Gates Milling, Inc. Company Profile

GATES MILLING, INC. Quality people creating quality wood products

WELCOME TO GATES Since 1978, Gates Custom Milling, Inc. has grown into a premier source of Cypress and Poplar products, as well as the nation’s largest producer of Atlantic White Cedar products. From decking and siding to interior moldings and colored mulch, Gates offers a wide range of products to fit any client’s needs.

All the while, Gates has remained committed to quality over quantity. A fully integrated, full-service facility allows Gates to make its products entirely in-house, giving the team – and the client – complete control over the customization process. The result is high-quality, completely customizable products in the quantities that wholesalers and distributors need at competitive prices.

Full-integration matters because clients’ needs change over time. Gates is a market-driven company, able to adapt to changing tastes, styles and regions without altering its unique in-house process. Gates’ experience in the industry allows the company to predict customers’ needs, and its state-of-the-art, fully integrated production style allows clients to request what they can’t find elsewhere.

Ultimately, the Gates formula is simple: Quality people creating quality wood products.

TIMELINE 1978: Gates Custom Milling, Inc. opens out of an existing planer mill facility in Gatesville, North Carolina

1981: Burglars set the Gates facility on fire, causing the company to rebuild and begin expansion

1988: Current President Mark Tuck joins his fatherin-law in business as vice president

1992: Current CEO Nancy Tuck joins her father and husband in business to oversee administration, marketing and finance

1997: Gates begins to manufacture products out of poplar

ABOUT OUR COMPANY Family-owned Gates Milling, Inc. is located in Gatesville, North Carolina. Founder Brian H. Martin sought to remanufacture Atlantic White Cedar lumber into both interior and exterior products.

After a devastating fire in 1981, Gates began the process of expanding into a full-service, fully integrated operation, taking control of all aspects of the milling process.

Over the years, a sawmill, Weinig Moulder, and dry kilns were added to the operation. In addition to the new equipment, a second generation of Martin’s family joined the team. Today, Gates produces a full product line, from interior paneling to exterior siding and mulch, completely in-house. An ongoing commitment to new technology keeps Gates at the forefront of customization and specialty milling.

Along with this growth, Gates has developed an experienced team at all stages of the milling process.

Current owners Mark & Nancy Tuck each have nearly 30 years of experience with the business, and most of the facility’s equipment is operated by employees who have at least 10 years of experience. Part of the successful tenure of the team derives from a benefits package that enables the mill to attract and retain highly valuable members. Gates continues to enrich its team’s experience in the industry through active involvement in relevant trade associations and like-minded organizations, including those that promote stewardship and sustainability.

NANCY TUCK Nancy Tuck is the second-generation owner and current chief executive officer of family-owned Gates Milling, Inc. In addition to her role as CEO, Nancy manages sales and customer relations.

Nancy joined the family business in 1992 to handle administration, marketing and finance. Early on, she automated Gates’ financial systems, transitioning the company from ledger books to digital records. Since joining the company, Nancy’s dedication to Gates’ customers and her ability to forecast their needs has become a tremendous asset to the team. She leads with a kind of energy that drives Gates’ success and growth. Her involvement in the industry also makes Nancy an asset to the Gates team. In 2009, she served as president of the Southern Cypress Manufacturers Association.

Prior to joining the family business, Nancy had a successful career in banking, working as a retail branch manager and a commercial loan officer. This background in finance made her an advantageous addition to the Gates team. Nancy graduated from Radford University in 1986 with a Bachelor of Science degree in finance.

1999: Gates builds an entirely new sawmill and adds Cypress to its product mix, allowing the company to offer a full line of Cypress, Poplar and Atlantic White Cedar products to domestic and international customers

2005: Gates begins use of two new dry kilns, completing the full integration of Gates’ milling process

MARK TUCK Having nearly 30 years of experience with the company, Mark Tuck serves as owner and president of Gates Milling, Inc. Mark joined the company in 1988 as vice president has taken a hands-on approach to the mill’s operations ever since. Over the years, he guided the company’s expansion from a planer mill to a fully integrated sawmill, dry kiln and millwork operation. As the business expanded, Mark ensured that new additions to the operations team were experienced and able to grow with the company.

Prior to joining Gates, Mark worked in sales. He graduated from Radford University in 1985 with a degree in business administration and a specialization in marketing and mathematics.

CHRISTOPHER SACKETT Christopher serves as President of American Cypress and Hardwood, LLC., managing all sales and purchases of Cypress and Hardwoods. Christopher brings nearly 25 years of experience in the Hardwood and Cypress lumber industry ranging from sales and purchasing management to sawmill operations to lumber inspection. He is a graduate of Washington and Lee University and also attended NHLA Inspection School in Memphis, TN.

