ed by people who have been exposed to asbestos from Georgia-Pacific, lawsuits have increased Georgia-Pacific's insurance premiums and decreased profit. Due to competing companies' bankruptcies from asbestos settlements, Georgia-Pacific has turned into the 'whipping boy' for almost all pending asbestos lawsuits.
Occupational Safety and Health Administration Fines
The deaths of two workers from exposure of high concentrations of hydrogen sulfide gas at a paper mill have resulted in a $91,000 fine. The Occupational Safety and Health Administration will continue to impose fines on Georgia-Pacific until they maintain a safe workplace.
Increase demand for Solid Wood Building Products
Due to the surge in residential construction in Japan and China, solid wood building products have become scarce. Georgia-Pacific has been affected by a decrease in procurement of raw materials used in their building product lines. Also, with they advent of new engineered wood products that are more complex to manufacture, Georgia-Pacific has needed to build more manufacturing complexes to meet demand.
The Playtex Products Company has filed a lawsuit against the Georgia-Pacific for trademark infringement. The case involves the use of Playtex' Wet Ones, and Georgia-Pacific's Moist Ones. Playtex produces a toilet product called Wet Ones, which used to clean various parts of the human body. The Georgia-Pacific produces a product called Moist Ones that can be used to clean the body and furniture. The trademark infringement is based on Georgia-Pacific copied Playtex brand name. Playtex wants Georgia-Pacific to discontinue the use of its product line, and pay for the settlement.
After examining these four external factors that affect Georgia-Pacific, and reviewing Georgia-Pacific reactions to these events, I believe that Georgia-Pacific has reasonably responded to each external factor. Increase in demand for raw materials...