Whatever happened to OSL?

f, s nrcrNrl-y AS Two vEARS Aco. -CLoriented 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 lO-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 l.5E), beams and headers (1.5E to 1.7E), glulam, and LVL (1.7E to 2.0E). "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.

North Pacific Placed into Receivership to Repay Debts

A federal judge has appointed a receiver to sell North Pacific's businesses and properties so its debts can be repaid. The company and its subsidiaries owe about $42 million on a $160-million credit agreement signed three years ago.

Based in Portland. Or.. North Pacific expanded nationwide in recent years by acquiring top wholesalers in each region-Schultz, Snyder & Steele in the Midwest; Saxonville USA in the Northeast, and Allen Timber in the South.

North Pacific announced in August that it had signed a letter of intent to sell its assets to an unidentified "nationally recognized private equity firm." When the deal did not close as expected before the end of 2009, c.e.o. Jay Ross said, "We're taking our time, they're taking their time. That's alright with us."

The deal never closed.

Wells Fargo Capital Finance then gave North Pacific a January 15 deadline to sell its assets before the lenders would cease funding the loans. In the letter, Wells Fargo said it had received notice that Bluelinx Holdings Inc., Atlanta, Ga., was no longer willing to buy North Pacific's assets on previously agreed upon terms.

"This is the third transaction that would have provided for the payment of the obligations to the lenders that has failed to materialize in the past six months," noted Amy Newman, v.p. of Wells Fargo Capital Finance.

BMHC Becomes BMC Select Building Materials Holding

Corp has completed financial restructuring and emerged from Chapter 11.

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.

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.

Valley Lumber Go., Basalt, Co,, last month closed its Grand Junction, Co., yard, which opened as Denning Lumber in the 1930s.

New Kings Ace Hardware, Billings, Mt,, will break ground this spring on a third local store, hoping to open the 22,000-sq. ft. unit in the fall.

Lowe's opened a new 117,000sq, fi. store Jan. 15 in N. Concord, Ca.

Lowe's also applied to build a new unit on 15 acres in Clearlake, Ca., as well as a 110,000-sq. ft. store with 25,000-sq. ft. garden center in Silverthorne. Co.*davs after Home Depot submitted plan-s for a 102,000sq. ft. store wtih 16,000-sq. ft. garden center in Silverthome.

Arizona Sash & Door, Tucson, Az., closed at the end of January afier 85 years.

owner Foxworth-Galbraith Lumber has put the facility up for sale.

Habitat for Humanity treto a Jan. 21 grand opening for a new ReStore discount LBM outlet in Montclair. Ca.

Habitat breaks ground this spring on a 4,500-sq. ft. ReStore in Belfair, Wa.

Stock Building Supply sold its shuttered site in Ketchum, ld., to a grocer.

Stock has redesigned its corporate website, stockbuildingsupply.com, to represent the full spectrum of LBM and services the chain provides. The site is now comprised of seven sections, including "Green Resources."

Union Planing Mill, Stockton, Ca., has closed after 1 18 years.

Compass Lumber, Cotati, Ca., is now carrying DreamDex in Northern California, while Jones Lumber, Lynwood, Ca., is supplying Southern Califomia.

The FSC-certified radiata pine decking is treated with BioCore preservative technology.

Woodfold Manufacturing reduced its Forest Grove, Or., workforce by one-third.

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

Simoson Stronq-Tie has inregrateo TimberTech-composite and PVC decking, railing, and lighting products inlo its DeckTools Deck Sales & Design software.

CertainTeed Gypsum is now the exclusive sales rep to independent professional channels in the U.S. for noise-proofing products from fellow Saint-Gobain subsidiarv Green Glue Co., Granville, N.Y.

Fiberon has extended the industry's first stain and fade wananty to 20 years on its Fiberon Horizon decking and Outdoor Flooring product lines.

Georqia-Pacific Wood Products ichieved Sustainable Forestry Initiative chain-of-custody certification for its engineered lumber facilities and SFI fiber sourcing certification for its EWP, structural panels, and softwood lumber products.

Silvaris Opens Eugene Office

LowGradelumber parent Silvaris Corp., Bellevue, Wa., has opened a trading office in Eugene, Or.

The new office's entire staff-Bob Brass, Dave Brewer, Bob Spagnolo, Pat Meyers, Don Wood, Dick Barnes, Rob Parks, and Dustin Smith-had been with Maywood-Anderson Forest Products, Eugene.

Glulam Maker Goes Blue

Calvert Co., Vancouver, Wa., is opening a licensed factory application center to treat its glue laminated beams with BluWood mold protection and FRC fire retardant coatings.

Calvert becomes the first authorized affiliate of EcoBlu Products, Carlsbad, Ca., and will also manufacture private label glulams for EcoBlu.

Parr Shares Ad Messages

Parr Lumber, Hillsboro, Or., hopes to collect royalty fees when the company's award-winning advertising campaigns are sold to non-competing LBM dealers across the country.

"Everyone is frustrated by the recession, everyone wants to get going again, but they no longer have the internal resources," said Jennifer Swick, former marketing director at Pan.

She and her partner, Scott Ericson, spent the last 17 years developing advertising campaigns at Parr. Now they have started their own firm, Wheelhouse 2Ol2O, to help LBM companies survive by focusing on green, energy efficient, and sustainable building products. Parr will remain a client of Wheelhouse 2O/20 and collect a royalty fee for the program's use.

"It will be very important moving forward because you have to cut through the noise in a disappearing or shrinking market," said Rick Davis, president of Building Leaders Inc., a Chicago-based sales and training consultant.

"I think they have a good business model," said Davis, who has judged building industry advertising campaigns. "What we're looking for is an idea worth stealing. There's no danger of repeating the same message if you're in a different state."

Oregon Death Investigated

The Oregon Occupational Safety & Health Administration is investigating the accidental death of a worker at Douglas County Forest Products, Winchester, Or.

Holger Fussel,39, who had worked at the company for nine years, fell from a catwalk Dec. 28 and became entangled in machinery.

Co-workers administered CPR and first aid, but he was pronounced dead at a local hospital.

Redtree Sells Redwood Land

Redtree Properties, Santa Cruz, Ca., has agreed to sell two redwood tracts in the Santa Cruz Mountains totalling 267 acres to Sempervirens Fund, a nonprofit land trust based in Mountain View, Ca., for $2.1 million.

"There are some pretty sizable trees, second-growth redwoods there, about 100 years old," said Reed Holderman, executive director of Sempervirens Fund.

Redtree already had state permits to cut 35Vo of the redwood and Douglas fir trees larger than 18 inches in diameter on the smaller, lO7-acre tract. The nonprofit hopes to sell this land back to the state, so it can become part of the adjoining state park.

Redtree was formed in 1986 from holdings of Santa Cruz Lumber Co.

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