Alex Paul
Like many others in Sweet Home, Jerry Underwood had planned to spend his entire working career with one company, Willamette Industries.
Underwood joined the company right out of high school and came within one year of accomplishing his goal.
Recently, Underwood, plant manager for Foster Plywood, helped usher in a new era for area mill workers under the umbrella of Weyerhaeuser Company.
The 172 Foster Plywood employees are now part of a $19 billion dollar company with global markets.
Weyerhaeuser staff members spent a week visiting 30 Willamette plants and providing an orientation to their 3,000 new employees.
The event follows more than a year of high-level head-butting between former Willamette CEO Duane McDougal and Weyerhaeuser CEO Steve Rogel in a hostile takeover.
Sweet Home was especially apprehensive of the merger since the community had once been home to seven mills and was down to just Foster Plywood. It was no secret that Weyerhaeuser had gotten out of the volatile plywood market more than a decade ago.
“I think the apprehension about the merger is gone,” Underwood said. “I think the orientation meeting put that aside.”
Underwood said the half hour orientation featured Rick Jellison, general manager for veneer production west.
“Actually, I think that he saw a lot of things we did that would be beneficial for other Weyerhaeuser plants,” Underwood said. “We’re very proud of our plant. We set new standards for cleanliness in our plywood plants. We keep everything clean every day.”
Will there be changes?
“Of course there are doing to be some changes,” Underwood said. “The nice thing is, we believe the plant will continue to operate but we’re changing product emphasis.”
One plywood shift has been changed to a veneer shift, Underwood said.
“We’re going to produce more veneer and less plywood during down markets,” Underwood said. “Our people are being very receptive to having more than one job. We have always ran a tight ship and we plan to continue running the plant like we are for the next few years.
Underwood said Foster Plywood is one of the more modern plants in the west.
“We’re a high production plant,” Underwood said. “We’re also going to make a higher priced plywood.”
The acquisition by Weyerhaeuser provides the plant with a long-term, steady supply of logs.
“We certainly have a log supply now,” Underwood said. “We have a bread basket of fine, prime timber.”
In addition to Underwood, the Foster Plywood plant management includes Bob Dalton, environmental and safety director and Clark Hay, quality control.
The addition of Willamette Industries plants and products to the Weyerhaeuser family pushes the already large company even further up the global wood products ladder.
According to a Weyerhaeuser fact sheet, the company’s rankings include:
Timberlands/wood products:
– World’s largest producer of softwood lumber.
– World’s largest producer of engineered lumber products.
– North America’s second largest producer of structural panels.
– Worlds largest private manager of merchantable softwood saw timber.
Pulp, paper and packaging:
– World’s largest producer of softwood market pulp.
– World’s second largest producer of container board packaging.
– World’s second largest producer of printing and writing paper.
Weyerhaeuser key financial data for 2001
Net sales and revenues: $14,545,000,000
Net earnings: $354,000,000
Net earnings per share: $1.61
Cash flow from operations: $1,152,000,000
Total assets: $18,293,000,000
Capital expenditures: $683,000,000
Stock prices: High 62 1/16 Low 45 11/16
Weighted average shares outstanding: 219,863,000
About the Weyerhaeuser Company
– Was founded in 1900
– Employs approximately 45,000 people in 17 countries (primarily in the U.S., Canada, Australia and New Zealand). The Willamette acquistion will add 15,000 people in the U.S., Mexico, France and Ireland for a total of 60,000 employees.
– Has its headquarters in Federal Way, Wash.
– Is the top forest products exporter in the U.S. and among the top U.S. exporters overall.
– Has ranked in the Fortune 200 since 1956 (No. 122 in 2001).
– Has ranked No. 1 in the industry in social responsibility in Fortune magazine’s annual corporate reputation survey since 1993.
Principal Manufacturing Facilities in 2001 combined with Willamette Industries
Pulp: 12
Paper: 10
Containerboard: 12
Packaging: 102
Newsprint: 1
Paperboard: 1
Recycling: 22
Ink and specialty products: 2
Kraft bag and sack: 4
Communications papers: 5
Cut sheet and other converting: 6