2012: Nancy and Mark purchased the assets of the company from Nancy’s parents and founders, and renamed the company to Gates Milling

2012: Nancy and Mark start another company called American Cypress and Hardwood, LLC. in order to expand sales and create new opportunities for expansion into additional markets.

Christopher Sackett is brought on as president of the new venture

FACILITY & EQUIPMENT Gates Milling, Inc. operates 58,000 square feet of manufacturing and warehouse space. The facility has capacity for more than 12 million board feet of logs and lumber.

Gates produces most of that lumber in-house, however the company purchases 2 to 3 million board feet of lumber from other mills annually. This arrangement allows Gates to supplement its own production in order to better meet customers’ unique and specialized needs.

From its North Carolina facility, Gates serves wholesalers and distributors across the country and around the world. With a primary focus on the East Coast, Gates works with clients from New England to Texas, customizing each order to fit the client’s needs and the region’s environment.

SAWMILL While most milling companies saw their lumber for the highest yield, Gates takes a different approach, sawing what will work best for a client’s project. Gates also employs a unique barcoding system that tracks each piece of lumber through the different stages of the milling process. This system allows Gates to update its inventory in real-time and provide timely, competitive prices to clients. Gates' sawmill equipment include: • MIT head rig and carriage • McDonough line bar and resaw • Salem edger • Dawson Brothers drop saw trimmer with Lucidyne controls and Grade Mark reader

• Dawson Brothers 34 bay sorter with Lucidyne controls • Dawson Brothers automated lumber stacker with Industrial Systems Consultants Controls • Fastline small log processor and Brewer horizontal twin band

DRY KILN After the appropriate lumber has been milled for a client’s project, Gates employs kilns to dry the green lumber for further processing. Gates began using dry kilns in 2005, as the company grew to offer new products and new species of wood. Gates’ dry kiln equipment includes: • 2 Wellons track kilns with zone controls, each with capacity for 50,000 board feet of lumber

• 2 Irvington Moore track kilns, each with capacity for 40,000 board feet of lumber

PLANER MILL Gates’ planer mill services are a part of the company’s history through and through. Before the sawmill and dry kiln operations, Brian H. Martin opened Gates in an existing planer mill facility. Over the years, new technology has replaced older machinery, and Gates’ ability to diversify products based on a client’s needs has only made the planer mill operations that much more important. Gates’ planer mill equipment includes: • Kentwood high-speed 8-head moulder with 12-inch capacity • Weinig hydromat moulder

• Woods planer • Stenner resaw • Cornell drop saw trimmer

PRODUCTS & SPECIALTIES

As a full-service milling facility, Gates Milling, Inc. offers a full and diverse product line for wholesalers and distributors seeking interior or exterior materials. Gates primarily specializes in Cypress, Atlantic White Cedar and Poplar materials, but the company can also offer Red and White Oak and Maple. Gates’ diverse line of products include: • Rough-cut and dressed timbers • Green and kiln-dried lumber • Planed and molded products, such as T&G V-joint, decking, exterior siding, trim boards and fence boards • Natural and color-dyed bulk mulch and shavings Gates encourages clients to request products beyond those listed above. Thanks to the company’s fully integrated process, Gates can create virtually any woodworking product in-house, without having to outsource steps to other companies. In this way, Gates can offer clients an innumerable array of products at always-competitive prices.

CYPRESS

Gates began producing Cypress materials in 1999, with the introduction of a new sawmill. Today, Gates is one of the top producers of Cypress products in the country.

Cypress is known for its durability and its ability to hold paint and stains well. These characteristics make Cypress versatile enough for both interior and exterior applications.

Gates produces a wide variety of interior, exterior and rough-cut products with Cypress, including T&G paneling, exterior siding, architectural beams and green and kiln-dried rough-cut timber.

Cypress also makes up a majority of Gates’ mulch products.

Cypress is not listed as a species of concern by the International Union for Conservation of Nature and Natural Resources (IUCN).

Key Facts: • Scientific Name: Taxodium distichum • Average dried weight: 2.5 lbs. per BF • Color & appearance: Cypress tends to be a light yellow-brown, and sapwood is nearly white. So-called “Pecky Cypress” features scattered pockets of darker wood.

Physical Properties of Cypress

• Grain & texture: Grain is straight with medium to coarse texture.

Raw, unfinished Cypress surfaces can have a greasy feel.

