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BW2008  DEC 20,2001       2:00 PACIFIC      05:00 EASTERN


( BW)(TX-INDUSTRIAL-INFO-RES) U.S. Forest Products Industry Shows
Signs of Getting Out of the Woods in Late 2002, in an Advisory by
Industrialinfo.com

    Business/Energy Editors

	   HOUSTON--(BUSINESS WIRE)--Dec. 20, 2001--The following is an
advisory by Industrialinfo.com (Industrial Information Resources Inc;
Houston). The year ahead will be challenging for America's forest
products industry, much like 2001. Weak demand for some products
combined with a sluggish economy will continue to plague the industry
through most of 2002. Getting out of the "woods" will be determined by
how well manufacturers match production to demand, more industry
consolidation and by limiting capital spending.
	   Capacity expansion is mostly non-existent and growth will be less
than 1%, as plants will still have to contend with production
curtailments through the first half of 2002. Producers have indicated
that machines will no longer run outright, but instead run closer to
demand. By the third quarter of next year, producers expect to see a
significant reduction in high inventories that could trigger long
awaited price increases.
	   Industry consolidation has become necessary for growth as well as
a way to survive in a global marketplace. More mergers and
acquisitions are in line for the industry next year. In the midst of
shuffling manufacturing assets, business groups and marketing
strategies, more of the country's plants will close permanently.
Additionally, consolidation will lead to some U.S. plants falling into
the hands of foreign companies. For some plants, new ownership could
mean an injection of much needed capital investments.
	   Industrial Information Resources recently published 2002
Industrial Outlook (http://www.industrialinfo.com/indoutlook.htm),
available on CD-ROM, projects a whopping 20% decline in capital
spending compared to 2001. Though seemingly dismal, spending will be
sustained by environmental projects, the need to replace aging
equipment and by investments that yield high returns in the short
term.
	   Industrialinfo.com provides daily news related to the industrial
market place including industry alerts and databases for the energy
and industrial markets. For more information on trends and upcoming
construction activities in the pulp & paper industry as well as other
industrial sectors send inquiries to
pulpandpapergroup@industrialinfo.com or visit us at
www.industrialinfo.com and www.iirenergy.com.

    --30--HM/ho*

    CONTACT: Industrialinfo.com, Houston
             Randy Godet, 713/783-5147

    KEYWORD: TEXAS
    INDUSTRY KEYWORD: BUILDING/CONSTRUCTION ENERGY ENVIRONMENT
FOREST PRODUCTS MANUFACTURING
    SOURCE: Industrialinfo.com

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(c) 1999 Business Wire. All of the releases provided by Business Wire
are protected by copyright and other applicable laws, treaties and
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Business Wire`s members who are solely responsible for their content,
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individual user`s reference, is prohibited without prior written
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- Notice of Copyright and General Disclaimer --
(c) 1999 Business Wire. All of the releases provided by Business Wire
are protected by copyright and other applicable laws, treaties and
conventions. Information contained in the releases is furnished by
Business Wire`s members who are solely responsible for their content,
accuracy and originality. All reproduction, other than for an
individual user`s reference, is prohibited without prior written
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