144 



XaUL r. lirHINGER&As 



ASSOCIATES 



Conni bants to tbe Forat PrvJuets Industry 



1200 HIGH STREET. SUITE 22 



EUGENE, OREGON 97401 



503/686-9607 FAX 503/686-8124 



MILL CLOSURES 

 In listing mills as dosed, wc use the follcrsviiig criteria: 



1 . The mill that management Indicates the operalion will be closed 

 permanently. 



2. A mill is considered closed if tt has been closed for 60 days or more 

 and, wc believe, is not likely to reopen, or management indicates a 

 closure of indefinite length. 



3. Mills that reopen are removed entirely from the list. There is no 

 double counting in our data. The listing Is for mills that are closed 

 or formally announced to be closed en the date of listing. 



4. To be on the list, a mill must have been a producer of a primary 

 product: lumber, plywood, veneer, board, pvilp. or other major 

 commodity. 



5. The employment data is the number of mill employees that lost 

 their job. In some cases if a plant has normally run 2 shifts, but 

 for the last year prior to closing has run only a single shift, we try 

 to capture the 2 shift level of employmcnl- 



6. The producUon informaiion represents the average annual 

 production over the two yeaxs prior lo closure. 



7. Our history of recording closures shows that once a mill Is closed 

 in the western states, they rarely reopen. Over ihe past 10 years of 

 tracking mill closures, wc find the permanent return to operation 

 rate to be about 1%. 



In some cases, our judgment and Information may be proved wrong, but 

 we believe lliis criteria reflects the status of mills within our Industry. 



