Oregon lumber mills set to shed 200 jobs

Dropping lumber prices, the credit crunch and the continued housing slump, are putting the hurt on Oregon's wood products industry.

Another round of layoffs are affecting workers in Lane County and parts of Southern Oregon.

200 more mill jobs are being whittled from the payrolls of three companies. Officials all point to the slumping housing market as the chief reason.

States Industries of Eugene, which makes hardwood panels for residential and commercial construction, has laid off 18 production workers. Company officials declined our request for an on-camera statement.

Timber Products Company, based in Springfield, is laying off 40 workers at its Grants Pass plant.

The Swanson Group of Glendale will lay off 150 workers between its plants in Roseburg, Glendale and Noti.

President and Publisher Jon Anderson of the Random Lengths publication says, "What we're seeing is an adjustment in the supply and that means mills are making less lumber, making less plywood, making less oriented strand board and to make less, guess what you do; you reduce your workforce."

Timber Products officials say they are shutting down their softwood plywood line, leading to their layoffs. Vice President Roger Rutan, tells KVAL, "It's unfortunate and they're significant, in terms of our context, but they are ones that we needed to do based on current market trends."

Last month, Weyerhaeuser Company announced it was cutting about 100 jobs at its engineered lumber products plants in Eugene and Junction City, from now until at least April 1st.

About 4,500 people in Lane County have jobs in the wood products sector.