Boise Cascade Company has entered into an agreement with an affiliate of Southern Veneer Products (Southern Veneer) to sell its plywood operations in Moncure, North Carolina. Founded in 1998, Southern Veneer, located in Fitzgerald, Georgia, is a privately-held manufacturer of high-quality plywood, veneer and wood by-products.
“Moncure primarily supplies hardwood plywood to the furniture panel sector. The acquisition of this facility more closely aligns with Southern Veneer’s business strategy. We believe this sale provides the best long-term option for continuing to serve the furniture market and sustain employment at the mill into the future,” said Mike Brown, executive vice president, Wood Products division.
Approximately 150 employees are employed by the facility.
The sale is contingent upon the results of the due diligence process, which is expected to be complete in the first quarter. Boise Cascade will record a pre-tax charge of approximately $25 million in the fourth quarter of 2018 as a result of writing down the carrying value of the Moncure facility and the associated inventories, as well as accruing anticipated expenses related to the sale to Southern.
In November, Boise Cascade shut down its laminated veneer production at its Roxboro, North Carolina facility, laying off 56. It sold its lumbermill in Pilot Rock and La Grande, Oregon and its particleboard operations in Island City to Woodgrain Millwork in September.