To strengthen shareholder returns and sharpen the focus of its business portfolio, Weyerhaeuser Company (NYSE: WY) announced it is seeking to sell its composite panels business.
The composite panels business has been a strong performer for Weyerhaeuser, but is a small component of the company’s wood products business. The mills produce either medium density fibreboard (MDF) or particleboard and are located in Albany, Ore.; Bennettsville, S.C., Eugene, Ore.; Malvern, Ark.; Simsboro, La.; and Clonmel, Ireland.
“As part of our ongoing portfolio review, we have determined that the composite panels business is not a strategic fit for Weyerhaeuser,” said Steven R. Rogel, chairman, president and chief executive officer. “We believe that the skilled employees at these highly competitive and efficient mills will provide greater value for a new owner who is more focused on this line of business products.”
Weyerhaeuser will continue to operate the composite panels mills while it seeks new ownership. The North American mills have the capacity to produce a total of 1.1 billion square feet, while the Clonmel mill has a capacity of 230 million square feet. About 1,000 employees work in the mills.
Weyerhaeuser Company (NYSE: WY), one of the world’s largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.
Source: holz.net vom 2005-12-05.