By TOM KELLY
Editor and Publisher

The acquisition of Willamette Industries, Inc., a presence in the North Louisiana and South Arkansas Piney Woods for more than 30 years, by industry giant Weyerhaeuser tops the list of major forestry news events in the early going of the new millennium.

The two West Coast-based companies, both multi-national operations, finally came to terms after 14 months of what was termed a hostile takeover bid by Weyerhaeuser, of Federal Way, Washington, to acquire the smaller Willamette Industries, based in Portland, Oregon.

The Weyerhaeuser transition is almost a year down the road from the January, 2002 announcement of agreement on the $7.9 billion transaction. While the major moves of reorganization have been announced and taken, the settling-in is still not entirely complete, as the new owners deal simultaneously with integrating and tailoring the merged forestry and manufacturing operations, a depressed lumber market, and the economic impact of import taxes related to its own involvement in the Canadian lumber industry.

Under Willamette Industries, Inc., the base for its Southern Region was at Ruston, Louisiana, from where operations in Louisiana and Arkansas were managed. Weyerhaeuser consolidated regional management to its Hot Springs, Arkansas base, and will utilize the Ruston center for engineering and planning.

Other moves by Weyerhaeuser include reorganization of its forestry and raw materials management, closing older manufacturing plants at Lillie and Simsboro, Louisiana, and dissolving the company-run logging operations maintained by Willamette.

Toward year-end, Weyerhaeuser announced that it took a $31 million loss against profits in the third quarter 2002 on countervailing and anti-dumping duties imposed by the U.S. government on import of Canadian softwood lumber after a quota agreement with Canada expired without renewal in 2001. The company said it expects to incur $65 to $70 million in countervailing and anti-dumping costs for the year 2002.

The Canadian softwood import agreement was a major political issue for the forest industry during the 2001 national presidential campaign, and most U.S. based lumber manufacturers and sellers urged imposition of duties on Canadian lumber imports to prevent excessive competition from Canada. President George W. Bush approved the duties - to the detriment of U.S.-based companies with large Canadian holdings.

Canada appealed the U.S. import sanctions to the World Trade Organization, which has held hearings during this year, finding mostly against the U.S. position, an indication that the import duties could be removed.

Import duties notwithstanding, U.S. wood products prices have plunged during the past year in the general economic downturn, oversupplies in paper and other products, and import competition from Europe, South America, and elsewhere.

Most lumber mills in the region have taken downtime from manufacturing operations, to cut back on production until market demand and pricing improves.

Urania mills shut
A major piece of not-good news in 2002 was the announcement by Louisiana-Pacific Corporation that it would close or sell its plywood and fiberboard mills at Urania and Logansport, Louisiana, and sell its Louisiana timberlands, leaving the national company connected to Louisiana in name only.

In a corporate asset transaction with Georgia-Pacific, LP and GP swapped ownerships in several plants, with the Urania operations going to GP, and being shut down, to be possibly reopened in the future, depending on market conditions.

The LP action was part of a major corporate downsizing, in which the company said it will sell all its 935,000 acres of U.S. timberlands, close or sell about half of its more than 60 manufacturing plants, and reduce its work force from about 9,700 down to about 5,300, to concentrate on its "core business" of oriented strand board (OSB) and similar products in which it is an industry leader.

Landowner issues arise
As the trend toward major corporate mergers and consolidations continued during 2002, similar issues affecting forest land ownership came into focus with issuance of the Southern Forest Resource Assessment in November, 2001.

Continuing urban development from cities outward into forested land - called by the SFRA report the most significant force affecting forest ecosystems - is already generating friction between suburban residents and owners of rural farm, ranch and timberlands in the heavily forested East Texas pine belt.

During 2002, landowners met in Lufkin to begin organizing to oppose state and municipal zoning and other environmental regulations of private lands. With the much larger metropolitan areas in Texas, the issues are coming to a head faster than the more rural North Louisiana, but concerns over private property rights are similar, as evidenced by presentations in landowner seminars around the state during the year.

