As Pnlco Turns Around, C.e.o. Steps Down

Now firmly on the road to recovery, Pelco has replaced its head turnaround specialist with a more product-focused executive.

Robert Manne has resigned after five years as president and c.e.o. of Pacific Lumber Co., although he will be available as a consultant for one year. His replacement is George O'Brien. a former executive in International Paper's forest products division.

"I am confident that George will add to the long and proud traditions of the Pacific Lumber Co.." said owner

Charles Hurwitz. "He successfully ran IP's forest products business, rvhich included one of the largest timber operations in the rvorld and a major rvood products business."

The change came less than a rveek after Pelco and its subsidiary Scotia Pacific sold 2.200 acres for $l I million to the same Colorado group that bought some 3,600 acres for $7.4 million in June. "It's all part of one big strategy," said Manne of the sales. "We're refocusing toward being a redwood forest product company."

Manne also oversarv a refinancing deal that rvill pay off $70 million in debt and fund capital improvements such as completion of a nerv sarvmill and expansion of its power plant in Scotia. "We're about to turn another page." said Manne. "We norv have more money to rebuild things and get this back on track."

"lt rvasn't easy." said Manne of the last five years. "We've had to dorvnsize. and oftentimes you have to dorvnsize so you can grow."

Of the company's many battles rvith environmentalists and local officials. Manne said that "rvhen you're ahvays being attacked. it makes things difficult. I think the legacy of the company is to persevere."

Capital Expands Denver DC

Capital Lumber has leased 8.6 additional acres adjacent to its Denver. Co.. distribution yard and added rail service to accommodate the growth.

The facility now encompasses 16.6 paved acres rvith a 36.000-sq. ft. rvarehouse. supplying redrvood. spruce. fir. pine, composite lumber. engineered rvood and other specialty items to Colorado. Wyoming. Kansas and Nebraska.

Ecoterrorists Plead Guilty

Three more people have pleaded guilty to being part of the Earth Liberation Front. an ecoterrorist group that caused more than $20 million in damage in several western states from 1996 to 2001.

Chelsea Gerlach. 29. a disc jockey in Portland.Or.. and girlfriend of another defendant. cried rvhile reading an apology in court. "I realized years ago this rvas not an effective or appropriate way to affect positive change." she said in court. "l norv knorv it is better to create than destroy. and better to plant gardens than to burn dorvn buildings."

Stanislaus Meyerhoff. 29. rvas in high school in Eugene. Or.. rvith Gerlach and recently attended college in Virginia. Suzanne Savoie. 29. had been rvorking at a group home for the developmentally disabled in Ashland. Or. Both Meyerhoff and Savoie admitted setting fire to a tree farm and Superior Lumber Co., Glendale. Or.. in 2001.

Prosecutors recommended prison sentences of | 5 years for Meyerhoff. l0 for Gerlach. and five for Savoiervho have agreed to cooperate with the investigation.

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