Weyerhaeuser Buys Plum Creek, May Sell Pulp Mills

by | Nov 9, 2015 | News

From: Panel World Staff

Weyerhaeuser Co. and Plum Creek announced a merger that will leave nearly two-thirds majority ownership in Weyerhaeuser shareholder hands. The combined company creates a $23 billion timber REIT (Real Estate Investment Trust) with more than 13 million acres of timberland in the U.S.

The combined company will retain the Weyerhaeuser name. As previously announced, Weyerhaeuser intends to move its headquarters to Seattle in mid-2016. Weyerhaeuser brings nearly 7 million acres and Plum Creek 6.3 million acres to the deal.

Weyerhaeuser also announced it is exploring “strategic alternatives” for its Cellulose Fibers business, including a possible sale. The company’s Cellulose Fibers business includes pulp mills in Port Wentworth, Ga.; Vanceboro, NC; Grande Prairie, Alberta; and a modified fiber mill in Columbus, Miss.; as well as other facilities internationally.

Plum Creek operates a medium density fiberboard plant, plywood mill and a board sawmill in Columbia Falls, Mont.; a plywood mill in Kalispell, Mont.; and a stud mill in Kalispell/Evergreen, Mont.

Weyerhaeuser operates approximately 11 sawmills in the Southern U.S., four in the Northwest and three in Canada. It also operates various engineered wood products facilities in North America.

Weyerhaeuser’s Doyle Simons will serve as president and CEO of the combined company. Plum Creek’s Rick Holley will serve as non-executive chairman of Weyerhaeuser’s board, which will be expanded to 13 directors, which will include eight directors from Weyerhaeuser and five from Plum Creek.

The transaction requires the approval of shareholders of both Weyerhaeuser and Plum Creek and is subject to customary closing conditions. The transaction is expected to close in late first quarter or early second quarter of 2016.

Plum Creek To Invest $10 Million In Montana Plants

by | Apr 6, 2015 | News

A gradual increase in housing starts across the U.S. and better timber prices are two factors behind Plum Creek Timber Co.’s decision to invest $10 million in plant improvements at its Northwest Montana manufacturing plants.

“We’re optimistic overall for another good year,” said Tom Ray, Plum Creek’s vice president of northwest resources and manufacturing. “The largest single concern is the lack of raw materials, but we’re hoping Congress will address that.”

One of the largest landowners in the U.S., Plum Creek had a strong year in 2014, reporting earnings of $214 million on $1.48 billion in revenues. Harvest numbers were 13 percent over 2013. But timber resources in Northwest Montana can be a concern. Last year, Plum Creek cut back hours for workers at the Columbia Falls sawmill from 40 hours per week to 36 after a federal court ruling blocked several timber sales on state forest land. “We had a decline there, but once we get past breakup and into early summer, we’re hopeful to go back to a regular schedule,” Ray said.

Plum Creek plans to invest $6 million at its medium-density fiberboard plant in Columbia Falls. The No. 1 line, which was built in 1974 and manufactures panels up to 1 1/4 inches thick, will see $1.6 million for improvements to reliability and efficiency. Another $300,000 will be spent on computer equipment and monitoring cameras.

The company also plans to spend $2 million on the MDF plant’s No. 2 line, which was built in 2001 at a cost of $80 million and produces thin panels one-tenth of an inch thick. The furniture industry is a major customer, but other businesses now use MDF products.

From Hungry Horse News: https://www.flatheadnewsgroup.com/hungryhorsenews/plum-creek-to-invest-mil-in-local-plants/article_e8e443a2-d883-11e4-ad41-cfbdb6471aba.html