{"id":4221,"date":"2020-06-16T14:08:50","date_gmt":"2020-06-16T06:08:50","guid":{"rendered":"https:\/\/dingo.news\/voice\/?p=4221"},"modified":"2024-09-30T02:08:42","modified_gmt":"2024-09-29T18:08:42","slug":"hemp-based-wood-startup-ready-to-enter-market-despite-us-china-trade-war-tariff","status":"publish","type":"post","link":"https:\/\/dingo.news\/voice\/hemp-based-wood-startup-ready-to-enter-market-despite-us-china-trade-war-tariff\/","title":{"rendered":"Hemp-based wood startup ready to enter market despite US-China trade war tariff"},"content":{"rendered":"<div>&nbsp;<\/div>\n<h1><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">HempWood &#8211; yet another use for Hemp<\/span><\/h1>\n<section class=\"entry-content\">\n<div class=\"thumbnail-wrapper\"><span style=\"font-family: Merienda;\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4226 alignleft\" src=\"https:\/\/i0.wp.com\/dingo.news\/voice\/wp-content\/uploads\/2020\/06\/HempWood.jpeg?resize=300%2C237&#038;ssl=1\" alt=\"\" width=\"300\" height=\"237\"><\/span><\/div>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">&nbsp; Count Greg Wilson among those who believe hemp could bring a new business opportunity to an old industry.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">After 15 years working in China on bamboo and oak products, Wilson had an idea when the 2014 Farm Bill opened opportunities to grow hemp in the United States:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Pair his background in materials science with his desire to protect the environment.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cThe market told me to take my process and adapt it to hemp,\u201d Wilson said.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">The result was a material he calls HempWood.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">So, in 2014, Wilson started a hemp manufactured-wood company called Fibonacci.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">After years of research and development, his business is ready to start production \u2013 though Wilson\u2019s inability to find a U.S. manufacturer to build the machinery he needs means the company is facing a steep tariff to get the machinery it needs to begin production.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">To make wood-like planks from hemp, Wilson explained, hemp fiber strands are pressed into logs.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">The logs can then be cut into boards, using production techniques that are&nbsp;similar to that of a traditional sawmill, said Dewevai Buchanan, Fibonacci\u2019s commercial director.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Fibonacci plans to make HempWood blocks to sell to other manufacturers for further processing before reaching consumers.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">For now, the company will saw and dry boards and eventually move to more finished products.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">HempWood, Wilson said, has key advantages over traditional wood:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Compared with oak, boards are 20% harder and more stable.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">It takes only six months to grow the hemp necessary to create HempWood boards, compared with the 60 years it takes an oak tree to grow.<\/span><\/span>&nbsp;<\/li>\n<\/ul>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">The hardwood floor market in the U.S. is worth roughly $4 billion a year, according to Grand View Research, a San Francisco-based market research and consulting company.&nbsp;And oak makes up the majority of the industry.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Wilson used his personal savings to start Fibonacci, but the company now has more cash in its coffers.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">After two small funding rounds, Fibonacci raised roughly $3 million last year in Series C funding.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Fibonacci has since set up shop in Murray, Kentucky, where the company has an 16,500-square-foot building and plans to begin production this summer.<\/span><\/p>\n<h2>&nbsp;<br \/>\n<span style=\"font-family: arial, helvetica, sans-serif; color: #000000;\"><strong>Trade obstacles<\/strong><\/span><\/h2>\n<div id=\"attachment_95210\" class=\"wp-caption alignleft\">\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4228\" src=\"https:\/\/i0.wp.com\/dingo.news\/voice\/wp-content\/uploads\/2020\/06\/Wilson.jpg?resize=238%2C300&#038;ssl=1\" alt=\"\" width=\"238\" height=\"300\"><\/span><\/p>\n<p id=\"caption-attachment-95210\" class=\"wp-caption-text\"><span style=\"font-family: arial, helvetica, sans-serif; font-size: 16px; color: #000000;\"> Greg Wilson<\/span><\/p>\n<\/div>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\"><br \/>\nThe Fibonacci factory is almost ready to go, but the United States\u2019 <a style=\"color: #000000;\" href=\"https:\/\/www.latimes.com\/politics\/la-na-pol-us-china-trade-stalemate-20190531-story.html\" target=\"_blank\" rel=\"noopener noreferrer\">trade uncertainty with China<\/a> means the company must pay a 25% tariff on an industrial wood press being made in China.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Wilson declined to clarify how much the tariff would cost him.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">But he\u2019s appealing the tariff to the U.S. International Trade Commission, arguing the tariff should be waived because Fibonacci was unable to locate a U.S. manufacturer to make the wood press.