A plywood mill in Bingen, Washington, is scheduled to shut down operations next month, resulting in the layoff of 81 employees. This development marks the end of a long operational history for the facility, which has been producing plywood for decades using legacy machinery and infrastructure.
The mill has faced a series of economic and operational challenges over the years, including increased competition, high maintenance costs, and the need for significant capital investment to modernize equipment. The current owners, who acquired the mill as part of a multi-company purchase in 2021, cited the unsustainable cost of upgrades as the key reason for ceasing operations.
“Despite the dedication of the workforce and the historic significance of the mill, continuing operations would require investments far beyond what is feasible,” the ownership group stated in an announcement. “After careful review, the decision has been made to close the plywood facility permanently.”
Impact on the Bingen Community
Bingen, a small city located along the Columbia River in southern Washington, has deep economic ties to its timber and manufacturing sector. The plywood mill has served as a long-standing source of employment and economic activity for the region. While the closure does not affect the adjacent stud mill, planer mill, or marine terminal, it still represents a notable loss for the area’s industrial base.
In response to the layoffs, nearby facilities operated by affiliated companies have announced plans to expand operations. Mt. Hood Forest Products and Wilkins, Kaiser & Olsen will increase production capacity by approximately 35%, creating 60 new full-time jobs. These companies have indicated a willingness to consider displaced workers from the Bingen mill for the newly created roles, though no guarantees have been made.
Factors Leading to the Closure
The decision to close the Bingen plywood mill reflects a combination of economic and structural issues common in the wood products industry. These factors include:
- Aging Infrastructure: The facility relied on machinery and systems that had not seen major upgrades in decades, making routine maintenance costly and less efficient.
- Competitive Pressure: Larger, more modern mills in other parts of the country have adopted advanced technologies that improve output and reduce costs.
- Capital Requirements: Modernizing the Bingen mill would have required significant financial investment, with no guaranteed return.
- Shifting Demand: Changes in construction trends and material preferences have altered demand for traditional plywood products.
- Labor Considerations: While the workforce was skilled and experienced, smaller mills often face difficulty in sustaining employment at competitive wages.
Broader Implications for the Timber Industry
The closure in Bingen underscores the broader transformation occurring within the wood products sector across the Pacific Northwest and beyond. As older mills phase out and newer facilities ramp up production, the industry continues to shift toward high-efficiency, automated systems. This shift often comes at the expense of legacy operations, particularly those in smaller communities where options for economic diversification may be limited.
While some laid-off workers may find employment in nearby facilities, others could face challenges relocating or retraining for different roles. Workforce transition programs and regional development initiatives could play a key role in mitigating the longer-term economic effects on affected individuals and families.
Looking Ahead
Even as the plywood mill closure in Bingen marks the end of an era, the regional forest products industry remains active. With new investments being made in more modern facilities, companies are looking to boost productivity and maintain competitiveness in a changing global market.
However, the shift also raises important questions about sustainability, rural employment, and the preservation of legacy industries. Community leaders, policymakers, and industry stakeholders will likely need to collaborate to ensure that the economic benefits of modernization are shared broadly—and that workers from older facilities are not left behind.
As the timber sector continues to change, balancing innovation with workforce support will be essential. For Bingen, the challenge now lies in navigating the transition while preserving the community’s long-standing relationship with forest products manufacturing.