By TOM KELLY
Editor and Publisher

The Piney Woods region had reason for optimism heading into the new year 2005, with what appears to be an upswing in economic activity, new job potential, and higher timber prices. But there are also some question marks on the larger scene, with an unsettled paper market, and uncertainty about the long-time impact of Boise Cascade's sale of timberlands and possible exit from manufacturing in the region.

Topping the list of good news are the recently announced plans for a new Oriented Strand Board (OSB) mill near Oakdale, in Allen Parish Louisiana, by the Roy O. Martin company based in Alexandria, and groundbreaking for the new Union Tank Car manufacturing plant which will ultimately employ up to 850 in Alexandria. (Separate story, this edition.)

First the good news:
-Late last year, officials of the Roy O. Martin Lumber Company and the State of Louisiana announced plans for a new OSB plant in Allen Parish, and an expansion at their plywood mill at Chopin in Natchitoches parish, for a net increase of up to 215 manufacturing jobs, plus a possible increase of 280 logging jobs. Martin currently operates a hardwood lumber mill at Lemoyen in St. Landry parish, Colfax Creosote Company at Pineville, and the Chopin mill.
- When first planning the new OSB mill, the Martin Company considered Texas as a location. With incentives negotiated by the State of Louisiana's economic development team headed by Michael Olivier, the company agreed to construct the new $185 million facility at Pawnee, near Oakdale in Allen Parish, 30 miles south of Alexandria.
- At the plant announcement made in Alexandria, Louisiana Governor Kathleen Blanco joined the Martin management team to outline the expansion plans.
-The new OSB plant anticipates 170 new manufacturing jobs at an average annual salary of $40,000 plus benefits. In addition, the $38.5 million expansion at Chopin for a dry veneer plant will add an estimated 45 new jobs.
- Martin Company president Roy O. Martin III, also said up to 280 more logging jobs would be needed to supply the mills.
- Governor Blanco said the State's incentives include $8.2 million in tax exempt bonds to be sold by Martin Company to finance air pollution control equipment, plus a tax equalization of $20 million over ten years.

Other news on the economic horizon for the coming year include
- Sale of all U.S. timberlands by Boise Cascade to Forest Capital Partners of Boston.
- Closure of Canadian paper production by Domtar, and potential ripple effects at its Arkansas mill, including reported regional timber shortages.
- Possible upgrade and reopening of the now shut-down Abitibi Consolidated paper mill at Lufkin, Texas.
- Continuing negotiations for a final settlement of the U.S.-Canadian softwood lumber tariff issue.
- Late-year decline in new home sales nationally.

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