New Board from Bark Replaces Oriented Strandboard
BOSTON & TORONTO - February 11, 2000 - Kafus Industries Ltd. (AMEX: KS) announced today that its 86.5% subsidiary, The CanFibre Group Ltd. (CDN: CFGL), has successfully developed a revolutionary new board manufactured with bark, the disposal of which is a major global problem for the forestry industry.
OSB is currently enjoying a global boom in the replacement of plywood for external cladding and siding, particularly in residential construction. In Canada, and the United States, there are approximately 60 OSB mills operating, producing in excess of 20 billion square feet ("BSF") of OSB panel annually. Over 50% of the North America Sheathing market is fed from OSB production. Currently, there are only 6 known OSB mills operating in Europe with a total production of 1.2 BSF.
CanFibre, through the facilities of Forintek, Canada's premier forest research and development organization, and based on lab results to date, is now confident that it can develop with a 70% bark content, a sheathing and/or cladding board that meets or exceeds in all aspects, the physical qualities of standard OSB at a significant production cost advantage. CanFibre can help solve in a value-added way, the forest industries' global problem with bark disposal.
The bark disposal problem currently experienced within Canada is typical of problems encountered in other major international forestry sectors. At present, over 12 million bone-dry tons of bark residues are produced annually as a by-product from the Canadian forestry industry. At the same time, environmental agencies are invoking stricter regulations with regard to landfill disposal of bark, and are legislating the phase-out of beehive burners that have been used until now to dispose of large quantities of bark. There is, therefore, considerable industry and environmental pressure to seek alternative uses for bark, particularly in the form of higher-value products.
CanFibre's Barkboard™ is truly Nature's Siding™. CanFibre is currently assisting in the preparation of a patent application on Barkboard™, which is produced using a proprietary board construction technique. Based on lab results, Barkboard™ offers significant advantages over OSB:
- It is dimensionally stable, with very low thickness swelling. The current tests of Barkboard™ exhibited 10% swelling vs. 50% for conventional OSB. Water absorption is less than half of conventional OSB.
- Barkboard™ is manufactured with no chemical resins. It is the ultimate "green" product because BarkboardÔ is pressed using 100% of the natural resins already contained within the bark.
- Barkboard™ naturally offers excellent decay resistance and termite resistance.
- It meets or exceeds CSA sheathing standards and remains totally recyclable at the end of its product life.
In addition to Barkboard™'s application as an OSB alternative, CanFibre's initial market and economic assessment shows BarkboardÔ to have significant potential in other applications including decking, floor underlay, core stock for doors and roof shingle replacement.
CanFibre's Barkboard™ development strategy will run parallel with its current development and production of the world's first AllGreen™ MDF. CanFibre believes that it can become a global producer of a superior replacement to OSB that is completely natural, totally green with significant production cost advantage. What is particularly exciting from a development prospective is that the OSB panel market is believed to be 10 times or more the size of the MDF panel market in North America.
CanFibre is now working on the pre-development of its first Barkboard™ plant, which it believes it can bring to project financing by late 2000. Once the first BarkboardÔ industrial model is complete, CanFibre believes it can begin an aggressive North American and European multiple plant development programs, in tandem with its current global AllGreen™ MDF development activity.
It has always been CanFibre's strategic plan to apply its AllGreen™ trademark through a range of panelboard products on a global basis. CanFibre's proposed entry into the global OSB market is a perfect application of its long-term mission, to preserve habitats, slow deforestation and create healthier working environments.
Kafus Industries is a sustainable solutions provider to global industries through the use of advanced technology and renewable resources.
DIRECT ALL INQUIRIES TO:
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Tony Francel Manager, Investor Relations Toll Free: (888)-333-5377 Tel: (781) 326-5001 Fax: (781) 326-5105 Website: www.kafus.com |
Chris Carl President The CanFibre Group Ltd. Tel: (416) 681-9990 Tel: (416) 681-9992 Website: www.canfibre.com |
The foregoing contains forward-looking statements, which are subject to a number of contingencies and uncertainties. Such forward-looking statements are not guarantees of future performance, and are based on numerous assumptions about future conditions that could change. Kafus is subject to a number of risks, which are set forth in its filings with the Securities Exchange Commission. No assurance can be given that the Company can achieve lab results in commercial production. Further, the development of Barkboard is subject to a number of conditions including project financing and market acceptance.