Weyerhaeuser Closing Three Mills
FEDERAL WAY, Wash. (AP) _ Struggling with a weak timber market, Weyerhaeuser Co. will close three sawmills and other operations in Arkansas, Canada and Mexico by the end of the year.
More than 600 workers will lose their jobs with the closures, spokesman Bruce Amundson said Wednesday. The company warned it will take an after-tax charge of $21 million, or 10 cents per share, in the fourth quarter to cover the costs of the closures.
The timber company will close a softwood lumber mill in Mountain Pine, Ark., its Canadian White Pine sawmill and k3 particle board plant in Vancouver, British Columbia, and a sawmill, wood-fiber cement plant and laminated beam plant in Durango, Mexico.
At the same time, the company said it plans to make technical improvements to its plywood mill in Mountain Pine and to other mills in Dierks, Ark., and Wright City, Okla. A particle board plant in Durango also will continue operating.
``We just need to find ways to operate more efficiently,″ he said.
Last month, the company reported a 54 percent drop in third-quarter earnings, as compared to the same period a year ago, and warned that things might get worse in the current fourth quarter.
Earlier this year, Weyerhaeuser closed some operations in Longview, Wash. and Springfield, Ore.
Shares in Weyerhaeuser were up nearly 4 percent, or $2.06, to $53.83 in afternoon trading on the New York Stock Exchange.
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