Louisiana-Pacific Corporation , commonly known as "b b> LP ", is a United States building materials manufacturer. Founded in 1973 and currently based in Nashville, Tennessee. LP pioneered the US-made strand panel (OSB) panel. Today, LP is the largest OSB manufacturer in the world, and manufactures engineered wooden building products. LP products are sold to builders and homeowners through building materials distributors and dealers as well as retail centers.
In 2011, LP has 24 factories including 15 in the United States, six in Canada, two in Chile and one in Brazil.
Video Louisiana-Pacific
History
As a leading manufacturer and marketer of building and wood products, Louisiana-Pacific Corporation (LP) is revolutionizing the industry by creating alternatives to plywood and solid wood building products. Instead of relying on bigger and more expensive timber, LP found a way to make structural building products from fast-growing small diameter trees. LP pioneered the use of a strand board (OSB) oriented - replacement of reconstituted plywood made by pressing the wooden wafers together. OSB is the basis for many structural building products of LP. LP also manufactures industrial wood products, such as hard fiber boards and medium density fiberboard, used by furniture and cabinet makers. Furthermore, along with wood products such as LPI beams and laminated veneer wood, the company also produces cellulose cocoon insulation. Manufacturing of plywood and pulp complements LP operations. The company controls over 950,000 hectares of forest, and has factories in 29 states, as well as in Canada and Ireland.
LP was established on 5 January 1973 as part of a court-ruled monopoly from Georgia-Pacific. The LP is led by company president Harry A. Merlo during the first 22 years, known for his flamboyant style and generous contributions. For the first 33 years, Louisiana-Pacific is based in Portland, Oregon; LP headquarters were moved to Nashville in 2004.
Over the years, LP has been associated with professional sports in different manners. From 1979-82, the company has a Portland Timbers football club in the NASL. From 2006-15, he has naming rights for LP Field, a stadium sheltering the Tennessee Titans football team and Tennessee State University in Nashville.
Maps Louisiana-Pacific
Creating a new company
Louisiana-Pacific was formed in July 1972 when the Georgia-Pacific Company separated a wholly owned subsidiary. After Georgia-Pacific acquired 16 small companies in the southern United States, the Federal Trade Commission (FTC) accused the company of becoming a monopoly in the soft plywood industry. As part of its settlement with the FTC, Georgia-Pacific agreed to release 20 percent of its assets. William H. Hunt, vice chairman in Georgia-Pacific, was elected the first Louisiana-Pacific chairman. In 1974 Harry A. Merlo, who has been chief executive officer of LP since his founding, replaces Hunt as the temporary chairman remains CEO.
Before the official spin-off of LP, Georgia-Pacific has transferred some of its operations to LP ownership, including Samoa, Ukiah, Intermountain, Seal-Weather, and Southern divisions, and 50 percent of its investment in Ketchikan Pulp Alaska; Ketchikan Spruce Mills, Inc.; and Ketchikan International Sales Company. However, Georgia-Pacific keeps most of the low-cost wood reserves and most of its land for agriculture itself. Thus the newly independent LP must 'scramble for raw materials,' especially timber, such as July 29, 1990 Portland Oregonian explains.
This proved to be a very difficult task because the wood deficiency destroys the entire industry. Excessive logging, Japanese wood demand, and pressure on the US Forest Service to tighten crop restrictions on large trees cause prices to soar. To make matters worse, LP lost 26,000 hectares of old forest land that could be harvested with the expansion of Redwood National Park in Northern California.
Merlo tries to shepherd the company through initial difficulties. LP acquired several timber companies in California, Oregon, Montana, Washington, Missouri, and Alabama, and in 1976 the company purchased Fibreboard Corporation, a manufacturer of products used in the manufacture of furniture and cabinets. In 1979, the company purchased fifteen building materials centers in southern California from Lone Star Industries, which provided LP with a much-needed distribution center.
Product breakthrough
To ensure its long-term success, however, LP will need to compensate for the relative scarcity of southern pine and Douglas pine wood, as well as timber production. To overcome this deficiency, LP turned its attention to the development of wood products derived from cheaper and faster-growing trees, such as cotton and aspen. As Merlo said to Portland Oregonian in 1990, 'we recognize that the days of making wood products from large trees are numbered for economic and environmental reasons.'
In the late 1970s, companies started producing OSB by cutting wood into wafers, mixing wafers with resins, and then pressing them into sheets. First introduced to the Waferwood trade name (later Seal-batin baptized), this new product line revolutionized the construction industry by offering a cheaper, more powerful alternative to plywood and sub-floor coatings. After opening its first Inner-Seal factory in 1980, LP advertises this product as 'smart person plywood'.
