MILLERSBURG — The Duraflake particleboard plant is among five operations in the U.S. and one in Ireland put up for sale Tuesday by the Weyerhaeuser Company. The plants do not fit the company’s core businesses of forestry, lumber and engineered lumber production, according to Weyerhaeuser spokesman Mike Moskovitz.
Duraflake employs 214 people who work 12-hour shifts and produce up to 240 million square feet of material per year. The company has operated here since 1960. Also for sale is the company’s Eugene plant, which employs 78 people and produces up to 90 million square feet of material.
The plant is located in Linn County north of Wah Chang and south of Weyerhaeuser’s paper mill and trus-joist plant. It is also adjacent to Georgia-Pacific’s resin plant.
Duraflake’s composite-panel products are fire retardant and are used in the production of elevator cabs, passenger boarding bridges, architectural woodwork, wall sheathing, wainscoting, display panels, door components, furniture, fixtures, commercial case goods, shelving, cabinets and countertops.
“We want to make it very clear that we are not closing these plants,” Moskovitz said. “Employee performance is not a factor. These are profitable plants with skilled people, who have gone out of their way to serve their communities.”
All of the plants produce medium density fiberboard or particleboard. Other locations include Bennettsville, S.C., Malvern, Ark., Simsboro, La., and Clonmel, Ireland. In all, the plants employ 959 people. Composite-panel sales accounted for $122 million, about 2 percent, of Weyerhaeuser’s $5.6 billion third-quarter sales.
Moskovitz would not speculate on the value of the proposed sale.
“This is part of our effort to strengthen our overall portfolio and to enhance values for our shareholders,” Moskovitz said. “We believe these are premium assets that can have significant value and be a better fit for another company. These plants are profitable. We have not been dissatisfied with them.”
Moskovitz said the plants will continue to operate under normal conditions, “as we work to find a new owner.” He said the plants are considered among the most productive of their kind anywhere. He would not speculate on which companies might be in the market for these operations.
“We are going to make every effort to sell the plants as quickly as possible,” Moskovitz said.
“But, that may take up to a year. We plan to keep our current employees, but we can’t speak for what new owners might do.”
In total, the plants produce about 1.1 billion square feet of particle board or medium density fiberboard each year.
In October, Weyerhaeuser sold its interest in composite-panel businesses in France to Spain’s largest fiberboard/particleboard company.
Shares of Weyerhaeuser stock gained $1.20 Tuesday, up to $66.12 in early trading. In 2004, the company reported sales of $22.7 billion with offices or operations in 19 countries. Weyerhaeuser employs more than 60,000 people.
Alex Paul can be reached at 812-6076 or alex.paul@lee.net.