PORTLAND, Ore., April 19 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today announced plans to close its Dallas, Oregon, plywood plant. The closure
will occur on June 23, 2000. The plant employs 170 people. Willamette
expects to take a non-material charge against earnings during the second
quarter to account for the closure.
Willamette decided to close the plywood plant because it was no longer
competitive. "Our decision to close the plant was due primarily to shrinking
markets for western plywood sheathing products," said Tom Arlint, general
manager of western manufacturing for Willamette's Building Materials Group.
"The principal products of the mill are underlayment and sheathing. Oriented
strand board continues to make significant inroads into these markets and we
see this trend continuing."
Also, the plant faced the need for expensive environmental controls. "The
additional environmental controls that would be required contribute to making
it unreasonable to continue this operation," Arlint said.
Discussions with the union representing the workers at the Dallas plant
will soon begin to determine the details of the shutdown.
In other news, the company announced plans to modernize the adjacent
Dallas sawmill. The project will speed up the existing headrig, modernize the
planer and install a new edger and sorter. A new road to the log-yard will be
constructed to allow log trucks to enter the property without traveling
through Dallas. The modernization will not result in additional employment at
the sawmill, which currently employs 120.
Willamette Industries is an integrated forest products company with
106 plants, located in the U.S., France, Ireland and Mexico. The company owns
1.7 million acres of forestland in the U.S. and manages it sustainably to
produce building materials, composite wood panels, fine paper, office paper
products, corrugated packaging and grocery bags.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and uncertainties and
actual results could differ materially from those projected. Such risks and
uncertainties include, but are not limited to, the effect of general economic
conditions; the level of new housing starts and remodeling activity; the
availability and terms of financing for construction; competitive factors,
including pricing pressures; the cost and availability of wood fiber; the
effect of natural disasters on the Company's timberlands; construction delays;
risk of nonperformance by third parties; and the impact of environmental
regulations and other costs associated with complying with such regulations.
Please refer to Willamette Industries' Securities and Exchange Commission
filings for further information.
SOURCE Willamette Industries, Inc.
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CONTACT:
Catherine Dunn of Willamette Industries,
503-273-5642
NOTE TO EDITORS: A full copy of this release and other company
news is available at http://www.wii.com or by fax at 800-758-5804 - code
971763.
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