US timber giant Weyerhaeuser is closing the former Willamette KorPINE particleboard plant in Bend, Oregon, with the loss of 111 jobs.
The company, which recently completed the takeover over of Willamette Industries, said the closure is to improve operational efficiency and financial peformance of its particleboard business.
Willamette had shut down one of the two production lines six months ago but the mill continued to struggle.
William Corbin, Weyerhaeuser executive vice president said: ‘KorPINE has been beset in recent years by high operating costs related to outdated technology, a shrinking supply of raw material in the Bend area and high energy costs.’
Meanwhile, Weyerhaeuser Canada Ltd and Canfor Corporation say they are prepared to absorb the US lumber export duties of up to 30% and settle for lower profits rather than lose major customers such as Home Depot in the middle of a healthy US housing market.
