Plywood plant operated in Libby for four decades

While smoke drifted around various neighborhoods on Friday morning, a Libby man wearing a bathrobe and carrying a cup of coffee wanted to take one more look.

A steady stream of vehicles passed by the site with people taking in the sights, sounds and smells of a devastating fire. Many stopped for a longer look with cameras in hand.

It was true – the sizeable plywood plant once operated by Stimson Lumber Co., was gone. It will always be remembered as an important part of the community.

The J. Neils Lumber Co.’s Division of the St. Regis Paper Co., dedicated the new plant on Sept. 9, 1962. Dignitaries of the day were on hand to witness the addition, including Montana Gov. Tim Babcock, who served as the guest speaker and cut a ribbon to symbolize the beginning of production.

Residents got their first good look at the plywood plant during an open house on that Sunday afternoon. Arrows pointed folks in the right direction and guides were set up at various stations in the building to offer details of the operation. A slide show offered even more information. By the end of the day, the number of people who toured the plant was estimated at nearly 2,000.

“With the addition of the plywood facilities, another milestone in the company’s expansion plans will have been achieved,” said A.J. Agather, J. Neils’ resident manager. “Our plans for greater diversification and greater use of the forest resources of this area will have been advanced.”

The plant came along with a million-dollar payroll and had plans to eventually employ up to 150 individuals. In its time, the plant was one of the most modern to be found in the industry. In the beginning, it was set up to manufacture about 60 million square feet of plywood annually – most unsanded for use as sheathing in the construction industry.

Robert L. Neils, a third-generation member of the Neils family, was placed in charge of plywood operations when the plant opened.

“The plywood plant here is an important new asset for Libby,” reads an editorial in the Sept, 6, 1962 edition of The Western News. “The 150 new jobs the plant creates will benefit not only Libby but all of this region. For the past year-and-a-half, construction of the plant has been an important economic factor, providing jobs for many workmen and bringing contractors and equipment specialists here from all parts of the nation.”

At the dedication ceremony, the governor said that substantial industrial growth could be seen in Montana.

“During the past 10 years, our average in new investments has been $20 million annually,” Babcock said. “This year, new investments in our state soared to $50 million.”

In 1985, the plant changed hands when Champion International purchased it from St. Regis. Then in 1993, Stimson Lumber Co., took over – the same year that a fire ripped through the mill.

Forty years after that dedication ceremony in October 2002, Stimson announced the plywood plant’s closure. About 300 employees that added up to a payroll of more than $13 million would be laid off.

Timber supply and low-priced imports were among the reasons for the plant’s demise.

“Unfortunately, the bottom line became painfully clear over the last couple of months as the trend in eroding product values accelerated,” aaid Andrew Miller, Stimson’s chief operating officer. “Log costs have remained high while prices for finished products have steadily declined.”

Employees had spent four months working to identify and secure an additional 20 million board feet of timber from Kootenai National Forest so Stimson could keep the mill operating. At the time, the mill was nearing the end of a 10-year timber supply contract with Plum Creek.

“There is no one to blame here, no interest to criticize,” Miller said. “Everyone did their level best to be constructive and cooperative as we worked to find a positive solution during the last few months.”

Community leaders expressed concern over the closure.

“It’s a devastating blow for the community,” Libby Schools Superintendent Kirby Maki said. “It’s going to have an effect on every store, the hospital, the school and everything that goes on in the community for some time.”

“I really thought there would be a cutback to try to work through this scenario but I didn’t expect it to be a total shutdown except for 20 jobs,” Windom said – the 20 jobs in reference to those that would still be employed by the finger-joint plant. “We’re going to see a tremendous amount of belt-tightening in the next 60 days, and justifiably so.”

“We have to get up, dust ourselves off,” then-Mayor Tony Berget said. “We have to find a way to fight back.”

Just two months later, the final piece of plywood produced at the plant came off the line at 7:35 p.m. on Dec. 20, 2002.