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Sierra Pacific Industries to shut Camino sawmill
ShareThisBy Mark Glover
mglover@sacbee.com
Published: Tuesday, Mar. 24, 2009 - 11:27 am
Citing a downturn in home construction and other factors, Sierra Pacific Industries will close its sawmill in the El Dorado County community of Camino this summer, resulting in a loss of 164 jobs.

In addition, Redding-based SPI said it will close its sawmill and a biomass-fueled electric power plant in Sonora. In Sonora, 146 jobs will be lost.

Sierra Pacific anticipates that the Camino plant will remain in operation until about June 12, and the Sonora sawmill and electric power plant will run until sometime in mid-July.

SPI cited a laundry list of reasons that contributed to its decision to close the facilities.

"First, the downturn in new home construction has reduced both the demand for lumber and the price SPI receives for its finished products" said SPI spokesman Mark Pawlicki. "Second, there has been a fall-off in the amount of national forest and private timber for sale in this area, causing uncertainty of supply.

"Third, the Timber Harvest Plan review process has become so complex and costly that plan approval has slowed dramatically. Further, current law limits harvest plans to a three-to-five-year maximum time period. This short timeframe forces landowners to harvest timber, even in bad markets. A longer timeframe would provide greater flexibility to harvest timber when market conditions for lumber are more favorable."

Palwicki said the combined factors "leave us no choice but to close the plants."