Expansion during the 1980s
The LP OSB products protect the company from some changes in the timber market. Supported by this success, the company soon expanded its product line of reconstituted wood to include I-beams for beams and beams on the floor. These structural beams use half as much wood as their solid wood, but are stronger and lighter. LP also introduced the concrete form of Inner-Seal, and in 1985 began marketing Inner-Seal cover for home exterior. Driven by these breakthroughs, the booming housing, and the rapidly growing renovation and improvement business that increased demand for specialty building products, LP sales grew 50 percent between 1980 and 1988, according to Portland Oregonian. During the same period, profits increased 400 percent. In addition, OSB products contribute an increasing share of total company sales. Only six percent of sales in 1980, the line of the Inner Seals in 1990 amounted to nearly 30 percent of the total sales volume. LP timber sales - once a mainstay of the building industry - fell from 53 to 30 percent in the same period.
In 1986, the company purchased Kirby Forest Industries and California properties from Timber Realization Company. From this transaction, LP earned nearly 830,000 hectares of forest, which helped balance the land taken in 1978 for Redwood National Park. (LP received the latest $ 440 million in government payments for this land in 1988.) In 1990, LP purchased Weather Guard Inc., a manufacturer of home-made recycled paper insulation, and MiTek Wood Products, North Carolina- by manufacturer laminated veneered wood and I-engineered beams.
The early 1990s
During 1990, sales and profits in the area of ​​softwood, plywood, and building products slumped due to weak demand. The situation is linked to the economic downturn, raising concerns over the US federal budget deficit, and concerns about the unresolved global geopolitical environment. The construction industry suffers from bankers' unwillingness to finance new projects and consumer decisions to delay home purchases. Housing starts for 1990 fell to 1.19 million, the lowest level since 1982 and down 13.3 percent from 1989. LP responded to this development by limiting production in many factories and increasing exports of specialty building products.
The pulp market also experienced a slowdown in growth in 1990. After a period of four years with rapid price increases, pulp producers then faced a dismal profit margin due to economic problems worldwide and greater than normal inventories. Although LP saw its own pulp sales and profit peak in mid-1989 and only expected a small recovery in 1991, the company continued to operate three pulp manufacturing plants. One factory provides pulp to an unintegrated paper manufacturer. The second plant produces solubilized slurries for producers of rayon and cellophane products. The third and newest pulp mill, using a whitened chemi-thermo mechanical pumping process, revolutionized pulp production by eliminating chlorine use and operating in a fully sealed system without being discharged into the surrounding water supply. This factory markets its production to print and writing paper manufacturers.
LP was able to rise from the slump of 1990. While rivals struggled in the face of diminishing timber supply, the LP enjoyed record sales in 1992, 1993, and 1994. Most of the LP growth in the 1990s occurred through the acquisition of other building materials companies. , such as ABTco in the eastern United States and Forex in eastern Canada. According to the Spokane Journal of Business, 'LP [is] evolving because it has developed a powerful alternative to dimensional wood and plywood.' Indeed, Merlo told the Wall Street Journal that 'technology' - not an old timber resource - 'has proven to be the source of life (the company).' Profits for 1992 rose 216 percent from a year earlier, and in 1994, the company achieved an all-time high of $ 3.04 billion. In that year, only one-third of LP sales came from dimensional wood - buttons and solid wooden beams that framed the house - while more than half of its revenue came from OSB products, and another 20 per cent of engineered wood and pulp products.
Lawsuits threaten Louisiana-Pacific's future
Despite its many achievements, LP encountered a number of serious obstacles in the 1990s. Most notable among these are lawsuits relating to the exterior that are imprinted on the outside of the Inner-Seal cedar. During the 1990s, LP was the defendant in a major class action lawsuit over OSB's by-product known as the Inner Seal, produced from the early 1990s through 1996. The company has initiated a class action lawsuit to speed up the process and, according to the judge in charge of the case , "get the most money to most people in the fastest time based on my experience."
Many homeowners suspect that the Inner-Seal folders, which carry a 25-year warranty, begin to decay prematurely - discoloration, disintegration, and even growing mold. The first claim surrounds the use of OSB panels on the roof of a home in Florida. After Hurricane Andrew in 1992 some homes lost their shingles, exposing the OSB panel to heavy rain. Reports claim that the exposed OSB is starting to deteriorate. Two years after the first lawsuit, LP has resolved all related disputes. LP reengineering products, now marketed as LPSmartSide and since 1997 have sold approximately 3 billion square feet of SmartSide without a warranty claim for mold decay.
Class action lawsuits brought by various homeowners' collections as well as Minnesota's attorney general, were filed against Inner-Seal fencing. Although the LP admitted to not making mistakes, the company moved quickly to solve the case. At the close of 1991, LP had paid more than $ 22 million to settle the OSB claims, and between 1993 and 1994, the company paid an additional $ 14 million. In 1996, LP committed at least $ 275 million for completion with 800,000 homeowners who have used Inner-Seal siding.