Another trend in forest land ownership - Timber Investment Management Organization, TIMO for short - came into the news, as large tracts of land were sold into the hands of corporate and private investor groups who manage the lands for tax shelter and maximizing income production and return on investment. Decisions on land use by TIMO managers are not limited to forestry for wood product manufacturing, but include municipal or industrial development, and other income-producing uses.

Forest industries continue to own major timber tracts, but are also selling lands to TIMOs and others, to rely on purchase of raw materials from private landowners and timber management companies, thus freeing long-term capital investment for plants and production.

Plum Creek Timber Company, Inc., with major land holdings in the Southern Piney Woods and elsewhere, has become the leading pure timber company in the nation, having sold its sawmills and turned instead toward ownership and management of forest land for timber production exclusively in most of the United States.

Environmental regulations continue to be a concern of private and public landowners, but by now the rules are fairly well known and Best Management Practices for logging and silviculture accepted and in place by the logging and manufacturing industries.

Following is a roundup by months of the major events reported by The Piney Woods Journal during the past year.

January
The Sparta Groundwater Commission heard an engineering report on long-term prospects for depletion of the Sparta aquifer, source of most municipal and industrial water in Northwest Louisiana and Southern Arkansas, at a meeting in Ruston. The Ruston-based coalition of parish and city governing bodies in eight North Louisiana parishes seeks to limit use of the Sparta, and provide for alternative water sources. The State of Louisiana is gathering information statewide for adoption of a state water policy at the 2003 Legislature.

Delta Outdoors and Wildlife Association, a group of Northeast Louisiana delta farmers, bankers, business people, and others formed to seek ways to develop unprofitable farmland into wildlife habitat and other nature resources for hunting, fishing, and other activities as income producing alternatives to farming.

Willamette Industries announced plans to upgrade its Dodson plywood mill with a new lathe and emissions control equipment.

Parishes with lands in the Kisatchie National Forest were to receive $3.6 million in payments from USDA for road and school improvements.

February
Willamette board of directors, after 14 months of resistance to a hostile takeover bid, signed a "definitive merger agreement" with Weyerhaeuser Company, for a buyout valued at $7.9 million in cash and assumption of debt.

East Texas farmers and landowners met at Lufkin for "Pineywoods Agricultural Producers Rally" to organize against threats to private property rights in Texas law and "Green Certification" movements for forest products.

The LSU AgCenter School of Agriculture, Forestry, and Wildlife, changed its name to School of Renewable Natural Resources, to reflect its growing mission in the state. The AgCenter is involved in planning and technical advice for the Delta Wildlife and Outdoors Association, and other economic development programs in the State.

Henson Moore, Louisiana native and CEO of American Forest & Paper Association, joins a group of ten new inductees into the Louisiana Political Hall of Fame in Winnfield. Others inducted, Senator John Hainkel, Col. Frances Grevemberg, Warden Nathan Burl Cain, Natchitoches Mayor Joe Sampite, Lafayette Mayor Kenneth Bowen, Rep. Lillian Walker, Jesse Bankston, William J. Dodd, and Harley Bozeman.

March
Weyerhaeuser Company announces forming of transition teams to begin merging Willamette operations in Louisiana and Arkansas.

Eighth Annual Uncle Earl's Hog Dog Show is a big hit in Winnfield.

EPA announced the de-listing of 150 waterbodies in Louisiana from the agency's earlier list for possible violations of Clean Water Act rules. Included: sites in Calcasieu River in Southwest Louisiana, and Ouachita River watershed in Northeast Louisiana.

Barnette and Edna King of Luverne, Alabama, were named Tree Farmers of the Year by American Tree Farm System.

April
Sale and closing of S&G Bag Plant at Hodge is announced as part of the acquisition of Gaylord Container Company by Temple-Inland. About 275 jobs are to be terminated by year-end.

Winn Chamber of Commerce hears report on plans to upgrade Gum Springs Recreation Area in Kisatchie National Forest. Enlarged lake, bath houses, other facilities are planned, says Winn District Ranger Frank Yerby.

