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Arauco to close Eugene plant, cutting 84 jobs

The company blames an "economic imbalance" in the medium density fiberboard market.

Posted: Feb 11, 2020 3:15 PM
Updated: Feb 11, 2020 6:36 PM

EUGENE, Ore. -- Arauco North America says it will permanently close its Eugene operations, cutting 84 jobs as a result.

The plant will shut down on May 1.

The company, located at 50 N. Danebo, makes medium density fiberboard (MDF). In its WARN notice to the state, the company blamed an "economic imbalance" in the U.S. MDF market. The company says it will shift production to other facilities in the U.S.

"Decisions regarding plant closures are difficult,” Pablo Franzini, president of Arauco North America, told industry website woodworkingnetwork.com. “We are working diligently to provide options for Eugene employees to help them through a difficult transition. We are committed to meeting our customers’ needs from our other facilities.”

This is a developing story.

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