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Fibonacci currently is storing fiber-rich hemp bales on the grounds at Murray State University, which a school official has dubbed Mount Hempmore.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Wilson said production will begin in July.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Still, Wilson and Buchanan are optimistic about the company\u2019s potential.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Wilson said that he clears his voicemail of potential customers one day, only to have to do it again the next day.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif; color: #000000;\"><strong>Demand starts strong<\/strong><\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cWe\u2019ve seen more interest from different parts of downstream manufacturing that use wood, domestic wood, as a way of differentiating their product and being innovative in their respective industries,\u201d Buchanan told <em>Hemp Industry Daily<\/em>.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Interest in HempWood has come from woodworking industries such as the cabinet and flooring sectors, Buchanan said.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">According to Tony Brannon, dean of the Hutson School of Agriculture at Murray State, the interest doesn\u2019t stop there.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cThe hemp hype is real,\u201d said Brannon, who does not work for Fibonacci but places students as employees there.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Brannon recently fielded a call from a man who was interested in using HempWood to make whiskey barrels.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cIt\u2019s unbelievable to me, some of the markets that have been interested in this,\u201d Brannon told <em>Hemp Industry Daily<\/em>.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">Wilson said Fibonacci has 2\u00bd-3 years of soft orders for the plant, as well as close to 30 people who want to license the technology and produce HempWood themselves.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif; color: #000000;\"><strong>Still a niche <\/strong><\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">However, wood made from hemp is far from receiving widespread adoption, said John Dupra, co-founder of Revel Woods in Rochester, New York, and an expert in the hardwood flooring space.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cIf it was just strength and moisture resistance, nobody would have wood in their homes. It would all be tile. Or stone. Or just polished concrete,\u201d Dupra told <em>Hemp Industry Daily<\/em>.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">He pointed to a survey by the National Wood Flooring Association that showed 78% of consumers preferred wood for their dream homes, with tile floors a distant second at 16%.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cWood is the aspirational product,\u201d Dupra said. \u201cI think that the only reason we\u2019ve had the success in laminated vinyl tiles is that it matches wood\u2019s visual.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif; font-size: 20px; color: #000000;\">\u201cThe key for something like (Wilson\u2019s HempWood) to really sell is, how does it look?\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/section>\n<section><\/section>\n<section><\/section>\n<section><a title=\"https:\/\/hempwood.com\/\" href=\"https:\/\/hempwood.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4233\" src=\"https:\/\/i0.wp.com\/dingo.news\/voice\/wp-content\/uploads\/2020\/06\/hempwood-site.jpg?resize=258%2C107&#038;ssl=1\" alt=\"\" width=\"258\" height=\"107\"><\/a><span style=\"font-family: arial, helvetica, sans-serif; font-size: 16px; color: #000000;\">By Esteban Fernandez<\/span><\/section>\n<section><span style=\"font-family: arial, helvetica, sans-serif; font-size: 16px;\"><span style=\"color: #000000;\"><span style=\"font-size: 14px;\"><br \/>\nJune 14, 2019<\/span><\/span> <\/span><\/p>\n<section class=\"entry-content\"><\/section>\n<\/section>\n<section><\/section>\n<section><a title=\"Category: Marijuana-Hemp-Cannabis-The wonder herb\" href=\"https:\/\/dingo.news\/voice\/category\/cannabis-the-wonder-herb\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #008000; font-family: arial, helvetica, sans-serif; font-size: 16px;\">Marijuana-Hemp-Cannabis-The wonder herb<\/span><\/a><\/section>\n<section><\/section>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; HempWood &#8211; yet another use for Hemp &nbsp; Count Greg Wilson among those who believe hemp could bring a new business opportunity to an old industry. After 15 years working in China on bamboo and oak products, Wilson had an idea when the 2014 Farm Bill opened opportunities to grow hemp in the United [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4230,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0,"footnotes":""},"categories":[6,130,3],"tags":[],"class_list":["post-4221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-environment","category-cannabis-the-wonder-herb","category-political-issues"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.9 - aioseo.com -->\n\t<meta name=\"description\" content=\"HempWood: The logs can then be cut into boards, using production techniques that are similar to that of a traditional sawmill\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta 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