Neiman Enterprises, which in 2012 acquired Intermountain Resources and relaunched it under the name Montrose Forest Products, is now warning that it may have to close the lumber mill, Colorado’s largest.
As reported by Montrose Press on Sept. 8, Neiman has warned that it cannot guarantee operations beyond the next 60 days after being unable to find a buyer. The potential closure would have devastating impacts on the town of 21,000 residents, where the mill is one of the largest employers.
According to the Denver Post, about 90 people are employed at the mill, which also creates 84 more indirect jobs. Another 232 jobs are tied to the production of lumber that supplies the mill, accounting for more than $23 million in payroll.
The Montrose Press reported that the mill is believed to contribute more than $100 million in total to the local economy, according to the Montrose Economic Development Corporation.
“For months, we searched for a buyer who could continue operating the mill in Montrose, but we were unable to secure one,” said Neiman Enterprises president Jim Neiman in Tuesday’s announcement. “We continue to evaluate all available options; however, because none currently ensures the mill will remain open, providing formal notice to our employees was a necessary step.”
Neiman Enterprises reportedly invested more than $60 million into the mill facilities after acquiring the property in 2012. This post from vendor USNR details some of the state-of-the-art equipment Neiman Enterprises purchased to help optimize operations at the mill.
Despite that investment more than a decade ago, Montrose Forest Products could not escape the economic challenges that have faced lumber companies throughout the country in recent years.
In the Sept. 8 release, Neiman thanked local US Forest Service staff, the Colorado State Forest Service, area nonprofits, and other conservation partners that he said have made significant efforts in the last year to increase timber availability to support the mill.
“My heart is with our employees, contractors and their families,” Neiman stated in the announcement. “Many have dedicated decades of their lives to this mill and have stood beside us through some very difficult years. This situation is not a reflection of them or the quality of their work. Our family is deeply grateful to them, and we carry the weight of the uncertainty this creates for their families and the entire community.”
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