Potlatch Corporation announced the permanent closure of the company's lumber mill in Prescott, Arkansas, due to poor market conditions.
The Prescott mill, which was purchased by Potlatch in 1966, employs 182, and produces southern yellow pine dimensional lumber primarily for the home building industry. The ongoing housing crisis has resulted in historic low demand for lumber and significantly reduced lumber pricing. Over the coming weeks, the mill will process the remaining inventory of logs, finish and ship the remaining lumber, and permanently cease operations in May.
"The decision to close this operation is a difficult, but necessary decision," said Vice President of Wood Products Rick Kelly.
In addition to a very weak lumber market, the mill's close proximity to other wood products facilities translates to increased competition for logs, which drives up raw material prices and requires logs to be transported from greater distances.
Potlatch owns 1.65 million acres of forestland in Arkansas, Idaho, Minnesota and Wisconsin, and operates 12 manufacturing facilities that produce lumber and panel products and bleached pulp products, including paperboard and tissue. The company employs 3,800 people.
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