And Other Common Species

Cypress

Western Red Cedar

.46

.32

.32

.35

31.4

22.4

23

22–31

10,600 1.44 8.2

7,500 1.11 5.8

6,800 .93 4.1

8,600 1.24 6.8

24

17

13

18

6,360

4,560

4,700

4,800

Compression Perpendicular to Grain – 12% MC

730

460

410

440

Tension Perpendicular to Grain – 12% MC

270

220

220

310

1,000

990

800

900

510

350

350

380

145–150

70

Not Available

85

Specific Gravity – 12% Moisture Content (MC) Density (lbs/ft ) 3

Static Bending Modulus of Rupture (lbf/in2) Modulus of Elasticity Work to Maximum Load (in-lbf/ft3)

Physical Properties of Cypress and other common species

Impact Bending

Height of drop causing complete failure (in)

Compression Parallel to Grain – 12% MC Maximum crushing strength (lbf/in2)

Fiber stress at proportional limit (lbf/in2)

Maximum tensile strength (lbf/in2)

Shear Parallel to Grain – 12% MC Maximum shearing strength (lbf/in2)

Side Hardness (lbs)

(Load required to embed a 0.444 ball to half its diameter)

Flame Spread Rating

Note: These are clear, defect-free properties and should not be used for design properties.

Source: USDA Forest Service Forest Products Laboratory, 2010, Wood Handbook, Wood as an Engineering Material

Atlantic White Eastern White Cedar Pine

ATLANTIC WHITE CEDAR

Known for durability and its ability to weather many conditions, Atlantic White Cedar is a non-splintering wood that has a pleasant yet subtle aroma. Thanks to this durability and versatility, Atlantic White Cedar is ideal for both interior and exterior applications. Atlantic White Cedar is softer than its west coast counterpart, and it is sometimes referred to as Southern White Cedar to differentiate it from a northern variety.

Gates is the largest producer of Atlantic White Cedar products in the U.S., and the Gates team has specialized in working with Atlantic White Cedar since the company first launched in 1978.

With its flagship species, Gates produces decking, exterior siding, interior paneling, hand rails, rough-cut timber and much more.

Atlantic White Cedar represents Gates’ commitment to sustainability and conservation. According to the IUCN, Atlantic White Cedar is a species of “least concern,” with a population that appears to be increasing in certain areas.

Key Facts: • Scientific name: Chamaecyparis thyoides • Average dried weight: 2 lbs. per BF • Color & appearance: Heartwood is a light reddish-brown, while narrow sapwood is a pale yellow-brown or almost white • Grain & texture: Grain is straight with a fine uniform, texture • Workability: Atlantic White Cedar is easy to work with both hand tools and larger machinery. It holds paints, stains, glues and finishes well.

POPLAR

Known for its remarkable ability to accept paint and stains, Poplar has found its way into both the furniture making and building industries. It has no characteristic odor and it can appear in a variety of colors, making it functional across different regions and different styles.

Gates has produced Poplar materials since 1997, as a result of customer demand in the South and Midwest. Gates now offers Poplar kiln-dried, rough-cut lumber and S4S boards in both stock width and random width. Poplar represents Gates’ ability to respond to clients’ needs with the a customized solution.

Key Facts: • Scientific name: Liriodendron tulipifera • Average dried weight: 2.4 lbs. per BF • Color & appearance: Heartwood is a light cream to yellow-brown, with occasional streaks of gray or green.

Sapwood is pale yellow to white.

• Grain & texture: Poplar typically has a straight, uniform grain with a medium texture.

MULCH In an effort to reduce waste and practice environmental stewardship, Gates produces both natural and colored mulch as a by product of regular milling processes. Natural mulches are available in both Cypress, Cedar and mixed hardwood varieties, whereas colored mulches are from Cypress and mixed hardwoods.

For dyed mulches, Gates uses Colorbiotics®, a BASF Company and industry’s leading mulch colorant. Gates ensures that all dyed mulches are safe for people, animals and the environment. In fact, it’s this commitment to the environment that leads Gates to produce Cypress mulch. Cypress does not change a soil’s pH level as it decomposes and even adds nutrients to the soil, making it an advantageous addition to any landscape. Additionally, Cypress mulch blocks weed growth and prevents any airborne seeds from reaching the soil to germinate.

• Common uses: This wood species is used for functionality more than appearance. It is often used for trim, pallets, crates, furniture frames and paper. Despite its wide use, Poplar remains a species of “least concern” to the IUCN.

