History and Expansion
- LP was incorporated on January 5, 1973 as part of a court-ordered monopoly breakup of Georgia-Pacific.
- William H. Hunt, a vice-chairman at Georgia-Pacific, was selected as Louisiana-Pacific's first chairman.
- In 1974, Harry A. Merlo succeeded Hunt as chairman while remaining CEO.
- LP was based in Portland, Oregon for 33 years before moving its headquarters to Nashville in 2004.
- LP acquired several lumber companies in California, Oregon, Montana, Washington, Missouri, and Alabama.
- LP's sales grew 50 percent between 1980 and 1988, with profits increasing 400 percent.
- LP introduced Inner-Seal siding for the exterior of homes.
- LP's product line expanded to include I-beams for floor joists and rafters.
- LP's OSB products protected the company from the timber market's fluctuations.
- The Inner-Seal line accounted for almost 30 percent of LP's total sales volume by 1990.
Challenges and Lawsuits
- LP faced lawsuits pertaining to its simulated cedar Inner-Seal exterior siding.
- Homeowners alleged premature rotting, discoloration, and fungi growth.
- LP settled all related disputes and re-engineered the product as LPSmartSide.
- Class-action suits were filed against the Inner-Seal siding, but LP admitted no wrongdoing.
- LP paid over $22 million in 1991 and an additional $14 million between 1993 and 1994 to settle OSB claims.
- LP committed at least $275 million in 1996 to settle with 800,000 homeowners who used Inner-Seal siding.
- LP implemented a Claimant Offer Program in April 2003, paying out over 37,000 claims in the largest class-action lawsuit in the siding industry.
- LP paid almost $1 billion by the end of the settlement to satisfy claims.
- LP paid $65 million in 1996 to settle a class-action lawsuit filed by LP shareholders alleging securities law violations.
Company Restructuring and Rebuilding
- LP closed the Ketchikan Paper Company and 22 plants and mills in 1996.
- LP sold off a number of additional operations, including the Weather-Seal door and window division in 1998.
- LP sold over $875 million of assets during a three-year period to provide financial flexibility and focus on becoming the premier supplier of building materials.
- LP engaged in targeted acquisitions, purchasing Associated Chemists, GreenStone Industries, Tecton Laminates Corp., and ABT Building Products Corporation.
- LP introduced new product systems, including Smart Start siding, TechShield energy-efficient structural panels, TopNotch flooring, and Cocoon insulation.
- LP made a total of 20 divestitures from 2000 to 2010.
- LP implemented an asset sale and debt reduction program in May 2002 to enhance long-term competitiveness and financial flexibility.
- LP focused on core businesses, including OSB, siding, engineered wood products, and plastic building products.
- LP relocated its headquarters from Portland, Oregon to Nashville, Tennessee in September 2003.
LP's Involvement in Professional Sports
- LP owned the Portland Timbers soccer club from 1979–82.
- LP owned the naming rights to LP Field, the stadium housing the Tennessee Titans and Tennessee State University football teams in Nashville from 2006–15.
- LP has been associated with professional sports in different manners.
- LP's involvement in professional sports has varied over the years.
- LP's ownership of the Portland Timbers and naming rights to LP Field are notable examples.
Financial Performance and Other Information
- LP experienced a net loss of $51.7 million in 1995 and a net loss of $200.7 million in 1996.
- LP operated at a net loss of $101.8 million in 1997 but returned to profitability in 1998 with $12.8 million in net profit.
- LP made a strategic plan to enhance long-term competitiveness and financial flexibility in May 2002.
- LP exceeded the initial $700 million target for its divestiture program by more than $50 million.
- LP operates several engineered wood siding mills that produce many siding products.
- LP uses forest management and timber procurement systems that are SFI certified, ensuring wood comes from well-managed forests.
- LP's green attributes are recognized in green building certification programs across North America.
- LP invests in communities by providing funding, products, and volunteers to support public schools and nonprofit organizations.
- LP Building Products subscribes to the Lean Six Sigma methodology, delivering a six-to-one return on investment in cost savings for LP.
- LP has domestic and foreign subsidiaries.
This article contains content that is written like an advertisement. (June 2017) |
Louisiana-Pacific Corporation (LP) is an American building materials manufacturer. The company was founded in 1973 and LP pioneered the U.S. production of oriented strand board (OSB) panels. Currently based in Nashville, Tennessee, LP is the world's largest producer of OSB and manufactures engineered wood building products. LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers.
 | |
| Type | Public |
|---|---|
| NYSE: LPX S&P 400 Component | |
| Industry | Construction |
| Founded | 1973 in Portland, Oregon |
| Headquarters | , USA |
Number of locations | 24 (2012) |
Key people | Brad Southern (CEO) |
| Products | Building materials |
| Revenue |  US$2.828 billion (2018) |
| US$526 million (2018) | |
| US$420 million (2018) | |
| Total assets | US$2.514 billion (2018) |
| Total equity | US$1.700 billion (2018) |
Number of employees | 3,900 |
| Website | lpcorp |
As of 2011, LP has 24 mills including 15 in the United States, six in Canada, two in Chile and one in Brazil.
