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Pellet factory fire....shortage to come ?

Post in 'The Pellet Mill - Pellet and Multifuel Stoves' started by JohnnyAsbury, Aug 11, 2008.

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  1. JohnnyAsbury

    JohnnyAsbury New Member

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  2. BadDad320

    BadDad320 Feeling the Heat

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    I thought there all ready was a shortage????? This should just compound things..............
  3. tinkabranc

    tinkabranc Minister of Fire

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  4. MCPO

    MCPO Minister of Fire

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    Just got thru visiting with my supplier (old Navy buddy) who said he has 6 RR cars on his siding each one containing 80 tons of pellets.
    He`s 4 weeks behind on deliveries but that there will be no shortage this year, at least not for him. He has more coming.
  5. sinnian

    sinnian Minister of Fire

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    I wouldn't be at all surprised to see NEWP take the insurance loss and close up shop. Besides what was reported here, I have heard they have 'other' legal problems worth MILLIONS.
  6. pelletizer

    pelletizer Minister of Fire

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    That is to bad about the fire I hear the pellets they produce burn nice, Anyone burn them and had good results?
  7. webbie

    webbie Seasoned Moderator Staff Member

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    Really? What did you hear?
    This plant is 1/2 the size or less than their NY State plant. I know they have some major investors..including names that many people would know.

    What makes you think they would close up shop when things are going well? Legal problems are usually covered by insurance and can take many years to settle one way or the other.
  8. BrotherBart

    BrotherBart Hearth.com LLC Mid-Atlantic Division Staff Member

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    Like $130,000 in OSHA fines from violations in Jan. Like the probable lawsuit from an injured employee...
  9. webbie

    webbie Seasoned Moderator Staff Member

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    That stuff is a joke - nothing to shut down a 20+ million dollar plant for......
  10. sinnian

    sinnian Minister of Fire

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    RUMOR I heard was that they owed millions to an actual pellet manufacturer (name withheld here), haven't paid, and said pellet manufacturer is going to to the legal route to get it.
  11. Red Sun

    Red Sun New Member

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  12. webbie

    webbie Seasoned Moderator Staff Member

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    All guesswork, but there is probably a little truth to many rumors. The only reason they would owe money to a pellet maker would be, as Red says, for their ma. bagging plant which brings in pellets from BC (canada).

    In the scheme of such business, it is always possible that one party or another thinks they get the wrong end of the stick when it comes to pricing, delivery, guarantees, etc.

    Even with all that, commercial disputes over payment would not seem to be a reason to close such an operation (the plants)......at least, let's hope not! Again, the investors and people whom I have met involved in NEWP don't give me the impression that they are in this for the short run.
  13. Mom2Czars

    Mom2Czars New Member

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    Are you confusing New England Wood Pellet (www.pelletheat.com) with New England Pellet LLC (http://newenglandpelletllc.com/) by any chance? The first one manufactures their own pellets, and the second is a distributor. I don't believe there is any connection between the two.

    I do know that NEWP was hit with that huge OSHA fine for ignoring the conditions under which a worker was injured.
  14. DiggerJim

    DiggerJim Feeling the Heat

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    If I were NEWP I wouldn't worry too much about that fine - OSHA fines are always negotiated down...usually to the tune of 10 cents on the $. Can't remember one that stood as announced - and that includes ones with fatalities involved. They make great headlines and attempt to strike fear into companies but it's a negotiating tactic. Since they can't be everywhere, the fear of massive fines is about all that they think will keep a company on the straight and narrow. What will not get announced with all the same fanfare will be the negotiated settlement - those are buried in the paper.
  15. mbcijim

    mbcijim Member

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    DiggerJim is right, OSHA always settles the fines for CHEAP.

    If they were too close, the investors or bankers would want to sell the plant to get some money back. Usually via an auction. It would sell for pennies on the dollar. Then the new plant owner would probably be able to make it work. Think about it. $20 Million dollar plant sold at auction for $5 Million. It's A LOT easier to make a good return on a $5 Million bet instead of a $20 Million one. It's a basic financing premise on the business level. Think about the restaurants in your area. Around here they go bankrupt, someone buys it & makes a go. Not saying it happens every time. But it is a logical argument against New England just closing shop & leaving the business.
  16. frenchriverantiques

    frenchriverantiques New Member

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    I have had my Harmon for 1 yr now & really like the New England Wood pellets. No one has them around here & I am on 3 waiting lists. I got 1 ton of LGs. Does anyone know if these are good & what would be another good choice? I AM panicking!
  17. in-control

    in-control New Member

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    Hi,

    I am in central MA and am buying via http://www.pelletsdirect.com/index.htm out of oxford. I purchased hardwood Barefoot Pellets for a December delivery. They carry many brands and are focused in nothing but Pellet stoves and their maintenance.
  18. frenchriverantiques

    frenchriverantiques New Member

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    Thanks firestarter.

    Did you purchase & pay online recently? I called there & they put me on a list last week
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