Potlatch Closes Prescott Mill

PRESCOTT, AR - Potlatch Corp. says it will permanently close its lumber mill in Prescott, citing the impact of the housing crisis on lumber sales.

Potlatch says it will work with state and federal officials to help "lessen the impact" on the 182 workers at the mill.  The company also blamed the closure on its proximity to other mills, saying it drove up the prices for lumber.

The Prescott mill, purchased by Potlatch in 1966, produces southern yellow pine lumber used primarily in home building.

Potlatch, based in Spokane, Washington, owns 1.65 million acres of forest land in Arkansas, Idaho, Minnesota and Wisconsin and runs 12 manufacutring facilities.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)