Gates produces the following mulch varieties: • Natural Cedar • Natural Cypress • Red-dyed Cypress • Black-dyed Cypress • Chestnut-dyed Cypress • Walnut-dyed Cypress • Red-dyed Hardwood • Black-dyed Hardwood • Chestnut-dyed Hardwood • Walnut-dyed Hardwood

PRODUCT PROFILES Gates’ finished products reflect the needs of clients, as well as the company’s decades of expertise.

The profiles below are just a sampling of what Gates Custom Milling, Inc. has to offer. Beyond the list below, Gates is able to add value for clients by handling variations and customizations in-house.

TONGUE & GROOVE PROFILES

Size

Net Dimension

AVALON T&G 4/4 x 4 ½ x 3-1/2 ¼” V Smooth Face 4/4 x 5 ½ x 4-1/2

CHESAPEAKE T&G 1/2” V Smooth Face

4/4 x 4

11/16 x 3-1/2

4/4 x 5

11/16 x 4-1/2

4/4 x 8

11/16 x 7-1/4

HATTERAS T&G ½” V Rough Head Face

4/4 x 4

11/16 x 3-1/2

4/4 x 5 4/4 x 6

11/16 x 4-1/2 11/16 x 7-1/4

4/4 x 4

¾ x 3-1/2 ½” V

4/4 x 6 4/4 x 8

¾ x 5-1/2 ¾ x 7-1/4

TONGUE & GROOVE V4S Smooth Face or Rougher Head Face

BEADED TONGUE & GROOVE 4/4 x 4 ½ x 3-1/2 Smooth Face

4/4 x 4 ¾ x 3-1/2

4/4 x 6 ¾ x 5-1/2

SQUARE EDGE TONGUE & GROOVE/WP4 4/4 x 4 11/16 x 3-1/2 Smooth Face or ¾ x 3-1/2 Rougher Head Face

4/4 x 5 11/16 x 4-1/2

4/4 x 6 11/16 x 5-1/2

¾ x 5-1/2

4/4 x 8 11/16 x 7-1/4

¾ x 7-1/4

4/4 x 10 15/16 x 9-1/4

4/4 x 12 15/16 x 11-1/4

5/4 x 4 1 x 3-1/2

5/4 x 6 1 x 5-1/2

5/4 x 8 1 x 7-1/4

5/4 x 10 1 x 9-1/4

5/4 x 12 1 x 11-1/4

8/4 x 4 1-1/2 x 3-1/2

8/4 x 6 1-1/2 x 5-1/2

8/4 x 8 1-1/2 x 7-1/4

NICKEL JOINT TONGUE & GROOVE 4/4 x 4 Smooth Face Rougher Head Face 4/4 x 5

4/4 x 6

4/4 x 8

4/4 x 10

4/4 x 12

5/4 x 4

5/4 x 6

5/4 x 8

5/4 x 10

5/4 x 12

8/4 x 4

8/4 x 6

8/4 x 8

11/16 x 3-1/2 ¾ x 3-1/2 11/16 x 4-1/2 11/16 x 5-1/2 ¾ x 5-1/2 11/16 x 7-1/4 ¾ x 7-1/4 15/16 x 9-1/4 15/16 x 11-1/4 1 x 3-1/2 1 x 5-1/2 1 x 7-1/4 1 x 9-1/4 1 x 11-1/4 1-1/2 x 3-1/2 1-1/2 x 5-1/2 1-1/2 x 7-1/4

