Weyerhaeuser will spend $50M to fix “smelly” joists

July 20, 2017

By: The Working Forest Staff

SEATTLE – Weyerhaeuser estimates it will cost US$50-60 million to address customer concerns about its TJI Joists with Flak Jacket Protection product.

The company has determined that recent customer feedback regarding an odor in certain newly constructed homes is related to a recent formula change to the Flak Jacket coating that included formaldehyde-based resin. Weyerhaeuser says it is working proactively with its customers to address this situation and will cover the cost to either remediate or replace affected joists.

This issue is isolated to Flak Jacket product manufactured after Dec. 1, 2016, and does not affect any of the company’s other products.

Flak Jacket Protection is a coating applied to I-joists to enhance fire resistance. The product is present in the basements of approximately 2,200 houses in various stages of construction in limited markets. Most of the houses are not yet occupied.

The company has halted all production, sales and shipments of the product, and is collecting unused product from customers.

“We deeply regret the disruption and inconvenience this situation has caused,” said Doyle R. Simons, president and CEO. “Our top priority is to take care of our customers and their customers. We are absolutely committed to doing the right thing and resolving this situation as quickly as possible.”

The company expects the before-tax costs associated with resolving this issue to be approximately $50-60 million and a reserve will be recorded in the second quarter of 2017.

Weyerhaeuser notes that the company has sold a total of approximately $9.0 million of the Flak Jacket product since December 2016, representing less than one half of one percent of the company’s total Wood Products sales. For the full year 2016, Weyerhaeuser reported net sales of $6.4 billion.

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