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Green Diamond to leave Redwood manufacturing
The following is a press release from the Green Diamond Resource Company:
Douglas Reed, president of Green Diamond Resource Company, today announced that its subsidiary, California Redwood Company (CRC), will transition out of the redwood lumber business. Over the next few months, CRC will continue to process remaining redwood log inventory and supply customers from existing redwood lumber inventories while customers make arrangements with other suppliers of redwood lumber.
“This decision reflects a careful review of our business. We believe this difficult change to our strategy is essential to the success of our redwood timberland business and to sustain our long-term investment in the highest standards of stewardship and conservation practices on our timberlands. Despite our best efforts, CRC has not been able to achieve positive results for redwood lumber manufacturing and sales over the last several years” said Reed. “This move will enable Green Diamond to focus on our strengths and to add value to our timberlands,” continued Reed.
Green Diamond’s Senior Vice President for California Operations, Neal Ewald, explained that this change means Green Diamond will phase-out the transfer of redwood logs to CRC for milling. Instead, Green Diamond’s redwood logs will be sold to other manufacturers of redwood lumber.
“As we have for over sixty years, Green Diamond will continue to produce high-quality redwood logs in Northern California, but our production will now be sold to other lumber manufacturers rather than being transferred to our subsidiary, California Redwood Company,” said Ewald. “Green Diamond also will continue to invest in the redwood lumber marketing campaign sponsored by the Headwaters Fund, and we have increased our funding commitment for 2014,” he added.
Current Redwood Log and Lumber Inventories CRC will work through current redwood log and lumber inventories over the next several months to meet the needs of its redwood lumber customers as they transition to other redwood lumber suppliers.
Douglas-fir Harvesting and Lumber Processing: Green Diamond will continue to harvest Douglas-fir from its lands, and Douglas-fir logs will be processed at CRC’s mill in Korbel, California, with the mill running on one shift.
About Green Diamond Resource Company
Headquartered in Seattle, Wash., Green Diamond Resource Company is a privately held forest products company that owns and manages working forestlands in
Washington and California. In California, Green Diamond forestlands are independently certified to Forest Stewardship Council (FSC®) and Sustainable Forest Industry (SFI®) Standards.