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On Dec. 16, Kerr-McGee Chemical L.L.C. announced plans to exit the forest-products business — it'll cease treating and supplying wood ties for the U.S. rail market by 2005.


The wholly owned subsidiary of Kerr-McGee Corp. plans to close its Columbus, Miss., Madison, Ill., and Springfield, Mo., plants by year-end 2003, and its Texarkana, Texas, plant by the end of 2004. In the interim, the supplier expects to continue operating the plants and fulfilling current orders.


Kerr-McGee also leases a plant in The Dalles, Ore., from Union Pacific Corp., and soon will determine whether to continue operations at the facility until the lease expires Nov. 30, 2004, or sell its leasehold interest.


"Exiting the forest products business is consistent with Kerr-McGee's strategic plan to profitably grow our two core businesses, oil and gas exploration and production, and the production and marketing of titanium dioxide pigment," said W. Pete Woodward, Kerr-McGee senior vice president, chemicals, in a prepared statement.


In 1963, Kerr-McGee acquired the forest-products division, which makes up about 1 percent of its total assets.