Stimson shutdown impacts pellet supply

The shutdown of Stimson Lumber Co.’s finger-joint plant in Libby not only negatively impacted the local job market but could ultimately affect hundreds who own pellet stoves.

In a move announced last week, Stimson issued layoff notices to all 13 employees, including the plant manager. The layoffs were characterized as “indefinite” and with a timeframe of at least nine months.

“It’s sad to see even one job lost because we’ve always had such high unemployment,” Libby mayor Tony Berget said. “We fight so hard to get a job here, get a job there. I really feel bad for the guys that worked there. It puts your life in limbo a little bit.”

A poor housing market reportedly prompted the layoffs. Finger joints are short pieces of lumber that are joined end to end. In addition, HooDoo Mountain Inc., in Libby utilizes Stimson for pellet sales.

“We’re going out of production for a while,” HooDoo owner Lee Disney said. “We depend upon them for our wood supply. Without them, we’re pretty much dead. There’s a little out of Kalispell but not enough to pay the power bill.”

The news hits a community like Libby especially hard because of a stove changeout program implemented by the Environmental Protection Agency. Older wood stoves had negatively impacted the atmosphere with high levels of fine particulate matter. Although certified wood stoves are in use, many opted for the more efficient pellet stoves.

Disney thought he had a backup plan in place to continue pellet sales to his customers at a reasonable price even if Stimson closed its plant. But the contract with that former partner was torn up after a new owner took over. Prices that are just too high were the result.

“I’m debating on whether to bring in pellets and charge a high price,” Disney said, adding that electric heat may be the way to go because of its cost-effectiveness. “I’m not sure of the next plan. I’ll look at the options.”

Stimson has operated the Libby plant since 1993. Although company representatives indicate the plant could re-open with a housing market rebound, those chances may be slim. In December, Stimson closed its Bonner sawmill in the same fashion and then permanently shut it down earlier this summer.

“It’s kind of ironic that they lose 13 jobs there and we gained 13 jobs with Mines Management,” Berget said. “Right as we’re gaining jobs, we turn right around and lose some.”