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Malheur Lumber Co. is permanently closing its John Day, Or., sawmill, as soon as it finishes milling its log inventory and ships the lumber to customers.
The facility, owned by Ochoco Lumber, Prineville, Or., has been in operation since 1983 and has 76 full-and part-time employees.
In a press release, company officials noted, “The current cost of operating a small manufacturing business in the rural part of the state seems no longer sustainable.”
It is reportedly the last mill in once sawmill-rich Grant County. Most recently, Prairie Wood Products, Prairie City, closed in March.
The release listed several factors that led to Malheur’s closure, including:
• Shortage of a willing and drug-free workforce.
• Shortage of housing to recruit workers from outside the area.
• Poor lumber market conditions in recent years.
• High manufacturing costs due to inflation.
• Low, inconsistent production due to the shortage of employees.
• Increase in government regulations on small business in the state.
Malheur officials vowed to keep workers informed of next steps, adding that it will be developing a strategic plan for the shutdown over the next several weeks.
