dryden wood prospectus

www.ExploreDryden.ca

F o s t e r i n g

W o o d P r o c e s s i n g S u c c e s s

“Rich boreal forests, well-developed infrastructure, industry- promoting programs— Dryden has created the foundation for a successful wood processing industry. Consider the advantages of locating in Dryden . . . . “

3www.ExploreDryden.caDryden Development Corporation2

I N S I D E

The Advantages of Locating in Dryden 4

Our Forests and Their Sustainable Management 6

Wood Supply 8

Value-added Opportunities 12

Incentives Available to Manufacturers 16

Support for Value-added Wood Processing 18

3www.ExploreDryden.caDryden Development Corporation2

T H E A D V A N TA G E S

O F L O C A T I N G I N D R Y D E N

“Dryden is situated in the heart of Canada’s rich boreal forests. It has the infrastructure and community resources to support a vibrant, sustainable forest sector.”

5www.ExploreDryden.ca4 Dryden Development Corporation

Dryden’s Competitive Advantages

ADVANTAGE DRYDEN

Dryden operates as a regional transportation hub. Centrally located

on a well-established road, rail and shipping network, it offers open,

cost-effective access to North American and global markets.

5www.ExploreDryden.ca4 Dryden Development Corporation

•Nearby,long-term,assuredwoodsupply

•Cost-effective,certifiedfibresupplysuitedtomany processes

•Trained,reliableworkforcewithforestsectorexperience

•LocationalongTrans-CanadaHighway17,withreadyroad accesstoCanadianmarketsandatwo-hourdrivesouthto theCanada–U.S.border

•RailaccessthroughCanadianPacific(CP)andtheCanadian NationalRailwayCompany(CN)

•ShippingaccesstoworldmarketsthroughThunderBay, thelargestoutboundportontheGreatLakesSt.Lawrence SeawaySystem

•Significantgovernmentincentivesdesignedtoattractand supportinvestment

6 Dryden Development Corporation

“Sustainably managed, Dryden area forests offer a long-term, assured wood supply suited to a wide range of value-added wood processing facilities.”

O U R F O R E S T S A N D T H E I R

S U S TA I N A B L E M A N A G E M E N T

7www.ExploreDryden.ca

Forests of Ontario and Dryden

Sustainable Forest Management

ADVANTAGE DRYDEN

Dryden has been a source of high-quality lumber and pulp and paper

products for about 100 years. The workforce’s commodity production

know-how can help Dryden diversify its economy as it moves toward

value-added production.

•Ontario’sforestscoverover690,000squarekilometers,accounting for17%ofCanada’sforestsand2%oftheworld’sforests.

•NorthernOntario’sborealforestsaccountfor76%oftheprovince’s woodlands.Dryden’sforestscover68,000squarekilometers.

•Drydenareaforestsaredominatedbyjackpine(Pinusbanksiana), whitespruce(Piceaglauca),blackspruce(Piceamarianna),balsamfir (Abiesbalsamea),aspenpoplar(Populustremuloides)andwhitebirch (Betulapapyrifera),withsomeredpine(Pinusresinosa)andwhitepine (Pinusstrobus).

•Thearea’sdevelopedroadnetworkofprimaryandbranchroads issupportedbyOntario’sPrimaryRoadsFundingProgram.

•Drydenareaforestsaresustainablymanagedthroughlong-term, ecosystem-basedforestmanagementplans.

•Keyelementsofsustainabilityincludepublicinvolvement,Aboriginal involvementandadaptivemanagement.

•Ontario’sCrownForestSustainabilityActandEnvironmentalAssessment Actensurelong-termforestecosystemhealth,thebasisofanassured, sustainablewoodsupplyandahealthyandvibrantforestindustry.

•Ontario’sforestmanagementplanningsystemisrecognizedasoneof themoststringentandrespectedintheworld.

•AllforestsinOntarioarecertifiedbyindependent,third-party organizations,includingSustainableForestryInitiative(SFI),Forest StewardshipCouncil(FSC)andCanadianStandardsAssociation(CSA). TheWabigoonForestiscertifiedtoCSAandFSCstandards.

“Ontario’s forests produce wood fibre that is preferred by manufacturers around the world.”

9www.ExploreDryden.ca8 Dryden Development Corporation

W O O D S U P P LY

ADVANTAGE DRYDEN

Dryden possesses the wood supply, facilities, infrastructure and labour force

to support a healthy primary industry—the basis of a vibrant value-added

wood processing sector.

