine chips, and convert 175 million-square-feet per year into laminate flooring. It was determined that a $141 million investment would yield an annual average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $39 million.
"Secondary wood products is a sector we have targeted for economic and business development in Louisiana," says Kelsey Short, LED director of agriculture, forestry and food processing. "We are delighted our analysis clearly demonstrates an investment opportunity in floor manufacturing."
The U.S. market for hard surface flooring is vibrant and growing. In 2002, the total hard surface floor market in the United States was $7.6 billion and is projected to rise to $9 billion in 2007 and $10.4 billion by 2012. Additional capital investment will be required to fulfill expanded market demand.
"LED stands ready to be of service to new businesses, as well as foster the expansion of existing ones. We look forward to working with wood product executives and investors to further discuss the many opportunities the state has to offer," said LED Secretary Michael J. Olivier.
Advantages of operating an HDF flooring plant in Louisiana include abundant timber resources, central access to the booming Southeastern U.S. housing market and specialized workforce training programs. For a copy of the Louisiana Economic Development prospectus on HDF floor manufacturing, or to learn more about Louisiana’s forest industry, contact Kelsey Short at 225-342-5892 or short@la.gov
