Two of the US’s biggest timber companies, Georgia Pacific and Louisiana Pacific, have announced re-structuring programmes.

Georgia-Pacific will separate into two publicly traded companies – a building products and distribution business and a consumer products and packaging company. Full separation is expected to be complete in the first half of 2003.

The company said it realised it had two distinct businesses with different financial and operating characteristics, capital needs, growth potential and investment attributes.

The building products and distribution business will continue to serve the home improvement chains, independent retailers and industrial accounts with products including lumber, plywood, OSB, gypsum wallboard, particleboard and wood-bonding adhesives.

Meanwhile, Louisiana-Pacific will sell 935,000 acres of timberlands and its plywood, industrial panels and lumber businesses in order to reduce its debt and enhance long-term competitiveness.

Its core business will be OSB, composite wood products, engineered wood products and plastic building products.