SHELTER

November/December  2003

In the News ...

Builders FirstSource 
Says Goodbye to Denver

Builders FirstSource, headquartered in Dallas, has announced that it has decided to exit the greater-Denver market. The company currently is in negotiations to sell its Fountain, Colo., location and will close its Denver location. The company expects the sale and closure to be completed by the end of the year.

“Until recently, we had not been contemplating exiting Denver; however, we have received an unsolicited offer for our Fountain location. This has caused us to assess our competitive position and our prospects in the entire market. Over the past three years, housing starts have declined 14 percent in the Denver area,” said Builders FirstSource chairperson and chief executive officer Floyd Sherman. 

Briefly...
Alcoa Home Exteriors Inc. has joined with Dayton Technologies in a strategic alliance to manufacture composite decking and railing products … Contact Lumber Co. of Portland, Ore., has launched a revamped website which provides a detailed view of the company’s products and capabilities and may be viewed by industry-type or product category ... CMI of Chicago recently received the Innovative Technology Award at the 2003 AWFS® Fair for its Extira™-treated exterior composite panel … B.F. Rich of Newark, Del., has created customized price lists for its dealers so they may provide more informative sales presentations in the home or showroom ... PGT Ind. of Venice, Fla., was recently recognized with the Florida Governor’s Business Diversification Award in Innovation … Simonton Windows® of Parkersburg, W.Va., has opened its first Simonton Impressions® window showroom in the nation in Sacramento, Calif. … Lumbermens of Olympia, Wash., in partnership with Lanoga Corp. and Laird Norton Co., have provided the majority of funding and material necessary to complete a six-bedroom, two-story Habitat for Humanity home located in Olympia … Milgard Windows of Tacoma, Wash., was honored recently by its parent company, Masco Corp., with the presentation of an original Richard Royal glass sculpture. The gift was given in recognition of Milgard surpassing the half-billion-dollar sales mark in 2002 and to commemorate the company’s 40 years in business … Morelock Flooring of Bend, Ore., adds E.J. Welch Co. to its growing list of national distributors, expanding its market reach to Missouri, Southern Iowa and Illinois … Crystal Window & Door Systems of Flushing, N.Y., has been ranked by Crain’s New York Business as the fourth fastest growing minority-owned business in the New York City metropolitan area … 

“We have been the number seven competitor in the market, which has made it difficult for us to respond profitably to the business downturn. The final decision point is the fact that the lease on our primary Denver location is set to expire next summer.”

The company gave strong consideration to investing in Denver to improve its competitive position, but it felt its money would be better spent in other parts of the company, according to Sherman. 

After announcing its plan to leave the Denver market, the company announced its acquisition of Davidson Lumber Co. and Space Concepts, both located in Indianapolis, and that it has entered into a letter of intent to acquire Adams Building Supply of North Augusta, S.C.

Certain Teed to Build New Plant
CertainTeed Corp. of Valley Forge, Pa., has announced it is proceeding with plans to install a new facility to manufacture HVAC textile duct liner at a new site in Sherman, Texas.

“We have selected the site and have ordered the equipment,” said Jorma Toivanen, president of the insulation group. “We expect that the new facility will be producing duct liner in the spring of 2004, depending on the process of obtaining the final permits.”

The company examined several potential locations prior to making its final decision on the Texas location. The Sherman facility is 40 acres in size with 525,000 square feet under roof in existing buildings formerly owned by Pilkington. CertainTeed plans to relocate its existing Dallas-area service center, which warehouses its entire product line, to the Sherman facility.
Info circle card #137.

 G-P May Sell Building Products Arm
Atlanta-based Georgia-Pacific Corp. (G-P) recently announced that it is exploring strategic alternatives for its building products distribution business, including its possible sale.

G-P’s building products distribution business, which is distinct from the company’s building products manufacturing segment, is the leading distributor of building products in the United States. The distribution division’s 2002 net sales were $3.77 billion.

RELOCATIONS
LP Heads to the Country Music Capital
Louisiana-Pacific Corp. (LP) announced at the end of September that it is relocating its corporate headquarters to Nashville, Tenn., from Portland, Ore. The transition is expected to occur over a 12- to 15-month period. The announcement follows a major restructuring in which LP divested non-strategic operations to reduce debt and improve financial flexibility, allowing it to focus on growing its retained, strategic businesses. 

“Following our asset sales, we are a dramatically different company than we were a couple of years ago—both in focus and geographic dispersion. In order to grow in the future, it is important we bring our key people together,” said Mark Suwyn, LP chairperson and chief executive officer. 

“Nashville is an excellent fit for our company as we concentrate on growing our businesses. It’s closer to our mills, customers and financial shareholders, while offering an affordable, good quality of life for our employees and a positive business climate.”

Nashville was one of four cities being considered for LP’s headquarters. The other cities under consideration were Charlotte, N.C., Richmond, Va., and Portland, Ore., the location of LP’s current headquarters.

