by Web Editor | Jan 9, 2017 | News
To be competitive in the wood products industry, companies must stay on the cutting edge. But to get to the forefront, wood products companies must invest in their production facilities to increase automation and efficiency, and to lower manufacturing costs, experts say.
“It’s a competitive market,” said Jon Anderson, president and publisher of Random Lengths, a wood products industry trade publication based in Eugene. “Unless people are investing in their plants, they’re going to fall behind and, ultimately, fall by the wayside probably in the tougher markets.”
In the past couple of years, Swanson Group in Springfield, Seneca Sawmill in Eugene, Weyerhaeuser in Eugene, and International Paper in Springfield have made major investments in their facilities totaling about $273 million. Such upgrades are part of a trend throughout the North American woods products industry, Anderson said. Wood products companies in the Pacific Northwest, Canada and the southern United States have improved their operations, he said.
The improvements can help firms capture market share during strong markets and allow them to stay afloat when the economy weakens. “It’s the more efficient, more productive producer that is going to survive the downturns,” Anderson said. “We’re not in a downturn now, but most of these operators have gone through ups and downs in their time, and they are going to get ready for the next one.”
Seneca Sawmill on Highway 99 in Eugene is nearing the end of a major facilities renovation, including the installation of new kilns, revamping its shipping and loading facility and expanding its log yard. Early this year, the company plans to upgrade its planer, the equipment that smooths lumber. By the time it’s finished, the firm will have spent $63 million on improving its operations.
From The Register-Guard: https://registerguard.com/rg/business/bluechip/35084194-62/competition-drives-mill-investments.html.csp
by Web Editor | Oct 14, 2016 | News
Real estate investment trust Weyerhaeuser Co. said on Wednesday it was exploring strategic alternatives, including a possible sale, for its timberlands and manufacturing operations in Uruguay.
The Uruguay operations include more than 300,000 acres of timberlands in northeastern and north central Uruguay, a plywood and veneer manufacturing facility, a cogeneration facility and a seedling nursery, the company said.
“This is a strategic revision with various possibilities: one is a sale but another is maintaining operations just as they are today,” the company’s South America Director Alvaro Molinari told Reuters.
Weyerhaeuser has been restructuring its business since it bought Plum Creek Timber Co. Inc in February, combining the two largest owners of timberland in the United States. Since then, Weyerhaeuser has said it would sell its pulp business to International Paper Co. for $2.2 billion and its liquid packaging unit to Nippon Paper Industries Co. Ltd for about $285 million.
Weyerhaeuser said this month it would sell its North Pacific paper unit to private company One Rock Capital Partners LLC.
From Reuters: https://www.reuters.com/article/weyerhaeuser-divestiture-idUSL4N1CI4DI
by Web Editor | Jun 29, 2016 | News
Weyerhaeuser plans to permanently close its lumber mill and plywood mill in Columbia Falls, Montana, by the end of the summer. It will also close its Columbia Falls, Montana, main office.
Weyerhaeuser will continue to operate its three other mills in Montana: a lumber mill in Kalispell, a plywood mill in Kalispell, and a medium-density fiberboard mill in Columbia Falls.
“For some time now our operations in Montana have been running below capacity as a result of an ongoing shortage of logs in the region,” said Doyle R. Simons, president and chief executive officer. “These closures will allow us to align the available log supply with our manufacturing capacity, including adding shifts at our Kalispell facilities. These moves will improve the operating performance of our remaining mills and best position these mills for long-term success.”
Some 100 jobs will be eliminated as a result of the mill closures, now planned for late August or early September.
The mill closures follow a decision earlier this year to move corporate positions that do not support manufacturing in Montana to Weyerhaeuser’s Seattle headquarters. As a result, the company also plans to close its main office in Columbia Falls at the end of the year.
From Woodworking Network: https://www.woodworkingnetwork.com/news/woodworking-industry-news/log-shortage-blamed-weyerhaeuser-plywood-mill-shut-down?ss=news,news,woodworking_industry_news,news,almanac_market_data,news
by Web Editor | Mar 9, 2016 | News
With housing starts growing in both single-family and multifamily categories, lumber suppliers are looking to advance their product lines beyond the commodity mindset to help builders resolve more challenges. They also point to the many intangibles provided by suppliers that provide values beyond the initial price when considering options for dimensional lumber, OSB, plywood and structural panels.
“The trend we’re seeing with OSB panels is a move to enhance products in different ways,” says George Hendry, market development manager at Weyerhaeuser. “Builders are struggling with reduced levels of skilled labor, so they’re looking at enhanced panels to help them find ways to make products easier and faster to install. They want attributes that will enhance performance in the field.”
Adds Ray Peters, vice president of marketing at RoyOMartin, “Our new products are aimed at finding ways to decommoditize OSB and excel at all three factors that drive purchase decisions: price, quality and delivery. We want to stand out in that equation.”
Reducing processes and steps for installation has become a priority as builders face new challenges. “One headwind we face today is the shortage of skilled labor in many markets,” says Mary Jo Nyblad, commodity sales and marketing director at Boise Cascade. “Finding, training and retaining qualified employees at all levels of our industry will continue to be a challenge. We as an industry have done a poor job of marketing ourselves. We’re a well-kept secret, especially for young people. It’s a big blind spot.”
A prime focus for adding value has been protecting panels against moisture during the construction process and afterward, helping overcome issues with less efficient crews and eliminating the need for adding housewrap in a separate step. “Products that provide wet-weather protection are popular, as are those that need less sanding and prep time for framers and floor installers,” notes Weyerhaeuser’s Hendry.
From LBM Journal: https://www.lbmjournal.com/in-depth-lumber-and-structural-panels-2016/
by Web Editor | 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.
