Boise Cascade ‘WARNs’ of production cuts at Oregon plant

Boise Cascade has issued a WARN Act notice to employees at its Elgin, Ore. facility.

In a statement issued by engineered wood products and plywood producers, Boise Cascade said that it issued the notice to ensure that all employees are aware that mill production levels could be reduced on or about Jan. 1, 2021. 

The Worker Adjustment and Retraining Notification Act of 1988 (WARN Act) is a labor law, which protects employees with 60-day advance notice for plant closings and mass layoffs.

The Elgin facility products 10% of Boise Cascade’s dry veneer production, the majority of which is sold as plywood, and represents approximately 16% of Boise Cascade’s plywood sales.

Demand for plywood has been strong in 2020, with the Elgin facility profitable in the second and third quarters, Boise Cascade said.

But the ongoing ability to use Elgin’s waste and stormwater has been modified by the Oregon Department of Environmental Quality (ODEQ). The new permit constraints create uncertainty regarding future operations at the site. 

Boise Cascade said that it has significantly reduced its purchases of logs for the Elgin operation due to the uncertainty created by the change in environmental constraints and possible curtailment. 

“At the current time, we do 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 Cascade said.

The Boise, Idaho-based company also said that 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.