Plum Creek reduces production at Montana mills

Plum Creek has announced plans to reduce production at its four lumber sawmill facilities and Medium Density Fiberboard (MDF) plant in Montana, resulting in the loss of 145 jobs.

Plum Creek will permanently close the Ksanka sawmill in Fortine in March -- a loss of 74 jobs. Operations at the Evergreen sawmill in Kalispell will be temporarily curtailed for the rest of January, February and possibly March. The Evergreen sawmill will be able to absorb some of the volume produced at Ksanka when lumber markets recover. The Ksanka and Evergreen mills produce stud grade lumber for home construction.

The company’s Pablo pine board sawmill will reduce its operating level from 1.5 shifts to one shift -- a loss of 36 jobs. The pine board sawmill at Columbia Falls will temporarily curtail production for the rest of January, February and possibly into March.

The two MDF production lines at Plum Creek’s Columbia Falls MDF facilities will scale down to two shifts beginning Jan. 19, reducing the MDF work force by 35 employees.

“The forest products industry in general and the lumber business in particular have been severely impacted by the battered housing market,” said Rick Holley, Plum Creek president and CEO. “The closure of the Ksanka studmill and reductions in production levels at our other facilities are painful steps to take due to the job losses and impacts to a number of our valued employees. Unfortunately, these steps are necessary to match supply with the eroding demand for our wood products.”

Affected employees at the Ksanka, Pablo and MDF facilities will receive severance. Ksanka mill employees had a 60-day advance notice of the mill closing.