L-P Plans Alaska Shutdown Wood Fiber ADUillITACE HltoERrotltl

Redueed Callbacks

WFP FINGER OINT studs reduce sfud repfccement by 50 to 750/t.

Stratehter Walls

tlNGER|O|NTlNG nixes grcin pcllerns & knol slructules minimizing lhe chonce of bow ond croolc

Customer Saiisfaciion

Fewer collbocks mcke o hoppier builder cnd sficighf wclls make o sslisfied homeowner.

IMPROVED RESOURCE UfILIZATION

FINGERJOINTING ollows ony length of sfud grcde lumber lo be used to ils lullesl. Enviromentclly responsible.

Citing the Clinton Administration's refusal to restore the original terms of its timber supply contract to stem mounting losses, LouisianaPacific will shut down the pulp mill at subsidiary Ketchikan Pulp Co., Ketchikan, Ak.

While the pulp mill will close March 24, 1997, based on a last minute compromise between the White House and Alaska Senator Frank Murkowski, immediate negotiations began with the Department of Agriculture to determine the fate of KPC's two sawmills in southeast Alaska over the next two years.

"Provided adequate timber supplies are made available at a reasonable price, KPC will keep the sawmills running," chairman and ceo Mark A. Suwyn said.

L-P will reserve $188 million in the third quarter of 1996 to cover the anticipated costs of shutdown. In total, L-P will take third quarter charges of $350 million to cover the mill shutdown, class action suit settlements, and reserves for other litigation and planned shutdowns.

"During the fourth quarter we plan to announce the closing or sale of several plants which are no longer competitive or essential to our future operations," Suwyn said. "Our goal is to adjust our capacity to meet what we believe will be the future demand for our current products."

While continuing legal action against the U.S. Forest Service for breach of contract, L-P also expects to fi le substantial additional claims.

Ketchikan Pulp Co. was established in 1948 as part of a federal government initiative to bring jobs to southeast Alaska. Because all timber in the region is owned by the government, KPC was awarded a 5O-year supply contract to attract the investment necessary to build and operate a pulp mill. The firm began operations in 1953 and has been Alaska's largest manufacturing company and the largest private employer in southeast Alaska with 1,000 permanent workers and an additional 1,500'jobs supported indirectly.

But, according to L-P, following passage of the Tongass Timber Reform Act of 1990, the Forest Service unilaterally imposed wholesale changes to the contract which resulted in the KPC pulp operation losing $40 million in the first nine months of 1996.

Murkowski helped draft legislation to restore the original contract and extend it by 15 years. But after Pres. Clinton warned he would veto it, the provision was dropped from the recently passed Omnibus Parks Bill.

"Malaysia wants to develop and I say to the so-called environmentalists: Mind your own business."

- Mahathir Mohamad, Malay s ian P rime Minis te r

Products

Depot Forms Southwest Div.

Home Depot has formed a sixth division to handle its growing expansion plans for the Southwestern U'S' Taking Depot's stores in New Mexico from its Western division, Texas, Oklahoma, Mississippi, Arkansas and Louisiana from its Southeast, and Kansas and Missouri from its Midwest division, the new region will add nearly 130 stores in the next three years. It now has 6l stores-with more than half of those in Texas-and more than $2 billion in annual sales'

Ken Ubertino, currentlY v'P' of merchandising, will head the new Dallas, Tx.-based division when it begins operations Feb. l.

L-P To Settle For $65.1 Million

Without admitting liability, Louisiana-Pacific has agreed to pay certain shareholders $65.1 million to settle a securities class action suit alleging the company misrepresented its OSB siding products.

Subject to review and final court approval, the settlement benefits certain investors who purchased stock from Oct. 19,1993 to MaY 24,1995'

Chemco-Allweather Merger

Chemco, Ferndale, Wa', has merged its CCA pressure treated lumber business with Allweather Wood Treaters, Washougal, Wa.

The Ferndale facilitY will oPrate under the Allweather name. Chemco's sales and purchasing staff-Ron Brookins, Ray Brown, Phil Freebern and Gary Maulin-have joined the Allweather staff but will remain in Ferndale.

Chemco, under President Fred Amundson, will continue treating shakes and shingles with exterior fire retardant at the Ferndale complex'

For the last two Years, Allweather and Chemco have been working together to develop and market Prime Deck Sunwood, featuring a unique water repellent developed specifically for western species.

"This merger solidifies our relationship with Chemco and brings additional benefits to our customers," says Alan Wade, Allweather President. "Now our customers can benefit from our increased buYing Power' additional mill sources and strategic geographic locations now covering the West Coast."

New Spruce Source

White spruce from Austria and the Czech Republic is now being imported by Cascade Empire, Portland, Or.

The dimension lumber carries an American Lumber Standard gradestamp and is said to be virtually wane free. The target market is end users and home centers.

In other news, Cascade EmPire's Industrial Division has moved into new offices and will be renaming itself after the first of the year.