Wood Chips

In May 2013, we acquired Fulghum Fibres, Inc. (Fulghum Fibres), a leading provider of contract wood chip processing services in the U.S. The company has been consistently profitable and maintains a solid reputation as a consistent producer of high quality wood chips and other services to a diversified customer base in the pulp and paper industries in the U.S., South America and Asia.

Fulghum Fibres, which is a wholly-owned subsidiary of Rentech, processes approximately 15 million tonnes of wood and bark annually into wood chips and residual fuels at its 32 wood chipping mills, 26 of which are located in the U.S. and 6 of which are located in South America, where Fulghum Fibres both provides chipping services and exports wood chips to customers who are primarily in Japan. Fulghum Fibres operates primarily under long term contracts and services a portfolio of industry leading customers such as Georgia Pacific, International Paper, and Weyerhaeuser.

Revenues are typically based on per-tonne processing fees with minimum volume requirements. Fulghum Fibres commands an estimated 70% of the U.S. contract chipping business and approximately 6% of total U.S. chipping market that includes in-house chipping operations by pulp and paper companies. In the U.S., the majority of Fulghum Fibres wood chip production is destined for products with the highest expected growth in the pulp and paper market, such as containerboard, boxboard, and tissue

Fulghum Fibres' services could include the following activities for wood chip processing:

  • Procurement of wood supply
  • Receiving, storage and managing log storage facilities and residual chip and fibre materials
  • Debarking, chipping and screening of logs to chips
  • Storage and reclaim of chips
  • Hogging and storage of bark
  • Reclaiming and loading of chips and bark onto barges, trucks, rail cars, ocean vessels or conveyor belts

There are many opportunities to grow Rentech's wood chip business, including through:

  • Provide additional wood yard management services to existing customers
  • Capture outsourcing of wood yard management service
  • Co-location of wood pellet facilities at our mills
  • Acquire additional chip processing operating permits at mills currently operated by integrated forestry companies
  • Establish chip mills in countries with low-cost feedstocks
  • Expand barks and residual fuel production in South America
Please click here to view Fulghum Fibres' operating facilities.