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Gulf Lumber buys Boise sawmill Rumors have been circulating, but it became official this week when Boise Paper in Jackson announced it had sold its sawmill operation to Mobile-based Gulf Lumber Company. According to a press release from Boise Paper, a business unit of Boise Cascade, LLC, the company curtailed sawmill operations in August of 2006 due to weak lumber markets. The sale to Gulf Lumber-Jackson, LLC, is expected to close in early February. The sale is subject to due diligence and other conditions common for this type of transaction, and includes supply commitments between the parties for logs coming into the sawmill and residual chips coming from the facility. General Manager for Boise's Alabama Operations Rick Grant made the following statement: "We have been working since August to find a way to get the sawmill back into operation and the employees back to work. We believe Gulf Lumber-Jackson and its owners, the Stimpson Family, will be good corporate citizens. They have been doing business in our area for many years." Gulf Lumber's Chief Operating Officer Mitch Shackleford said, "We are excited about expanding our operations into Clarke County. In 1915, our grandfather, Fred T. Stimpson was running a small peckerwood sawmill on the banks of the Alabama River south of here at Choctaw Bluff. We are truly excited about the opportunity to establish an operation in the city of Jackson and Clarke County where we do not consider ourselves to be strangers." Boise is cooperating with Gulf Lumber-Jackson in contacting laid-off sawmill employees about employment opportunities. Gulf plans to begin operation of the planer mill after close of the sale. Shackleford said present plans are to run a single-shift operation, cutting one million board feet of lumber per week. Startup of the planer mill is planned for mid- February. A startup date for the sawmill has not been set. "It will depend upon the completion of maintenance repairs and equipment modifications," he said. "There will be a period of time in February and March when employees may be traveling to Gulf Lumber Company in Mobile for orientation and training prior to startup." Boise's new pallet mill, which has been operation since August of last year, is currently located at the sawmill facility. "Our pallet mill operation is not included in this sale, but will curtail production at completion of the sawmill transaction," said Grant. "Options for relocation and operating of the pallet mill are still being considered. We hope to bring this issue to resolution soon."
Shackleford said because of the depressed lumber market, there will be challenges that lie ahead for its new Jackson operation. "As we humbly approach this opportunity, we anticipate that we will find the correct combination of resources and people to make this endeavor successful," he said. "While not business venture is guaranteed, with the support of the community, a reliable workforce and our sawmilling experience, we believe Gulf Lumber- Jackson will be a bright future for years to come.
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