PORTLAND, Ore., April 18 /PRNewswire/ -- Willamette Industries'
(NYSE: WLL) board of directors today approved capital projects that will
modernize and improve vertical integration in the company's white paper
division and modernize its Dallas, Oregon, sawmill.
The company signed an agreement with Stone Container Corporation to
purchase Stone's Port Wentworth, Georgia, hardwood pulp mill. Willamette
intends to start up the pulp mill before October 2000. The mill should
eventually produce about 900 tons per day of market pulp.
Further, the company plans to decommission two paper machines at the
Kingsport, Tennessee, uncoated free sheet mill, removing 500 tons per day of
uncoated free sheet production. In place of the two machines, Willamette will
install a world-class paper machine with initial production of about 800 tons
per day after start-up, which is scheduled for mid-2002. The machine will use
a portion of the hardwood pulp from Port Wentworth until the new pulp mill
comes on stream at Kingsport in late 2003 at which time the paper machine will
ramp up to full production of 1200 tons per day.
The complete Kingsport project will cost an estimated $475 million over
four and a half years. The terms of the sale of the Port Wentworth pulp mill
were not disclosed.
Willamette also plans to modernize its Dallas, Oregon sawmill by speeding
up the existing headrig, installing a new edger and sorter and making
modifications to the planer.
In other business, the board declared a dividend of $.21 per share,
payable on June 14, 2000 to shareholders of record on May 29, 2000.
Willamette Industries is an integrated forest products company with
106 plants, located in the U.S., France, Ireland and Mexico. The company owns
1.7 million acres of forestland in the U.S. and manages it sustainably to
produce building materials, composite wood panels, fine paper, office paper
products, corrugated packaging and grocery bags.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and uncertainties and
actual results could differ materially from those projected. Such risks and
uncertainties include, but are not limited to, the effect of general economic
conditions; the level of new housing starts and remodeling activity; the
availability and terms of financing for construction; competitive factors,
including pricing pressures; the cost and availability of wood fiber; the
effect of natural disasters on the Company's timberlands; construction delays;
risk of nonperformance by third parties; and the impact of environmental
regulations and other costs associated with complying with such regulations.
Please refer to Willamette Industries' Securities and Exchange Commission
filings for further information.
SOURCE Willamette Industries, Inc.
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CONTACT:
Catherine Dunn of Willamette Industries,
503-273-5642
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