Weyerhaeuser Announces Sale of Oregon Plywood Mill

Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900.

Image: Weyerhaeuser

(SPRINGFIELD, Ore.) - Weyerhaeuser Company (NYSE:WY) announced today it has signed a purchase and sale agreement to transfer ownership of its plywood mill in Springfield, Ore. to Pacific States Industries, Inc. of San Jose, California.

"We are pleased to reach mutually agreeable terms with Pacific States Industries," said Cathy Slater, vice president of Weyerhaeuser's veneer technologies. "We anticipate that the sale will be completed within the next 30 to 45 days."

Due to market conditions, the Springfield facility has been closed since December 2006. At the time, it employed 87 people and had the capacity to produce 114,000 million square feet of 3/8-inch plywood annually.

"The plywood operations at Springfield will compliment our existing production of veneer in Creswell, Oregon," said Austin Vanderhoof, executive vice president of Pacific States Industries. "The plant has an outstanding reputation for producing quality products and we look forward to continuing that tradition."

Operating through its Redwood Empire division, Pacific States Industries operates two sawmills in Northern California and distributes those dimension wood products throughout the country. In addition, Redwood Empire's Wholesale group distributes decking, fencing, hardwood, landscaping items, panel products, pre-built panels, softwood and treated lumber. The company also owns timberland in Northern California. Redwood Empire was founded in 1971. Pacific States Industries is owned by the Burch family, including its president Roger Burch. The company also owns Bald Knob Veneer in Creswell, Oregon.

In Oregon, Weyerhaeuser employs approximately 4,500 people in a variety of businesses and manages more than one million acres of timberland.

Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2006, sales were $21.9 billion. It has offices or operations in 18 countries, with customers worldwide.