- August 20, 2003, PRESS RELEASE
FEDERAL WAY, WA, USA—Weyerhaeuser recently announced it will close two manufacturing operations in Oregon—a containerboard mill in North Bend and an engineered lumber plant in Junction City—permanently.
According to the co., it will take a $25 million after-tax charge, or 11 cents per share, in the third quarter for costs associated with the closures. Weyerhaeuser adds it 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.
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, says the co. Although the mill will not resume operations, employees at North Bend will remain on the payroll until the mill closure date on October 13, 2003. The North Bend mill employs 158 people and was built in 1963; it produces 275,000 tons of medium per year, using 100 percent recycled material, according to Weyerhaeuser.
Explains senior VP of the company's containerboard packaging and recycling, "There simply is not enough market demand for the product. 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."
Weyerhaeuser's Trus Joist plant in Junction City produces laminated veneer lumber for the company's operations in Eugene and Stayton (Oregon), and it employs 128 people. William Corbin, executive VP of Weyerhaeuser's wood products, says the Junction City plant will be closed down by year end. He adds the permanent closure is necessary in order to achieve greater operational efficiency and reduce costs in the co.'s engineered lumber manufacturing business.
Learn more about Weyerhaeuser's operations and products at weyerhaeuser.com.