Dáil Éireann debate -
Tuesday, 27 Apr 1993

Vol. 429 No. 6

Written Answers. - Oriented Strand Board Facility.

Edward Nealon

Question:

241 Mr. Nealon asked the Minister for Agriculture, Food and Forestry , in connection with the negotiations between Louisiana Pacific Corporation and Coillte Teoranta for the establishment of a pulpwood industry in this country, he will give details of the volume of timber that the planned mill will use annually; the nature, type and age of the timber suitable for the planned product; the type of planned product or products; the expected annual output; the likely markets for the products; and if he will make a statement on the matter.

Edward Nealon

Question:

242 Mr. Nealon asked the Minister for Agriculture, Food and Forestry the present position regarding the negotiations for the establishment in this country of a pulpwood mill between Louisiana Pacific Corporation and Coillte Teoranta; if a decision has been made to establish such a mill; the Government agency, or agencies, involved in the negotiations; the nature of the involvement of Coillte Teoranta in the industry; when it is hoped to have this industry come on stream; and if he will make a statement on the matter.

Edward Nealon

Question:

243 Mr. Nealon asked the Minister for Agriculture, Food and Forestry when a location will be selected for the planned new pulpwood mill in this country to be set up by Louisiana Pacific Corporation in conjunction with Coillte Teoranta; the main contributing factors in influencing the decision on the location; if the claims of County Sligo and the north-west as an outstanding centre for the industry are being taken into consideration and being promoted by the Government because of the special needs and problems of the area, as well as the advantages; and if he will make a statement on the matter.

Minister for Agriculture, Food and Forestry (Mr. J. Walsh)

I propose to take Questions Nos. 241, 242 and 243 together.

Following signature of a Letter of Intent between Coillte Teoranta and Louisiana Pacific, detailed negotiations, involving Coillte Teoranta and the Industrial Development Authority and Louisiana Pacific, are continuing in connection with the planned establishment of an oriented strand board facility in this country by the end of 1994. No firm decisions have yet been made to establish such a facility although it is intended that the project would be a joint venture between Coillte Teoranta and Louisiana Pacific and in addition Coillte Teoranta would supply approximately two thirds of the raw material requirement. In this regard the facility under discussion would require an annual volume of 650,000 cubic metres of raw material of a minimum diameter of 7cm, any species and any age. On this basis, the output would be approximately 250,000 metric tonnes of oriented strand board per annum. The principal market for the product is envisaged to be the European Community.

In so far as the location of such a facility is concerned, the Deputy will appreciate that this is a matter primarily for the promoters to decide in the event of the negotiations now underway being completed successfully and within the context of determining the overall economic appraisal of the project's viability. All areas of the country are being considered and the main factors which would influence a final decision in this regard would be inbound raw material costs, outbound transport costs, land availability, transport infrastructure and the supply of water and energy.