USA - Arauco, one of the largest global wood panel manufacturers, announced it will close its medium density fiberboard (MDF) production facility in Bennettsville, South Carolina on May 18.

“The decision to close this mill was a difficult one,” said Pablo Franzini, president of Arauco North America. “We are working diligently to provide options for affected employees to help them through a difficult transition. We are committed to meet all of our customers’ needs from our other facilities.”

The Bennettsville mill is currently offline related to market conditions caused by the COVID-19 pandemic.

The company said the decision to close the facility was based on a broader assessment that the plant’s older manufacturing platform is no longer competitive in the prevailing MDF market - compared to the company’s other more advanced MDF platforms.

The Bennettsville plant closure is an addition to the particleboard line closure at Moncure, North Carolina, and the MDF plant closure in Eugene, effective on May 1.

In both cases, the decision was also based on an in-depth analysis regarding efficiency and production capacity in a highly competitive market.