Suwyn continued, “All four cities demonstrated their desire to attract or retain our headquarters. Each provided extensive information and unique proposals that assisted us tremendously in our study. We truly appreciate each location’s efforts and cooperation throughout the process.”

As part of the company’s announcement, LP stated it intends to retain a significant presence in the Portland area. 

“Our people enjoy living in Portland. While there will be various positions that will [be in] transition over time to our new headquarters in Nashville, we will retain approximately 130 positions in the Portland area and are developing plans to move approximately 15 additional positions to the Northwest as part of the overall consolidation,” said Suwyn. 

Additionally, LP will consolidate employees from other administrative offices to its new headquarters. In addition to the Portland metro area, LP currently has administrative offices in Hayden Lake, Idaho; Conroe, Texas; Charlotte, N.C.; Montreal, Quebec; Schaumburg, Ill.; and Troy, Mich. 
Info circle card #140.

“Consistent with our strategic direction for the past several years to create shareholder value by sharpening focus on G-P’s more stable, consumer-oriented businesses and our goals of reducing debt and strengthening our balance sheet, it is natural that we fully review the strategic alternatives for the building products distribution business,” said A.D. “Pete” Correll, chairperson and chief executive officer. “The interests of our customers, employees and suppliers also will be a major consideration for G-P as we move forward with this process.”
Info circle card #138.

Radford Co. Adds Glen Oak Products
The Radford Co. of Oshkosh, Wis., has selected Glen Oak Lumber & Milling of Montello, Wis., as its newest millwork supplier. Pro builder yards in Minnesota, Wisconsin, Iowa and Illinois that purchase millwork from The Radford Co. will find the Glen Oak products available from both the Duluth, Minn., and Oshkosh distribution centers.

The Radford Co.’s decision to add Glen Oak to its manufacturers’ list is consistent with its commitment to meet the changing needs of its customers, according to a Glen Oak press release. 

Glen Oak says it offers an extensive array of high-quality wood moulding and product options for the industry and that with Glen Oak as a supplier Radford can offer its customers the most extensive moulding line in its marketplace.
Info circle card #139. 

LEGAL
Court Says No Patent Infringement by Plastpro Inc.
A U.S. district court judge has ruled that fiberglass entry doors made by Plastpro Inc. of Livingston, N.J., do not infringe upon a patent assigned to Therma-Tru Corp. of Maumee, Ohio.

Six years ago, Therma-Tru filed suit against Plastpro, an affiliate of Taiwanese conglomerate Formosa Plastics, alleging that Plastpro copied key aspects of its patented Fiber-Classic® products, according to a Therma-Tru press release. The U.S. Patent and Trademark Office granted Therma-Tru several patents for the Fiber-Classic door, including the patent in question in the litigation.

In his decision, John C. Lifland, judge of the United States District Court for the District of new Jersey, granted summary judgment that grained fiberglass entry door products of Plastpro do not infringe U.S. Patent No. 4,550,540 assigned to Therma-Tru.

“We are very gratified by this court decision, which reaffirms our right to continue producing the highest quality exterior doors consumers and retailers want without interference from anti-competitive lawsuits,” says Shirley Wang, president of Plastpro. “We stand by our products and our position has been vindicated.”

Therma-Tru plans to appeal the district court ruling and expects to win.
“Therma-Tru has pursued patent litigation against its competitors in the past and prevailed,” said Ernie L. Brooks, one of the founding partners of Brooks Kushman, counsel for Therma-Tru.

“Therma-Tru Doors remains committed to its litigation against Plastpro for patent infringement violations,” said Bob Doyle, senior vice president of Therma-Tru’s residential door business. “As the pioneer of the fiberglass door industry and the true innovator in the field, Therma-Tru has created the proprietary technology and door designs that make it the preferred brand among builders and remodelers. We will defend the company vigorously against those who copy our design and technology.”
Info circle card #141. 

WEBSITE UPDATE
The following companies have added features to their websites. 
Take a look and see what these companies have to offer.

• Ace Hardware: www.acehardware.com
• American Architectural Manufacturers 
Association’s online publication store: www.aamanet.org/pubstore/shop.asp
• American Fiberboard Association: www.fiberboard.org
• American Subcontractors Association: www.asaonline.com
• Andersen Windows: www.andersenwindows.com/stormwatch
• Clopay Building Products: www.cloypaydoor.com
• Contact Lumber Co.: www.contactlumber.com
• Enco: www.use-enco.com
• Florida Wind Insurance Incentives: www.floridacommunitydevelopment.org
• International Woodworking Machinery 
& Furniture Supply Fair – U.S.A.®: www.iwfconnection.com
• JELD-WEN: www.jeld-wen.com 
• Marshfield DoorSystems: www.marshfielddoors.com
• Safe Passage Consulting Inc.: www.safepassageconsulting.com
• Southern Pine Council: www.southernpine.com
• Vinyl Window Technologies: www.viwintech.com 
 

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