Weyerhaeuser manufactures and sells a range of timber, wood, and cellulose fiber products, which are utilised across multiple industries in various construction and production processes.
Weyerhaeuser organises its operations into three reportable business segments:
Timberlands, which grows and harvests trees to be converted into lumber, exports logs to other countries where they are made into products, plants seedlings to reforest harvested areas, monitors and cares for the planted trees, and seeks to sustain and maximise the timber supply from its timberlands;
Wood Products, which provides softwood lumber, engineered wood products, structural panels and other specialty products to the residential, multi-family, industrial, light commercial and repair and remodel markets, and distributes products proprietary and third-party products; and
Cellulose Fibers, which provides cellulose fibers for absorbent products in markets around the world, and manufactures liquid packaging board used primarily for the production of containers for liquid products.
Weyerhaeuser was founded in 1900 by Frederick Weyerhaeuser and 15 partners, who together purchased 900,000 acres of Washington state timberland from the Northern Pacific Railway in what was at the time the largest ever private land transaction in American history. The Company opened its first saw mill in 1902, its first distribution centre – for lumber shipped through the Panama Canal – in 1921, and in 1931 opened its first pulp mill.
Weyerhaeuser continued to expand throughout the first half of the 20th Century, with the Company making its first overseas investments in the 1950s. The Company established itself as a leading lumber and forestry company, making a number of acquisitions, and diversifying its assets and product offerings. In 2010 the Company took on the form of a real estate investment trust, allowing it to become a more competitive owner, manager and buyer of timberlands.
Weyerhaeuser is among the largest companies of its kind in the world, controlling an international network of assets and making sales across North America, Asia, and Europe. The Company is ranked 373rd on the Fortune 500 lists and trades a portion of its shares on the New York Stock Exchange. The Company has a current market capitalisation of $22.55 billion.
Weyerhaeuser provides a broad range of products and services that target commercial and industrial customers across multiple business sectors. These customers can be organised broadly into the following categories:
Construction and Property Development, including various contracting, specialist construction, and real estate and property development companies – including residential, multi-family, industrial and light commercial operators – to which the Company provides lumber, wood products, structural panels, and other specialty products:
Retail, including wood products dealers, and do-it-yourself retailers to which the Company sells various wood products;
Consumer Goods, including producers of consumer items such as sanitary disposable products, food, and beverages, as well as specialist packaging companies, to which the Company provides absorbent products, and specialist packaging products; and
Industrial and Manufacturing, including producers of paper and pulp, textile manufacturers, oil and gas companies, and energy companies to which the Company provides oils, gases, cellulose fibers, and other products.
Weyerhaeuser primarily serves customers across the US and Canada. It is also a significant exporter of products, serving customers across Asia and Europe, in particular customers in Japan and China.
Weyerhaeuser provides value to its customers in the following ways:
Its industry standing and reputation, with the Company established as leading operators in its field, having a track record for providing high-quality products reliably and efficiently;
Its broad portfolio of products, with the Company offering a broad range of products – including lumber, wood products, cellulose fibers, and packaging products – to customers across a diverse range of industries;
Its development of innovative solutions, with the Company dedicating a portion of its funds to the development of innovative processes and solutions that allow it to serve customers quickly and effectively;
Its international sales reach, with the Company serving an extensive customer base across the US and Canada, as well as exporting products to customers in Europe and Asia, particularly China and Japan; and
Its commitment to sustainability, with the Company committed to developing and utilising sustainable and environmentally friendly processes.
Weyerhaeuser operates a website at www.weyerhaeuser.com, through which it provides information on its products, services, target industries, and operating locations. The Company does not, however, operate an online sales channel, nor does it provide an online customer portal trough which customers can manage transactions and orders.
Weyerhaeuser makes sales to its clients through an in-house direct sales organisation, which deals directly with the Company’s clients. This sales force is organised by business segment and by geographic region, with the Company’s sales personnel operating out of an international network of dedicated sales and liaison offices across the US, as well as in Japan, South Korea, Brazil, Uruguay, Ireland, and France.
Weyerhaeuser operates its own network of manufacturing facilities and lumber mills across the US and Canada, as well as a facility in Poland. This infrastructure is supported by the Company’s in-house network of distribution centres and facilities.
Despite its online presence, Weyerhaeuser does not offer any of its products and services to customers on a self-service basis. The Company’s in-house sales personnel deal directly with clients, agreeing the details of individual sales and distribution contracts on a case-by-case basis. The Company seeks to establish longstanding relationships with its commercial clients, with a view too securing recurring business.
Weyerhaeuser has relationships and account management teams that are able to provide ongoing support to its larger clients. Customers can also make more general enquiries with the Company over the phone or via an online contact form, and receive personalised responses to queries and complaints. The Company also provides technical support resources to its customers, including product information, installation guides, and news articles.
Additionally, Weyerhaeuser operates social media accounts with Facebook, LinkedIn, and Twitter, through which it is able to update clients with company development and interact with customers directly.
Weyerhaeuser operates as a real estate investment trust, and an owner of timberlands. The Company is principally engaged in the growing and harvesting of timber, as well as the manufacture, distribution, and sale of products made from trees.
Weyerhaeuser aligns its operations into three reportable business segments: Timberlands, which produces logs, timberland, timber, minerals, oil and gas, and other products, as well as plywood and hardwood lumber; Wood Products, produces and sells structural lumber, engineered wood products, structural panels and complimentary building products; and Cellulose Fibers, which produces pulp and liquid packaging board.
