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Boise rebuilds New plant will retain at least one-third of jobs lost in Labor Day fire By PETER WONG Boise Cascade's announcement Thursday that it will rebuild part of its plywood plant in north Medford was greeted with cheers and caution on Christmas Eve. Business leaders and government officials hailed it as keeping at least a third, and potentially as many as three-fourths, of the 450 jobs that existed before a Labor Day fire destroyed the plant. "From Boise Cascade, it's an early Christmas present," said Gordon Safley, executive director of Southern Oregon Regional Economic Development Inc. "The beneficiaries will be not only the Boise Cascade employees who lost their jobs, but also the suppliers that will regain a significant portion of their business." Workers also welcomed the news but said they want to hear more details. Some said they would have to think about it. "I'm hoping that maybe there will be a time they will ask me to come back," said Mike Griffiths, a hot-press operator who worked there five years and now works at Bear Creek Corp. "If they did, it would be a pretty big decision for me about which avenue I pursue." Boise Cascade confirmed that it would rebuild part of the plant allowing it to dry veneer -- the sheets used to make plywood -- and prepare the panels it uses at its White City mill to make laminated veneer lumber. It also will produce plywood. Bob Smith, employee relations manager for Boise Cascade's Western Oregon region, said the company hoped to get that operation up and running before the end of next year. "We need to get this additional phase operating to support our laminated veneer lumber plant," he said. "Whether we'll have an additional expansion beyond that hasn't been approved." Of the 450 workers at the Medford plant, Smith said about 50 still are employed in cleanup and salvage and will be shifted gradually to reconstruction in the spring. Up to 150 would be employed at the new plant. Smith said the company next year would consider a second phase, which would add dryers and other production capacity and raise the number of jobs to 330 or 340. It would be built in 2000 or later if approved. Smith said he had no details about how much Boise Cascade will spend. It was estimated earlier that a complete reconstruction would cost about $75 million. Manuel Rios of Medford, who worked at the plant only two years, said he's unsure whether he'll be called back. "I had heard rumors they would rebuild, but I'm going to have to call to see what's going on," he said. "But I'd love to go back. If they hire up to 300, that would give me a chance." Smith said some people have specific skills that have to be considered, "but our focus in staffing the new plant would be on recalling the more senior employees first." That would be good news for Ron Spielbusch of Medford, who started his 34th year with Boise Cascade the month before the fire -- but who also transferred to another job within the plant two months before. "I don't know whether I should get excited or depressed about it," he said. "I've got about eight years left before retirement. Unlike my son, who's worked there 12 years but can start another career, I am too old to start over. I need the retirement, insurance and other benefits." Medford City Councilman Bill Moore was part of a government and business task force that put together a package of incentives for Boise Cascade to rebuild its plant here. The package was estimated at $3 million to $4 million. Among the incentives were an extension of Medford's enterprise zone, which freezes property taxes for five years; state grants for worker training and traffic flow; state income tax credits for energy conservation and pollution control; and waivers of city systems development charges and of a new state review of an air pollution permit. "We moved quickly on an important issue," Moore said. "I congratulate Boise Cascade on its decision." Retiring state Rep. John Watt, R-Medford, helped arrange the tour by Gov. John Kitzhaber just days after the Sept. 7 fire, spurring state involvement. "They show what we are able to do in Southern Oregon when everyone bands together, regardless of party or philosophy, to fulfill our obligation to keep people in the Rogue Valley employed," he said. Bill Haas, executive vice president of the Chamber of Medford/Jackson County, said the number of jobs potentially saved was greater than he expected. "I had a hunch it would be a smaller facility designed for the future of the industry, employing fewer people," he said. "I'm pleased with the confidence that Boise Cascade has shown in the future of our community and in its products to make this kind of investment. It couldn't be better news for us on Christmas Eve." Details of Boise's Plan Boise Cascade announced Thursday what it will -- and won't -- do at the north Medford site of its plywood mill, destroyed by fire Sept. 7: What it will rebuild A mill that will dry veneer, the sheets used to produce plywood, and prepare the parallel laminated veneer panels that Boise Cascade uses at its White City plant to make laminated veneer lumber. The mill also will produce plywood for sale. Construction should take one year. The new mill would employ about 150, mostly from those already laid off. No cost estimate was furnished. A second phase, which Boise Cascade will consider next year, would expand the mill in 2000 or later and boost employment to 330 or 340. No cost estimate was furnished. What it won't rebuild or reopen A plant that processes logs and produces green veneer. Boise Cascade says green veneer will come from its other mills in Western Oregon. The sawmill. Some workers were transferred to its White City sawmill. Potential economic effects Boise Cascade's pre-fire payroll for the north Medford mill was $16 million annually, averaging $35,555 per employee. About 50 workers are doing various tasks related to cleanup and salvage; the rest of the 450 are laid off. If employment at the new mill reaches 150, the estimated payroll is $5.3 million; if it reaches 340, payroll is about $12 million. To get an idea of the mill's effect on the region's economy, multiply its payroll by two and a half. Sources: Boise Cascade; Southern Oregon Regional Economic Development Inc. Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA