Richmond Plywood, located on the south bank of the Fraser River, began in 1956 when 300 investors each paid $5,000 to establish what has become a successful plywood producing co-operative. Fifty-two years later, according to President and Chairman of the Board, Sukhwinder (Sandy) Grewal, it is ongoing investments that continue to secure Richply’s success in what has been described as a sunset industry.

“Investments in plant and process, together with reliable management and product flexibility, enable Richply to prosper where many have failed”, said Grewal.

Grewal believes strongly in Richply’s management philosophy. “The Board of Directors may change regularly, but our management remains stable and consistent”, he said, adding that there are several 20-plus year employees in key positions throughout the company.  

According to Grewal, part of ensuring the company’s success lies in securing future ownership. “We need to be sure that our shares retain their value so that they are attractive to potential buyers. Proper management and investment has enabled us to do this and attract new owners as the existing one’s retire.” This strategy would appear to be working. Today, shares are valued at $300,000 each.

A 30-year veteran of the wood products industry, Sandy Grewal joined Richply in 1984 when he bought a share for $45,000 and started work as a core layer on the spreaders. Today, the certified steam engineer carries out his maintenance duties in the steam plant in the mornings and his duties as Chairman of the Board after lunch. It is an unusual arrangement, admitted Grewal, but one that works. “We all pull our weight and contribute here”, he stated.

Richply’s 282 owners all have equal voting rights when electing the seven board members. All shareholders, too, earn the same wage rate. “The President and the sweeper get the same rate of pay”, said Grewal, who has been a board member for 12 years and is currently serving his seventh term as Chairman. All told, Richply’s total workforce numbers over 400, with non-shareholders making up the balance.

As to the present situation in the wood products industry, Richply’s owners remain positive. Said Grewal, “We are here making plywood every day, investing in our business to ensure our future. As our anniversary slogan states - we are moving towards 100 years and beyond.”

Richply’s General Manager, Doug Scott started at Richply in 1994. He likes to add the letters M.B.L. after his name - Management By Luck. If the truth be known, however, luck has little to do with Richply’s success. 

According to Scott, it is more to do with consistency and continuity, both in the way the mill is run and how products are made. “If management properly utilizes and fosters the skills of its people, success will follow”, he states.

Improvement through upgrading and modernization has created value for Richply. Management constantly re-evaluates its performance and makes improvements through capital investments, like a new dryer, or through smaller investments, like upgrading software or rebuilding a press.

 

As a member of the corporate team responsible for making equipment purchasing decisions, Scott believes in establishing good vendor relations. He stated that local machinery manufacturer, Raute Canada, has a successful track record with Richply.

“We have co-operated with Raute in developing products, such as a clipper scanner, rotary clipper controller and dryer speed control, among others”, said Scott. He further stated that, while having Raute’s factory nearby is advantageous, the vendor must perform to Richply’s expectations. He stated that the 2005 dryer project helped build strong relations between the two companies. “Raute’s 6-deck dryer has outperformed its design capacity and veneer quality is consistent and good. It has also proven to be an energy-efficient and reliable performer.”

In recent years, Raute has delivered numerous capital and modernization projects to Richply. Notable projects include a 6-deck dryer system incorporating a multi-bin dry veneer stacker and VDA camera grading system, as well as the infeed, outfeed and controls supplied by Raute when Richply rebuilt their #2 dryer. New high-speed sheet refeeders were also added to the dryers.

More recently, Raute installed hydraulic clipping trash gates on the two 8 ft. lathes, as well as a Smart Scan XY block optimization system on #1 lathe and a Smart Scan XY including a block charging system on #2 line. Peeling line #2 also benefited from the installation of a new-style Raute sheet diverter and 5-bin Raute green stacker in 2001. 

Outdated VME lathe controls were replaced with ControlLogix PLC controls, which provided open-architecture programming and have simplified trouble-shooting. New controls were also added to #2 green stacker, as well as Raute VCA clipper scanners and Raute rotary clipper controllers on both lines. 

“It is still early days for the new XY’s”, stated Scott, “however, we are already seeing improvements in full-sheet recovery and a reduction in random.”

Other recent projects include the installation of saw line feeders and a multi-bin panel stacker for the sanding line.