Irnporter defends European glularns

\lorway spruce has been used by I \ builders in the United States since the late 1700s, when it was imported along with other European wood products. It was used in the construction of buildings, houses, barns and furniture, adding a unique aesthetic quality, along rvith its lightweight durability. For over 40 years, this wood has been successfully laminated to create strong and beautiful glulam beams for the European markets. Now, a diverse product mix is being introduced to the U.S. due to an exclusive agreement between Cascade Structural Laminators, Eugene, Or., and Kaufmann

GmbH of Austria.

Along with change comes controversy. Some competitors claim that the products are being misrepresented (see July, p. 20-21 ). They contend that Norway spruce glulams are not a "passive" replacement for existing U.S. glulams, and raise the concern that there may be misapplication, leading to problems for builders and customers.

Cascade Structural responds that it uses a professional engineer to assist and educate distributors. and the company relies on the inspection bureau. professional builders, and the code officials to perform their duties.

The two species have different characteristics in regards to load bearing capacity and shear. Kaufmann and CSL say they have never represented the products as a "passive" substitute for Douglas fir. In communicating with suppliers about the introduction of Norway spruce glulam, they maintain that the products are clearly described as having unique characteristics for specific applications.

"Our goal is to supply competitive glulam product options, rvhich are available worldwide," says CSL general manager Jim Weber. "We strive to identify opportunities that fit the needs, and put the products into applications that work for the customer."

"Spruce is a different species from Doug fir, and it is not to be compared one to one," agrees Markus Tiling. glulam sales manager for Kaufmann.

"That some people are trying to misuse product data is a fear tactic. We're not trying to 'invade' the marketplace. Quite the contrary. we can help the glulam market grow overall. and we see this as being very positive."

He speculates that, as a "green" alternative to metals, Norway spruce should cause the entire glulam market to expand. Norway spruce is lighter and. for specific applications such as interiors or unique exterior designs. its beauty is inherent.

"We just got our first load of Kaufmann European spruce beams in. and they look real good." Fred Hargrove. president of Southeastern EWP. Waynesboro. Ga.. says. "We also buy and sell European spruce lumber. We see the glulam business as really grorving in the Southeast. as it is a cost-effective replacement for LVL and TimberStrand lumber in rvindorv and door header applications."

In December. Southeastern EWP was contacted by MFP of Oregon about distributing the beams in the Southeast. "Through MFP, we started discussions rvith Kaufmann about the need fbr technical support herc in the United States," Hargrove says. "This led to Cascade Structural Laminators providing the marketing and technical support here in the U.S. for their distributors. It's a good fit."

Steve Killgore, c.c.o. of CSL, insists that his company supports any and all effbrts to educate the marketplace regarding the structural values and appropriate engineering application of all glulam products. He says, "The marketplace is receiving a great deal of misinfbrmation regarding this product. Unfortunatell. it appears as though lhe intent is to ine ite concerns regarding the capability and credibility of the product, and our company. The glulams we are importing fiom Kaufmann have undergonc rigorous testing and qualification. It is important to realize Kauf-mann started making glulams in 1952, and has supplied projects in over 50 countries."

West Coast Lumber Inspection Bureau performed tests with Kaufmann to make sure that the Norrvegian spruce glulam bcams met all of the certification rcquirernents of U.S. con- sensus standards.

According to WCLIB technical director Don DeVisser, "For any engineer to design rvith any product. glulam or otherlvise. they need to verify that the property values of the prttduct are appropriatc for the design applications. Not only are the design values for southern pine and Douglas fir beams not the same. but the dressed beam sizes firr the two species are diff-erent as r.vell. This just points out that designers have had to cope rvith diff-erences in glulam beam properties fbr some time nolv, and the properties of the Norrvay spruce beams should not pose too much of a challenge for a competent designer."

The first products being imported are garage door headers, framing members. and r,vindttw headers. Nerv applications will evolve as distributors and builders become familiar with the qualities of these products.

The relationship between CSL and Kaufmann dates back to Killgore's days at Bohemia. Markus Tiling came to him as an intern fiom Oregon State University in 19t19. and the two have stayed in touch over the years.

"Of course, we have strategic goals. but these are due to the gror'vth of glulam both in Europe and the

KAUFMANN glulam beams provide beauty and structural integrity throughout Europe.

