Whatever happened to OSL?

f, s necexrlY As rwo YEARS Aco, .la,oriented strand lumber was being touted as the hottest new product in engineered wood-one that would overtake lumber markets during the next 20 years the same way that similarly produced oriented strand board had dominated panel markets over the previous 20.

At the time, Louisiana-Pacific was converting its OSB plant in Houlton, Me., to produce OSL. Tolko Industries was building a huge new facility in Athabasca, Alberta, Canada, to manufacture both OSL and OSB. Grant Forest Products was test-marketing OSL for use in molded upholstered furniture frames. Weyerhaeuser designed its l0-year-old OSB mill in Hudson Bay, Saskatchewan, with the flexibility to one day add OSL production lines. And, Ainsworth-which began producing OSL in 2003-was projecting that OSL would one day spread from use in rimboard to headers, beams, structural insulated panels, and even studs.

Today, Ainsworth is the only North American company said to be producing OSL, marketing it in a single application, 0.8E Durastrand rimboard.

So, what happened to OSL?

Tolko was just bringing its Athabasca Division on line when the economic downturn forced mothballing of the plant in February 2009.

Several months later, Grant declared bankruptcy and is selling its OSB mills to Georgia-Pacific.

LP decided to convert Houlton to laminated strand lumber, a similar product to OSL. "The main difference between these two materials has to do with the way they are manufactured," explained Melissa Warren, EWP product manager. "LSL is made with strips of wood that are up to 13" long. OSL strands are shorter than that-but still longer than OSB flakes, which are between 3" and 4". When we first started the Houlton project, we thought we'd be producing shorter strands, making it OSL. But then once we got all the equipment in place and started working on the 'recipe,' we could actually produce longer strands. There is an advantage of the longer strands, making it a little stronger than an OSL. But we never went to market with an OSL, it's always been an LSL.''

Weyerhaeuser has likewise concentrated on LSL. "At first blush. OSL looks similar to LSL, but the similarities end there," said Weyco's Greg Wells. "The manufacturing process of TimberStrand LSL involves steam injection and pressure, which allows heat to penetrate to the core providing a solid, consistent bond of the adhesives. The strands to manufacture TimberStrand LSL are also about 12" long. Weyerhaeuser has never manufactured OSL."

Production of OSL continues at Ainsworth, albeit at reduced levels.

"The fact that OSL and LSL products are marketed in much lesser volumes these days owes to an overall marketplace that consumes much smaller volumes of building materials in general, linked to very poor housing startshence, LSL and OSL production is severely curtailed," noted Robert Fouquet, v.p.-sales & marketing. "One would expect a return to better production rates when activity resumes."

Its 0.8E grade material, Fouquet said, "product is primarily used in rimboard applications in California where enhanced code requirements are in place relative to earthquakes. Ainsworth continues to produce 0.8E despite the downturn. Our team is committed to serving this marketplace and delivering products to our trade partners, regardless of marketplace conditions."

Higher E-values are required for studs (about l.3E to 1.5E), beams and headers (1.5E to l.7E), glulam, and LVL (l .7E to 2.08). "Market price of the product is indexed to E-value and, of course, there is a correlation between E-value and manufacturing cost," Fouquet said. "The relationship between E-value and cost is such that in the higher range of E-values, a typical OSL/LSL product line becomes somewhat uncompetitive with LVL product lines from a usage perspective. With LVL being widely available from a variety of suppliers and in large quantities, it has become the preferred choice for use in mid-to-longer span headers and beams."

In the long term, when market conditions warrant, Ainsworth plans to complete the expansion of its OSB facility at Grande Prairie, Alberta, adding a second manufacturing line that can produce OSB, OSL and LSL. Be patient. More OSL products, in greater quantities, are to come.

Sherwood Buys Bloch

Sherwood Lumber, Islandia, N.Y., acquired most of the assets of Bloch Lumber, Chicago, I1., at a December 29 foreclosure auction demanded by its lender. Renamed Bloch Lumber Acquisition LLC, the wholesaler will operate as a wholly owned subsidiary of Sherwood.

"We have hired all of Bloch Lumber's employees in their current locations," said Donald Schneidman, chief financial officer at Sherwood. "We are in the process of working through the inventory purchased and determining what warehouses work and which do not. That determination will occur over the next several months."

Bloch, which was founded in 1959 by Ted C. Bloch, was headquartered in Chicago and had branch offices in Lebanon and Akron, Oh.; Ashland, Va.; Grimesland, N.C.; Fairply, S.C.; Denver and Silt, Co., and Portland, Or., and shipped from warehouses across the U.S.

According to a legal notice published in the Chicago Tribune, "the inventory consists of lumber which is located at 26 locations in 17 states. The secured party (The PrivateBank & Trust Co.) has received an offer to purchase certain general intangibles for $100,000. certain accounts for 90Vo of the face value thereof, and certain inventory for 50Vo of the book value."

