December 2014

Domtar announces major investment at Ashdown millDomtar Corporation announced

December 10 that its Board of Directors has approved a $160 million capital project to convert a paper machine at the Ashdown mill to a high-quality fluff pulp line used in absorbent applications such as baby diapers, feminine hygiene and adult incontinence products. The planned conversion is expected to come online by the third quarter 2016 and will allow for the production of up to 516,000 metric tons of fluff pulp per year once the machine is in full operation. The project will also result in the permanent reduction of 364,000 short tons of annual uncoated freesheet production capacity in the second quarter of 2016.

“The fluff pulp conversion project at the Ashdown mill is an important step in advancing our strategy to generate $300 to 500 million of EBITDA from growth businesses,” said John D. Williams, Chief Executive Officer. “We are expanding our presence in a growing business that will allow us to support our top-tier supplier position with some of the world’s largest

producers of absorbent hygiene products. Once completed, Ashdown, together with our Plymouth mill will provide a platform to further strengthen our leading position as an effective producer of high quality fluff pulp with nearly one million tonnes of total production capacity.”

Commenting on the reduction of papermaking capacity, Williams added, “The conversion of the paper machine in 2016 will further help balance our supply with our customers’ demand. In the interim, the flexibility of the two remaining paper machines at the Ashdown mill allows us to take measured steps to adjust our paper production while selling papergrade pulp.”

The conversion work is expected to commence during the second quarter of

2016 and the fluff pulp line is scheduled to start-up by the third quarter 2016. The cost of conversion will be approximately $160 million, of which $40 million is expected to be invested in 2015 and $120 million in 2016. The company will also invest in a pulp bale line that will provide flexibility to manufacture papergrade softwood pulp, contingent on market conditions.

Posters of the Arkansas House of Representatives and Senate members and their districts are available to

pick up at the AFA office. Please call (501) 374-2441 for more information.

“These popular, helpful maps provide great visibility for AFA and the forestry community,” said Max Braswell, AFA executive vice president. “They can be found throughout the State Capitol, state and federal agencies, associations, and businesses around the state.”

This year’s sponsors include: AFA, Arkansas Forest & Paper Council, Arkansas Timber Producers Association, Arkansas Independent Producers and Royalty Owners, Clearwater Paper, Deltic, Domtar, Evergreen, Green Bay Packaging, Georgia-Pacific, International Paper, Plum Creek, Potlatch, Brent Stevenson Associates and Weyerhaeuser.

House and Senate posters available at AFA office

CALENDARDecember 24-26

AFA Office Closed in Observance of Christmas

January 1-2AFA Office Closed in

Observance of the New Year

January 710 a.m. - Program Committee

AFA Office - Little Rock

January 15AFA Board of Directors

Orientation10 a.m. - 2 p.m.

Arkansas State Chamber of Commerce, Little Rock

January 209:30 a.m. - Forest Practices

CommitteeAFA Office - Little Rock

January 2710 a.m. - Communications

CommitteeAFA Office - Little Rock

February 25Forestry Day at the Capitol

Details TBA

March 9AFA Legislative Reception

Details TBA

March 31Log A Load For Kids Campaign

Kickoff - Arkansas Children’s Hospital

May 7-8AFA Board of Directors Meeting

Rogers

October 6-8AFA Annual Meeting

Hot Springs

Tree Farm program honors inspectorsThe Arkansas Tree Farm committee

recently recognized volunteer inspectors and partnering organizations for their work on property inspections in 2014. AFA administers the American Tree Farm System in Arkansas. There are 1,635 Tree Farmers in Arkansas representing 716,964 acres of certified timberland.

Committee Chairman Caroll Guffey, with the Arkansas Forest Resources Center, and Vice Chairman John Cook, with the Arkansas Forestry Commission (AFC), presented awards at a luncheon on December 17 in Benton.

Outstanding DistrictDistrict 5 - Completed 181 inspectionsClark, Dallas, Garland, Grant, Hot Spring and Saline Counties

Inspector of the YearMichael L. James, Anthony Timberlands

District Chair AwardJody Perritt, Arkansas Forestry Commission

Outstanding AgencyArkansas Forestry Commission - Completed 333 inspections

Outstanding CompanyAnthony Timberlands

Bronze and Silver Hard Hat Award(For conducting at least 50 new inspections)Michael L. James, Anthony Timberlands

Each year, the Arkansas Tree Farm committee inspects a required number of properties to evaluate their management plans according to the Tree Farm Standards of Certification. The committee completed the 117 required inspections. In addition, these volunteer inspectors visited a total of 554 Tree Farms and signed up 54 new woodland owners into the program.

The committee elected John Cook, an AFC district forester, to serve as chairman and Robert Murphy, also an AFC district forester, to serve as vice chairman in 2015. Guffey will stay on as the training facilitator.

AFA Officers and Executive Committee Members

President – Pete Prutzman, Kingwood Forestry ServiceVice-President – Steve Hanley, Plum Creek

Secretary – David Cawein, Pinecrest Lumber, Fiber Resource DivisionTreasurer – Robert Gray, Potlatch Forest Holdings

Aubra Anthony Jr., Anthony Forest Products

Steve Anthony, Anthony TimberlandsAllen Bedell, Retired, Circle B Logging

Tom Crowder, U.S. Trust, Bank of AmericaRay Dillon, Deltic

Glenn Gray, Georgia-PacificGreg Hay, CPS Timberlands

Mark Karnes, The Ross FoundationAllen Morgan, Hunter-Wasson Inc.

