Home Industry News Boise Cascade issues WARN Act notice at Elgin plywood facility

Boise Cascade issues WARN Act notice at Elgin plywood facility

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Boise Cascade issues WARN Act notice at Elgin plywood facility

Boise Cascade 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 Jan. 1, 2021.

The Elgin facility currently produces approximately 10% of Boise’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 says on its website that the ongoing ability to use Elgin’s 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 said it has significantly reduced purchases of logs for its Elgin operation considering the uncertainty created by the change in environmental constraints and possible curtailment, though 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.

Boise says it 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.