Annual Louisiana Forest Festival at Winnfield gets a look at forestry exhibits, and newly formed lawn mower racing organization.

May
Hill Farm Research Station at Homer shows demonstrations on multiple use of forest land, "silvopasturing," where cattle and goat forage is produced along with timber.

Forest Leadership Forum, an assembly of forestry products producers, manufacturers, retailers, met with government personnel from around the world in Atlanta, to swap ideas on issues in "Green Certification," and other matters.

Weyerhaeuser, Louisiana-Pacific, Pope & Talbot, and Bowaters, all forest products producers with Canadian operations, join with Home Depot and Lowes Home Improvement to publicly oppose punitive trade duties on Canadian softwood imports into the U.S.

Tony James of Gaar's Mill community in Winn Parish is named Louisiana Loggers Association Logger of the Year, announced at Louisiana Forest Festival annual meeting.

Zwolle Loggers and Forestry Festival attracts crowds to new downtown Festival site.

June
Louisiana Pacific announces plans to sell plants, timberlands in Louisiana. Urania officials and citizens vow to keep their town alive with community spirit when plants close.

East Texas Forest Field Day at Overton urges forest landowners to become more active in protection of private property rights. Presenter points out that Houston alone has more people than either Louisiana or Mississippi, thus gains powerful political clout in issues affecting land use.

July
State Forestry Office report shows pine sawtimber up from last year, at average of $334.89, a one-percent increase over 2001 prices.

Louisiana farmers will begin Master Farmer program, similar to Master Logger training already in progress, attendees at Louisiana Farm Bureau Convention are told. Louisiana program is expected to become a model in the nation.

August
Randy Ewing, Jonesboro, announces opening of his campaign for Louisiana Governor in the race to be run in 2003. Ewing, former President of the Louisiana State Senate, and former president of Louisiana Forestry Association, operates Ewing Timber Company in Jackson Parish.

Weyerhaeuser Company names its managers for new Raw Materials and Timberlands divisions for North Louisiana. David Maxey heads timberlands, Ed Smith heads raw materials for North Louisiana.

Trade associations in 39 countries accounting for 75 percent of the world's paper and over 50 percent of world wood production, announced formation of International Council of Forest and Paper Associations. The group is "committed principles of sustainable development, and to working with stakeholders to ensure that environmental, social, and economic benefits or our natural resources are available to current and future generations." Henson Moore, CEO of AF&PA, is first president.

September
Caskey Terral of Farmerville is 2002 Logger of the Year named by Louisiana Loggers Council at Louisiana Forestry Association annual meeting.

Martin Forest Products of Winnfield, faced with earlier loss of contract for wood chip sales at West Monroe Riverwood Paper Mill, says it is continuing operations with sales to Riverwood, Smurfit-Stone in Hodge, and Georgia Pacific at Port Hudson.

Ex-employees of the former Tremont Lumber Company and Tremont & Gulf Railway at Joyce, met in Winnfield for "Good Old Days" Reunion. Tremont Lumber was founded in 1899, T&G Railway in 1904, as the timber boom brought prosperity to North Louisiana. The railroad closed in 1959, and the mill at Joyce has gone through a series of ownerships, now operated by West Fraser South, a division of the Canadian West Fraser Timber Company.

October
Southern Forest Products Association announces bi-annual EXPO 2003 in Atlanta in June.

Louisiana Sofiety of American Foresters presents Holly Morgan of Kisatchie Forest Distinguished Service Award at annual convention. Presenters show foresters the value of proper seedling selection in reforestation plantings.

November
Treated wood manufacturers get information on impact of new technology and methods, as industry faces December 2003 deadline to phase out use of chromated copper arsenate (CCA) for residential and other non-industrial wood products.

Woods arson prevention efforts are highlighted in annual meeting of Woods Arson Prevention Association at DeRidder. Since organization in 1991, the Association has seen reduction in arson and public awareness of arson prevention benefits.

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