Georgia Pacific, History Of Company, Essay

841 words - 3 pages

Geogria PacificGeorgia Pacific was established as a lumber hardwood wholesaler in 1927. The company quickly became popular in the U.S., especially in the Northwest and in wooded areas. Overtime the company added additional products paper, packaging, and building products. Eventually the company got involved with asbestos with the Timberwood company. Ever since then they have dealt with lawsuits involving asbestos. In 2005, the Kock Brothers, a private company, bought out Georgia Pacific. Today Georgia Pacific is the world's leader in paper products, lumber, and a number of other items.In 1927, Owen R. Reathen introduced the Georgia Hardwood formally designated as a lumber wholesaler in Augusta Georgia. Owen R. Reathan donated $ 2,000 to jump start the business and to begin a new form of lumbering called dynamic conservation.Dynamic conservation cut 75 percent of trees in a forest per year 10 years leaving the other 15 percent to grow multiply thus increasing lumber and saving trees. The company quickly grew in popularity in he south, so much so that within a decade of he company's existence, it had 5 mills manufacturing lumber. In fact by the time WWII came around, he company was the leading supplier of lumber to the U.S Army, earning them the Army-Navy E award.While the company as busy in the South, Chethem was staking out claims in Oregon for possibly a new location for lumbering. He noticed two things about the trees in Oregon. First they had potential to be really spontaneously reproducing other trees and second, the trees had been neglected for many years. In 1936 Chehem, started testing the trees to see how they reproduced. In 1940 the company realized that they had hit "A gold mine of trees." In 1941, he government signed a contract with Oregan Timber(Georgia Pacific) to over see 9, 356.82 acres of timber called the Sibi forest. In addition to the Sibi forest, Oregon Timber took over Coos Lumber Bay to clean up the 58,000 acres of woods to clean up. The contract was: 5000 of Siskiyu National Forest completed every 5 years and 10,000 acres of woods where Coos Lumber Bay used to be, cleaned up and disposed with every 5 years. In return, he company would receive over one million dollars every year if and only if they completed tasks ontime.. The contract was signed on August 1, 1941, only 14 years after the company was established. The contract lasted for ten years until they couldn't keep up with pace thus the government ended the contract in 1950, however it had made over ten million dollars in profit. In addition, to the company had changed it's name to Georgia-Pacific lumber to reflect it's geographic...

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