In April 2003, LP implemented the Claims Bidding Program to speed up payments to the claimant. In what is the largest class action suit in the history of the shipping industry, LP pays more than 37,000 claims. At the end of the settlement, LP has paid nearly $ 1 billion to fulfill the claim.
However, the misery of LP does not end there. In 1996, LP paid $ 65 million to settle a class action lawsuit filed last year by an LP shareholder alleging that the company had 'violated securities laws by not disclosing that the company-oriented strand board was damaged', as Portland Oregonian reported on 5 December 1996. It was the largest settlement of securities in Oregon history. Also in that year, the company established a 1993 sexual harassment suit against Merlo. In addition, the state of Colorado brought a 56-count indictment against the LP in 1995, charging fraud and environmental abuses at its plant in Montrose, Colorado. That same year, the eight-person LP board lost confidence in Merlo's ability and his top two lieutenants to lead the Fortune 500 company, "announced by Portland Oregonian August 4, 1995 edition. Merlo resigned and was replaced as chairman and CEO by Mark Suwyn , a former executive at International Paper.
Rebuilding in the late 1990s
Under this new leadership, LP started a difficult task to reconstruct. 1995 was a very difficult year, with the company suffering a net loss of $ 51.7 million. The market for building products has drowned as the entry of Canadian timber has flooded the United States. High interest rates and bad weather (affecting home construction) only exacerbate LP problems. Even more dangerous to LP, however, is the inauguration of some competing OSB manufacturers. As OSB increasingly replaces plywood as a basic construction material, the Inner-Seal becomes less of a special item made exclusively by LP and more of the building commodities.
Facing this new threat, Suwyn implements a multidimensional plan for recovery. First, the company seeks to eliminate unfavorable operations. In 1996, LP closed Ketchikan Paper Company, as well as 22 factories and factories. More closures followed in 1997 and 1998, and the company sold a number of additional operations, including the Seal-Weather door and window divisions in 1998. All said the LP sold more than $ 875 million in assets over a three-year period. "The sale of assets will do two things for us," Suwyn told Business Wire. "They will give us additional financial flexibility to grow the company and enable us to focus all of our management's attention on becoming a major supplier of building materials."
Suwyn also concentrates on developing specialty LP product line. Because past innovations have become the industry standard (and imitated by many competitors), it is important for LP to launch a new product that will give the company an edge over its competitors. To achieve this goal, LP is involved in a series of targeted acquisitions. In 1996, LP purchased Associated Chemists, a major supplier of specialty coatings for the wood products industry, as well as GreenStone Industries, a cellulose insulators manufacturer, and Tecton Laminates Corp., a manufacturer of laminated veneered wood and I-cross wood used in the construction industry. Two years later, the LP acquired ABT Building Products Corporation, a heralded transaction as a way of 'expanding special product lines and supplementing low-cost building products,' according to the Wall Street Journal. In 1999, LP purchased Evans Forest Products Ltd., a Canadian timber and wood products manufacturer.
LP does more than just buy another company. In 1997 LP launched the Advanced Technology Center, which provides companies with facilities to conceive, test, and improve new offerings. LP soon introduced a bevy of new product systems, including the Smart Start siding, TechShield energy-saving structural panels, TopNotch floors, and Cocoon insulation.
The final branch of the LP rebuilding effort involves an increase in operations. In 1996, the company instituted an intensive employee training - Rapid Change Technologies - designed to improve workers' communication skills and to empower them to accept new ideas with ease. To improve productivity, LP uses Business Process Improvement technology to make OSB plants more efficient. LP also seeks to improve its corporate relationships with major home and national home chains, such as Home Depot and Lowe. This 'Superstore' represents the fastest growing segment of the building industry.
The result of a strong reorganization of LP is not immediately evident. Sales for 1996 were 13 percent lower than in 1995, and resulted in a net annual loss of $ 200.7 million. Although the company re-operated at a net loss of $ 101.8 million in 1997, executives remain optimistic. In 1998, LP returned once again to profitability, achieving $ 12.8 million in net income of $ 2.29 billion in sales. Strengthened by a strong housing market, a booming economy, operational improvements, and greater number of specialty products, the Louisiana-Pacific's future looks bright.
Corporate restructuring in the early 2000s
Louisiana-Pacific Corporation has undergone many changes since 2000. From 2000 to 2010 the company made a total of 20 divestments.
In May 2002, Louisiana-Pacific Corporation announced asset sales and debt reduction programs designed to enhance long-term competitiveness and financial flexibility.
The company's extensive, downsizing includes the sale of a total of 935,000 hectares of national timberland, along with plywood, pulp, industrial, and timber manufacturing plants. Following the initial divestment, the company focused on core business, including OSB, taking sides; engineered wood products, and building products from plastics (vinyl wall coverings, composite decking and molding).
