PORTLAND, Ore., Oct. 17 /PRNewswire/ -- Willamette Industries (NYSE: WLL)
today announced plans to close its Ruston, Louisiana, plywood plant. Plant
operations will be phased out over the remainder of the year with an estimated
closure date of January 15, 2001. The plant employs 246 people. Willamette
expects to take a $4 million pre-tax charge against earnings during the
fourth 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 plywood products," said Duane McDougall, president and CEO. "The
principal product of the mill was commodity grade sheathing. Oriented strand
board has made significant inroads into this market and we see this trend
continuing."
Discussions with the union representing the workers at the Ruston plant
have begun to determine the details of the shutdown.
Willamette Industries owns nine other building materials operations within
a 37-mile radius of the Ruston plant, employing 1,014 people. Displaced
Ruston workers will be given the opportunity to apply at these facilities.
Willamette Industries is an integrated forest products company with more
than 100 plants, located in the U.S., France, Ireland and Mexico, which
produce building materials, composite wood panels, fine paper, office paper
products, corrugated packaging, and grocery bags. Willamette owns 1.7 million
acres of forestland in the U.S. that are managed according to the company's
Sustainable Management for Timber, Water Quality and Wildlife Program.
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
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CONTACT:
Cathy Dunn of Willamette Industries,
503-273-5642
NOTE TO EDITORS: A full copy of this release, as well as other
company news, is available at http://www.wii.com
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