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Weyerhaeuser to Build New Sawmill, Permanently Close Another, in Lebanon, Oregon

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Weyerhaeuser Co.
32901 Weyerhaeuser Way S.
Federal Way, WA, 98003
USA



Press release date: August 23, 2006

FEDERAL WAY, Wash., Aug. 23 /PRNewswire/ -- To make its lumber operations more efficient and competitive, Weyerhaeuser Company (NYSE:WY) today announced the construction of a new sawmill and the closure of another, both in the area of Lebanon, Ore.

The sawmill on Weirich Drive will permanently close and a new operation will be built at the existing Bauman lumber mill location on Fairview Road.

Rob Taylor, Weyerhaeuser's lumber technologies vice president, said Weyerhaeuser is pleased about the opportunity to build a world-class sawmill in the area.

"The new mill will allow us to be more efficient and strengthen our ability to serve customers," he said.

Lee Alford, senior vice president of residential wood products, said the addition will allow Weyerhaeuser to be more competitive in offering value to customers while making the company simpler to do business with.

The new mill is expected to employ about 125 people and produce lumber for local and West Coast markets. The company plans to begin construction in the fourth quarter of 2006 and begin operations in the first quarter of 2008.

The selected Bauman site, Taylor said, is the best location for the new mill.

"It has good rail and transportation links, good proximity to customers, will be relatively easy to construct and will provide room for future growth," Taylor said. "The decision indicates the level of confidence Weyerhaeuser has in this community's ability to provide the people and resources for a world- class operation."

The closure of the Weirich Drive location affects approximately 60 hourly and salaried positions. Weyerhaeuser is providing 60 days notice to those associates, as well as closure benefits consistent with company policy and applicable union agreements. The bulk of operations at Weirich Drive will cease Friday, Aug. 25.

"The decision to close the mill and build a new one reflects the company's strategy to ensure all operations remain competitive and best serve our customer base," said Taylor. "We regret the impact this decision has on our associates. Our first priority is to support them through this difficult time. They have earned our appreciation and will be treated with respect and dignity."

While constructing the new mill, Weyerhaeuser will evaluate the timing for consolidating the operations at its existing Bauman and Coburg sawmills.

"These sites produce products valued by our customers, and we will ensure our customer needs are met during this period," Taylor said.

Weyerhaeuser currently operates lumber mills in eight states and four provinces in Canada. Weyerhaeuser is the world's leading manufacturer and marketer of lumber products, which provide value for builders and other customers.

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were $22.6 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com/ .

For more information contact:

Media -- Mike Moskovitz (541) 741-5431 Analysts -- Kathryn McAuley (253) 924-2058

Source: Weyerhaeuser Company

CONTACT: media, Mike Moskovitz, +1-541-741-5431, or analysts, Kathryn McAuley, +1-253-924-2058, both of Weyerhaeuser Company

Web site: http://www.weyerhaeuser.com/
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