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
Outbreak Of Bark Beetles In Alabama “Hitting Our Pines Very Hard”
The Alabama Forestry Commission is working with Wiregrass timber owners to try to save the timber industry from the outbreak of Ips Bark Beetles. “Ips Bark Beetles are hitting our pines very hard,” said Alabama Forestry Commission Forestry Specialist Brady Dunn. “The...
‘Cradle Of Forestry’ In North Carolina National Forest Opening For Spring
Another sign of spring in the mountains - the Cradle of Forestry in America historic site will open April 8 with a living history event, "Old Time Plowing and Folkways." The site of the first forestry school in the United States (hence the name "cradle") is tucked...
Have A Question?
Send Us A Message