PALCO offers glimpse at state-of-the-art sawmill
 
 
 
November 24, 2004
 
 
By Diane M. Batley, The Eureka Reporter
513 Second Street
 
Eureka, California 95501
 
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Scotia, California - The Pacific Lumber Company’s new $25 million sawmill in Scotia will be cutting up trees well into the future.
 
 
The new Scotia sawmill converts logs into buildable wood products two to three times faster than standard mills. The Eureka Reporter/Diane M. Batley. http://www.eurekareporter.com/NewFiles/PALCO1_11242004_web.jpg
“We view the renovations we made here as an investment in people and the community,” said Robert Manne, president and CEO of PALCO. “It is our goal to revitalize this town.”

Manne said the company has been fixing up homes in Scotia and is spending approximately $1 million a year running the town. The company also remodeled the historic Winema Theater, which was established in 1920.

PALCO held a dedication for its new sawmill on Nov. 17 at the theater. Hundreds gathered to listen to Manne, Humboldt County Supervisor Roger Rodoni, Vice President of Operations Dennis Wood and others talk about the contributions PALCO has made to the county.

Charles Hurwitz, chairman of the board and chief executive of Maxxam Inc. was in attendance and said, “I think it’s fabulous. I'm delighted it got built and [that] it works.”

PALCO is a subsidiary of Maxxam Inc.

Hurwitz said the new sawmill has been operational for a month.

Wood led one of the tour groups and said the first log sawed at the new mill was on July 17. He said the new sawmill is currently running at about 75 percent of its capacity. The sawmill is able to saw logs that are 24 inches or less.
 
After the beginning of next year, equipment that can cut larger logs will be brought over from the Carlotta and/or Fortuna mills. He said the Scotia sawmill equipment was designed to meet sustained yield requirements to be more cost effective.

Wood said 178 million board feet is what the company is allowed to cut. He said PALCO has never cut to its sustained harvest due to the habitat conservation plan and cumbersome regulatory requirements.

PALCO operates on 220,000 acres. The company harvests Douglas fir and Redwood trees.
 
 
A PALCO employee grades Douglas fir wood as it moves down the line. The Eureka Reporter/Diane M. Batley. http://www.eurekareporter.com/NewFiles/PALCO2_11242004_web.jpg

Wood said approximately 75 percent of the Redwood sawed at the mill stays in California and is used for building items such as decking, gazebos and spas. He said almost all Douglas fir customers are in Southern California.

The new sawmill is more than 600 feet long and takes up over seven acres. The sawmill was assembled within one year.

When asked if the company was for sale as recent rumors have indicated, Manne said, “The company is not for sale. Our future looks very bright.”

When asked about current lawsuits involving tree-sitters and PALCO, Manne said he does “not typically allow … comments on active lawsuits.”

He did say that in his three years with the company he believes there has been less contention.
Manne said, “I believe in First Amendment rights. I do not believe in trespassing … showing total disrespect for our employees and I will not accept that behavior.”

He said the company is not going to go out of business and that the company will not be bankrupted.

Manne said those who want to make change should do it with those who make the laws.
 
Copyright 2004, The Eureka Reporter.