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Softwood Forest Products Buyer - May/June 2018

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Check out this issue of The Softwood Forest Products Buyer.

Washington State Amends

Washington State Amends Building Code to Increase Mass Timber Product Use Lawmakers in Washington State recently passed a law directing the Washington State Building Code Council to adopt rules allowing for the use of mass timber products in commercial and residential construction. Adding mass timber in the state building code will make it easier for developers to use cross-laminated timber and other mass timber products by adding certainty to the permitting process as well as being environmentally friendly, as CLT leaves a smaller carbon footprint and uses less energy and water than other building materials. CLT is also strong, fire-resistant and since it is prefabricated, it’s fast and simple to install. Mass timber products like cross-laminated timber (CLT) have been on the upswing in Washington in recent years, with Vaagan Brothers Lumber in Colville and Katerra, a California company, both announcing CLT factories in Eastern Washington. The Washington Forest Protection Association says the material is increasingly being used in buildings throughout the state, and added the new law will boost business for rural communities and forest landowners, leading to an increase in the use of mass timber products in construction. What’s better than dry? Washington Scene U.S. District Court Signs Order in Sierra Club-EPA Formaldehyde Litigation The composite wood product industry is facing an earlier compliance deadline under the Environmental Protection Agency (EPA) Formaldehyde Emission Standards for Composite Wood Products (Standards) than the deadline previously set by EPA. Seeking to avoid supply-chain disruptions, EPA and environmentalists have agreed to a June 1 deadline for enforcing an Obama-era rule setting emissions standards for formaldehyde from wood products after a federal court last month rejected the Trump administration's one-year delay, giving industry an additional six months from the rule's initial compliance date. The March 9 stipulation and proposed order in the case, Sierra Club et al v. Pruitt, would lift a stay on a federal court's Feb. 16 order. According to published reports, on Feb. 16, 2018, the U.S. District Court for the Northern District of California/Oakland Division issued an order that provides orderly resolution of the Court’s decision to vacate a one-year delay of the formaldehyde emission standard for composite wood products in a suit filed by the Sierra Club and a Community Voice—Louisiana against the EPA. The ruling vacated a September 2017 EPA move that extended the compliance deadline for most obligations under the Standards to Dec. 12, 2018. The compliance date in dispute applies to emission limit compliance, recordkeeping, labeling and sell-through. Under the court’s order, the parties in the lawsuit were to propose a new compliance date before March 9. Seneca dry. At Seneca, we produce the best lumber available. Our quality is so superior that some lumberyards have a dedicated SKU for Seneca products. The lumber we ship is consistent, so you won’t be culling 5% of a Seneca load. You might pay a little more on the front end, but you’ll be money ahead in the long run. • Mixed loads/highly specified tallies available • No prior selection! • Rail access to both UP and BN lines • Dimension lumber: dry and green Douglas fir, 2x4 to 2x14, up to 28' long • Studs: dry and green Douglas fir, dry Hem-fir, 2x4 and 2x6, in 8', 9' and 10' lengths See the Seneca difference for yourself. Contact our friendly, knowledgeable sales team for a prompt and accurate quote. 541.689.7950 | senecasawmill.com TAdair@senecasawmill.com | MDippel@senecasawmill.com AWC, AF&PA Call for Regulatory Transparency at House Oversight and Government Reform Committee Hearing In testimony before the House Committee on Oversight and Government Reform, the American Wood Council and the American Forest & Paper Association called on federal agencies to implement stronger good guidance practices and benefit-cost analysis to ensure agency guidance and regulations do more good than harm. Paul Noe, Vice President for Public Policy for both associations, testified as one of five panelists at the Capitol Hill hearing, “Shining Light on the Federal Regulatory Process.” Robert Glowinski, president and CEO of AWC, said, “Agency guidance documents can provide important direction to regulatory programs. However, like the programs themselves, guidance documents can nonetheless have significant impact and should be developed through a transparent and accountable process. Moreover, agencies should ensure they implement their regulatory statutes to do more good than harm, as every president has ordered them to do over 37 years. AWC thanks the Committee on Oversight and Government Reform for the opportunity to discuss good guidance practices. We continue to support a smarter, more costeffective regulatory process.” Donna Harman, president and CEO of AF&PA, stated, “A trans- Continued on page 29 Page 20 Softwood Forest Products BuyerMay/June 2018

