Weyerhaeuser to indefinitely curtail three plants

In response to slow customer demand, Weyerhaeuser Company on October 19 announced it will indefinitely curtail oriented strand board plants in Drayton Valley, Alberta, and Wawa, Ontario, and a laminated strand lumber plant in Deerwood, Minn., before year-end 2007.

"The decline in North American housing starts has reduced demand for wood products, requiring us to rationalize our supply of OSB and engineered wood," said Steven R. Rogel, chairman, president and chief executive officer. "We remain committed to these markets. This move enables our remaining plants to better execute our customer strategies."

The company will provide the affected employees with severance pay as well as job-transition services and counseling, consistent with company policy.

"These difficult decisions are not a reflection on the hard work of our employees," Rogel said. "They are the result of today's challenging business environment, and part of an ongoing effort to strengthen Weyerhaeuser's overall portfolio to enhance shareholder value."

The Wawa and Drayton Valley plants are two of nine OSB mills in the Weyerhaeuser system. Wawa has 132 employees and an annual production capacity of 470 million square feet of OSB. Drayton Valley has 130 employees and capacity for 415 million square feet annually. The adjacent sawmill at Drayton Valley will continue to run. The Deerwood plant produces engineered strand lumber, with 158 employees and a capacity of six million cubic feet per year. The plant is one of three such company operations.

Weyerhaeuser Company, one of the world's largest forest products companies, was incorporated in 1900. In 2006, sales were $21.9 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.