Rentech to install pellet equipment in September; aims for April production
by M.MCKINNON on AUGUST 1, 2013
Rentech Inc. will invest $22.5 million to turn the particleboard plant here into a wood pellet production facility, and plans to start hiring permanent staff for the plant this fall, Chris Amey, director of project development for Rentech, told Council Monday.
“Some of the equipment has been ordered, and over the next two months you will see a lot more activity here,” he said. Rentech is aiming to start production in mid-April. “We are on schedule to meet Ontario Power Generation’s needs, but we do have an alternate source in place if there are issues [getting this plant running].”
The plant will employ 18 to 20 full-time, plus a few more yard workers (wood acquisition is being handled by Rainy Lake Tribal Contracting, and it will employ the yard workers). Current plans are to have five crews of two workers each (an operator and a general utility person) on shift work, augmented by a mechanic, fibre manager, electrician, millwright, quality control/lab worker, scaler, assistant scaler and a plant superintendent.
"The Company’s two announced wood pellet projects, Atikokan and Wawa, located in Ontario, Canada, are expected to generate revenues and EBITDA beginning in 2014, with a ramp-up to approximately 80% of stabilized EBITDA in 2015 and forecasted stabilized operating income of $3 million and stabilized EBITDA of $15 million in 2016. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of the forecasted EBITDA to operating income for the pellet facilities have been included below in this press release. "
will it have more management than the 20 full time workers? MORE CHIEFS THAN INDIANS ? will HUNT be/is the new CEO and the whole chain of command from Wilshire.Castle..will they answer to the question "what do you charge the pellet business for the management fee? they refused to answer that question at the CC when an analyst asked HUNT and DAN what they charge RNF.