Plum Creek Timber Company, Inc., a real estate investment trust (REIT), owns and manages timberlands in the United States. As of December 31, 2008, the company owned 7.4 million acres of timberlands located in 19 states. It harvests trees, sells the timberland or converts its trees into lumber, plywood and other wood products. Segments NORTHERN RESOURCES SEGMENT As of December 31, 2008, the Northern Resources Segment encompassed 3.7 million acres of timberlands in Maine, Michigan, Montana, New Hampshire, Oregon, Vermont, Washington, West Virginia and Wisconsin, and contained an estimated 117 million tons of standing timber. Timber harvested in the Northern Resources Segment is sold predominately as delivered logs to domestic mills and also used in its manufacturing facilities. Competition: The company's competitors in the domestic log market include the United States Forest Service; the Bureau of Land Management; the Bureau of Indian Affairs; and the British Columbia Ministry of Forests. SOUTHERN RESOURCES SEGMENT As of December 31, 2008, the Southern Resources Segment consisted of 3.7 million acres of timberlands (including approximately 258,000 acres of leased land) located in the states of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas, and contained an estimated 141 million tons of standing timber. Logs in the Southern Resources Segment are sold to third party mills producing various forest products, including manufacturers of lumber, plywood, oriented strand board, and pulp and paper products. REAL ESTATE SEGMENT The Real Estate Segment comprises its sales of timberlands (some of which are sold through its wholly-owned taxable REIT subsidiaries), and sales of non-strategic timberlands, including sales of large blocks of timberlands. The segment includes development of certain properties, internally and through third party ventures. The company estimates that included in its 7.4 million acres of timberlands as of December 31, 2008 were approximately 1.5 million acres of higher value timberlands. Included in the 1.5 million acres of higher value timberlands are approximately 350,000 acres identified as conservation acres and another 200,000 acres that may be developed. The remaining 1 million acres are expected to be sold for recreational use. Additionally, approximately 250,000 acres of its ownership has been identified as non-strategic timberlands. MANUFACTURED PRODUCTS SEGMENT The Manufactured Products Segment, also conducted through its wholly-owned taxable REIT subsidiaries, includes four lumber mills, two plywood plants, two medium density fiberboard (MDF) facilities, and two lumber remanufacturing facilities. These facilities, located near it Montana timberlands, convert logs to lumber, plywood and other wood products, and convert chips, sawdust and wood shavings to MDF. Lumber: The company produces a line of softwood lumber products, including common, select and edge-glued boards, studs and finger-jointed studs. Lumber products manufactured in its two Montana random-length board mills and remanufacturing facility in Idaho are targeted to domestic lumber retailers, such as retail home centers for use in repair and remodeling projects. Lumber from its two Montana studmills and finger-joint stud remanufacturing plant are targeted to contractor distribution yards for use in home construction. These lumber products are also sold to stocking distributors who serve various end uses. The company’s lumber and plywood mills produce residual wood chips, sawdust and planer shavings as by-products of the conversion of logs into finished products. The wood chips are sold to regional paper and pulp mills or used in its MDF facilities, which also consume the chips, sawdust and shavings. Plywood: The company’s two plywood plants in western Montana produce softwood plywood that it sells primarily into domestic specialized industrial markets, including boat, recreational vehicle, transportation and concrete forming applications. While some plywood products are sold directly to industrial customers and the majority is sold via stocking wholesale distributors. Medium Density Fiberboard: The company’s MDF facilities in western Montana supply MDF to a range of customers throughout North America. The uses for its MDF include furniture and cabinet components, architectural moldings, doors, store fixtures, core material for hardwood plywood, commercial wall paneling and substrate for laminate flooring. It sells MDF in Canada and Mexico. OTHER SEGMENT—NATURAL RESOURCES The Other Segment includes natural resource businesses that focus on opportunities relating to mineral extraction, natural gas production and communication and transportation rights of way resulting from its extensive property ownership. The company receives royalties from the extraction of oil, gas, and minerals from its timberlands. Tax Status The company has elected to be treated as a REIT under sections 856-860 of the United States Internal Revenue Code of 1986. As a REIT, it would not be subject to the federal income tax, provided it distributes at least 90% of the taxable income to its shareholders. History Plum Creek Timber Company, Inc. was founded in 1989.
plum creek timber co (PCL:New York)
601 Union Street
Seattle, WA 98101
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