Plum Creek Timber Co. today (Monday) announced it would permanently close its Pablo sawmill, and the future of its sawmills in Evergreen and Columbia Falls could be in doubt as well.

The Pablo closure affects 87 employees. The mill will continue to run for 60 days or until the log inventory is depleted – whichever comes first. Employees will be paid for 60 days, whether or not the mill operates that long.

The Columbia Falls pine board sawmill, curtailed from early January through mid-March, is currently operating with one-and-one-half shifts and employs 130 people. The Evergreen stud sawmill near Kalispell, which employs 69 people, has been curtailed since early January. Evergreen employees will return to work on May 4 to restart the mill.

The two mills will run for 60 days. The decision to operate these facilities beyond that time will be based on market conditions and the economic performance of each mill, the company said in a prepared release.

Plum Creek President and CEO Rick Holley blamed the poor housing market for the layoffs.

"The waning demand for our wood products is directly linked to the troubled housing market," said Holley. "Housing starts dropped again last month and we expect economic conditions to continue to put pressure on new construction. Unfortunately, we must, once again, take steps to attempt to match supply with the eroding demand.

"We regret that the Pablo mill closure will affect a number of our valued employees and their families," Holley said.

Workers who lose their jobs will be eligible for assistance under federal law for retraining.