BlueLinx Acquires Cedar Creek ATLANTA and OKLAHOMA CITY—BlueLinx, a leading distributor of building and industrial products in the United States, recently announced that it has entered into a definitive agreement to acquire Cedar Creek, a leading building products wholesale distributor, a portfolio company of Charlesbank Capital Partners for a purchase price of 3 million on a debt-free, cash-free basis. The purchase price will consist of approximately 5 million in cash and approximately million as the agreed value of the capital leases. The transaction has been unanimously approved by BlueLinx’s Board of Directors and is expected to be completed within 45 days at the time of this writing, subject to customary closing conditions and regulatory approvals. The combination of BlueLinx and Cedar Creek will create a leading building products wholesale distributor with one of the largest product offerings in the building products industry, including over 50,000 branded and private-label SKUs, and a distribution footprint of 70 national locations servicing 40 states. Together with Cedar Creek, BlueLinx will be able to distribute its comprehensive range of structural and specialty products to approximately 15,000 national, regional and local dealers, as well as specialty distributors, national home centers, industrial and manufactured housing customers. The transaction will enable the combined entity to serve diverse end markets from new residential and light commercial construction to industrial, as well as residential repair and remodel. BlueLinx and Cedar Creek’s combined revenue was .2 billion in 2017 and its pro forma LTM Adjusted EBITDA for 2017 would have been approximately 4 million including at least million of annual cost savings. For more information, visit www. BlueLinxCo.com or www.cedarcreek.com. ECMD Acquires Klumb Lumber Inc. North Wilkesboro, NC–ECMD Inc., headquartered here, recently announced the successful completion of the purchase of Klumb Lumber, a leading distributor of specialty building products in the Gulf Coast and Southeastern U.S. Founded in 1945 Klumb has built a reputation for being a family owned business with simple, honest, old-fashioned values. “Klumb’s heritage of leaning into relationships and building long term trust with their customers and suppliers meshes perfectly with the core values established by our founder Allen Dyer,” stated Joe Woods, CEO at ECMD. “We are excited to extend our footprint into the deep south and Gulf Coast.” ECMD will continue with the Klumb Lumber and Forest Products name as well as continue to operate all Klumb distribution centers. This acquisition establishes a footprint across 46 states servicing lumberyards, building product distributors, and retail home centers. ECMD will now operate under multiple banners including East Coast Mouldings, Crown Heritage, Arndt & Herman Building Products, ECMD Distri- Retail Review Great people make Great great products. Specializing in Eastern White Pine Lumber Mixed TL Trucking Arrangements Broadest Selection of Patterns and Textures NELMA Weinig Moulder Finish 4/4, 5/4, 6/4 and T T bution, and Klumb Lumber and Forest Products. Klumb Lumber was established in 1945 by Roy Klumb in Crystal Springs, MS. His son, Buddy Klumb, took over leading the company shortly after and built an organization that became a major force in the Gulf Coast in the lumber and building products distribution business. Today Klumb distributes products through five locations from Texas to Tennessee. For more information, visit www.ecmd.com. 84 Lumber Opens Showroom in Florida Keys to Serve Areas Hit by Hurricane Big Pine Key, FL—84 Lumber, headquartered in Eighty Four, PA, recently opened a 2,275-square-foot showroom here to serve communities that continue to rebuild after being hit by Hurricane Irma and to meet a growing need for lumber and building materials across Florida, particularly after the devastation caused by the hurricane last year. Located along the Overseas Highway, the showroom will be easily accessible to residents in Big Pine Key as well as surrounding areas connected by the highway, including Bahia Honda Key, West Summerland Key and Little Torch Key. dipriziopine.com Pictured at Left: Earl Shipping Perrino, and Jamie Inventory Moulton Control and Team Ian Penny - Earl Perrino, Jamie Moulton and Ian Penny Great People. Great Facilites. Great Solutions. Great Pine. Since 1938 Our Promise To You: Accurate Time Breadth of Selection and Mixed Loads Is Our Specialty. The Secret Is Our Processes; The Quality is Our Hallmark. Try Before You Buy Great People. Great Facilities. Great Solutions. Great People. Great Facilities. Great Solutions. Great Pine Great Pine. Continued on page 34 800-647-8989 or 603-473-2210 Route 153, Kings Hwy Middleton, NH 03887 Email Scott Brown or Jamie Moulton sbrown@lavalleys.com jmoulton@lavalleys.com Softwood Forest Products BuyerMay/June 2018 Page 21

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