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With a saw. Too simple? Once the log is stripped of the branches it is placed in a machine that rotates it and multiple blades strip off the bark. Then it is placed in the saw and one side is sliced flat with either a large round blade or a band saw. This give a flat side to reference to and it is then sliced into the thickness desired. The slabs are then ripped into smaller sizes depending on what the finished lumber is supposed to be. 2x4, 2x6 or whatever.

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