For the first time since the fabled Henry Hardtner put down roots and created the company town of Urania, Louisiana over 100 years ago around a sawmill and its timber supply, Urania faces the prospect of losing - for an undetermined time; perhaps permanently - its source of jobs and economic existence: The mills, which consist today of plywood and medium density fiberboard (MDF) production.

Immediate job termination looms for 352 direct employees of Louisiana-Pacific Corporation (LP), and the incoming new owners, Georgia-Pacific, say they will idle the plants, which "may be restarted as market conditions dictate." (Separate story, this edition.

The news was announced officially on August 6, in separate news statements by LP and GP, after LP had announced in late May that it had reached a corporate decision to sell its timber lands, and sell or close about half its plants nationwide to reduce debt and concentrate on profitability in manufacture of oriented strand board (OSB) and other core products.

In its public statement, LP said has agreed to transfer ownership of its Texas and Louisiana plywood mills in exchange for Georgia-Pacific's OSB mill in Woodland, Maine, plus "some additional consideration." The transaction is expected to close in mid to late September.

LP said that prior to closing the deal, LP will suspend production at its Urania plywood and MDF mills. These idled mills "will be transferred to Georgia-Pacific in a position so they may be restarted if and when Georgia-Pacific may determine."

"In addition to severance benefits provided to eligible employees in accordance with LP's facility closure policy, each eligible employee in Urania will receive an additional $1,000 compensation. Additionally, LP will satisfy the industrial revenue bonds issued by the State of Louisiana in 1999 by placing irrevocable funds into an account to repay the bonds," LP said.

In its announcement on the swap of properties, Georgia-Pacific said, "The transaction will be an asset exchange, and will allow Georgia-Pacific to acquire plants that geographically complement its existing structural panels manufacturing and distribution capabilities.

"Facilities at Cleveland, Texas, and Logansport, Louisiana are expected to continue operating, with production increasing over time. The previously announced closing of the Bon Wier, Texas plant will occur, and the plywood and medium density fiberboard plants at Urania, Louisiana, will be idled. These three idled facilities will remain in position so they may be restarted as conditions dictate."

"Production at the Woodland, Maine, OSB facility will be suspended next month (September). That plant will be transferred to LP in a position so it may be restarted if and when LP may determine."

Last month, LP was scheduled to finalize deals to sell approximately 120,000 acres of timber lands to the Macon, Georgia investment company of Barrs-Glawson.

The transactions selling lands and trading manufacturing properties will complete Louisiana-Pacific's announced plan to exit all operations in Louisiana.

LP was created as a corporate spin-off from Georgia-Pacific during the 1970s in a court-ordered separation based on anti-trust suits. As a separate entity, LP has acquired assets in the U.S. and Canada, and is a major producer of OSB and other construction products. Within recent years, the company has encountered continuing operating losses, and its latest moves seek to sell assets, reduce debt, and concentrate on its profitable product lines.

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