Weyerhaeuser closes 2 Oregon Operations
August 19, 2003 By Pulp & Paper Canada
FEDERAL WAY, WA Weyerhaeuser announced it will permanently close two manufacturing operations in Oregon a conta…
FEDERAL WAY, WA Weyerhaeuser announced it will permanently close two manufacturing operations in Oregon a containerboard mill and engineered lumber plant.
Weyerhaeuser will take a $25 million after-tax charge, or 11 cents per share, in the third quarter for costs associated with the closures.
The company will provide the affected employees with severance pay and continuation of health care benefits, as well as job-transition services and counseling, consistent with company policy and the applicable union agreements.
North Bend containerboard mill
The North Bend containerboard mill, which produces corrugating medium used to make boxes, has been on indefinite shutdown since early July because of poor market demand. Although the mill will not resume operations, employees at North Bend will remain on the payroll until the mill closure date on Oct. 13. The mill employs 158 people and was built in 1963. It produces 275,000 tons of medium annually, using 100 percent recycled material.
"There simply is not enough market demand for the product," said James R. Keller, senior vice president, Containerboard Packaging and Recycling. "The talented, skilled people at North Bend performed exceptionally, setting numerous world-speed records on their machine and our first priority is to support them."
Junction City engineered lumber plant
Weyerhaeuser’s Trus Joist plant in Junction City, which produces laminated veneer lumber for the company’s operations in Eugene and Stayton, OR, employs 128 people. William R. Corbin, executive vice president, Wood Products, said the closure will occur by year-end and was necessary to achieve greater operational efficiency and reduce costs in its engineered lumber manufacturing business.
"We regret this action became necessary," Corbin said. "The employees at Junction City have done everything they possibly could to make the business successful. They would be a great addition to any workforce."
Some equipment and positions at the Junction City facility will transfer to Trus Joist facilities in Eugene and Stayton. The company expects that about 45 new jobs will be created in Eugene and about the same number in Stayton, resulting in a net loss of about 38 positions. Junction City employees will have an opportunity to transfer to these facilities.
The mill has operated in Junction City since 1978, when the former plywood site was purchased from Georgia Pacific. It makes laminated veneer lumber used in flange material for the company’s I-joist products.
Weyerhaeuser continues to employ approximately 5,000 people in Oregon in a variety of businesses and manages about 1.2 million acres of timberland.
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