Weyerhaeuser to initiate permanent shutdown of Columbia Falls mills next week

KALISPELL (Scrap Monster): Weyerhaeuser Company has announced that it will start shutdown of its lumber and plywood mills in Columbia Falls, Montana by next week, after operating for nearly seventy years. The shutdown process will take place in accordance with the earlier plan.

Earlier in June this year, the company had stated that the mills will be permanently closed in late August or early September. The employees were informed about the closure on 22^nd June. Columbia Falls city manager Susan Nicosia, Flathead County Commissioner Pam Holmquist, and Kalispell Mayor Mark Johnson were also informed.

According to Montana Resources Team Leader Tom Ray, the lumber production at the mills will come to an end by August 19^th. However, a few employees will stay on for some more days, until the final loads are shipped out of the mill. Meantime, the company plans to continue operations at its two mills in evergreen and the medium-density fiberboard plant in Columbia Falls.

The company cited short supply of logs as the key reason for the closure of the mills. Despite sincere efforts by Montana political leadership, the log supplies failed to witness significant improvement. Considering the long-term log supply situation, the company conducted a review of its operations and arrived at the conclusion that it would be ideal for it to consolidate to the Kalispell facilities.

The press release issued by Wayerhaeuser notes that 146 employees from Columbia Falls would be offered job at the Evergreen mills. Upon full closure of the facility, 72 mill workers will lose their jobs. The closure will also lead to loss of nearly 100 administrative jobs at the Columbia Falls office. The closure will also impact dependent companies and loggers who work on Weyerhaeuser-owned land.

Meantime, Columbis Falls officials expressed the hope that the land currently occupied by the mill could be repurposed to attract new industry. However, Weyerhaeuser is yet to disclose its future plans.

The mills were previously owned by Plum Creek. However, they became part of Wayerhaeuser with the company announcing merger with Plum Creek during February this year.

Earlier in June this year, Wayerhaeuser had announced an agreement to sell its liquid packaging board business to Nippon Paper Industries Co., Ltd. for $285 million in cash. The announcement was part of the strategic review of the company's Cellulose Fibers business, which was initiated in November 2015. The sale covered one mill located in Longview, Wash., with an annual capacity of 280,000 tons.

The company had announced the planned sale of its pulp mills in May 2016. According to latest update, the US Department of Justice has concluded the regulatory review on the proposed acquisition of Weyerhaeuser’s pulp business by International Paper Co. The purchase deal includes five pulps mills located in Columbus, Miss., Flint River, Ga., New Bern, N.C., Port Wentworth, Ga., and Grande Prairie. The transaction is expected to be completed during the last quarter of 2016.

Meantime, the company reported net earnings of $157 million from continuing operations of $1.7 billion. This is in comparison with net earnings of $133 million on net sales from continuing operations of $1.3 billion for the same period last year. Also, wood products reported strongest quarterly earnings in over a decade. On the other hand, timberlands earnings declined slightly compared with first quarter.

Weyerhaeuser is one of the world's largest private owners of timberlands. It owns or controls more than 6 million acres of timberlands, primarily in the U.S., and manages another 14 million acres under long-term licenses in Canada.