Upgrades in works at St. Maries sawmills

In Idaho’s Benewah County, where one of every five jobs is tied to the timber industry, two local sawmills are in the midst of major upgrades.

Regulus Stud Mills will spend about $8 million rebuilding its St. Maries sawmill this year, allowing the facility to increase its output by 30 percent.

Potlatch Corp., which also operates a mill in St. Maries, will spend nearly $3 million to complete an upgrade begun two years ago.

State-of-the-art equipment is essential to remaining competitive in the commodity lumber market, said Eric Hern, vice president of Regulus, which employs about 100 people. “You have to wring viable board out of every log,” he said.

The investments also reflect an upswing in lumber prices, which have helped mills post profits in recent years, and continued economic forecasts for a strong housing market. About 70 percent of the lumber consumed in the U.S. is used in home construction and remodeling.

“I think we’re going to see a strong housing market for the next 10 years,” Hern said. “I think people will continue to invest in their homes.”

At Regulus, founded by Hern’s grandfather in 1959, the upgrade is bringing more computers and more automation into the sawmill. Though the number of workers will remain stable, the jobs will require higher skill levels and will pay more, Hern said.

Potlatch began a major upgrade at its St. Maries sawmill two years ago. The additional investment includes a new dry kiln, a $500,000 “knot detection system,” a log de-barker, and a sawdust collector. Potlatch will also replace the lathe at its St. Maries plywood plant. Spokane-based Potlatch employs 317 people in St. Maries.

The upgrades will allow Potlatch to manufacture higher quality lumber and plywood in St. Maries, said Mike Sullivan, company spokesman.

Potlatch is spending about $45 million this year on improving its Idaho mills and manufacturing plants. The bulk of the money will be spent in Lewiston, where the company has a pulp mill, sawmill and tissue operation.

Benewah County is Idaho’s most timber-dependent community, with 21.5 percent of its jobs in logging or wood products manufacturing.