Update: Where the South Carolina Forestry Industry Stands Today

By Jennifer Hunt (Content Writer) and Bill Gaskins (District Manager)

One year ago, we wrote about changes to the South Carolina forestry industry in the face of mill closures and decreased demand for pulpwood, sawtimber, and other forest products throughout the region. At American Forest Management, we’re always in tune with local markets and how these changes impact our clients, so we’re here to provide an update.

Part of the good news is that no additional announcements about mill closures or curtailments have been made in South Carolina in recent months, and the local industry is holding steady. Recruitment of new wood-consuming industries is ongoing, but progress has been slower than many would like. With the loss of over 10 million tons of wood consumption over the past 36 months, the economic fallout and difficulties facing the forest industry are now widely recognized at all levels of state and local government in South Carolina. There is an ongoing coordinated effort by the Governor’s Office, SC Chamber of Commerce, SC Forestry Commission, and the Forestry Association of SC to retain and attract new forest industry to South Carolina. Efforts are also underway through the USDA and national political leaders to help stabilize and attract new investments to the nation’s forestry sector.

New Investments and Industries

Fortunately, South Carolina has such a large supply of available wood fiber and forest products that there is a readily available pipeline of supply, which usually brings investment into the state. First, Carolina Renewable Products (CRP) has broken ground on a new biodiesel plant in Orangeburg County, SC. According to the company’s website, they “convert sustainable wood biomass into renewable diesel, biochar, and wood vinegar.” Specifically, the manufacturer converts pine wood residuals from local sawmills into renewable biodiesel, a product that many revere as the “Gucci diesel fuel.” Not only does it burn cleaner, but it is a better overall product for both the vehicle and the environment. This enables CRP to offer low-carbon fuel solutions while supporting local agriculture and forestry. The new site will serve as their hub, both for headquarters and training, and will create 155 new jobs. There is some discussion about adding two additional plants in the state of South Carolina, which would be a boon for the local industry.

Additionally, a new sawmill, Hampton Lumber Company, is being built in Allendale County. This $225 million investment will bring 125 new jobs and is the company’s first sawmill plant on the East Coast.

Lastly, a German company, Homanit, is under construction in Clarendon County. They are a leading manufacturer of medium- and high-density wood fiberboards (MDF) for furniture, automotive, door, and coating industries worldwide. MDF is created by grinding up wood chips and putting them back together. Homanit is investing $250 million into the local economy, and the facility will create 300 new jobs. It’s important to note that while these solutions are on the way, many will not be operational until 2027 at the earliest.

Port Updates

Work continues out of the port in Charleston, and efforts are underway to establish at least one bulk loading terminal so that wood chips and wood pellets can be loaded into the hull of large vessels and shipped to markets in Europe and Asia. The port of Charleston currently only handles container shipments, which are inefficient for shipping large volumes of wood chips. There are indications that two different sites in Charleston are currently being evaluated for bulk loading terminals, and there is optimism that there will soon be an official announcement concerning these sites. There is already a vibrant log export business out of Charleston, where containers of hardwood and softwood logs are shipped to places like India and Vietnam. The market for exported logs is somewhat inconsistent but has generally been a welcome outlet for producers and landowners in the coastal regions of SC.

Looking Forward

Although some advancements have been made, much work remains. The Forestry Association and various task forces within the industry are continuously pushing at all levels to exert pressure on legislators and key industry insiders to help expand wood-consuming industries throughout the state. Recent legislation has been passed in South Carolina officially recognizing the carbon neutrality of woody biomass. The expectation is that this legislation will help clear the way for energy companies to generate, at least a portion of their energy production, from woody biomass products. With the influx of so many people relocating to South Carolina, the demand for energy consumption has increased, and the state is in an energy shortfall. Add to this the interest from energy-hungry data centers looking to locate in SC, and it becomes incumbent that lawmakers demand energy companies convert some of their facilities to biomass and woody biofuel consumption. SC has a readily available supply of woody biomass as well as the infrastructure and expertise to deliver it to power facilities around the state. Most importantly, it has the desire to help stabilize and restore an industry that represents the largest employment sector in the state and the 3rd largest overall economic contributor.

At AFM, we continuously monitor local industries to ensure we’re offering the best possible solutions to our clients. Bill Gaskins, District Manager in Sumter, SC, shared, “We are working for our clients to optimize timber management and harvesting in challenging markets, ensuring that we have trees to sell and properly managed forests when the tide turns.”