One of the last remaining regional mills that processes redwood logs, California Redwood Company, a subsidiary of Green Diamond Resource Company, announced on Wednesday that it "will transition out of the redwood lumber business," according to a statement.
"This decision reflects a careful review of our business. We believe this difficult change to our strategy is essential to the success of our redwood timberland business and to sustain our long-term investment in the highest standards of stewardship and conservation practices on our timberlands," said Douglas Reed, president of Green Diamond, in the statement. "Despite our best efforts, CRC has not been able to achieve positive results for redwood lumber manufacturing and sales over the last several years."
Green Diamond will continue to harvest redwoods on the nearly 393,000 acres the company owns in Del Norte and Humboldt counties, but the company will be transitioning to other manufacturers of redwood lumber.
"Over the next few months, CRC will continue to process remaining redwood log inventory and supply customers from existing redwood lumber inventories while customers make arrangements with other suppliers of redwood lumber," according to the statement.
"As we have for over sixty years, Green Diamond will continue to produce high-quality redwood logs in Northern California, but our production will now be sold to other lumber manufacturers rather than being transferred to our subsidiary, California Redwood Company," said Neal Ewald, Green Diamond's senior vice president for California operations, in the statement. "Green Diamond also will continue to invest in the redwood lumber marketing campaign sponsored by the Headwaters Fund, and we have increased our funding commitment for 2014."
CRC's mill in Korbel will continue to process Douglas fir logs with the mill running on one shift, according to the statement.
South Coast Lumber Co.in Brookings, where many Del Norters are employed, does not currently process redwood.