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Saturday, September 23, 2006
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Ainsworth Lumber to suspend production, lay off 300 in Grand Rapids
GRAND RAPIDS (AP) Ainsworth Lumber Co. said Friday it would suspend production at plants in Grand Rapids and Cook immediately and lay off about 300 workers.
In Grand Rapids, 150 people will be laid off immediately from the plants workforce of 190, the company said. About 150 workers in Cook will be laid off in two weeks after they perform annual maintenance that had been planned for December. The plants make oriented strand board, a lower-cost alternative to plywood.
Ainsworth Chairman and Chief Executive Brian Ainsworth blamed the production suspension on high wood costs in Minnesota, as well as high costs for freight, and low prices for the products the plants were making.
Unfortunately, we do not foresee any near term improvement in either the cost or market conditions, he said.
The Vancouver-based company said it would review whether to resume production in Grand Rapids or Cook in mid-October.
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