Boise Cascade Announces Closure of Plywood, Lumber Operations in Idaho

Feb 13, 2001, 00:00 ET from Boise Cascade Corp.

    BOISE, Idaho, Feb. 13 /PRNewswire/ -- Boise Cascade Corp. (NYSE:   BCC)
 announced today the permanent closure of the company's plywood and lumber
 operations and cogeneration facility in Emmett, Idaho, and its sawmill in
 Cascade, Idaho.  The facilities will close by midyear 2001, said
 George J. Harad, Boise Cascade's chairman of the board and chief executive
 officer, who cited the steady decline in federal timber sales as the cause of
 the closures.
     "I am very disappointed that we are forced to take this step," Harad said.
 "Idaho is the corporate home of Boise Cascade.  The Idaho Region of our
 building products business has been a profitable contributor to our company.
 Our mills in the region have long been a vital mainstay of rural communities
 in southern Idaho.  However, we simply no longer have an adequate and reliable
 supply of timber from Idaho's federal forests with which to operate our mills.
 We deeply regret the hardship that this decision will create for our employees
 and the burden it will place on the communities in which they live."
     Harad continued, "We have worked for years to promote an understanding at
 the federal level that the national forests can and should provide dependable
 and sustainable resources for Idaho's forest industry, while meeting all of
 their environmental objectives.  However, despite an adequate supply of
 timber, under the policies of the Clinton Administration and pressure from
 environmental groups, the amount of timber offered for commercial harvest has
 declined more than 90% over the past five years."
     Additionally, Harad said, "Intensive litigation and appeals by
 environmental groups, such as the Idaho Sporting Congress, have in many cases
 prevented us from harvesting the timber we've already purchased.
 Unfortunately, we do not believe this situation will change anytime soon."
     Approximately 375 positions will be eliminated as a result of the
 closures, including about 275 at the Emmett facility, 80 at the Cascade
 sawmill, and 20 additional forestry and administrative positions.  The
 laminated beam facility in Emmett, which is currently increasing its
 production capacity, and the RiverBend remanufacturing facility in Horseshoe
 Bend will both continue to operate.
     Emmy Guthrie, Idaho region manager for Boise Cascade, said, "Boise Cascade
 will work with our employees and with community leaders to determine what can
 be done to mitigate the impact of these closures.  We will look for
 opportunities to offer positions elsewhere in the company to some of the
 affected employees.  Severance pay will be provided to others in accordance
 with company policies and the terms of our labor contracts.  Additionally, we
 will coordinate with the Idaho State Department of Employment to offer help in
 the areas of job training, skills assessment, and job search and placement."
     The closures will mark the end of nearly all of Boise Cascade's wood
 products manufacturing operations in Idaho.  At one time, Boise Cascade also
 operated mills in McCall, Council, and Horseshoe Bend.
     Boise Cascade will continue to have a significant presence in the state
 with a total of over 1,300 employees at its corporate headquarters, corrugated
 container plants, office products and building materials distribution
 facilities, trucking operations, and the RiverBend and laminated beam plants
 in Horseshoe Bend and Emmett, respectively.  The company will also continue to
 manage the 196,000 acres of timberland it owns in southern Idaho.
     With the scheduled closures, Boise Cascade's wood products operations in
 North America will consist of seven plywood plants, seven sawmills, three
 engineered wood products plants, and an oriented strand board plant.
     Boise Cascade Corp., headquartered in Boise, Idaho, is a major distributor
 of office products and building materials and an integrated manufacturer and
 distributor of paper and wood products.  The company owns and manages more
 than 2 million acres of timberland in the United States.  A leader in
 sustainable forestry, Boise Cascade uses third-party audits and an advisory
 council of independent experts in its Forest Stewardship Program to ensure the
 protection of wildlife, plants, soil, and air and water quality.  Visit the
 Boise Cascade web site at

SOURCE Boise Cascade Corp.