AHF Will Purchase Two Allegheny Wood Products Sawmills

Madison, WI, April 4, 2024-"A federal judge approved AHF Products’ purchase of two sawmills formerly owned by West Virginia-based Allegheny Wood Products (AWP), which abruptly shut down all operations in February, WV Public Broadcasting reported.” 

According to Wood Floor Business, “AHF, which sourced lumber from AWP prior to its closure, will purchase sawmills in Randolph and Greenbrier counties for an approved $7.5 million. The purchase agreement releases AHF from any liens and claims against AWP.

“AWP is facing both a $40.5 million lawsuit from United Bank for unpaid loans and a class-action lawsuit from a former employee alleging the company failed to give employees proper notice before its closure. AWP’s closure Feb. 23 impacted more than 850 employees.”

The sawmills AHF will purchase are in counties adjacent to its Beverly, West Virginia hardwood operation in Smoot, Greenbrier County, and Norton, Randolph County. 

According to AHF President & CEO Brian Carson, “the purchase of these two sawmills is a wonderful and smart investment. It helps ensure lumber supply for our Beverly, West Virginia plant and it is essential to our customers and employees who rely on our supply of hardwood flooring. It’s a great day for employees, customers and suppliers.”  

AHF will be saving approximately 80 direct jobs at the two mills, which were originally slated to close at the end of March, and is expected to create approximately two times that, with new jobs being created for loggers, truckers, and suppliers in the region.

The supply of Eastern hardwood lumber in the U.S. is currently 65% of what it was pre-pandemic and 40% of what it was before 2007. The purchase of the two sawmills recovers 100% of the lumber supply AHF would have lost due to the closure of AWP and secures a consistent lumber supply to protect AHF customers. These two mills combined will supply 25 million board feet annually.

“These mills assure AHF direct access to a high-quality timber supply, which will provide more than 20% of the required supply at full capacity of flooring production. AWP was 12% of total supply at peak, so we have more than replaced the lost supply,” said Jake Loftis, Chief Operating Officer, AHF.

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