INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announced today that it has reached an agreement to sell its specialty sawmill located in Gilchrist, Oregon to Neiman Enterprises Inc. (“Neiman”).
The Gilchrist sawmill, which specializes in ponderosa and lodgepole pine boards, has been curtailed since mid-June of this year due to COVID-19 related economic factors. Prior to its curtailment, the mill produced approximately 80 million board feet of lumber per year and employed approximately 150 employees.
Neiman, based in Hulett, Wyoming is a privately held, third-generation family business with pine board sawmill operations in Wyoming and South Dakota and a stud mill in Colorado. Neiman intends to restart the mill in the near future and rehire a substantial number of the furloughed employees. Neiman will also consider potential future capital investment opportunities for the facility.
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“After a careful review of the potential future options for the mill, we believe the sale to Neiman offers the best long-term outcome for our employees and the surrounding communities,” said Andrew Horahan, Interfor’s Vice President of Western Operations. “I want to thank all of the employees at the Gilchrist operation for their understanding and patience over the last few months.”
“This transaction represents a significant step for the Neiman group of companies,” said Jim Neiman, President and CEO of Neiman Enterprises Inc. “We look forward to restarting the mill in short order and partnering with the employees and community to ensure the longterm success of this historic operation.”
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The completion of the transaction is subject to customary conditions and is expected to close in the fourth quarter of 2020.
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Interfor will continue to own and operate its three US Northwest stud mills located in Molalla, Oregon, Longview, Washington and Port Angeles, Washington.