“The product was performing well, and we had growing adoption in the marketplace,” said Tim Dell, vice president of innovation, marketing and sales at Eastman. “The decision to exit the business was not made because of product performance or market acceptance. When it came down to really understanding the costs associated with production, the economics were challenging and it was going to take too long to see meaningful earnings for our shareholders.”
Snavely Forest Products has been actively marketing Perennial Wood, acetylated wood products, with launches in North and South Carolina in 2012 and Maryland, Virginia, Pennsylvania and Delaware in 2013. “I have never seen a product launch as successful as Perennial Wood,” said Clark Spitzer, Snavely VP of marketing. “The market is ready for this new technology and we believe that acetylated wood is the next big thing in our product line.”
Being an early adopter of new to the world technologies and brands such as Trus Joist Engineered Wood and TREX Decking and Railing; Snavely Forest Products has a long reputation as a company who recognizes and markets new products with focus and successful results.
“We have enjoyed our relationship with Eastman and are appreciative of all they have done to bring this product to market,” Spitzer said.
Snavely, he said, will not abandon the new technology and has opened talks with a European company that develops and commercializes acetylated wood products. The distributor will continue to supply the market with Perennial Wood through the first quarter of 2014. There is sufficient acetylated wood in channel to supply the market well beyond the quarter.
“We are confident that we will execute our plan to transition from Perennial Wood to a new supply without any significant disruption to the dealer network,” Spitzer said.
Demand for acetylated wood porch flooring and decking and other outdoor products continues to grow. Acetylated wood can withstand rain, heat, humidity and cold without shrinking or swelling, checking and twisting.