Aug 11, 2009. /Lesprom Network/. New England Wood Pellet LLC (NEWP) and Norbord Inc have announced that NEWP will acquire Norbord's Deposit, New York, land and property for an undisclosed amount and build a new 100,000 ton-per-year wood pellet manufacturing facility on the site. The deal is expected to close by November 5, 2009, Wood Panels Online reported. NEWP president and CEO Steven J Walker said: "The Deposit site represents an attractive growth opportunity because of its outstanding location relative to north-eastern demand for pellet fuel, its well-established wood supply, its excellent highway and rail access, and its exceptional labour force." The demand for wood pellet fuel is expected to increase as consumers move toward renewable heating resources, and as government enacts policies to reduce demand for foreign fossil energy for heating and to promote low carbon energy resources. NEWP currently owns plants in Jaffrey, NH and in Schuyler, NY. The company will ship an estimated 155,000 tons in 2009, making it the largest manufacturer of wood pellet fuel in the northeastern US. "The high manufacturing costs and declining customer base at Norbord New York has made it impossible for us to continue making MDF profitably without significant capital investments," said Jean Roy, Norbord vice president of northern operations. "We simply can't justify the necessary investments in the current economic environment." Norbord, which has been operating on a reduced schedule since October, plans to continue operating the mill -- the world's first MDF plant -- until November, when New England Wood will begin dismantling the existing factory and adjacent to it build a 30,000-square-foot wood pellet manufacturing facility, the companies said. Construction is expected to take about nine months, with operations to start in the fourth quarter of 2010, Niebling said. The company expects to reach full production capacity in the first half of 2011. The ca. 90 employees at Norbord Industries can apply for a limited number of new jobs if they want to continue working at the site. "We'll hire somewhere around 20," he said. "We'll be looking at the people there first and foremost. ... Many of them are very experienced and skilled in manufacturing." But because the processes of the new plant will be highly automated, fewer people will be needed to operate it, Niebling said.