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
Selma Biomass Plant To Start In 2013
U.S. biomass producer Zilkha Biomass expects its first large-scale commercial pellet plant to be operational by late 2013, the company has told Argus Media. Zilkha acquired a 500,000 t/yr regular “white” pellet plant in Selma, Alabama, two years ago when the previous...
Tennessee’s Urban Forests Valued In The Billions
Tennessee's urban forests, currently valued at about $80 billion, also provide almost $650 million in benefits such as carbon storage, pollution removal, and energy reduction according to a new U.S. Forest Service report. The authors of Urban Forests of Tennessee,...
Have A Question?
Send Us A Message