This article contains content that claimant count change forex news written like an advertisement. Louisiana-Pacific Corporation, commonly known as “LP”, is a United States building materials manufacturer. It was founded in 1973 and is currently based in Nashville, Tennessee.
As of 2011, LP has 24 mills including 15 in the United States, six in Canada, two in Chile and one in Brazil. Instead of relying on larger, more expensive old-growth timber, LP found ways to make structural building products from small-diameter, fast-growing trees. LP was incorporated on January 5, 1973 as part of a court-ordered monopoly breakup of Georgia-Pacific. LP was headed by company president Harry A.
Merlo for the first 22 years, who was known for his flamboyant style and generous civic contributions. Over the years, LP has been associated with professional sports in different manners. Louisiana-Pacific was formed in July 1972 when the Georgia-Pacific Corporation spun off the wholly owned subsidiary. As part of its settlement with the FTC, Georgia-Pacific agreed to divest 20 percent of its assets. This proved to be an especially difficult task as timber shortages wracked the entire industry. Overcutting, Japanese demand for logs, and pressure on the U. Forest Service to tighten harvesting restrictions on large trees caused prices to soar.
Merlo strove to shepherd the company through its early difficulties. LP acquired several lumber companies in California, Oregon, Montana, Washington, Missouri, and Alabama, and in 1976 it purchased the Fibreboard Corporation, a manufacturer of products used in making furniture and cabinets. In 1979, the company bought fifteen building-material centers in southern California from Lone Star Industries, which provided LP with much needed distribution centers. To ensure its long-term success, however, LP would need to compensate for its comparative dearth of southern pine and Douglas fir timber, as well as lumber production. To address this shortfall, LP turned its attention to the development of wood products derived from less-expensive and faster-growing trees, such as cottonwood and aspen.
In the late 1970s, the company began manufacturing OSB by slicing logs into wafers, mixing the wafers with resin, and then pressing them into sheets. LP’s OSB products protected the company from some of the vicissitudes of the timber market. Buoyed by this success, the company soon expanded its line of products made from reconstituted wood to include I-beams for floor joists and rafters. These structural beams used half as much lumber as their solid wood counterparts, yet were stronger and lighter. In 1986, the company purchased Kirby Forest Industries and the California properties of Timber Realization Company. From these transactions, LP gained almost 830,000 acres of timberland, which helped balance the land taken in 1978 for Redwood National Park.
440 million from the government for this land in 1988. In 1990, LP bought Weather Guard Inc. During 1990 sales and profits in the company’s softwood lumber, plywood, and building products areas slumped due to weakening demand. This situation was attributed to an economic downturn, increasing concerns over the U. The construction industry suffered because of bankers’ reluctance to finance new projects and consumers’ decisions to delay home purchases.
Housing starts for 1990 fell to 1. The pulp market also experienced slowing growth in 1990. After a four-year period of rapidly rising prices, pulp manufacturers then faced eroding profit margins due to worldwide economic problems and larger than normal inventories. Although LP saw its own pulp sales and profits peak in mid-1989 and expected only a minor recovery in 1991, the company continued to operate three pulp manufacturing mills. One mill supplied paper pulp to non-integrated paper producers. LP was able to rebound from the downturn of 1990. While its competitors struggled in the face of dwindling timber supplies, LP enjoyed record sales in 1992, 1993, and 1994.