Klausner Sawmills In Deep Trouble
Following several years of below capacity operation and much controversy, Klausner Lumber One LLC, including its southern yellow pine sawmill in Live Oak, Fla., has filed for Chapter 11 protection in the U.S. Bankruptcy Court, District of Delaware. According to the petition, liabilities are expected to range from $100 million to $500 million.
The Live Oak sawmill and a newer Klausner sawmill in Enfield, NC both shut down operations in March, prompting a class action lawsuit against Klausner in a U.S. District Court, accusing the company of failing to comply with the 60-day notice period and for outstanding wage and social security payments. U.S. employees said Austria-based employees and executives were “evacuated” to Europe in mid March with no notice to U.S. employees.
Once considered major investments courted by communities across the Southeast as the economy improved following the 2008-2009 Great Recession, the Klausner mills never got up to speed anywhere close to their respective 350MMBF production capacities.
The Florida plant, which started out under a cloud of foundation problems and labor issues, began operating in 2015. The North Carolina sawmill was never able to move into full operation. Klausner had even considered building an identical third sawmill in South Carolina.
The existing sawmills are apparently for sale.
Klausner Lumber One, LLC, is reportedly owned by Klausner Holding USA, Inc., which is owned by KNB GmbH of Austria, which is owned by Alpha Privatstiftung of Austria.
Latest News
Canadian Lumber Tariffs Having Both Positive And Negative Impacts In South
Tariffs are a hot topic right now. But the tariff on Canadian lumber being sold into the U.S. is slightly different than some of the others you've been hearing about. This tariff took effect last year. Mississippi's sawmills are busier than they were this time last...
Virginia Company Expanding Chipping Operations, Adding Sawmill
Mountain Top Timber Products will invest $3.76 million in a long-abandoned industrial building in Dungannon to expand the company’s woodchipping operations and add a sawmill and dry kiln capacity. Over the next three years, the company expects to create 50 jobs and...
Have A Question?
Send Us A Message