Housing slump brings shutdowns at 18 Pacific Northwest sawmills
LONGVIEW, Wash. (AP) - A slump in the housing market and low lumber prices have resulted in shutdowns at 18 sawmills in the Pacific Northwest, industry experts say.
For the Simpson Timber mill in Longview, the shutdown this week is the second curtailment of production of 2-by-4,s 2-by-6s and other lumber made from Douglas fir in a month. Work hours also were cut for a week starting Jan. 21.
Analyst Claudia Shank Hueston of JP Morgan told The Daily News of Longview four other mills around the region also are shut down this week.
All told, she said, 18 mills in the region are being shut down for varying periods, including indefinite closures of Hampton Lumber operations in Morton and Willamina, Ore., Seneca in Eugene, Ore., and Rosboro Lumber in Vaughn, Ore.
With homebuilding drastically reduced, lumber prices fell to $238 per 1,000 board feet at the start of the month, 15.6 percent lower than a year ago, according to the trade publication Random Lengths.
In Longview, where 100 workers have been idled, the mill received logs Monday and Simpson officials will decide on a week-to-week basis when to resume production, said Dave McEnntee, vice president of operational services and external affairs.
"As we take downtime, that affects inventory. It just depends on where prices are in the marketplace," McEnntee said.
Simpson paid $26.5 million to buy the mill from Caffall Bros. at the end of 2006.
For the Simpson Timber mill in Longview, the shutdown this week is the second curtailment of production of 2-by-4,s 2-by-6s and other lumber made from Douglas fir in a month. Work hours also were cut for a week starting Jan. 21.
Analyst Claudia Shank Hueston of JP Morgan told The Daily News of Longview four other mills around the region also are shut down this week.
All told, she said, 18 mills in the region are being shut down for varying periods, including indefinite closures of Hampton Lumber operations in Morton and Willamina, Ore., Seneca in Eugene, Ore., and Rosboro Lumber in Vaughn, Ore.
With homebuilding drastically reduced, lumber prices fell to $238 per 1,000 board feet at the start of the month, 15.6 percent lower than a year ago, according to the trade publication Random Lengths.
In Longview, where 100 workers have been idled, the mill received logs Monday and Simpson officials will decide on a week-to-week basis when to resume production, said Dave McEnntee, vice president of operational services and external affairs.
"As we take downtime, that affects inventory. It just depends on where prices are in the marketplace," McEnntee said.
Simpson paid $26.5 million to buy the mill from Caffall Bros. at the end of 2006.