Weyerhaeuser Announces Indefinite Curtailment of Plymouth Containerboard Machine

FEDERAL WAY, Wash., Nov. 29 /PRNewswire-FirstCall/ -- To strengthen shareholder returns and sharpen the focus of its business portfolio, Weyerhaeuser Company today announced it is indefinitely curtailing production on its 350,000-ton-per-year containerboard machine in Plymouth, N.C.

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"We realize this is tough news for our people in Plymouth, but difficult business conditions make it necessary," said Steven R. Rogel, chairman, president and chief executive officer. "We will continue to refine our portfolio of businesses and facilities to improve our return to shareholders."

The 350,000-tons-per-year, 48-year-old Plymouth No. 1 machine makes linerboard -- the smooth outer surface of boxes -- from recycled fiber. Rogel said the company will recommend that the machine be permanently closed and that its board of directors will review that recommendation in December. The decision to indefinitely curtail production on the machine will create a better match between Weyerhaeuser's containerboard mill capacity and demand of the company's box plant customers.

"We have determined that the Plymouth machine no longer is economically sustainable," Rogel said. "Although Plymouth employees have worked diligently to make the machine competitive, today's announcement is a reflection of the severe market conditions facing the industry, compounded by the age and high cost of the machine."

The curtailment affects approximately 200 hourly and salaried positions in Plymouth. Weyerhaeuser will support those affected with transition benefits as appropriate and will be meeting soon with the production and maintenance employees' union representatives to discuss the effects of the decision.

In response to fundamental market challenges, Weyerhaeuser has recently announced the indefinite closure of a pulp and paper facility in Saskatchewan, a box finishing operation in California, a sawmill and pulp mill in Washington, and a plywood mill in Oklahoma.

Weyerhaeuser Company , one of the world's largest integrated forest products companies, was incorporated in 1900. In 2004, sales were $22.7 billion. It has offices or operations in 19 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/ .

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