Boise Cascade Company Announces WARN Act Notice at Elgin Plywood Facility
October 16 2020 - 4:15PM
Business Wire
Boise Cascade Company (“Boise Cascade”, the “Company” or “we”)
(NYSE: BCC) today issued a WARN Act notice to its Elgin, Oregon
employees. The Company issued the notice in order to ensure that
all employees are aware it is possible the mill will have to reduce
production levels beginning on or about January 1, 2021. The Elgin
facility currently produces approximately 10% of the Company’s dry
veneer production, the majority of which is sold as plywood and
represents approximately 16% of Boise Cascade’s plywood sales.
While the demand and pricing for plywood has been favorable
during 2020 and the Elgin operation was profitable during the
second and third quarters, the Company’s ongoing ability to use its
waste and storm water has been modified by the Oregon Department of
Environmental Quality (ODEQ). The new permit constraints create
uncertainty around the future operations at the site. Boise Cascade
has significantly reduced its purchases of logs for the Elgin
operation considering the uncertainty created by the change in
environmental constraints and possible curtailment. At the current
time, the Company does not expect to have enough logs available to
operate throughout the entire winter even if the open concerns with
ODEQ are favorably resolved before the end of the year.
The Company will continue to evaluate plywood market conditions,
log supply availability, operating costs, environmental permits,
and other factors influencing the long-term viability of the Elgin
plywood operation as the situation warrants.
About Boise Cascade
Boise Cascade is one of the largest producers of engineered wood
products and plywood in North America and a leading U.S. wholesale
distributor of building products. For more information, please
visit our website at www.bc.com.
Forward-Looking Statements
This press release contains statements that are “forward
looking” within the Private Securities Litigation Reform Act of
1995. These statements speak only as of the date of this press
release. While they are based on the current expectations and
beliefs of management, they are subject to a number of
uncertainties and assumptions that could cause actual events to
differ from the expectations expressed in this release. Factors
that could cause actual events to differ materially from
forward-looking statements are discussed in greater detail in our
filings with the Securities and Exchange Commission and include,
but are not limited to, prices for building products, changes in
the competitive position of our products, commodity input costs,
the effect of general economic conditions, the effect of COVID-19,
mortgage rates and availability, housing demand, housing vacancy
rates, governmental regulations, unforeseen production disruptions,
as well as natural disasters. Forward-looking statements speak only
as of the date of this press release. We undertake no obligation to
revise them in light of new information. Finally, we undertake no
obligation to review or confirm analyst expectations or estimates
that might be derived from this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20201016005630/en/
Investor Relations Contact Wayne Rancourt Office
208-384-6073
Media Contact Lisa Chapman Office 208-384-6552
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