U.S.." Tiling says. "Thc European market is eight times larger than the U.S. market on an annual basis."

He attributes the differential to the competitiveness of glulam to steel, and rvood being a rencrvable resource that uscs less encrgy to produce.

"We have invested heavily in R&D to help customel's gain productivity and cost-effectiveness for each application." Tiling adds. "We need to pay as much attention to the product aes thetics as the functionality. With our value-added products, rve could see the market share of glularn products in the U.S. become much bigger. bY lvorking togethcr."

Rough & Ready Lumber Co., a third-generation lumber manufacturing operation located in Cave Junction, Or.. hopes to have its nerv biomass system operable by fall 2007.

"We are going to be generating clean renewable power, preserving healthy forests, and bolstering our local economy," said Link Phillippi, president and general manager.

"This project is a win across the board. It generates power from sawmill waste that would be burned anyway, plus material that raises the risk of forest fires." said Adam Serchuk, biopower program manager at Energy Trust, a nonprofit that encourages energy conservation and contributed $1.7 million to get the $5 million project going. "It provides the steam needed for the sawmill's operation and the byproduct is clean, renewable electricity that goes right out to other Pacific Power customers."

The new project includes a high-pressure boiler, a backpressure turbine generator, boiler mechanical and electrical controls, fuel handling and storage equipment, and air quality control features. About half of the 30,000 tons of fuel needed will come from sawmill residuals. with the remainder from thinning operations on nearby public and private forests.

The company currently operates a wood-fired, lowpressure steam boiler that produces no electrical energy. Phillippi hopes that the new system will help make the business more competitive. "Until now, the cost of capital for a project of this type was just too high for a small business like ours," he said. "We would have had a hard time getting this project off the ground without the incentive."

The Conservation Fund, a 2l-year-old Arlington, Va.based organization that strives to balance natural resource protection with economic goals, hopes that timber sales from its lands in Mendocino Counry, Ca., will provide jobs and help pay for forest and watershed restoration.

According to Chris Kelly. who manages the group's California operations, people are surprised to learn about a conservation group that logs. He sounds somewhat surprised himself. "This is all new to me," he said. "I am leaming as I go."

The group claims to be the first nonprofit to own and run a major timber operation in Califomia. Its 24,000 acres in Mendocino County were purchased for $18 million in 2004. Another 16,000 acres in two nearby watersheds will be purchased for $48.5 million-mostly with srate financing. The group hopes to buy an additional 165,000 acres, making it one of the biggest timber concerns on the North Coast.

Industry experts warn that managing a working forest and logging enough to pay for annual operating costs and restoration won't be easy. "lt is wait-and-see whether they understand what they are getting into," said Steve Brink, vice president of the California Forestry Association. "It is an arduous journey: sustained yield plans, timber harvest plans, water boards, Fish & Game, threatened and endangered species, cultural resources, global markets."

"I think this is the future of conservation," said the Fund's Kelly. "l am enthralled with the idea of prorecting enthe watersheds, but I don't think it is practical to do it by turning them into parks."

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Capital Lumber Co., which started in Phoenix almost 60 years ago. is moving part of its local distribution operation to an adjacent building with 26,000 sq. ft., 8,000 of which will be offices.

"This move will accommodate a little more space for our personal growth," said Michael Darby, director of sales and marketing. The old building "was never meant to accommodate the number of people we have there today," he said. "This will be a nice upgrade."

Remodeling is expected to be complete by October. The old offices, which date to 1974. will then be razed to make way for "further property enhancements."

Capital Lumber has l3 DCs throughout the western United States and sells mainly wood products to lumberyards and home centers, such as Home Depot and Lowe's.

In downtown Tucson, Az., brothers Harry and Joe Findysz renovated an old brick building to recreate a 10,000-sq. ft. Ace Hardware store from the 1950s-right down to vintage lighted signage.

"This is a neighborhood store," said

Harry Findysz. "We tried to do a product mix that fit this area. A lot of the homes are being renovated."

The brothers themselves restored the 1958 brick building, which first housed an auto parts store and had a variety of uses after that, most recently to store furniture and appliances.