9www.ExploreDryden.ca8 Dryden Development Corporation

First-class Wood Supply

Accessing Ontario’s Wood Supply

•Drydenproducespremiumlumber,first-classpulpand paperproducts,andothervalue-addedproducts.

•Ontariowoodproductsarerenownedfortheirhighquality.

•Ontarioofferswoodsupplycommitmentsthroughlong-term agreements.Theseagreementssecurelong-termaccessto asustainablesupplyofforestresourcesfromOntario’s Crownland.

•TheCrownofferswoodsupplycommitmentstoprocessing facilitiesthrough:

o Sustainable Forest Licences (SFLs):Theselong-termlicences confertherighttoharvestanduseallvolumesofaspecies, exceptforthoselistedindirectivesorothercommitments madebyOntario’sMinisterofNaturalResources.

o Schedule ‘E’ commitments:ThesecommitmentsinanSFLlist facilitiesthatreceivevolumesofwoodfibrefromaforest through:

•WoodSupplyAgreements

•MinisterialCommitments

•Business-to-BusinessAgreements

•Attheheartofnineforestmanagementunits,Drydenisanaccess pointtohigh-quality,cost-effectivewoodsuppliesthatcansupport value-addedprocessingfacilities.

•Forestry-relatedcompaniesintheDrydenareaareveryeagerto workwithnewinvestors.

•Asurplusvolumeofwhitebirch(Betulapapyrifera)andaspen poplar(Populustremuloides)presentsanimportanteconomic opportunity.

•Anewvalue-addedfacilityintheDrydenareawouldhaveaccess toanabundant,cost-effectivewoodsupply.

10 Dryden Development Corporation

Wood Supply Availability

Forest Volume AvailabilityTheDrydenareaoffersforestsvolumesthatcanbecategorizedas:

• Readily Available:Thisincludesvolumesthatarecurrently undirected.InterestedcompaniescanapplytotheCrown forawoodsupplycommitment.

• Potentially Available:Thesevolumesincludewoodsupply commitmentsthatarecurrentlydirectedtoidledfacilities.

• Potential Business Relationships:Theseincludewoodsupply commitmentstoSFLholdersthatarecurrentlyoperatingbut maybeinterestedinabusinessrelationshipinwhichanother facilitywouldusepartofthewoodsupply.

Readily Available 1,593,000 m3

Potentially Available 78,000 m3

Business Relationships 124,000 m3

Annual Available Wood Supply in Dryden Area

Source:CrownLandAssetInventory,August2009

11www.ExploreDryden.ca

Dryden, OntarioCANADA

12 Dryden Development Corporation

V A L U E - A D D E D O P P O R T U N I T I E S

“Aspenware has chosen Dryden, Ontario as a location for a number of reasons. These include, transportation infrastructure, skilled workforce, willing industry partners, and welcoming business environment.” – Terry Bigsby, President of Aspenware

13

Aspenware Inc.

When demand for its disposable,

biodegradable, wooden cutlery

products prompted Aspenware Inc.

to expand, it looked across Canada

for the right new location.

A growing company based in British

Columbia, Aspenware was looking

for the right mix of raw materials,

infrastructure, transport options,

workforce skills and business

environment. It found that mix in

Dryden, Ontario, where it is building

a 50,000 sq. ft. value-added wood

product manufacturing facility.

The facility will use readily available

birch and aspen to produce more

than 600 million wooden cutlery

products annually. It will turn to as

many as three satellite veneering

operations within a three-hour drive

of the facility to help finish

its products.

For Aspenware, a growing company

of forward-thinking environmental

trail blazers, the future is in Dryden.

Drydenarea’savailablewoodsupplycansupportmanytypesofvalue-addedprocessing,including:

• Veneering Facility:Veneerisaprimaryforest productthatcanbeusedtomanufacture value-addedproducts.Thereisanopportunity toestablishaveneeringfacilityinDrydento supplyvalue-addedmanufacturerslike Aspenware.

• Wood Pellet Plant:Astrongcomplementto aveneeringoperationisawoodpelletplant. Veneeringoperationsgeneratesignificant amountsofwaste,whichcanbe manufacturedintowoodpellets.

• Finger-joining Plant:Drydenoffers opportunitiestomanufacturefinger-jointed, value-addedproductsfromtheavailableand surplusvolumesofsomewoodspecies. Productscouldincludemouldings,window anddoorjams,windowcasings,doorstyles, drawercomponentsandfurniturematerial.• Specialty Sawmill:Aspecialtysawmillisa sophisticated,flexiblefacilitythatproduces higher-valuewoodproductsforadvanced solidwoodmanufacturers.InDryden,the opportunityforaspecialtysawmillfacility istosupportthevalue-addedwoodproduct facilitiesthatdevelophere.

