Boise Cascade Operation At Elgin Is Up In Air

by | Oct 30, 2020 | News

Boise Cascade Operation At Elgin Is Up In Air 

Boise Cascade has issued a Worker Adjustment and Retraining Notification (WARN) Act notice to its employees at its operations in Elgin, Ore. “We issued the notice in order to ensure that all employees are aware it is possible the mill will have to reduce production levels beginning on or about January 1, 2021,” the company states.

While the demand and pricing for plywood has been favorable during 2020 and the Elgin operation was profitable during the second and third quarters, Boise states that its ongoing ability to use Elgin’s waste and storm water has been modified by the Oregon Dept. of Environmental Quality (ODEQ). The new permit constraints create uncertainty around the future operations at the site, according to Boise, which has significantly reduced its purchases of logs for the Elgin operation considering the uncertainty created by the change in environmental constraints and possible curtailment. “At the current time, we do not expect to have enough logs available to operate throughout the entire winter even if the open concerns with ODEQ are favorably resolved before the end of the year,” the company states.

The Elgin facility currently produces approximately 10% of Boise’s dry veneer production, the majority of which is sold as plywood and represents approximately 16% of Boise’s plywood sales.

The company says it will continue to evaluate plywood market conditions, log supply availability, operating costs, environmental permits and other factors influencing the long-term viability of the Elgin plywood operation as the situation warrants.

 

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Boise Cascade Selling Two Sawmills, P’Board Operations In Oregon To Woodgrain

by | Sep 14, 2018 | News

Boise Cascade Company has entered into an agreement with Woodgrain Millwork to sell its northeast Oregon lumber mills in Pilot Rock and La Grande and the particleboard operations in Island City. The planned transaction does not include Boise Cascade’s plywood mill or the powerhouse and log utilization center, based in Elgin, OR.

Woodgrain is a manufacturer and supplier with a diverse product offering including moulding, door shop products, and window parts, headquartered in Idaho. “The sale to Woodgrain allows us to further focus on our veneer-based engineered wood products and plywood businesses,” said Mike Brown, senior vice president of operations, Boise Cascade Wood Products division. “Woodgrain is a family-owned company with a solid reputation in the industry. The products manufactured at these northeast Oregon facilities are a good fit with their business strategy.”

“Being a fully integrated company in each step of our supply chain has become one of our core strengths as a company,” said Kelly Dame, Woodgrain CEO. “Being able to grow the Woodgrain Lumber division is a key step in growing as a company. We are excited about the opportunity it offers.”

The details of the agreement were not disclosed and the transaction is contingent upon the results of the due diligence process, which is expected to take approximately 60 days.