Meanwhile, the state Division of Forestry is about to issue a Request for Proposals for harvesting and possible manufacture of wood products from the Tanana Valley State Forest in Interior Alaska, according to Jeff Jahnke, the state forester.

The state forest in the Interior could be one source of timber supply for the manufacture of high-value laminated veneer lumber, or LVL.

Lindsey believes Seward is a good location for the plant because timber can be supplied from coastal regions as well as Southcentral and the Interior.

The plan hinges, however, on whether the state of Alaska can make a supply of wood available for the plant through a long-term timber sale on state lands, Lindsey said in a Jan. 24 letter to State Resources Commissioner Tom Irwin.

State lands in the Susitna and Tanana regions of Southcentral and Interior Alaska have enough timber to supply the plant, Lindsey wrote in the letter.

"State lands in these regions are capable of providing the primary fiber supply for an LVL mill, utilizing a harvest approach that is balanced and consistent with the sustained yield principle," Lindsey wrote in the letter to Irwin.

"The proposed project would provide significant economic benefits to the state and local governments and to Alaskans in the Interior railbelt and Southcentral Alaska. Many well-paying private sector jobs in areas of high unemployment would be created as a result of harvesting and transportation, along with efforts to construct and operate a significant manufacturing enterprise," Lindsey wrote.

"Pro-active" forest management that would result as a part of a long-term timber harvest would also reduce the risk of uncontrolled wild fires, particularly in areas with no access, Lindsey said in the letter.

Laminated veneer lumber is a relatively new product used in construction and its use is growing fast worldwide. It was developed about 15 years ago in the forest products industry as a way to use smaller, lower-value logs in making high-strength manufactured beams or other building products.

Lindsey and others working on the project are considering a 40-acre site in Seward owned by the Alaska Railroad Corp. as a possible location for the plant.

Logs could be transported to Seward from the Matanuska-Susitna Borough or the Interior on the railroad. The mill would probably require 35 million board feet of birch, spruce or cottonwood yearly, according to Terry Brady, of Huskywood.

Harvesting and transportation of logs would employ an estimated 200 people, and plant operations and support would require about 200 employees, Brady said.

The plant would require about 5 kilowatts of power, which is most efficiently supplied by a cogeneration power plant at the site using wood waste.

Brady said the identity of the Canadian firm could not be released at this time, but indicated the company has extensive experience in the manufacture of LVL products. The firm is interested in Alaska because of the availability of birch as well as aspen, spruce and cottonwood. Using birch in LVL products adds to their strength, Brady said.

In his letter to Irwin, Lindsey said the state has clear authority under existing law to provide a reliable, long-term supply of timber from state-owned lands. "As a part of the process of negotiating a contract, we envision that we would work in conjunction with the state and various stakeholders to prepare a comprehensive forest land use plan," he wrote.

Lindsey is a long-time Alaska businessman who founded Harbor Enterprises Inc. and Petro Marine Service Inc., which are the state's largest independent fuel services firms. The companies serve communities in Southcentral to Southeast Alaska as well as the far northwestern regions of Canada.