Weyerhaeuser Co. says it will spend $50 million to $60 million to remove or remediate foul-smelling wood in about 2,200 homes

The source of the stink is recent formula change to Flak Jacket coating product that included formaldehyde-based resin. The fire resistant coating was used on wood floor joists in basements.

Flak Jacket coating product

Seattle-based Weyerhaeuser (NYSE: WY) says it has stopped production, sales and shipments of the product and is taking back unused product from consumers.

“Most of the houses are not yet occupied,” the lumber company said in a news release. “Weyerhaeuser is working proactively with its customers to address this situation and will cover the cost to either remediate or replace affected joists.”

Formaldehyde can give off a “pickle-like” smell, according to Consumer’s Report.

“We deeply regret the disruption and inconvenience this situation has caused,” Weyerhaeuser President and CEO Doyle Simons said in the news release. “Our top priority is to take care of our customers and their customers. We are absolutely committed to doing the right thing and resolving this situation as quickly as possible.”

Weyerhaeuser said it has sold $9 million of the Flak Jacket product since December. Weyerhaeuser reported about $6.5 billion in net sales companywide last year.

“This issue is isolated to Flak Jacket product manufactured after Dec. 1, 2016, and does not affect any of the company’s other products,” the company said.

Weyerhaeuser will reserve expenses for the remediation in the second quarter of 2017.