PORT ANGELES — After two years of mostly collecting dust, the idled machines of one of Port Angeles mills will roar back to life at end of the month to once again saw, trim and glue boards of cedar and fir to make plywood.
Under new ownership, the former KPly mill at 439 Marine Drive in Port Angeles — which now is known by its original name, Peninsula Plywood — will begin production the week of Feb. 22, and roll out its first truckload during the first week of March, said PenPly President Josh Renshaw.
The waterfront mill — which ceased production as KPly in November 2007 and permanently closed in April 2008 — at its earliest could have opened mid-January, but the company had to wait until all of its financing was in place, said Renshaw, who is a former KPly sales manager.
The company’s investors — made up of Port Angeles residents Renshaw, former City Council member Grant Munro and Wilmer Possinger Jr. — were able to secure the last loan they needed last week, Renshaw said.
After getting the $500,000 loan from the state Department of Commerce approved Wednesday, the investors met the following day and gave the go-ahead.
Realizing a dream
For Renshaw, passing that last hurdle means realizing a dream that began shortly after KPly permanently laid off its work force of 132 early in 2009.
“I’ll just be glad to be back to the day-to-day work of a operating a plywood plant,” said Renshaw, who admitted that he feels more at home selling plywood than seeking loans and investors.
Sterling Savings Bank had seized the mill’s equipment after KPly’s parent company failed to repay its loans.
The port, which owns the 19-acre property, had seized the mill’s buildings after that company failed to pay its outstanding rent.
The Port of Port Angeles signed a lease with PenPly in August after the company acquired the equipment from Sterling Bank in July.
The lease is $13,500 per month plus a 12.84 percent leasehold tax.
Half of the rent is deferred for the first two years.
For the 75 people hired last month, the selection of a starting date means they don’t have too much longer before beginning work.
They will join the current work force of 50 — many former KPly employees — that have worked to get machinery up to par since November.
Renshaw said the mill eventually will employ 175 people as it ramps up production.
The hourly wage jobs PenPly offers, which come with benefits, are separated into 35 titles — such as lathe operator, panel saw operator, forklift mechanic — and pay between $12 and about $30 an hour, Renshaw said.
The company’s goal is to produce 5 million board feet of plywood a month.
While Renshaw spearheaded the effort to reopen the mill, he praised the skilled workers who have brought the large machines back to life.
“Without them, this wouldn’t happen,” he said.
“These are great guys. They get it done right the first time,” he added.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.