Door-Maker Told to Sell Plant

WASHINGTON (AP) - The Justice Department (news - web sites) said Friday that Premdor Inc. (PI - news) must sell off a door manufacturing plant to satisfy antitrust concerns about its $527 million acquisition of the Masonite Corp. from International Paper Co. (IP - news) The department filed a lawsuit in U.S. District Court here to block the proposed transaction. At the same time, it filed a proposed consent decree that, if approved by the court, would resolve the lawsuit. Masonite, a subsidiary of International Paper, is the largest manufacturer of molded doorskins, the primary component needed to make molded doors. Premdor, headquartered in Ontario, Canada, makes interior and exterior doors and is the world's largest manufacturer of interior molded doors. It is also a competitor of Masonite's in the molded doorskin market. The Justice Department said the acquisition, as proposed, would have removed competition from the molded doorskin market, leading to higher door prices for lumber yards, building supply companies and homeowners. The consent decree requires the divestiture of Masonite's Towanda, Penn., facility to maintain an independent molded doorskin manufacturer. Masonite is based in Chicago. International Paper is headquartered in Stamford, Conn.