Weyerhaeuser closing Evergreen plant for a week
Plywood at Weyerhaeuser on Tuesday, October 1, in Evergreen. (Brenda Ahearn/Daily Inter Lake)
Weyerhaeuser closing Evergreen plywood plant for a week
Weyerhaeuser on Wednesday announced it is shutting down its Evergreen plywood plant for one week in response to the COVID-19 pandemic.
“As we manage through this unprecedented pandemic, we are temporarily closing our [Evergreen] plywood mill in Montana for one week, beginning April 6, to better align our production volumes with market demand,” Nancy B. Thompson, director of governmental affairs for the company, said in a press release. “Affected employees will have access to continued Weyerhaeuser benefits during this time. We are doing everything we can to limit the impact of this situation on our people, customers and local community during an already stressful time.”
Weyerhaeuser has mills in both Evergreen and Columbia Falls. In Columbia Falls it operates a medium density fiberboard plant.
The company also announced it is taking other steps to strengthen its balance sheet.
It is limiting or deferring non-essential operating expenses; reducing 2020 capital expenditures by approximately $70 million to $90 million; and will increase cash-on-hand by $550 million through a draw on its revolving credit, which expires in January 2025 and has $950 million of capacity remaining.
In addition, it has $145 million in cash from the sale of its Montana timberlands. Last week it also issued $750 million of 4% notes through a public bond offering, with proceeds to be used to refinance the company’s outstanding 2021 debt maturities, the company said.
At F.H. Stoltze Land and Lumber Co., the Columbia Falls mill is operating as usual, with precautions being taken to ensure the health of employees, said Paul McKenzie, lands and resource manager for the company.
McKenzie said there’s a lot of uncertainty by buyers.
“People are being very cautious,” he said.
Stoltze manufactures dimension lumber.
Lumber futures were trading at about $278 per 1,000 board feet as of Wednesday, but had been well above $400 at the end of February, according Nasdaq listings.