The prototype spindleless lathe was installed at a Weldwood of Canada mill(January 8, 1985) in order to determine whether this new concept in veneer peeling technology would be an asset to plywood production in Canada. Preliminary peeling indicate that although this lathe can peel seven and one-half inch blocks down to a two inch core, veneer thickness variation may be a problem. However, the present prognosis is that this variation can be overcome by either optimum roll positioning or by automatic knife pitch angle control. Extensive testing of the lathe will continue during the 1985-86 fiscal year.