Idaho Forest Group to buy assets of closed Kamiah lumber mill

PRESTON (Scrap Monster): The official statement released Monday by the Idaho Forest Group (IFG) notes that it has decided to purchase the assets of a closed sawmill in Kamiah, Idaho presently owned by Blue North Forest Products Inc., The sale is expected to close by end-May. IFG has declined to mention the price of the deal. The company has noted that it does not have immediate plans to reopen the mill. However, the deal will enable the company to acquire the equipment and timber sale contracts.

Poor Lumber Market

In a letter sent to workers, Blue North Forest Products owner Michael F. Burns noted that the company had been undergoing testing times during the past one year. The mill was faced with issues related with purchase of logs to keep the mill busy. The rising imports of Canadian lumber affected the business considerably. In addition, strengthening US dollar made US products more expensive to foreign buyers. Burns also noted that the company had been struggling to infuse more capital into the business towards modernization of equipment. Shortage of timber under contract had also prevented the company from implementing a second shift of operations. Burns noted that he has made all efforts to operate the mill, but the situation is out of control and that he could not afford to any more losses.

Job loss

As per reports, almost 65 workers are likely to lose their jobs with the closure of Blue North’s Kamiah sawmill operations. The workers are being provided with an option to apply for a job at IFG’s other mill locations including Grangeville, Lewiston, Chilco, Laclede and Moyie Springs. Moreover, the company management will work in co-ordination with the Idaho Department of Labor to ensure retraining and educational opportunities for affected workers.

Rescue in 2008

Michael F. Burns had purchased the then Three Rivers Mill property in 2008. The Three Rivers Mill owners had defaulted on loans from West Fargo Bank. The mill was put up for auction, but there were no buyers. It was then that Burns signed an agreement to buy the business for a sum of $2.65 million. The Blue North mill was opened at the same site after two years of maintenance and installation works.

About Idaho Forest Group

Idaho Forest Group (IFG) is one of America’s top producers of wood products. It was formed in 2008 when two regional timber interests – Riley Creek Lumber and Bennett Forest Industries – combined their resources. IFG has its corporate headquarters in Coeur d’Alene, with five mills throughout northern Idaho – in Chilco, Laclede, Moyie Springs, Grangeville and Lewiston. The company was the inaugural recipient of the 2014 Idaho Pacesetter Award. IFG has a capacity for nearly 1 billion board feet of lumber per year and markets its products across the globe.