133 



Here is where the current story htffra. After the xeorgasizatKTii, the compaiiy concentisted its 

 operations on the Hoquiam sawmill This mill produced high quality specialty products for 

 various customers, mainly in Japan. Over this period, we invested heavily in the facilities to 

 continuously upgrade equipioent and train employees to produce the greatest posable amount of 

 lumber out of the logs. The company was 95% dependent upon the Olympic National Forest for 

 saw logs to manufacture. 



VVith the advent of log^ng restrictions due to the Spotted Owl, we at Mayr Bros, knew that the 

 company had to refocus and ad^t to the changes. From an eictensive feasibility study begun in 

 1989-90, the company determined to build a small bg mill and processing feciDty to compliment 

 the existing facilities in Hoquiam The company developed a business plan end went out iooldng 

 for financing. Obtaining finartctcg vt^s difficult, but a package was obtained, the peaterpin was a 

 SS,000,OCIO loan from a local baidc guaranteed by the Fanners Home Adnuiostration under the 

 Business and Industry Guaranteed Loan program (now administored by the Rural Buaness & 

 Cooperative Development Service under the Department of Agriculture). 



Mayr Bros, had purchased several Forest Service timber sales under the Section 318 rider in 

 1990. Mayr Bros, boaness plan called for harvest of these sales during the years 1991, 1992 and 

 1993 while the new mill was being built and undergoing startup. Using this timber the company 

 could operate the existing mill and sell Ixunber into its existing markets, vyhfle the new mill went 

 through testing and markets were developed for the products sawn fiom small second and third 

 growth logs. In addition, the cash flow was to be used to iund the portion of the mill oonstiuctioq 