"lt's cool that a chain has decided to locate in an urban neighborhood rather than behind an asphalt sea of parking somewhere," said Donovan Durband, executive director of the Tucson Downtown Alliance. He said that a hardware store adds quality of life for the dorvntown area, because residents won't have to drive miles to another hardware store.

The brothers' four-store chain got started in Tucson in 1962. when their father Joseph opened the first Ace store west of the Mississippi. Earlier. their grandfather had opened Ace Hardware store No. I I in Illinois.

Last year's timber harvests in eastern Oregon declined l47o from the previous year, according to an annual report released by the Oregon Department of Forestry.

"A beleaguered forest industry on the east side of the state managed to keep the few remaining mills op€rat- ing, but the possibility of industry decline is worrisome, as mortgage rates continue to climb, lumber prices fall, and the outlook for housing demand sours." said Oregon State forest economist Gary Lettman.

A 37% drop in logging on nationalforest lands drove the decline. Overall. the eastern timber harvest was about 569 million bd. ft.. dorvn from 658 million bd. ft. in 2004. In conrrast. 2005 timber harvests in western Oregon rvere 3.79 billion M. ft.-the same as 2004.

Oregon's forest industry accounted for the largest portion of the statewide timber harvest. 687c. with 2. 97 billion bd. ft., a slight decrease from the 2fiX harvest volume of 3.032 billion M. ft. Non-industrial private forest landowner's harvests remained robust with a harvest of 525 million M. ft.

The U.S. Forest Service harvested 275 million bd. ft. last year. down from 337 million M. ft. in 2004. The increased harvest in rvestern Oregon offset a harvest decline in eastern forests. State of Oregon agencies boosted timber harvest on state-owned lands llVc, cutting 341 million M. ft. last year compared to 291 million bd. ft. in 2004. Federal Bureau of Land Management harvests also rose during the same period, from 96 million M. ft. to l2f million ft.-a267a increase.

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In an effort to make its lumber operations more efficient and competitive, Weyerhaeuser Co., Federal Way, Wa., will permanently close its sawmill in Lebanon, Or., and build a new one nearby. on the same site as its existing Bauman lumber mill, also in Lebanon.

The new mill is expected to

Instead of selling its paper division as planned, Weyerhaeuser has inked a $3.3 billion deal with Domtar Inc. to form North America's largest fine paper maker.

Weyerhaeuser shareholders will receive a 55Vo stake in the new venture. Weyco will also receive $1.35 billion in cash and nominate seven of the board's l3 members.

The new Domtar will maintain a head office in Montreal, with operational headquarters based in Fort Mill, S.C. Its 14,000 employees will be led by Raymond Royer, Domtar president and c.e.o. Chairman will be Harold MacKay, an employ 125 people and produce lumber for local and West Coast markets. Construction is expected to begin in the fourth quarter of 2006, rvith startup scheduled for the first quarter of 2008.

"lt has good rail and transportation links, good proximity to customers. will be relatively easy to construct adviser to Weyco's board. Marvin Cooper will be c.o.o., and Daniel Buron, c.f.o. and rvill provide room for future grorvth," said Rob Taylor. v.p.-lumber technologies.

Weyco will add to Domtar eight paper mills and associated pulp mills, 14 converting centers, a market pulp mill in 8.C., a coated groundwood mill in Mississippi, and two softwood lumber mills.

The spin-off is expected to generate annual savings of up to $200 million for Weyerhaeuser, which has been downsizing following a firstnuarter loss of $580 million.

"The new Domtar is in a better position to compete than either company could on its own," said Weyco c.e.o. Steven R. Rogel,.

While constructing the new mill. Weyerhaeuser will evaluate the timing for consolidating the operations at its existing Bauman and Coburg sarvmills. The company currently operates lumber mills in eight states in the U.S. and four provinces in Canada.

"These sites produce products valued by our customers. and rve will ensure our customer needs are met during this period." Taylor said.

The old Lebanon mill shut down the majority of its operations August 25. Approximately 60 workers were laid off.

Weyerhaeuser Co., Federal Way. Wa.. plans to rvithdrarv its common stock from listing on the Pacific Stock Exchange. Inc.. norv known as NYSE Arca. Inc.

The company's common stock will continue to trade on the Nerv York Stock Exchange. the principal listing exchange. and on the Chicago Stock Exchange.

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