Value-added Opportunities

www.ExploreDryden.ca

Forest Biomass FuelState-of-the-arttechnologiesnearingcommercializationarebeinghailedascandidatestoextractthepotentialenergyinforestbiomass.TheforestbiomassavailablenearDrydencanbeusedforseveraladvancedproducts,including:

•Liquidbiofuels:ethanol,cellulosicethanol,bio-diesel andbio-oil

•Solidbiomassproducts:pellets,biocarbon,cubesand torrefiedwood

Thefuelsareusedfor:

•Combustionheatandpower

•Gasification,forheatandpower

DrydenoffersR&Dfacilitiestosupportcompaniesthatarefinalizingtheirtechnologiesandembarkingonapathtocommercialsuccess.DrydenispoisedtobeaCentreofExcellenceinResearchandDevelopmentforOntario’sBioeconomy.

14 Dryden Development Corporation

O P P O R T U N I T I E S

15www.ExploreDryden.ca

Industry Clustering in Dryden•Co-locationofcomplementaryR&D,greentechnology incubation,manufacturing,processing,trainingand transportationfacilitiescanfosterindustryefficiencies, synergiesandcostsavings.Forexample: oClusterpartnersmaybeabletosharethecostsof transportingrawmaterialsandusingwastefibre.

oClusterpartnerscangaincost-effectiveaccessto supportservicesdevelopedandofferedbycompanies thatunderstandthebusinessneedsofwood processingfacilities.

•DrydenDevelopmentCorporationcanfacilitate discussionsbetweenclustercompanies,tofindcost- savingopportunities.

Dryden: Innovation Centre•DrydenDevelopmentCorporation(DDC)isestablishing anInnovationCentrethatwillhelpcompaniesadvance towardsuccessfulcommercialization.Thestate-of-the- artfacilityoffersspacetoconductindustry-specific, customized,cleantradestraining,industryworkshops andconferences,andR&D.

•Canada’sNRCIndustrialResearchAssistanceProgram (NRC-IRAP),supportssmall-andmedium-sizedenterprises byprovidingfinancial,technologicalandnetworking assistance,includinggrantsforresearchandthe pre-competitivedevelopmentoftechnologytobe usedincommercialservices,productsandprocesses.

ADVANTAGE DRYDEN

Class A buildings and greenfield development sites are readily

available for purchase to support the establishment of a business

incubator, training centre or R&D facility. The DDC can help you find

the right building or development site.

16 Dryden Development Corporation

I N C E N T I V E S

A V A I L A B L E T O M A N U FA C T U R E R S

“Federal and provincial incentives and support programs are available to facilitate the diversification of Dryden’s forest sector.”

Funding Programs and Investment Incentives

17www.ExploreDryden.ca

ADVANTAGE DRYDENDryden offers ample opportunities and incentives to launch or relocate a business. Tax rates and land costs are low, with no development charges. Theresourcebaseisrich.Drydenisaregionalfinancial,accounting,realestate, health-care and transportation hub.

Incentives may be available to companies that locate in the Dryden area. To learn more about the following or other incentives suited to your business, call the DDC.

Forest Sector Loan Guarantee Program - $350 Million over Five Years• Loanguaranteestostimulateinvestmentinvalue-added manufacturing, energy conservation and energy co-generation

Innovation Demonstration Fund - $50 Million

• TheInnovationDemonstrationFundhelpsinnovativecompaniescommercializepromisingnewcleantechnologiesbysupportingthematthepilotordemonstrationprojectstage.Theseprojects help the companies attract the customers and investors they need to move their technology to the global marketplace.

NexGenBioFuelsFund-$500Million • Supportsfirst-of-kindcommercial-scaleproductionofnext- generationfuels,upto40%ofeligiblecosts

NorthernOntarioHeritageFundCorporation(NOHFC)• EmergingTechnologiesProgramencouragesintellectual propertydevelopmentandcommercializationofnewtechnologies

•NorthernEnergyProgramhasfourdistinctfundingprograms: o Renewable Energy Planning o Renewable Energy Capital Cost-Differential Assistance oNewInternalEnergyGenerationProjects oEnergyConservationPilotProjects

FedNor• Severalprogramstohelpsupportthecommercializationand use of advanced technology in the value-added products industry

Funding Programs and Investment Incentives

17www.ExploreDryden.ca

ADVANTAGE DRYDEN

Dryden offers ample opportunities and incentives to launch or relocate

a business. Tax rates and land costs are low, with no development charges.

