Yuba County sawmill closing

The Sierra Cedar Products sawmill facility in Olivehurst will close March 31 or sooner, leaving more than 60 employees without jobs.

Market conditions and log costs were two reasons cited by company representatives.

In a three-sentence statement released by the company, Sierra Cedar Product officials said production at its plant in Olivehurst will slow in the next few weeks and close permanently by the end of March.

The statement, released to employees, reads: "Sierra Cedar Products LLC, Marysville, Calif., has informed employees that the company's two sawmills will curtail soon, and close permanently on March 31 or sooner. Processing of inventories, sales, and shipping will continue through January/ February. Market conditions and high log costs were cited."

The plant is located off Melody Road in Olivehurst.

Company officials declined further comment. Officials, however, did say they gave employees ample notice as well as brought in representatives from unemployment and other personnel services to help with the transition.

John Fleming, Yuba County's Economic Development coordinator, said Sierra Cedar's closure is not a unique event, especially when the market is in a downturn.

"Nobody's immune," Fleming said. "This company represents only one of the many industries in Yuba County that supports construction and is affected by the market." Fleming said business that focuses on the wood industry and residential construction is down 90 percent because of the downturn in the housing market.

"Sierra Cedar Products is the tip of the iceberg," Fleming said. "This is a challenge we are going to face over the next few years."

Sierra Cedar, which manufactures incense cedar and white wood for fencing products, opened at the site in September 2005. The company was purchased by Soper-Wheeler of Strawberry Valley around the same time.

Roughly 60 employees are affected by the plant's closure.

Fleming said he spoke with the company's president before the announcement to close the plant came, and the president hopes to be able to reopen the plant in 2009 after some retooling of the operation and once the market turns around.

"They're hoping to be more competitive in the market," said Fleming. "But there are certain things we as a county can't avoid that are market driven when you're not building houses."

Contact Appeal reporter Andrea Koskey at 749-4709 or akoskey@appealdemocrat.com