IAM W15

IAM W15

International Association of Machinists and Aerospace Workers

W15

News

Weyerhaeuser Closes Mountain Pine Plywood

11/29/2006
Today Weyerhaeuser Company me with the employees at its Mountain Pine Plywood Plant, and announced an immediate shut down of the operation. Although the bargaining unit employees have worked hard to meet the needs of the Company, it was to no avail.

By closing the plant about 300 bargaining unit employees and 40 salaried employees will lose their jobs.

Below is the Company’s News Release on the closure:

For immediate release For more information contact: Kathy Stacey (870) 642-1388 or (870) 210-0014

Weyerhaeuser Company announces closure of Arkansas plywood mill

MOUNTAIN PINE, Ark. — In connection with its ongoing strategic review, Weyerhaeuser Company today announced that it is permanently closing its veneer and plywood facility here, effective immediately.

The Mountain Pine closure will eliminate about 340 hourly and salaried positions. Affected employees will receive full pay for 60 days, as allowed by the WARN Act.

“Today’s announcement is part of the ongoing effort to strengthen Weyerhaeuser’s overall portfolio to enhance shareholder value,” said Steven R. Rogel, chairman, president and chief executive officer. “As part of an ongoing strategic review of our businesses and against the backdrop of industry-wide market challenges for wood products, we have determined that this mill cannot be made economically sustainable.

“The closure of a mill is a difficult decision, but the reality of difficult markets requires that we allocate our capital with great prudence to ensure all manufacturing operations remain competitive and well positioned to serve our customers.” Rogel said. “Weyerhaeuser’s employees work diligently to make our mills competitive and today’s announcement is a reflection of the challenging business environment we face. We recognize the impact of this closure on the people of Arkansas, and we will do our best to work with state and local leaders to assist in the transition.”

The Mountain Pine facility began producing lumber in the 1920s and was purchased by Weyerhaeuser in 1969 from Dierks Forest Industries. The plywood operation started in 1971. Its estimated annual production capacity is 240 million square feet (3/8” basis) of softwood plywood. Other Weyerhaeuser pine plywood facilities are located in Emerson, Ark., Springfield, Ore., and Dodson and Zwolle, La.

Weyerhaeuser continues to operate other businesses in the state, including: a softwood lumber plant in Dierks; a softwood contract lumber mill and containerboard packaging sheet-feeder operation in Russellville; a plywood plant in Emerson; a containerboard packaging plant in Fort Smith; a retail design center in Bentonville; and a wood products sales office in Hot Springs. In Arkansas Weyerhaeuser also owns and manages more than 700,000 acres of commercial timberland.

Weyerhaeuser Company, one of the world’s largest integrated forest products companies, was incorporated in 1900. In 2005, sales were $22.6 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser’s businesses, products and practices is available at http://www.weyerhaeuser.com.

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Last modified: 12/13/2006