The resource base is rich. Dryden is a regional financial, accounting, real

estate, health-care and transportation hub.

IncentivesmaybeavailabletocompaniesthatlocateintheDrydenarea.Tolearnmoreaboutthefollowingorotherincentivessuitedtoyourbusiness,calltheDDC.

Forest Sector Loan Guarantee Program—$350 Million over Five Years•Loanguaranteestostimulateinvestmentinvalue-added manufacturing,energyconservationandenergyco-generation

Advanced Manufacturing Investment Strategy (AMIS) —$10 Million•Interest-freeloansforfiveyearstohelpmanufacturersdevelop leading-edgetechnologiesandinnovations

NexGen BioFuels Fund—$500 Million•Supportsfirst-of-kindcommercial-scaleproductionofnext- generationfuels,upto40%ofeligiblecosts

Northern Ontario Heritage Fund Corporation (NOHFC)•EmergingTechnologiesProgramencouragesintellectual propertydevelopmentandcommercializationofnewtechnologies

•NorthernEnergyProgramhasfourdistinctfundingprograms: oRenewableEnergyPlanning oRenewableEnergyCapitalCost-DifferentialAssistance oNewInternalEnergyGenerationProjects oEnergyConservationPilotProjects

FedNor•Severalprogramstohelpsupportthecommercializationand useofadvancedtechnologyinthevalue-addedproductsindustry

19www.ExploreDryden.ca18 Dryden Development Corporation

“Dryden Development Corporation (DDC) offers flexible, customized support to help investors succeed in Dryden.”

S U P P O R T F O R W O O D P R O C E S S I N G

Supporting Value-Added Wood Processing in Dryden

19www.ExploreDryden.ca18 Dryden Development Corporation

ADVANTAGE DRYDEN

DDC will help you find and complete funding applications. It can also

supply up-to-date wood supply data, help with access to property and

other incentives, set up tours and facilitate partnerships with First

Nation communities.

Available Sites

•Drydenoffersmanysuitablegreenfieldsites,includingthoseinthenew fully-servicedandaffordableNorwillIndustrialParkExpansion,located justofftheTrans-CanadaHighway.

•AdditionalfacilitiesinDrydenandareacouldbeadaptedforuse.

Wood Processing Support Services

•Abundant,currentlyunderutilizedharvestingandprimaryprocessing capacityisavailableatcompetitiveprices.

•ThetransportationhubofNorthwesternOntario,Drydenofferslow shippingcostswithsouthboundandeastboundbackhaulopportunities. Transportationoptionsinclude:

oTrans-CanadaHighway17,whichrunseast–west,linkingDrydento ThunderBayandWinnipeg.Highway502runsnorth–south,linking DrydentoTrans-CanadaHighway11,aswellastotheU.S.borderat FortFrances.

oDrydenRegionalAirportoffersdailyfreight,charterandscheduled service.

oAccesstorailservice.

oThePortofThunderBay,adeepwaterportservedbyCanadianPacific Rail,offersaccesstotheGreatLakesSt.LawrenceSeawaySystem.

Trained, Available Workforce

•Dryden’s(2009)populationis8,700.Ithasalabourshedareapopulationof 21,500andalabourpoolof4,650with9,200workerswithinareasonable commutingdistance.

•Dryden’simmediatelyavailablelaboursupplyincludesworkerswith manufacturingandharvestingskills,manyofwhomhavedualtrade certification.

•ConfederationCollegeofAppliedArts&Technology—DrydenCampus, offersfull-andpart-time,andeveningcourses,includingpre-apprentice- shiptrainingandeducationupgrades.

Vicki KurzEconomic Development Manager1 (877) 737-9336 (Toll free in North America)1 (807) 223-4100 (International)Email: vkurz@dryden.ca

www.ExploreDryden.ca

© 2010 Dryden Development Corporation. All trademarks are the property of their respective owners. This document is summary in nature and subject to change without notice.

Learn more about Dryden, our area forests and the services you can call on to help expand or relocate your business in our area. Just call Vicki Kurz toll free at 1-877-737-9336 (North America) at the Dryden Development Corporation or e-mail vkurz@dryden.ca.

Dryden Is Worth Investigating—And We Can Help

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