Idaho Forest Group to Revitalize the Mill
SPOKANE, Wash.--(BUSINESS WIRE)--
Clearwater Paper Corporation (NYSE:CLW) today announced the
company has entered into an agreement to 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.
"This has been a very careful and thoughtful decision for everyone at
the company," said Tom Colgrove, president of pulp and paperboard at
Clearwater Paper. "We believe that this is the best possible outcome for
the mill and its continued operation in the region, our company and our
shareholders."
Clearwater Paper is expected to ramp down production in the coming weeks
in preparation for Idaho Forest Group to officially take possession in
the fourth quarter of 2011. 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 Colgrove. "We believe IFG has the
people, resources and the business structure to make the Lewiston
sawmill very successful."
Upon closing of the transaction, Idaho Forest Group plans to adjust
production to meet its customer needs. At the same time, Idaho Forest
Group will begin assessing employment needs and should initiate the
hiring process soon after the close of the transaction. Longer term,
Idaho Forest Group will assess the mill's capabilities and prepare an
improvement plan for implementation.
"We are very excited about the prospects of updating and revitalizing
the Lewiston sawmill," said Scott Atkison, president of Idaho Forest
Group. "The mill and its location in the LC Valley and surrounding wood
basket give us the ability to better supply our customers with the
products they need, both now and into the future."
Clearwater Paper is working closely with the Idaho Department of Labor
and the Governor's Dislocated Workers Task Force to assist employees.
ABOUT CLEARWATER PAPER
Clearwater Paper manufactures quality consumer tissue, away-from-home
tissue, hard roll tissue, machine glazed tissue, bleached paperboard and
pulp 15 manufacturing locations in the U.S. and Canada. The company is a
premier supplier of private label tissue to major retailers and
wholesale distributors. This includes grocery, drug, mass merchants and
discount stores. The company also produces bleached paperboard used by
quality-conscious printers and packaging converters. Clearwater Paper's
4,000 employees build shareholder value by developing strong customer
partnerships through quality and service.
ABOUT IDAHO FOREST GROUP
September of 2008 saw the merging of Riley Creek Lumber and Bennett
Forest Industries, and the beginning of Idaho Forest Group. Both
longtime family-owned and operated companies, the two businesses shared
common traits that fostered a successful merger, including like
commitments to serving customers and employees, investing in facilities,
and embracing the forest products heritage. Today, the success of this
merger is evidenced by a growth in capacity and a strengthened focus on
the business fundamentals. This announcement today adds another
operation to Idaho Forest Group's family of sawmills that focus on
superior quality products from resources of the Inland Northwest.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 as
amended, including statements regarding the aggregate amount of the
transaction, the supply of wood fiber to Clearwater Paper, the future
operation of the sawmill and its future benefits to Clearwater Paper,
the expected closing of the transaction, the cessation of production at
the sawmill by Clearwater Paper and the lumber market. These
forward-looking statements are based on current expectations, estimates,
assumptions and projections that are subject to change, and actual
results may differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially include,
but are not limited to, risks and uncertainties arising from the
possibility that the closing of the transaction may be delayed or may
not occur; difficulties with the realization of the benefits expected
from the proposed transaction; general economic conditions in the
regions and industries in which Clearwater Paper and Idaho Forest Group
operate; changes in the cost and availability of wood fiber used in the
production of Clearwater Paper's products; changes in the United States
and international economies; cyclical industry conditions; changes in
freight costs and disruptions in transportation services; unanticipated
manufacturing disruptions; changes in general and industry-specific laws
and regulations; unforeseen environmental liabilities or expenditures;
labor disruptions; and other risks and uncertainties described from time
to time in the company's public filings with the Securities and Exchange
Commission. The forward-looking statements are made as of the date of
this press release and the company does not undertake to update any
forward-looking statements.
For additional information on Clearwater Paper, please visit our
website at www.clearwaterpaper.com
and for Idaho Forest Group at http://www.idahoforestgroup.com/
Clearwater Paper Corporation
News media: Matt Van Vleet,
509-344-5912
Linda Massman, CFO, 509-344-5905
or
Idaho
Forest Group
Scott Atkison, President, 208-762-2999
Source: Clearwater Paper Corporation
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