Boise Cascade Company Announces WARN Act Notice at Elgin Plywood Facility
October 20, 2020
BOISE, Idaho (News release) -- Boise Cascade Company has issued a WARN Act notice to its Elgin, Oregon employees. The Company 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 Elgin facility currently produces approximately 10% of the Company's dry veneer production, the majority of which is sold as plywood and represents approximately 16% of Boise Cascade's plywood sales.
While the demand and pricing for plywood has been favorable during 2020 and the Elgin operation was profitable during the second and third quarters, the Company's ongoing ability to use its waste and storm water has been modified by the Oregon Department of Environmental Quality (ODEQ). The new permit constraints create uncertainty around the future operations at the site. Boise Cascade 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, the Company does 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 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.
