Weyerhaeuser Closes Longview Chloralkali Plant
Weyerhaeuser is closing its chloralkali plant in Longview, WA, as part of the company's long-range plan to narrow its portfolio and streamline operations. Following closure of the plant by the end of the first quarter, Weyerhaeuser will no longer operate chemical facilities.
The company will report a charge associated with the closure. When combined with previously announced changes to its British Columbia lumber facilities and the streamlining of pulp and paper operations company-wide, this move will result in an after-tax charge of approximately $45 million against fourth quarter 1998 earnings. Weyerhaeuser will announce its fourth quarter results on Jan. 20.
Approximately 100 jobs will be eliminated by the Longview closure. Laid-off employees will receive 60 days notice or pay consistent with plant-closure requirements, and will have access to outplacement services provided by Weyerhaeuser.
Changes to the British Columbia lumber facilities effect around 200 jobs, while the pulp and paper streamlining efforts effected approximately 460 employees. "Today's announcement is part of an ongoing process to narrow our portfolio, streamline our operations, and improve overall use of capital," said Steven Rogel, president and CEO.
Seeking to improve its environmental performance, the Longview mill, as well as other Weyerhaeuser facilities and the world pulp and paper industry as a whole, has moved away from using elemental chlorine as its principal pulp bleaching agent. Mills in North America, especially, have generally adopted the use of chlorine dioxide as a substitute for chlorine in the bleaching process.
At 100% substitution, chlorine dioxide based bleaching sequences have come to be known as ECF (elemental chlorine free) bleaching, which is more or less the best available technology approach being mandated by the U.S. EPA's recently promulgated Cluster Rules for the pulp and paper industry. The plastics industry, the other major user of chlorine, is currently oversupplied in the world markets.
Weyerhaeuser said that it chose to close the facility because of current market conditions and the need to invest significant capital to ensure continued safe operation of the plant.
One of the world's largest integrated forest products companies, Weyerhaeuser (Federal Way, WA) was incorporated in 1900. In 1997, it had sales of $11.2 billion and has offices or operations in 12 countries and customers worldwide. The company is principally engaged in the growing and harvesting of timber, thee manufacture, distribution and sale of forest products, and real estate construction, development, and related activities.