Potlatch Corp. is making changes at its plywood plants in Pierce and St. Maries that have resulted in 40 lost jobs, with more to follow.
The new strategy is to get more veneer out of each log, produce higher quality plywood and reduce waste, said Michael Sullivan, Potlatch spokesman.
“The ultimate goal is to raise the value of the plywood we’re producing,” he said. “If the strategy works as well as we think it will, it will raise the financial performance of both plants.”
Neither has been profitable for some time, Sullivan said.
As of Nov. 17, Potlatch cut back the “layup” lines at two plants, affecting about 20 employees at each. They employ about 250 each.
More jobs will be lost Dec. 1, when the operating schedule at the plants are adjusted again, Sullivan said. He could not yet say how many people will be affected.