PORT ANGELES — Peninsula Plywood, which recently cut pay by 10 percent, is seeking a $500,000 grant to cover operating costs.
The motivation behind the cuts and grant are the same, said PenPly President Josh Renshaw on Friday: The mill needs more money to increase production.
“We’re seeking to stabilize the company,” he said. “Money helps.”
Renshaw said the company is positioning itself to sell plywood to Japan, which is still recovering from a major earthquake earlier this year.
The Community Development Block Grant would be through the state Department of Commerce.
Public hearing
The city is sponsoring the application, and the City Council will host a public hearing June 7, said Nathan West, city Economic and Community Development director. Council meetings are held at 6 p.m. in council chambers at City Hall, 321 E. Fifth St.
Renshaw said the grant is not a “make-or-break deal” for the mill but acknowledged that the company does owe rent to the Port of Port Angeles and state taxes.
He declined to say how much is owed.
“We owe something, and I’m not going to get into it,” Renshaw said.
Port Executive Director Jeff Robb said he didn’t recall how much the company owes. He referred questions to port Finance Director Bill James.
Repeated efforts to reach James on Friday were unsuccessful.
Wages
Renshaw appeared doubtful that the mill, which employs about 130 people, would immediately increase wages if it received the grant.
“I told the employees we can’t promise them anything,” he said. “We have to stabilize before we get our wages up.”
Renshaw said he doesn’t think cutting wages should prevent the mill from receiving state assistance.
“I guess I wouldn’t understand that perspective,” he said. “The money helps us stabilize so we can get wages up in the future.”
The company announced the cuts May 18.
Renshaw said mill administrators took a 10 percent pay cut in November.
The grant wouldn’t be the first time PenPly has received help from the government.
The company received a $1.89 million loan from the U.S. Department of Agriculture after it bought the shuttered mill.
PenPly reopened the facility, previously owned by Klukwan Inc., in March 2010.
The mill struggled to get back on its feet after a fire destroyed the control room for its boilers a few months after it opened.
But Renshaw said orders at the mill are on the rise.
The mill has recently hired 30 people, he said.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.