Thursday, August 31, 2006
Evergreen Pulp buying Weyerhaeuser Pulp Mill?
I read this mornings news with great anticipation. The rumor mill at Evergreen Pulp has been at full operation concerning the purchase of Weyerhaeuser's Pulp mill in Cosmopolis Washington. Times-Standard Online - Evergreen weighs Washington mill purchase I became interested in this story about a year ago checking out the mill on line The Daily World. I was saddened to hear that a company that was making a profit was deciding to close an operation because it did not fit in their "core" business plan. Same thing Louisiana Pacific did to our pulp mill in the 90's. Since they were making a profit the employees wanted to put together an Employee Stock Option Plan (ESOP) buyout. The company said the plant was not up for sale. The closing of this facility would be devastating for the Aberdeen Washington area. (It rains around 80 inches a year there if you are looking to relocate.) Local community leaders contacted the Governor and other politicos to help them do something to save the mill. The Daily World As far as Lee & Mann purchasing the plant, it seems unlikely but not out of the question. It is a small capacity mill that has to be converted to make the same product that we produce. I am not sure their production could be raised to a level to warrant the investment. They may decide to hit a different niche market and expand on their investments here in the United States. They were able to buy our mill for a relatively small price of 5 million, so they might be able to get another bargain. But only if Weyerhaeuser decides to sell. They have taken alot of negative publicity up that Washington way about their decision so you never know what may happen.