SUMMERVILLE, S.C. — The Summerville community is set to lose 80 jobs as Interfor Corporation, a Canadian lumber giant, announced it will indefinitely curtail operations at its Summerville sawmill due to persistently weak market conditions. This closure is part of a broader shutdown that also affects Interfor’s sawmill in Meldrim, Georgia, impacting a total of 180 employees across both sites.
Interfor's decision follows the company’s staggering $76 million net loss in its second-quarter financial report. The Summerville sawmill, located at 200 N. Maple Street, has already begun curtailing log deliveries, with a complete wind-down of operations expected by the end of September.
The Summerville mill, acquired by Interfor in 2021 for $59 million, had a production capacity of up to 200 million board feet of kiln-dried Southern yellow pine lumber. Despite plans to invest $30 million into the facility, the ongoing weak demand for lumber, coupled with economic uncertainties in the housing sector, has led to the mill’s indefinite curtailment.
Interfor noted that the indefinite nature of these curtailments means the impact on lumber production is likely to extend beyond 2024, affecting the company's overall output. The company had included the expected production impact of these curtailments in its August 8th temporary curtailment guidance, but the prolonged shutdown suggests deeper market challenges.
The Summerville sawmill’s struggles were compounded by the loss of a key customer last year when WestRock closed its North Charleston paper mill, which had been a significant buyer of wood chips and biomass materials from the Summerville site.
Bart Bender, Interfor’s senior vice president of sales and marketing, highlighted that high interest rates and economic uncertainty have led to a sharp decline in lumber demand, particularly in the multifamily housing sector. The much-anticipated spring building season fell short of expectations, with significant sales declines across the Southern U.S., including Florida, Georgia, and Texas.
As the Summerville sawmill winds down, Interfor has mentioned offering alternative employment opportunities at other company locations for some affected employees, but details remain unclear. The closure of the mill leaves the future of the property uncertain and marks a significant blow to the local economy, highlighting the broader challenges facing the lumber industry amid ongoing market volatility.
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