STANDARD DECKING

TIMBERS

Size Net Dimension

S4SEE Rough Green 5/4 DECKING S4S Green Radius 4 Sides 5/4 x 4 1 x 3-1/2

5/4 x 6 1 x 5-1/2

8/4 DECKING

Radius 4 Sides 8/4 x 4 1 x 3-1/2

8/4 x 5 1 x 4-1/2

*Atlantic White Cedar Only

8/4 x 6 1 x 5-1/2

GERMAN SIDING

(PATTERN 105) 4/4 x 6 11/16 x 5-1/2

Smooth Face or ¾ x 5-1/2

Rougher

Head Face 4/4 x 8 11/16 x 7-1/4

¾ x 7-1/4

BANDSAWN BEVEL 4/4 x 4 9/16 x 3-1/2

4/4 x 6 9/16 x 5-1/2

4/4 x 6 11/16 x 5-1/2

5/4 x 6 ¾ x 5-1/2

4/4 x 8 9/16 x 7-1/4

4/4 x 8 11/16 x 7-1/4

5/4 x 8 ¾ x 7-1/4 BEADED BEVEL Smooth Face 4/4 x 4 9/16 x 3-1/2

4/4 x 6 9/16 x 5-1/2

4/4 x 6 11/16 x 5-1/2

5/4 x 6 ¾ x 5-1/2

4/4 x 8 9/16 x 7-1/4

4/4 x 8 11/16 x 7-1/4

5/4 x 8 ¾ x 7-1/4 SHIPLAP Smooth Face or Rougher Head Face

4/4 x 4 4/4 x 6 4/4 x 8 4/4 x 10 4/4 x 12 5/4 x 6 5/4 x 8

¾ x 3-1/2 3/4 x 5-1/2 3/4 x 7-1/4 ¾ x 9-1/4 ¾ x 11-1/4 ¾ x 5-1/2 ¾ x 7-1/4

DIMENSION LUMBER 4/4 x 4 3/4 x 3-1/2 S4S, S1S2E 4/4 x 5 ¾ x 4-1/2

*Atlantic White Cedar Only Smooth Face or Rougher Head Face 4/4 x 6 ¾ x 7-1/4

4/4 x 10 ¾ x 9-1/4

4/4 x 12 ¾ x 11-1/4

5/4 x 4 1 x 3-1/2

5/4 x 5 1 x 4-1/2

*Atlantic White Cedar Only

5/4 x 6 1 x 5-1/2

5/4 x 8 1 x 7-1/4

5/4 x 10 1 x 9-/14

5/4 x 12 1 x 11-1/4

8/4 x 4 1-1/2 x 3-1/2

8/4 x 5 1-1/2 x 4-1/2

*Atlantic White Cedar Only

8/4 x 6 1-1/2 x 5-1/2

8/4 x 8 1-1/2 x 7-1/4

8/4 x 10 1-1/2 x 9-1/4

8/4 x 12 1-1/2 x 11-1/4

Size 3 x 3 3x4 3 x 6 3 x 8 3 x 10 3 x 12 4 x 4 4x6 4x8 4 x 10 4 x 12 4 x 14 4 x 16 4 x 18 6 x 6 6x8 6 x 10

Net Dimension 2-1/2 x 2-1/2 2-1/2 x 3-1/2 2-1/2 x 5-1/2 2-1/2 x 7-1/2 2-1/2 x 9-1/2 2-1/2 x 11-1/2 3-1/2 x 3-1/2 3-1/2 x 5-1/2 3-1/2 x 7-1/2 3-1/2 x 9-1/2 3-1/2 x 11-1/2 3-1/2 x 13-1/2 Rough Only Rough Only 5-1/2 x 5-1/2 5-1/2 x 7-1/2 5-1/2 x 9-1/2

Size 6 x 12 6 x 14 6 x 16 8 x 8 8 x 10 8 x 12 8 x 14 8 x 16 10 x 10 10 x 12 10 x 14 10 x 16 12 x 12 12 x 14 12 x 16 14 x 14 14 x 16 16 x 16

Net Dimension 5-1/2 x 11-1/2 Rough Only Rough Only 7-1/2 x 7-1/2 7-1/2 x 9-1/2 7-1/2 x 11-1/2 Rough Only Rough Only 9-1/2 x 9-1/2 9-1/4 x 11-1/2 Rough Only Rough Only 11-1/2 x 11-1/2 Rough Only Rough Only Rough Only Rough Only Rough Only

CLIENTS AND ASSOCIATIONS As industry leaders, the Gates team feels an obligation to give back to the forests and partners that drive its success. Gates chooses environmentally sustainable wood species for its products and monitors the status of those species year after year. Additionally, Gates participates in several trade associations that reflect the company’s commitment to environmental stewardship: • Southern Cypress Manufacturers Association • Hardwood Manufacturers Association • National Hardwood Lumber Association

• North Carolina Forestry Association • National Federation of Independent Business

Through these organizations, Gates supports industry-wide conservation initiatives and adheres to industry-accepted best practices. More than just participate, the Gates team strives to influence the industry and the small business community in a way that ensures the longevity of natural resources and family-owned operations.

TESTIMONIALS “Gates Milling has been a valuable vendor for our company and a great business partner for many years now. During that time they have consistently provided good quality products and outstanding service.

As our business grows and prospers I know Gates Milling will continue to be a part of our success.”

–Ed Vila | General Manager, Cedar Creek “It is a pleasure to deal with Gates Milling through the years. They are reliable, have excellent quality in lumber, and service you can count on.”

–Tomasz Rejniak | Dixie Plywood and Lumber Company “Gates Milling provides us with consistent quality products that our customers have come to expect.”

–Pete Pereda | Logan Lumber

681 NC Hwy 37 South | PO Box 405 | Gatesville, NC 27938 | (800) 682.9663 | (252) 357.0116