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Crafumanship

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Geo. M. Huff Lumber Company has teamed up with Forest Grove Lumber to become the exclusive Southern California stocking distributor of Tru-Drv Timbers.

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acres of Pacific Lumber timberlands-was allowed to diminish in value during the 18 months of bankruptcy proceedings. They want the judge to restore the full value of $714 million, by imposing a "super priority claim" on top of Mendocino Redwood's $530 million cash offer for both PeLco and the mill town of Scotia. Ca.

The federal bankruptcy court endorsed the takeover deal by Mendocino Redwood and Marathon Structured Finance Fund, a decision that was praised by political, environmental, and community leaders. Gov. Arnold Schwarzenegger said that the plan "offers the best opportunity to protect both the economic and environmental value of these assets."

Mendocino Redwood chairman Sandy Dean said the company plans to sustainably log the lands and continue operating a sawmill. "This will allow the way of life and quality of life to be maintained." he said.

In a letter to PALCo employees, Mendocino warned that "the new bondholder claim, if successful, could render our plan unworkable."

Presiding judge Richard Schmidt rebuked the lender's for wanting to liquidate Pnlco, which he said would lead to the company's demise, the closure of its Scotia mill complex, and the end of a "way of life."

Mif f Em bezzlers Indicted

Eight people have been indicted following a government investigation into a $2.5 million embezzling scheme at Manke Lumber. Tacoma, Wa.

Among the eight is Brett M. Smith, 24. who worked for the lumber company for two years and was responsible for weighing and inspecting logs and then sending checks from the mill. The government alleges that Smith created false records and sent checks to conspirators for logs that were never directed to the mill.

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Also indicted were Smith's brother Bryan Smith, 24; Elaine H. Turner, 28, and Jeffrey S. Ogburn, 24, all of Puyallup, Wa. They allegedly recruited four others to receive the fraudulent checks: Jennifer L. Carino, 25; Robert M. Lester, 28; Robert E. Daniels, 2l , and Zedrick M. Carter, 30. The government said those four people cashed the checks from Manke, kept some proceeds, and sent the rest to Brett Smith.

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Huttig Glosing Two Branches

Huttig Building Products, St. Louis, Mo., will close branches in Fresno, Ca., and Jackson, Tn., later this year and lay off about 37 workers.

Huttig will serve its Fresno customers from its distribution facility in Sacramento, Ca. Jackson customers will be served from facilities in Cape Girardeau, Mo.l Nashville, Tn., and Jackson, Ms.

Alaska's OK Streamlining

OK Lumber/Ace Hardware. Fairbanks, Ak., is downsizing after 40 years of business.

"We just have too many buildings and too much property here for our business of today," said Rich Kruckenberg, who became sole owner of the family business in 1996.

To reduce costs, inventory will be liquidated and part of the retail hardware business will be moved to a traditional, stand-alone hardware store in September. The lumberyard and merchandise aimed at contractors will stay at the current six-acre location with 26,000-sq. ft. building.

Both Kruckenberg and general manager Jordan Halden said nearby big-box retail stores were to blame for the downsizing, along with increased overhead costs. The company currently employs 14 workers, compared to about 50 in 2000.

"We can't get any more efficient, I think," said Kruckenberg.

Modesto Lumberyard Closes

Yard Lumber & Fence Supply, Modesto. Ca.. shut down June 18 after 33 years, due to slow sales and the owner's decision to pursue other ventures.

"The timing just kind of fits," said owner Gary Robinson, who plans to auction off remaining inventory. "I have other things I want to do, and I think that's the direction I want to go."

The company scaled back from about 70 to 20 employees about a year and a half ago.

UFPI Buys D-Stake Mill

Universal Forest Products' Western Division has purchased as sets of D- S take Mi I I . Inc.. McMinnville, Or., and Manufacturing Country, Independence, Or., expanding its reach in the growing industrial products market.

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Country produce kiln stickers, lath, stakes, decking, pallets and pallet components, with an estimated $18.5 million in sales in 2007-primarily in California, Washington and Oregon.

"Universal provides us with the opportunity we needed to take our company to the next level of success," said Bob Harris, president and a principal of D-Stake.

Sales manager Dan Harris will remain with Universal as general manager of operations. Bob Harris will stay on as a consultant through the transition.

Lowe's Deals In San Jose

After years of legal squabbling with preservationists, Lowe's has reached an agreement on how to blend a historic IBM site into the design of the company's proposed store in San Jose, Ca.

The squabble began in 2004, when the Preservation Action Council filed suit against the San Jose City Council after it approved Lowe's project. The preservation council was trying to save IBM's former Buildine 25 from

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- Mets Cla$ A Flre Ratlng demolition as Lowe's began to develop the site. The 50-year-old building was considered historic for the research conducted there and its California mid-century modern architecture. Both sides were close to a resolution when a fire destroyed the IBM building.

The settlement calls for a wing of IBM Building 25 to be reconstructed for future retail use and for certain features of the building that was destroyed in the fire to be incorporated in Lowe's new store. An interpretive display of Building 25's history also will be available for public viewing.

Former P&T Mill To Reopen

Pope & Talbot's former pulp mill in Halsey, Or., restarted in late June under new owner Wayzata Investment Partners, Wayzata, Mt.

Wayzata won the mill in a bankruptcy court auction June 16, with a cash bid of $31 .2 million. and the sale was completed by the following Friday, June 20. The firm specializes in private equity and hedge funds, part of which are invested in Tempec Paper Group of Canada, which operates pulp and paper mills and lumber mills.

The pulp is used for products such as paper, tissue, and building products. Some of the mill's major customers included James Hardie Building Products and Weyerhaeuser, according to Wayne Henneck, previously general manager of the mill and now president of the newly named operation, Cascade Pacific Pulp LLC.

Because the mill's May 9 closure prompted some customers to seek out other suppliers, Henneck said "we need to get up and running as quickly as we can."

According to Henneck, the new owner isn't planning "a quick turnover" of the Halsey mill. "They plan to operate and improve the mill and make it a good, ongoing profitable operation," he said. "They historically hold onto assets like this for six to eight years."

Pope & Talbot, a 159-year-old company based in Portland, Or., filed for bankruptcy in November and unsold assets were turned over to a court-appointed trustee for liquidation. The fate of its remaining facilities-a sawmill in Fort James, B.C., and shuttered pulp mills in Mackenzie and Nanaimo, B.C.-will be determined July 7 at a hearing by the Supreme Court of B.C.

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