PORT ANGELES — Peninsula Plywood Group LLC has fired up its boiler at the mill on Marine Drive, which has been shuttered for more than two years, as the company prepares to begin production later this month.
PenPly, which has 40 workers on board now, is set to hire another 100 employees to work at the Port Angeles mill. No date for the opening has been set.
The former KPly mill, which has been closed since November 2007, came to life at 10 a.m. Wednesday as boiler testing began.
“The boiler is kind of the heart, basically, of any production plant,” said PenPly President Josh Renshaw.
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.
Eventually 175 people
Eventually, the mill at 439 Marine Drive will employ 175 people, Renshaw has said. The company’s goal is to produce 5 million board-feet of plywood a month.
Klukwan Inc. of Alaska, stopped production in November 2007 and permanently laid off 132 employees — including Renshaw, who was the sales manager for KPly — in April 2008.
Sterling Savings Bank seized the mill’s equipment after KPly failed to repay its loans.
The port, which owns the 19-acre property, 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.
Renshaw began efforts to acquire the shuttered mill more than a year ago. He said he is backed by a group of Port Angeles business investors he has declined to name.
PenPly’s present 40 workers includes a management team.
“We have outstanding workers in place right now,” Renshaw said.
“We will continue to hire the best workers possible.”
More than 400 people have applied for jobs at the mill, he said.
Applicants must apply through WorkSource of Clallam County, at 228 W. First St., Suite A, Port Angeles.
Testing going well
Boiler testing has gone well, as crews continue to prep the machine centers, Renshaw said Thursday.
“We’ve made great progress on doing remedial maintenance after the plant’s been sitting that long,” Renshaw said.
Final approval from the Olympic Region Clean Air Agency is pending. Renshaw said there are no foreseeable problems with getting the environmental permits.
“We’re working very closely with ORCAA,” he said. “They’ve been a tremendous amount of help.”
Renshaw said PenPly is working “by the book” to reduce emissions at the plant.
PenPly will serve a niche market with new, “high-end” homes. Renshaw has said the mill will also serve the siding market for remolding 20- to 30-year-old homes.
In terms of public financing, the port received $250,000 from the state and $85,000 from the county’s opportunity fund to help bring the facility up to par.
Gov. Chris Gregoire has allocated $250,000 for the firm in her supplementary budget request.
The funding has to be approved by the state Legislature, which begins a new session on Jan. 11.
Up to 95 percent of the timber used at PenPly will come from the Olympic Peninsula, Renshaw said.
“We’re pretty excited,” he said. “Everything is going well.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
