A plywood panel is provided with a durable and highly weather-proof surface and a plurality of embossed parallel grooves therein for enhancing its appearance. A metal caul plate is formed with the series of spaced apart ridges corresponding to desired grooves in the panel. A moist, spongy fibrous web is placed between the surface of the plywood panel and the surface of the caul plate, with an adhesive coating on either the panel or on the web surface facing the panel. The assembly of the caul plate and the plywood panel with the web therebetween is inserted into a hot press and subjected to heat and pressure and the web is firmly adhesively secured to the panel. The web, as well as the adhesive used for securing the web onto the panel, contains a quantity of thermo-setting phenolic resin so that the covered surface of the panel is durable and highly weather-proof. The original plywood panel may be of low quality and grade, having surface defects and blemishes, all of which are concealed by the covering web.