Nevada County Picayune and Gurdon Times Newspaper Archive

Potlatch To Close Local Chip Mill

There will be eight more people out of work soon in Nevada County.

Potlatch will be closing the chip mill facility at the Ozan Unit in Prescott, according to a release from the company, which will eliminate the eight jobs.

This decision was reached in a series of meetings with employees. This facility, the release stated, supplies hardwood chips to the Potlatch Cypress Bend Pulp and Paperboard Mill near McGehee.

Dick Bullard, Southern Wood Products Division vice president, in the meeting, said the 20-year-old chip mill is located further from the Cypress Bend Mill than any of the paperboard mill's other chip suppliers, making Ozan's chip delivery costs higher and less competitive.

"Due to transportation costs and location, it has become increasingly difficult for our Ozan Chip Mill to compete with other chip suppliers and the on-site contract chip mill nearing completion at Cypress Bend," Bullard said. "We have tried with the meetings and the announcement to consider the overall best interests of the employees involved and the company in the decision."

The Ozan Unit is currently undergoing a $15 million dry-end modernization which is in the final stages of construction. Ozan Plant Manager Brad Fountain expects 12 new jobs will be created with the addition later this year of a second shift at the Ozan sawmill. He said the eight chip mill employees who will lose their jobs with the mill closing, would be considered for jobs at the sawmill and planer mil.

Potlatch is reviewing the potential impact of the chip mill closure on the Prescott and Northwestern Railroad operations as well, but has given no statement on the short line railroad.

At this time, the final production date for the chip mill has not been set, though it is expected to close in August.