Interfor closing Philomath sawmill indefinitely, laying off 100, citing high log costs, weak lumber market

BURNABY, British Columbia (KTVZ) -- Interfor Corporation announced Thursday that it will indefinitely curtail its sawmill operations in Philomath, Oregon, laying off about 100 employees, "in response to persistent high log costs in the region and ongoing weak lumber market conditions."

Sawmill production will be curtailed immediately, followed by an orderly wind-down of operations, which is expected to be completed by the end of the first quarter officials said. The Philomath sawmill produces a mix of kiln-dried and green Hemlock and Douglas-fir dimensional lumber and timbers and has an annual capacity of 220 million board feet.

“This was a difficult decision to make, but is necessary in light of the evolving operating and market environment,” said Bruce Luxmoore, Interfor's executive vice-president of U.S. operations. “We recognize the impact this decision will have on our employees, who have contributed so much to the business over the years.”

Interfor Senior Manager of Corporate Affairs & Communications Svetlana Kayumova said, "This is an indefinite curtailment, which is a pause in production for an undetermined amount of time and will evaluate the next steps for the business.

"The sawmill production has been curtailed immediately, followed by an orderly wind-down of operations, which is expected to be completed by the end of the first quarter of 2024.

"Interfor will be laying off approximately 100 total employees at its Philomath, Oregon, location as part of the indefinite curtailment of the operation. The effective date of separation for impacted employees will be staggered, with 57 employees separated on February 15.

"We are committed to identifying opportunities for the affected employees at other operations," Kayumova added.

The company will continue to operate its three U.S. Northwest stud mills located in Molalla, Oregon, Longview, Washington and Port Angeles, Washington.

In addition, Interfor announced Thursday plans to temporarily reduce lumber production at its British Columbia operations by approximately 30 million board feet in the first quarter of 2024.

"These curtailments are due to a combination of weak market conditions, low log inventory levels and unseasonably warm weather that continues to negatively impact log deliveries across many areas of British Columbia," the company said, adding that it "will continue to monitor market conditions across all of its operations and adjust its production plans accordingly."