Aloha, western treaters

More Closures In Northwest

Lumber mills throughout British Columbia are continuing to cut back production.

Hampton Affiliates, Portland, Or., is cutting production by 40Vo at two sawmills in the Burns Lake area, Babine Forest Products and Decker Lake Forest Products, for at least the entire first quarter of 2008.

Ainsworth Lumber extended the holiday curtailment at its OSB mill in 100 Mile House, B.C., from December 20 to January l, due to a decline in orders. It also indefinitely closed its High Level OSB mill Dec. 20.

Canfor will shut its Chetwynd sawmill for an indefinite period, starting in late January or early February, once existing log inventories are depleted and finished products are shipped.

"With this announcement, Canfor has restructured its production to reflect market realities," said Canfor's

Lee Coonfer.

Another 300 Canfor employees were laid off indefinitely last month when shifts at its Rustad, Clear Lake, Polar, and Mackenzie sawmills were reduced from three to two. Its panel and fiber mill in New Westminster was closed permanently January 8.

Tolko Industries eliminated one shift at its Soda Creek mill, putting 20 out of work. Over the past months, the company has cut shifts indefinitely at four mills and taken temporary rotating curtailments at all 10 sawmills based on each mill's performance.

Interfor also has used temporary curtailments to bring supply in line with shrinking U.S. demand. The only exception is its Queensboro sawmill in New Westminster, which closed before last summer's forest-workers strike and never reopened.

"We are looking at each of our operations and the fundamentals of continuing to run them during these severe conditions or taking some temporary or permanent closures," said v.p. Ric Slaco.

G-B Ainsworth Settle OSB Suit

While denying any wrongdoing or violating antitrust laws, GeorgiaPacific and Ainsworth have reached tentative settlements in a price-fixing lawsuit filed against OSB producers.

G-P agreed to pay $9 million and Ainsworth $8.6 million, and both would cooperate in litigating claims against the remaining defendantsLouisiana-Pacific, Potlatch, Norbord, Weyerhaeuser, and Tolko. J.M. Huber settled last spring for $2 million.

A trial against the remaining defendants is set for March 25. Plaintiffs include dealers and wholesalers.

Ainsworth said, "The decision to enter into the settlement agreement was based solely on the need to avoid prolonged, expensive litigation."