Weyerhaeuser Company is to convert two of its North American operations in order to strengthen its “residential wood products portfolio”.

From October 26, its Dobson, Louisiana plywood mill will solely manufacture veneer, with the Colbert, Georgia facility stopping veneer manufacture from the beginning of November.

Weyerhaeuser said that the changes will affect 50 people at the Dobson site and 70 at the Colbert operation.

“”We made the decision after a thorough review of short-term and long-term demand for our plywood panels and to further integrate dry veneer into our engineered lumber products,” said Cathy Slater, vice-president of veneer technologies at Weyerhaeuser.

“Shutting sections of the two mills was a difficult decision, but the reality of current markets requires that we allocate our capital with great prudence to ensure all manufacturing operations remain well positioned to serve our customers.”

Ms Slater added that the decision was a “reflection of the challenging business environment we face”.