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
NC Equipment Operator Program Produces Results
The North Carolina Assn. of Professional Loggers’ Forestry Equipment Operator Training Program is off to good start. Six of the 12 to complete the first four-month course in July found work within weeks. Resumes and videos of the others operating machines can be...
Annual N.C. Bugfest Features “Bad Bugs In The Forest”
Where did more than 35,000 moms, dads, children, and their friends go for fun-filled, “buggy” entertainment, activities, and cuisine this year? They all showed up early and stayed late for the 16th annual Bugfest hosted by the North Carolina Museum of Natural Sciences...
Have A Question?
Send Us A Message