Keith O’Rear, WeyerhaeuserFrank Wilson, Wilson Bros. Lumber Co.

AFA leadership in place for 2015

Merry Christmasand Happy New Year

from theArkansas Forestry

Association

Lifetime member Q&A:Clint Horn, Timber LogisticsFollowing is a Q&A with AFA Lifetime

Member Clint Horn, with Timber Logistics in Warren. For more information about AFA’s lifetime membership, contact AFA at (501) 374-2441 or info@arkforests.org.

How did you become interested in forestry?My grandfather worked for the Pennsylvania state forest district and he and I used to take rides and talk about trees and wildlife.

What was your first job in the forestry field? Contract chainsaw work and timber marking in the Appalachian Mountains, Franklin County, Penn.

What do you do, and how long have you been doing it?I manage and operate my own timber management and marketing firm. I have been involved with the forest industry for approximately 20 years as a forester and procurement representative.

From which individual have you learned the most in your life? What did he/she teach you? 

I learned the most from a professor when I was enrolled at Penn State. His name is Jim Hale. He was an “old-school, dirt forester.” He had a lot of experience and appreciated hard work. He taught me the basics of forestry, how to associate and deal with a variety of people, and it was okay to take a break every once and a while.

If you had $1 million to invest, where would you invest it and why? I would have to do a little research, but I would like to invest in some additional property. Maybe another business venture? Would definitely take a lot of pondering to make that decision!

If you could have dinner with one living or non-living person, who would it be? My grandfather. He passed when I was ten and I would like to get his opinion on a few things.

What book are you currently reading? Re-reading Gods and Generals, by Michael Sharra.

What is your favorite travel destination?

Above: Clint Horn (left) at the Bradley County Log A Load event in September.

Anywhere in the Caribbean.

What is the quality you most admire in others?Respect, ethics, and straightforward honesty.

What value do you find in AFA membership?I support the AFA to protect private timberland owner’s rights. The AFA ensures our voice is heard within our legislature and encourages the sustainability of an industry I’ve dedicated my career and counted on for my livelihood.

GT students explore natural resourcesIn June, Clarksville Gifted and Talented

(GT) teacher Connie Watkins attended the Teacher Conservation Tour, the state’s premier summer environmental education program for teachers, sponsored by the AFA Education Foundation. She was so impressed with the information and resources provided that she decided to use forestry and natural resources as the focus her elementary GT classes.

Working with AFA Education Foundation Forestry Education Director Rob Beadel, Watkins developed a field day to get her students into the woods and exploring forestry. On December 10, 40 students visited the Arkansas Champion White Oak, known as the Council Oak, in Dardanelle (bottom left picture); participated in an eagle program at Lake Dardanelle State Park (pictured on the far right); toured Gary Churchill’s Tree Farm in Dover to learn about forest management and saw wildfire fighting tools and equipment at the U.S. Forest Service Bayou Ranger District Office in Hector (upper left picture).

Growth in Deltic’s assets drives growth in valueDeltic Timber is a natural resources

company, strongly committed to a strategy of owning and operating vertically integrated assets, while achieving growth in those assets, over time, to grow the value that the company’s operations add to both Arkansas’s economy and the investment of shareholders. This operating strategy begins, first and foremost, with the benefits of owning Southern pine timberland and managing it responsibly. As such, Deltic Timber maintains a disciplined sustainable-yield harvest strategy for the timber growing on these lands. In addition, the company also actively pursues opportunities to add to its timberland base through acquisitions, and during 2014, accomplished growth in its timberland assets of just over 72,000 acres.

“Deltic Timber’s strength is in the quality, diversity, and integration of our assets,” said Ray Dillon, President and CEO of Deltic. “Our core asset of over 530,000 acres of well-stocked, Southern pine timberland is the backbone of the company, with our other businesses operated largely to accomplish value addition to the trees growing on these lands.”

The timber on Deltic’s land base supplies much of the raw material needs of the company’s two efficient sawmills, located in Ola and Waldo, as Deltic converts the logs harvested from the timberlands into high-quality dimension lumber and timbers. During 2014, Deltic accomplished an increase in the permitted environmental production capacity of both sawmills and began the investment of capital to grow their production capability in order to be well positioned to take advantage of the continuing U.S. housing recovery. Additionally, much of the residual by-products generated from this lumber manufacturing process, in the form of wood chips, shavings, and sawdust, then make

their way to the company’s Del-Tin Fiber facility in El Dorado, to be manufactured into medium density fiberboard. Therefore, Deltic Timber’s acquisition of the remaining 50% ownership of Del-Tin Fiber in April 2013 was another way the dompany has achieved growth in its integrated asset base.

Lastly, the company achieves the realization of the highest and best use of selected areas of its land holdings, as it is responsibly developed this acreage into valuable residential and commercial communities. Deltic Timber’s real estate holdings in Pulaski and Garland Counties are diverse, as well. Chenal Valley, the company’s 5,000-acre, flagship planned development in Little Rock contains in excess of 2,600 home sites. During 2014, Deltic developed and offered a new, small-lot, residential development that is located near Chenal Valley, responding to the demand for additional middle-income housing in the area. In addition, the development of commercial real estate properties in Chenal Valley, including The Promenade at Chenal, Arkansas’s largest open-air lifestyle retail center, as well as St. Vincent West, a medical facility complex, bodes well for the future success of the company’s quality developments.