Clearwater to Sell Lewiston Sawmill to Idaho Forest Group
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Clearwater Paper Corp., Spokane, Wash., USA, reports that it will sell its Lewiston, Idaho, sawmill to Idaho Forest Group of Coeur d'Alene, Idaho. The transaction includes the sale of Clearwater Paper's sawmill, planer mill, dry kilns, and related assets, along with log and finished goods inventories and timber under contract, in the aggregate amount of approximately $30 million. As part of the transaction, the two companies have entered into a long-term residual fiber supply agreement with the goal of delivering consistent supplies of chips and sawdust to Clearwater Paper's Lewiston pulp mill from Idaho Forest Group Mills.
Clearwater Paper is expected to ramp down production in the coming weeks in preparation for Idaho Forest Group to officially take possession later this quarter. Clearwater Paper's approximately 250 affected employees will receive severance and all provisions subject to the WARN Act, which includes up to 60 days' worth of pay and benefits.
"We believe the tough times in the lumber industry will continue into the foreseeable future, and that the mill will be operated by a company whose core focus is lumber," said Tom Colgrove, president of pulp and paperboard at Clearwater Paper. "We believe IFG has the people, resources and the business structure to make the Lewiston sawmill very successful."
Clearwater Paper produces consumer tissue, away-from-home tissue, hard roll tissue, machine glazed tissue, bleached paperboard, and pulp at 15 manufacturing locations in the U.S. and Canada.
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