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Stoltze to temporarily shut down sawmill

| January 21, 2009 10:00 PM

F. H. Stoltze Land & Lumber Company announced Tuesday that its Columbia Falls sawmill will be temporarily shutting down — effective Feb. 2.

Lumber drying, planing and shipping will continue as long as operationally feasible. Logging operations will continue into mid-February to insure an ample log inventory when production resumes.

This shutdown is fueled by continuing poor lumber markets across the broader United States. Lumber producers like Stoltze are finding it increasingly harder to sell their product and to realize above break-even margins in this climate.

Stoltze anticipates this shutdown will last at least six weeks. Initially 45 to 50 employees will be laid off. There will be additional layoffs as logging and planing operations finish.

Chuck Roady, Stoltze vice president and general manager, said employees will continue to get health insurance and will be eligible for unemployment.

He said the shutdown was simply a case of supply and demand — the mill is making more than it can sell and what it does sell isn’t at a very good price.

The shutdown will eventually impact about half the mill’s workforce. The last shutdown at the mill was in 1980, according to longtime employees to whom Roady spoke.

Lumber prices are at their lowest point in years as housing and other construction industries have stagnated nationwide.