Transition teams with representatives from Willamette Industries and Weyerhaeuser Company are visiting facilities of both organizations in the Southern region of Louisiana and Arkansas, surveying to develop plans for integration of operations in this area, as part of the world-wide merger of the two West Coast-based forest products companies.

When completed, the merged company expects to be the number one or two in the world in forest lands, wood products, containerboard, and fine paper business.

Considering the magnitude of the merger, insiders report that the early going is moving smoothly, and expectations are that the 100-day timetable for completing the merger of operations will be met.

Willamette has 106 plants in the U.S., France, Ireland, and Mexico, owns 1.7 million acres of forest land in the U.S., manufacturing a product line including building materials, composite wood panels, fine paper, office paper products, corrugated packaging and grocery bags.

Weyerhaeuser has offices and operations in 17 countries, with customers worldwide, owns and manages 24.3 million acres of forest lands, and manufactures building materials, including hardwood and softwood lumber, plywood, joists, paper, and other wood products. Within the past three to five years, the 100-year-old Weyerhaeuser organization has expanded through major acquisitions, including MacMillan-Bloedel, a major Canadian forest products and manufacturing company, and TrusJoist, a maker of prefabricated construction joists, with one plant in Natchitoches.

Between the two companies, they are the major owners of forest lands and wood products manufacturing in Louisiana and Arkansas, with approximately two million acres of forests, and over 20 manufacturing plants in the region.

Willamette executives from the Southern Division on the transition team for the local region are Ed Smith, forestry division; Scott Elston, regional sales manager; and Richie LeBlanc, administrative manager.

From Weyerhaeuser, team members include Rhonda Hunter, Janet Price, Ian Greber, Jackie Walburn, John Furman, Carl Chapman, Bill Cluck, Charlie Price, Karen Montague, Dale Nixon, Rod Dempster, and Sonny Willis. All are from the company's southern operations except Price, from Federal Way, Washington headquarters, and Dempster, from Edmonton, Alberta, Canada.

According to Wayne Parker, Southern Region vice president for Willamette in Ruston, the team is visiting all plants and forest lands, with the goal of evaluating and defining a business plan.

"They are educating each other on Willamette and Weyerhaeuser practices in the South," Parker said.

Within 100 days, or approximately June 1, the teams will complete their evaluations and make recommendations to Weyerhaeuser senior management for a plan of merged operations.

While it is too early in the process to predict specifics of the merged operation, Parker said he believes the quality of personnel, plants, and forest operations of Willamette will fit well into the new structure.

"It has the potential to be a good thing," he said. "They didn't purchase these operations to shut them down."

Until all operations are evaluated and merged, Willamette is being operated as a "wholly owned subsidiary," with the legal procedures of stock acquisition, financing, and corporate structuring not yet affecting manufacturing and field operations.

In a timetable issued by Weyerhaeuser, it was stated that the Weyerhaeuser name will be used at all Willamette facilities beginning March 18.

Facilities will continue their same names, with Weyerhaeuser replacing Willamette. It will be some months, the company said, before the Weyerhaeuser name is physically attached to all Willamette facilities, because of the time involved in getting new signs made.

At the senior management level, Weyerhaeuser announced in mid-February that two of its executives have been promoted, one to fill a retirement vacancy, and two former Willamette executives have been added to the Weyerhaeuser leadership team.

Richard C. Gozon, executive vice president, Pulp, paper, and Packaging, will retire on March 31.

James R. Keller becomes senior vice president, Containerboard Packaging and Recycling. With the Willamette merger, Weyerhaeuser becomes the third largest producer of containerboard and kraft products in the world.

Michael R. Onustock joins Weyerhaeuser from Willamette, and will serve as senior vice president, Pulp and White Paper. Weyerhaeuser is the world's largest producer of softwood market pulp and will become the world's second largest producer of uncoated freesheet paper with the Willamette acquisition.

Marvin D. Cooper of Willamette will join Weyerhaeuser as senior vice president, Pulp, Paper, Containerboard Manufacturing and Engineering. He will be responsible for operation of the combined companies' pulp, paper, and containerboard mills and will oversee engineering operations of both companies.

Richard E. Hanson is promoted by Weyerhaeuser to executive vice president, Timberlands. He is responsible for more than 39 million acres of Weyerhaeuser-managed forests worldwide.

Concerning employee, customer, and community relationships, Weyerhaeuser issued statements that benefit plans that are part of union contracts will continue through existing labor agreements. Until that time, Willamette employees will continue to be covered by their existing benefits.

Willamette employees will receive a comprehensive description of Weyerhaeuser benefit programs and will complete benefit enrollment prior to year-end 2002.

The company statement said former Willamette customers can expect to receive the same level of service they are accustomed to.

It also states that "over the last couple of years, Weyerhaeuser has narrowed its supplier base in an effort to more effectively use its purchasing power." Current supplier arrangements with Willamette will be reviewed, the company said, and "we urge existing Willamette suppliers and vendors to remain patient and continue working with existing Willamette contracts."

Involvement in community support programs is expected to continue, the company said.

"Weyerhaeuser has a long history of giving and involvement in its communities, and formally established the Weyerhaeuser Company Foundation in 1948. It's mission is to improve the quality of life in communities where Weyerhaeuser has a presence, and to increase understanding of the importance and sustainability of forests and the products they provide that meet people's needs," the statement says.

The company also says, "Weyerhaeuser is a strong supporter of free trade. It is committed to using its influence to encourage industry and governments on both sides of the (U.S.-Canadian) border to find a balanced, long term solution to the softwood lumber issue."

Back