The Company owns approximately seven million acres of timberlands, primarily in the US, and manages additional timberlands under long-term licenses in Canada. It serves an international customer base, spanning multiple industries, including the oil and gas, the construction and development, energy, and manufacturing sectors.
Weyerhaeuser works in conjunction with various companies and organisations in the manufacture, sale, and distribution of its products. These partners can be organised into the following categories:
Supplier and Vendor Partners, including suppliers of materials, tools, and equipment used in the Company’s manufacturing and milling operations, as well as suppliers of services and technologies that are utilised across the enterprise more broadly;
Joint Venture Partners, including manufacturing and timber companies with which the Company jointly manufactures and sells products around the world, through mutually owned entities;
Community and Sustainability Partners, comprising various non-profits and charitable organisations, with which the Company collaborates on various community and sustainability projects at home and abroad; and
Strategic and Alliance Partners, including market leading companies across multiple industries, with which the Company collaborates on various marketing and alliance projects.
Weyerhaeuser has a number of partnership in place. This includes a sustainability partnership with World Vision, a joint venture with Nippon Paper Industries that produces primarily high- brightness publication papers and newsprint, and a community partnership with United Way of the Coastal Empire.
Weyerhaeuser’s key resources are its intellectual properties, its equipment and materials, its supply chain, its manufacturing and milling facilities, its sales and distribution operations, its partnerships, and its personnel.
Weyerhaeuser owns and or leases a number of properties that are key to its operations, this includes its network of sales and liaison offices, as well as its various manufacturing facilities and wood mills, including in the US, Canada, and Poland.
Weyerhaeuser also owns and licenses a number of patents and trademarks which are important in its manufacturing and delivery of products. Searches of records published by the US Patent and Trademark Office identified a number of patent applications filed in the name of Weyerhaeuser, including applications entitled ‘Modified fiber, methods, and systems’, ‘System and method for differentiating type of vegetation from remotely sensed data’ and ‘Sorting green lumber’.
Weyerhaeuser incurs costs in relation to the development of its solutions and processes, the procurement of supplies and materials, the operation of its manufacturing facilities and wood mills, the implementation of marketing campaigns, the operation of its sales and distribution infrastructure, the management of its partnerships, and the retention of its personnel.
In its 2015 annual report, Weyerhaeuser recorded total selling expenses in the amount of $113 million, and general and administrative expenses totalling 289 million. The Company recorded research and development costs totalling $24 million.
Weyerhaeuser generates revenue through the production and sale of lumber, wood products, and cellulose fibers to companies across multiple industries. The Company’s products include softwood lumber, cellulose fibers, engineered wood products, structural panels and other specialty products.
In 2015 Weyerhaeuser recorded total net sales across its three operating segments in the amount of $7.2 billion, down slightly on the $7.4 billion recorded by the Company in 2014. The Company’s largest revenue generator was its Wood Products segment, which recorded net sales for the year of $3.9 billion. The Company’s Timberlands and Cellulose Fibers segments recorded annual net sales of $1.4 billion and 1.9 billion.
President and Chief Executive Officer
info: Doyle Simons (“Simons”) has served as President and Chief Executive Officer at Weyerhaeuser since 2013, and has served on the Company’s Board of Directors since 2012. He oversees the overall strategic direction of the Company. Simons also serves as a director of Fiserv Inc.
Simons was previously a long-serving employee of Temple-Inland, which he joined in 1992. He held a number of roles at the company, including spells as Chairman and Chief Executive Officer, Chief Administrative Officer, and Executive Vice President, until it was acquired in 2012 by International Paper. Prior to joining Temple-Inland, Simons practiced real estate and banking law with Hutcheson and Grundy LLP.
Senior Vice President and Chief Financial Officer
info: Russell Hagen (“Hagen”) has served as Senior Vice President and Chief Financial Officer at Weyerhaeuser since 2016. He oversees the Company’s various financial functions, including accounting, internal audit, investor relations, and tax. He also serves on the Board of Advisors at the Seattle University business school.
Hagen previously worked for a number of years at Plum Creek, which he joined in 1993 as Manager of Internal Audit. He went on to hold financial positions at the company of increasing responsibility, including spells as Senior Vice President of Business Development, Vice President of Real Estate Development, and director-level positions in in accounting, financial operations, risk management and information technology. Hagen began his career in 1988 at PricewaterhouseCoopers, where he served as a certified public accountant and led the audits of public clients in the technology, banking and natural resource industries.
Senior Vice President of Wood Products
info: Adrian Blocker (“Blocker”) has served as Senior Vice President of Wood Products at Weyerhaeuser since 2015. He also sits on the Company’s Board of Directors. Blocker has been with Weyerhaeuser since 2013, when he joined the Company as Vice President of Lumber. He went on to serve as the Company’s Senior Vice President of Lumber from 2013, before assuming his current position.
Prior to joining Weyerhaeuser, Blocker served as Chief Executive Officer and Chairman of the Wood Products Council. He is an experienced industry executive, having held numerous leadership positions at companies such as West Fraser, International Paper, and Champion International, focused principally on wood products manufacturing, forest management, fiber procurement, consumer packaging, strategic planning, and business development.