Boise Cascade is selling its plywood operations in Moncure, N.C., to affiliate Southern Veneer Products, a privately-held manufacturer of high-quality plywood, veneer, and wood by-products, according to a news release. Boise Cascade indicated the Moncure, N.C., location primarily supplies hardwood plywood to the furniture panel sector.
“We believe this sale provides the best long-term option for continuing to serve the furniture market and sustain employment at the mill into the future,” said Mike Brown, executive vice of president of Boise Cascade’s wood products division. “Southern has been a proven and trusted veneer supplier for Boise Cascade for more than 10 years.”
The Boise, Idaho-based wood products manufacturer and building products distributor said it will receive a pre-tax charge of $25 million in the fourth quarter as a result of writing down the carrying value of the Moncure, N.C., facility. The sale is expected to close in the first quarter of this year.
“The addition of the Moncure facility is a continuation of our plan to expand our geographic presence and build on a diversified portfolio of world-class assets,” Ken Adams, president of Southern Veneer, said in a public statement. “We intend to invest in equipment upgrades to make full use of the production capacity at the plant.”
