Nevada County Picayune and Gurdon Times Newspaper Archive

Potlatch closes doors

Potlatch has announced the closing of its Prescott lumber mill. The company says the decision was made because of a weak housing market and the proximity to other lumber producers.

The shut-down will be effective in May as soon as the current lumber processes are complete. According to information from the company, the target for the final closing is in May, though there isnt an exact date set.

Employees were called to Potlatch Thursday, March 20, where they were given the news. According to a press release from Potlatch, the mill employs 182 with 18 of those salaried and the rest hourly employees.

The company has endured several temporary layoffs recently, the most recent in November when poor market conditions were cited as the reason.

Van Vleet said the local cost of operation  such as the local cost of electricity  has nothing to do with the decision. Co-generation is the process by which a mill burns fiber or wood chips to also produce power. Van Vleet said that those plants with co-generation have a big advantage, but basically the only advantage in todays expensive market.

Local officials say the loss of the companys second-largest employer will have a tremendous impact on the community.

Its going to hurt us, said Nevada County Judge Baker Butler. Things dont look very good right now in Nevada County.

Butler said the local timber industry, loggers and others will be impacted by the closing as well.

Nevada County Economic Development Officer Mary Godwin agreed that the trickle down from this decision will touch local merchants, banks and impact the tax base.

Its a very, very sad day for this community, Godwin said. Not only for Prescott and Nevada County but for all of Southwest Arkansas.

Not only was Potlatch the second-largest employer in the county, the company has been a major part of the community, offering support for community projects through donations of time and money. Godwin said the community-minded company has been a partner in many projects.

Theyve always been extremely community minded, Godwin said.

Godwin said the EDO office will work with officials and employees to offer as much help as possible as employees make this transition. The press release from Potlatch quotes manufacturing manager Brad Fountain as saying that Potlatch also plans to work with state and federal agencies to help lessen the impact of the closure for our employees.

Though some predict the plant will soon reopen and many hope that to be the case, Potlatch is offering no such prediction. Van Vleet said the plan is to mothball the facility, meaning the equipment will be readied for long term non-use.

We have no buyer, said Potlatch Media Contact Matt Van Vleet. If someone comes along, we are very much open to an offer.

Van Vleet said that the same poor market conditions that caused the closure of the Prescott facility exists for other plants, including Warren, though there are no plans to close that facility or any other Potlatch facility at this time.