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Spokane, Washington  Est. May 19, 1883

Probe Shows Flaws In Siding For Homes Oriented Strand Board Doomed To Failure In Wet Weather

Associated Press

A two-month investigation by The Oregonian shows that Louisiana-Pacific Corp. siding is doomed to failure in wet weather, leaving homes rotting away across North America.

One researcher compares the wood chips and glue used to make L-P siding to “ice cream” being served up to wood-eating fungi that are like “a horde of 8-year-olds.”

“It goes faster than you can watch it,” said Bill Dost, a former University of California researcher.

Louisiana-Pacific already has paid $46 million in homeowner claims since the siding was introduced and stock analysts predict the total eventually could exceed $300 million.

Investors are suing the company, contending they have been misled about the extent of the company’s financial woes.

Louisiana-Pacific also faces a 56-count federal criminal indictment in Denver, alleging it schemed to defraud customers and cheat on environmental laws.

Last month, the company forced out Chairman Harry A. Merlo, who helped create the siding as a cheap substitute for plywood used in home construction.

At the University of Portland, the L-P siding used on the walls of the Harry A. Merlo Field soccer stadium sprouted a mushroomlike fungus last week, an embarrassing footnote to the tenure of the man who built a spinoff of Georgia-Pacific into a Fortune 500 company.

L-P has responded to recent media attention by pulling its siding from the market in Florida and Georgia, where humidity and lawsuits have taken their toll.

Production of the siding has slowed as the company struggles to add more sealant to keep water out.

Siding is the protective skin of many people’s most valuable nest egg - the family home. Wood siding is supposed to last for the duration of the house and is vital to maintaining a home’s appearance.

Homeowners can face a bill of $10,000 or more to replace the wood if the siding fails, leaving them with a warranty that typically covers far less, or a decision whether to sue.

Louisiana-Pacific maintains that claims so far amount to less than 2 percent of the 2.7 billion board feet of siding produced.

“For every one house you can show me where it is not performing, I will show you 99 houses where it is performing,” company spokesman Barry Lacter said.

However, even the American Plywood Association, which certified the siding in 1986, now says it believes something is wrong.

Housing inspectors rely on organizations such as the APA to ensure that a product will meet building quality standards, and the siding was tested. But now it appears there were flaws testing could not predict.

“It’s clear something’s not right, and we want to find out what that is,” said Michael R. O’Halloran, director of the technical services division at the association.

Leading researchers on composite wood products say the material used to make the siding - oriented strand board - is unsuited for outdoor use.

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