Federal Way, WA, Aug. 18--Weyerhaeuser Co. said Friday it will shut down two mills in Oregon and lay off nearly 200 people as a result of poor market conditions and continuing efforts to cut costs.
The forest products company will close a containerboard mill in North Bend, OR. The mill was closed temporarily in early July as the company waited for the market to recover. The mill's 158 employees will stay on the payroll until the official closure date of Oct. 13.
The Federal Way-based company expects that by the end of the year, it will also close a plant in Junction City, OR, which produced laminated veneer lumber and has employed 128 people. Some jobs will be transferred to operations in Eugene and Stayton, the company said, with a net layoff of about 38 people.
Weyerhaeuser estimates the closures will result in a $25 million after-tax charge, or 11 cents a share, for the third quarter.
After the cuts, Weyerhaeuser will employ about 5,000 people in Oregon and about 57,000 worldwide.
