Louisiana-Pacific will trim 4,400 jobs and sell timberland in Idaho, Louisiana and Texas

PORTLAND _ Louisiana-Pacific announced
Wednesday that it will sell several businesses and
shed 4,400 jobs as part of a restructuring effort.

By Associated Press The Spokesman-Review

The maker of lumber, pulp and building products said
it would divest 935,000 acres of timberland in three
states — Idaho, Louisiana and Texas — along with its
plywood, industrial panels and lumber businesses.

In a statement, Louisiana-Pacific said it wants to
focus on its more profitable businesses and expects
the sale to net the company more than $600 million.

"We believe that our greatest potential to create
shareholder value will result from focusing on our
core businesses as well as from using proceeds from
the divestitures to pay down debt," said Mark A.
Suwyn, the chairman and chief executive officer.

The restructuring would cut Louisiana-Pacific’s
workforce to 5,300 from 9,700, and reduce its
number of North American mills from 60 to about 35.

The most significant assets to be divested are the
nearly million acres of timberlands, and its lumber
business which produces 1.4 billion board feet
annually and holds the No. 1 position in stud lumber
in North America.

"Our timberlands are very valuable properties,"
Suwyn said in the statement. "However, given that we
primarily buy pulp wood on the open market and that
there are more tax-efficient ownership vehicles for
this asset, we have made the decision to sell them."

The company said it expects to take cash
restructuring charges, mainly related to job
severance.

It said its major platform would continue to be
oriented strand board, cheaper structural panels
made from wood chips that has been taking market
share from plywood.

Shares of Louisiana-Pacific closed 18 cents lower,
down about 1.5 percent, at $11.65 on the New York
Stock Exchange on Wednesday.