Before the auction, attorney Gary Segal said that the "lender is exercising its right under a loan agreement" to take materials that had been pledged as security for a loan.

Sherwood was founded in 1954, by Bernard Goodman. His son Andy is now president of the company, which has sales offices in New York, North Carolina, Florida, and Washington, plus distribution centers in New York, Connecticut, Delaware, Virginia, and Florida.

Fast-Growing Chain Acquires Stock's Universal Supply

US LBM Holdings LLC, Green Bay, Wi., has acquired Stock Building Supply's Universal Supply Co. LLC businesses in New Jersey.

The deal broadens US LBM's product portfolio through Universal's strong focus on roofing and siding and extends the company's reach into new geographic markets, including southern and central New Jersey, eastern Pennsylvania, and Delaware.

The new division includes Universal Supply's headquarters and millwork division in Hammonton, plus distribution centers in Cape May Courthouse, Lakewood, Gloucester, Manahawkin, Pleasantville, and Vineland, N.J.

US LBM also operates four Bellevue Builders Supply yards in New York, and two East Haven Building Supply units in Connecticut, and eight Wisconsin Building Supply locations, all purchased from Stock late last year.

lllinois Dealer Closes 2

Beatty Lumber Co., Joliet, Il., closed its long-time locations in Oak Lawn and Morris, Il., on Jan. 1. Locations in Joliet and Beecher, as well as the Fort Poli Millwork facility in Mokena, will remain open.

"Each year since the middle of 2006, it's gotten a little worse and worse, and we had to do some things we preferred not to do," said Bruce Baldridge, v.p.-marketing. "We did everything we could to not close facilities."

Efforts included consolidating the corporate office from two different locations to Joliet, making some locations pick-up only, and laying off employees. But as the housing recession worsened, officials decided to close both the Morris and Oak Lawn locations because of too little business. Both areas will be served by remaining stores.

"I have quite a few years left to work, and we will try to build up again at a better time," said Ed Winkless, who is executive v.p.

Closing sales were scheduled for late January or early February, and the properties are for sale.

Fire Strikes Curtis Lumber

Investigators believe that an olderstyle high-intensity-discharge (HID) light fixture was the cause of a Dec. 29 fire that destroyed a warehouse at Curtis Lumber's location in New Berlin, N.Y.

The 60-ft.-by -2OO-ft. structureone of several owned by Curtis-was used as a storage area for insulation, steel panels, vinyl siding, garage doors, shingles, specialty cedar, and other materials. Although the blaze quickly engulfed the structure, firefighters prevented it from spreading to other buildings on the property.

"There was not very much left," said fire captain Dwayne Jackson. "We didn't do a lot of salvase."

R.P. Lumbot, Edwardsville, ll., acquired the former Stock Building Stipply location in DeKalb, ll,, froil Wdlohan Lumber for $1.14 milion, Stock had been leasing the property from Wolohan since the late 1990s.

The 4S-unit R.P. expects to open the yard by April 1.

Tradesmen Building Center, Two Harbors, Mn., has closed after four years.

Handyman Hardware, Dayton, 0h., suffered several thousands dollars in fire damage to its roof Dec. 25 when winds blew a wire near a 1,000-gallon propane tank.

84 Lumber is reopening the yard in Madison Heights (Lynchburg), Va., that it mothballed last year.

84's yard in Pittston Township, Pa., suffered a small fire Jan. 8, apparently set to cover up a burglary.

Greener Stock: Building Materials with a Conscience-, Columbia Tusculum, 0h., has opened, specializing in eco-friendly building products and design services.

Campbellsport Building Supply,'Campbelisport, Wi., acquirel Drexel Interiors, Mitwaukee, wi., from Home Value Interiors, Minneapolis, Mn. Drexel's staff, headed by John Deerwester, remains.

Holliday Hardware, Greensboro, N.C., closed Dec. 26 after 54 year.

Avon Lake True Value, Avon Lake, 0h., closed Dec. 28 due to big box competition,

Rhonda Schneider purchased the business three years ago from her family, which had held it for 21 years.

Stevens Hardware, witmington, N.C., opened its 3rd location in town Jan. 16, remodeling a 23,000-sq. ft. former Ace Hardware.

Abita Lumber, Abita Springs, La., donated to the town 0.34 acres, which provide the only access to the localcemetery.

The parcel was part of 15 acres the yard purchased two years ago to accommodate future growth.

Newlv meroeo Scotch & Gulf Lumbei LLC was working to restart before the end of January its sawmill in Fulton, Al., closed by Scotch Lumber in october.

Kentuckv Hardwood Lumber Co,, Sdmerset, Ky., suffered extensive damage from a Jan, '10 fire.

Woodruff Hardwoods, Dututh, Mn., has been acquired by Bob Merrill and renamed Woodruff Timbers.

Ainsworth's former 0SB mill in Grand Rapids, Mi., has been purchased by the ltasca Economic Development Association.

IEDA will demolish about half of the buildings and invest $5.5 million to redevelop the facility into an eco-industrial park focusing on renewable energy industries-including an unnamed wood products company.

