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53 °F 5 Day Forecast Saturday, November 29, 2003 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | eSouthernOregon | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA Newspaper in Education Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find a Rental Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Email Story to a Friend October 9, 2003 L-P’s Rogue River mill might have a buyer Officials won’t disclose the potential buyer or the sale price By SANNE SPECHT Mail Tribune ROGUE RIVER — There may be a buyer for the languishing Louisiana-Pacific mill, thanks to a recent strong upsurge in the veneer market. Louisiana-Pacific — the building products company headquartered in Portland — announced last week it will relocate its headquarters to Nashville. While the news came as a shock to some in Portland, the fate of this mill was decided back in 2002 when the Fortune 500 company decided to sell half its assets. The Rogue River mill was one of the assets up on the auction block. Advertisement For the past year, rumors of sales and closure have dogged the mill. As the lumber industry lagged, the mill didn’t generate much interest to buyers. The mill was in danger of being shut down and shipped to Canada with the land going up for sale to the highest bidder. But a recent sharp upturn in the veneer industry has brought forth new prospects for the 56-acre site adjacent to the city’s downtown. David Dugan, media relations officer for Louisiana-Pacific, said he hopes a purchase agreement will soon be signed between his company and another which he said intends to continue the mill’s veneer-drying operations. Dugan and other Louisiana-Pacific officers declined to identify the buyer(s) or the mill’s sale price. City Administrator Mark Reagles said the city had considered purchasing the mill site for development and sale. The property is attractive because of its proximity to the railroad and Interstate 5, Reagles said. But the City Council balked at the financial commitment, he added. Reagles said buying the property, making improvements to water, sewer and roads, finding financing and then securing an eventual buyer all seemed like too much of a gamble in today’s economy. "That’s a big risk for a community," said Reagles. Bruce Laird of Oregon Economic Community Development said some communities are comfortable taking that kind of financial risk and others are not. "It’s a real challenge to take on," he said. Laird also said he wouldn’t be surprised to see someone purchase the defunct U.S. Forest Industries plant in Grants Pass in the near future. "Given how healthy the plywood market has become, I wouldn’t be surprised if someone bought the closed-down Grants Pass site," said Laird. Chuck Vernoy, mill office manager, said the mill is doing better now that the veneer market has improved so drastically in the last year. Market industry research shows veneer sales have increased 40 percent since May. "We’re running four shifts 24/7," said Vernoy. "We’ve got 22 regular employees and 15 temporaries." Vernoy has worked at the Rogue River mill for 20 years. He said the highest number of employees was 64 in April 2000, "when the plant still ran a green end" (milled fresh lumber), and the lowest was 19 in December 2001. Currently the mill does no peeling or cutting of lumber. It is providing a drying process for veneer which is later sold to create plywood or other wood products. Prices for oriented strand board, Louisiana-Pacific’s main product, have surged this year driven by strong demand and lean inventories, analysts say. Anticipation of more federal purchases for plywood destined for Iraq is also fueling prices and optimism in the veneer industry, they say. Reach reporter Sanne Specht at 776-4497 or e-mail [email protected] . Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback 3 WEEKS FREE! ADVERTISERS SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Real Estate Showcase Food for Thought Hike of the Week Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Openings Prime Times