In December 2002, Louisiana-Pacific Corporation (LP) completed the sale of 33,000 acres of forest land near Oakdale, Louisiana, to Barrs & amp; Glawson Investments, LLC for approximately $ 30 million. Throughout 2003 LP continues to sell Timberland in Louisiana, Texas, Idaho along with several factories related to the divestment of the company. The forest portion of the company's divestment program exceeds the initial target of $ 700 million over $ 50 million.
In September 2003, LP announced the relocation of its headquarters from Portland, Oregon, to Nashville, Tennessee. Nashville is one of four cities considered for LP headquarters. Other cities to consider are Charlotte, North Carolina; Richmond, Virginia; and Portland, Oregon. The relocation was completed in July 2004.
In line with the company's restructuring, in May 2004, Louisiana-Pacific announced a strategic plan to convert the LP's Hayward, Wisc., OSC-oriented commodity chain factory (OSB) to create SmartSide siding products and replace this capacity with a new, inexpensive and inexpensive OSB factory in Alabama. Hayward Mill Conversion is scheduled for 2005. The project agreement for the Alabama plant was signed in June 2005, with production commencing at the end of 2007. In 2011, the plant is still unopened. But the company said it still intends to reopen its 130-strong Clarke County factory, which could make up more than 700 million square feet a year of full-capacity OSB.
In 2004, the company began producing LP FlameBlock Fire-Rated OSB Sheathing, ICC certified (ESR-1365), PS2-rated structural coating with Class A Flame Spread Rating. According to the ICC Evaluation Service (ICC-ES), it provides an extension of fuel resistance, providing a 15 minute thermal barrier (ASTM E119). It's durable at work, easy to use, and Exposure-1 is rated weatherproof during normal construction delays.
In 2005, LP announced its intention to sell a vinyl siding business to KP Building Products, including two vinyl spinning mills, located in Holly Springs, Miss., And Acton, Ontario, and warehouses in Milton, Ontario. In 2007, Fiber Composites, LLC, purchased Composite and Railing composite decking from Louisiana-Pacific Corporation. The acquisition includes the Meridian, Idaho, LP, and WeatherBestÃ,® brand facilities.
In 2008, the company started to manufacture LP SolidStart engineering wood products.
Main dates
Wood Installation Engineering (SmartSide)
Louisiana Pacific operates several engineered wood spinning mills that produce many siding products. The siding products produced at this plant differ in the composition of the company's other offerings.
Additions
LP uses SFI certified forest management and procurement systems, which help ensure that wood comes from well-managed forests. Green attributes built into LP products are recognized in green building certification programs throughout North America.
The company invests in the community by providing funding, products and volunteers to support public schools and non-profit organizations. Contributions are focused on four areas: shelter, education, social services and the environment.
LP Building Products subscribes to the Lean Six Sigma methodology, looking at lean manufacturing, which addresses the flow of processes and waste issues, and Six Sigma, focusing on variety and design, as a complementary discipline aimed at promoting business and operational excellence. During 2006 to 2009, LP boosted the Lean Six Sigma program, trained and recruited Black Belts from within, and involved people in LSS teams throughout the company. More than 370 Black Belts and Green Belts have traveled throughout the company. Lean Six Sigma team provides return on investment of more than one in one in cost savings for LP.
- Domestic subsidiary
GreenStone Industries, Inc.; Ketchikan Pulp Company; Louisiana-Pacific International, Inc. L-PSPV, Inc.; LP Pinewood SPV, LLC; LPS Corporation; L-P SPV2, LLC
- Overseas subsidiaries of Louisiana-Pacific Corporation
Louisiana-Pacific Canada Pulp Co.Â; Louisiana-Pacific Canada Sales ULCÂ; Louisiana-Pacific Canada Holding Ltd.Â; Louisiana-Pacific Canada Ltd. Louisiana-Pacific (OSB) Ltd; Louisiana-Pacific South America S.A.; Louisiana-Pacific Chile S.A; Louisiana-Pacific del PerÃÆ'º S.A.C.; LP-Brasil OSB Industria E Comercio S.A. Kurang dari 51% Dimiliki Patungan Abitibi-LP Engineered Wood Inc.; Abitibi-LP Engineered Wood II Inc.; Canfor-LP OSB (G.P.) Corp; Canfor-LP OSB Limited Partnership; US GreenFiber, LLC
- Pesaing utama
Georgia-Pacific Group; Boise-Cascade Corporation; Jamies Hardie; Company Weyerhaeuser; Tolko
On September 4, 2013, LP announced plans to acquire Vancouver, BC based on Ainsworth Lumber in stock and cash transactions estimated at $ 1.1 billion.
References
External links
- the Louisiana Pacific corporate website
- Funding Universe.com - History of LP to 1999
Source of the article : Wikipedia
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