he redwood industry r-1

Jlm Brown Vice President and General Manager Arcata Redwood Co. Arcata. Ca.

We e*pect 1993 shipments for ARCo to be the sane volume as shipped in 1992. This is based on resource available at this time, not necessarily on market activity.

Ourproductmix will vary slightly. We expect to produce approximately 507o less Douglas flr in 1993. This reduction in Douglas fir production will be made up in redwood.

We see our product line remaining stable with approximately 46Vo of redwood production in upper grades (architecturd). Of this, approximately l07o will be in bevel siding. Indusrial grade, predominantly shop, will amount ta 2l%o, Common grades (garden grades) finding their way into decking and fencing will account for approximately 33a/o of redwood production.

While bevel siding continues to be an important market for us, we have seen a decline in demand or use of redwood in the product. Douglas fir production is expected to be 60Vo upper grades and 40Vo commons. All 2" upper grades are full sawn products for the architecural and door industry.

Our product line is totally dependent upon ARCo's ability to obtain State of California approval of harvest plans on ARCo property. The listing of the spotted owl and marbled murrelet under the Endangered Species Act has required a two-year effort by ARCo foresters and biologists to address wildlife concerns on ARCo property.

We have successfully completed a Spotted Owl Habitat Conservation Plan and numerous marbled murrelet surveys which have allowed operations compatible with wildlife concerns to proceed. Whereas ARCo will be able to continue the nonnal lunber product line, we find that the volume from the operations is not large enougb to continue to supply our Glue Planl We have announced closure of theplant at the end of March 1993.

Willlam S. Riegel Vice President The Pacific Lumber Co. Scotia. Ca.

Witn ao improving economy, we expect to see some growth in 1993. We would like to see the volume of 1993 shipments improve over l992by 5Vo. 1992 was a good year for The Pacific Lumber Co., especially in light of the problems caused in Scotia by the earthquakes and fire in late April. We have been able to overcome those difficulties and now look !o the opportunity that this year presents.

Our product line for 1993 will parallel that of 1992. We will offer a full line of redwood products from our mills at Scotia, Fortuna and Carlotta both old and young growth. Mill A in Scotia will ptoduce a full line of Douglas fr products and we will also cut some white fir in 1993 at our Carlofia mill. We expect our overall mix will remain heavy to architectural grades as it has over the years. Lately we have seen increased production in both Douglas fir and young growth redwood.

Simpty stated, the biggest factor influencrng our company and its product mix is the ever increasing regulation hat we face in the harvesting of our privately owned timber stands. Our entire property is zoned solely for timber production. It is our mandate. However. as the concems and demands of the environmental community have grown over the last 20 years, it has become more difficult to map out long-term silvicultural policies. We have mitigated our practices to provide a long-term "no take" management plan for the spotted owl and now we are currently working on a similar plan for the marbled murrelet. We're sure we can employ sound forestry practices that will allow for the well being of all creatures that inhabit our timber stands. Once the regulators embrace this concept, our company and the industry at lafge will move along to meet the challenges and demands of the economy and the lumber markets of the fuhre. Sound forestry practices based on scientific evaluation of the resources will provide for the most varied and desirable productmix best to service the markeplace.