Koppers lnc., Pittsburgh, Pa., has shuttered its wood preserving facility in Gainesville, Fl., and sold the site-which requires environmental clean-up-to Beazer East Inc., Pittsburgh.

Koppers will continue prcviding utility poles to the Southeast from its Florence, S.C., treating plant.

Advanced Environmental Recycling Technologi€s, Springdale, Ar., voluntarily delisted from the Nasdaq Stock Market and is now trading on the OTC Bulletin Board.

PacTrim, Rocklin, Ca., will now produce MoistureShield composite trim and moulding products for A.E.R.T.

Bluelinx Corp. expanded its dishibution or LifeTlme Lumber's composite decking from the Southwest to lowa, Missouriand Oklahoma.

Manufacturers Reserve

Suoolv. lrvinoton. N.J.. is now distributirig' Fairwiy Vinyl Systems' PVC and aluminum railings in New Jersey, Pennsylvania, Delaware, New York. and Connecticut.

Armstronq World Industries received ForEst Stewardship Council chain-of-custody certification for its HomerWood Flardwood Flooring plant in Titusville, Pa.

BMHC Becomes BMC Select

Building Materials Holding Corp has completed financial restructuring and emerged from Chapter 1 1.

The company's secured lenders converted debt into equity, became the new owners, and consolidated its operating brands as BMC Select. Corporate headquarters moved back to Boise, Id., from San Francisco, Ca,,

"Like every business associated with residential housing and construction, our company has faced unprecedented challenges during the last few years," said Paul Street, BMC Select's new c.e.o. "Our new name celebrates our new beginning and leverages the important legacies and brand equity associated with BMC West and SelectBuild."

A new executive management team comprised of company veterans will lead the company, with assistance from a new, independent board of directors. Stan Wilson will continue as president and chief operating officer, and Danny McQuary will serve as chief financial officer.

The new board includes Street, Jay B. Hunt, Peter C. Alexander, Marc Chasman, Dennis Downer, Michael A. Maidy, and Carl R. Vertuca Jr.

Atlanta Hardwood Buys Craig

Atlanta Hardwood Corp., Atlanta, Ga., has acquired Craig Lumber Corp., Collierville. Tn.. and renamed it AHC Craig Imports.

Founded in England in the 1960s, Craig Lumber added its U.S. operation in 1977 .It directly imports more than 30 species of exotic lumber, specializing in West African and South American hardwoods.

"Joining Atlanta Hardwood gives us the advantages of selling both domestic and imported hardwoods and a sound financial footing for the future," said Charles Craig, who stays on as v.p. of AHC Craig Imports.

G-P Acquires Grant OSB Mills

Georgia-Pacific, Atlanta, Ga., agreed to acquire Grant Forest Products' OSB plants in Allendale and Clarendon, S.C., and Englehart and Earlton, Ontario, for approximately $400 million. Last summer, Grant filed for bankruptcy protection.

"These are world-class facilities that fit strategically with our current wood products operations and we are pleased with this opportunity to grow our OSB business in Canada and the U.S.," said Mark Luetters, president of

G-P's wood products division.

G-P plans to continue operation of the plants in Canada and Allendale, and make capital investments of several million dollars to improve reliability and efficiency. In Clarendon, the company plans to complete construction of the unfinished plant and begin operations as soon as the market improves.

The transaction is expected to close in the first half of 2010, following approval in the U.S. and Canada.

Fiberon Rebrands Company

Fiber Composites LLC, New London, N.C., has changed its name to Fiberon LLC, assuming the name of its popular brand of decking and railing products.

The corporate name-change is aimed at creating brand consistency in communications, as part of an ongoing strategy to expand its overall decking solutions portfolio under the Fiberon brand.

"Fiberon products have achieved an unblemished reputation for innovation and reliability in the alternative decking and railing industry segment. As such, we as a company want to focus on the Fiberon brand as we expand our product line and sub-brands in a variety of building products categories," said Doug Mancosh, owner and c.e.o.

Former Ohio Exec Indicted

Terry A, Robbins, the former president of several Ohio Valley lumber businesses, has been sentenced to pay $2.4 million in restitution and serve three years in prison for fraud.

The sentence also included five years of post-release supervision, forfeiture of $99,120, payment of $771,422 in restitution to the Pennsylvania Lumbermens Mutual Insurance Co., and $1,701,578 to Huntington National Bank.

In March 2003, Robbins established a $5 million line of credit with Huntington National to provide operating funds for NKR Inc., which did business as Ohio Valley Lumber, Piketon, Oh. According to prosecutors, by October 2003 he was submitting false and inflated business records in a scheme to defraud the bank.

In March 2004, he inflated the value of lumber destroyed in a fire at Ohio Valley Lumber when he submitted a claim ro PLMI. In October 2007, he committed mail fraud when he moved proceeds between companies he and his wife owned, to conceal the origin of the money.

By fames Olsen