Tarkett’s J-V Pennsylvania Plant Loses Rail System
Clarion, PA, January 23, 2006--A top official with the Clarion fiberboard plant said this week the company remains committed to the area despite the loss of the local railroad system, according to the Oil City Derrick.
The Clarion plant, which was announced last April, is a 50/50 joint venture between Tarkett and Chilean wood panel company Aconcagua Timber for U.S. production of wood panels and laminate flooring for the North and South American markets.
The Knox & Kane railroad has embargoed itself, reportedly due to safety reasons, according to the Pennsylvania Public Utilities Commission.
It has created a dilemma for Clarion Boards Inc., which operates the fiberboard plant along Route 322 in Paint Township.
Jean desAutels, general manager of the company, said they were unable to ship products in November and December.
"Our people here did an excellent job" of rerouting the deliveries with trucks, he added.
DesAutels said they also learned there had been a number of derailments when it was in operation and the system was not as reliable as believed.
Clarion Boards is now facing increased expenses with the loss of the railway.
One rail car is equal to three trucks, said desAutels.
The manager said they are working with local and state officials to come up with a solution.
It may also include a way to ease traffic on 322 due to the increased truck traffic.
State Rep. Fred McIlhattan (R-63rd) said a meeting was held this week about the issue.
Railroad upgrades could cost more than $25 million, he said.
But the representative said he is pleased that Clarion Boards officials have expressed their commitment to remain in Clarion.
DesAutel said officials are currently working to open a new laminate plant next to the fiberboard plant.
Construction is expected to start in about three months with production scheduled late this year.
The new plant's cost is estimated at $40 million and is expected to create 80 to 90 jobs, according to desAutel.
Clarion Boards will serve as the main supplier of the new plant, which will consume 30 percent of the fiberboard facility's capacity.
Officials say they have invested $3.5 million at the fiberboard plant to add a new finishing line.
The railroad's condition was the main factor in a biodiesel company's decision last year to establish a new operation in Venango County instead of Paint Township.
Enviro Biodiesel, which is based in New Castle, is currently working to begin production at the former Pennzoil plant in Rouseville.
