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
Texas Notary Nabbed For Timber Theft
Accused of timber theft by the Louisiana Department of Agriculture and Forestry (LDAF), Centennial Rose Stewart, a notary from Bivins, TX, was arrested and charged with a felony. According to LDAF, Stewart is accused of notarizing 15 timber cutting agreements for...
Weyerhaeuser, Others Make Diaper Donation
From: Southern Loggin' Times Staff Weyerhaeuser recently completed its Operation Diaper Drive with record-breaking results. During the annual drive, which ran from March 4-25, Weyerhaeuser, its customers and vendors donated 1.5 million diapers to families in need!...
Have A Question?
Send Us A Message