By Dewayne Holloway
Glenwood Herald
Reports of a temporary shutdown at the Domtar Glenwood sawmill has left local residents wondering what the future holds for the mill.
Word of the shutdown first came last week when Pike County Judge Eddie Howard posted about it on his Facebook page Wednesday, Sept. 3. In his post, he stated that Domtar officials had told him that a phased curtailment of the facility had begun immediately with the schedule showing everything would be down by Oct. 10. The judge added that he had been told that they would reevaluate the matter Dec. 1 with production possibly restarting at that time.
Howard posted on his Facebook page that he asked Domtar officials if there was anything the county could do to prevent the shutdown and he was told no.
“They said it was simply bigger than all of us … it’s simply a question of supply and demand, and right now there’s way too much supply – interest rates and the economy have just led to less people building.”
The sawmill, which employs approximately 150 people, could look to reopen after Dec. 1, but Howard said that could be tough assuming that their employees find other employment in the meantime.
Mayor Billy Plyler posted a letter he received from Domtar on the city of Glenwood’s website, glenwoodar.com.
The letter was dated Sept. 5, and notifies the city of their plans to temporarily shutdown the plant. The letter confirms the shutdown is expected to last until Dec. 1, but states that there is a possibility that it may extend beyond six months.
The letter states that the shutdown will result in the temporary layoff of hourly employees. All affected employees will continue to receive insurance benefits through Dec. 1 provided that do not resign before the layoff date.
The letter also states that Domtar is committed to supporting its employees during this period and will provide access to job counseling services and assistance with state unemployment benefits.
One issue that Howard believes could help provide stability is the return of the Caddo Valley Railroad to the area. Howard said in his discussion with Domtar that the company felt that “it certainly would help if the Caddo Valley railroad was open and running to help them to economically ship products out.”
“That is something that the Southwest Arkansas Regional Intermodal Authority (SWARIA) has been working on since I came into office,” Howard said of the railroad.
“There’s just a lot of things that have to be sorted out – including ownership of the right of way. Every since it went into bankruptcy courts with the Bean family, it’s been in question. If we can get it straightened out, there are state and federal grants we can apply for to repair the rail system. Then we can get contracts for shipping and service with companies, but there is just a lot that goes into it and it’s not a quick process.”
Howard added that the railroad system in discussion has been tagged as “abandoned” and would have to be reestablished as a new railroad.
He said it was important for the rail system to be reestablished, as companies who might look to Pike County seek one of the four modes of transportation – water, air, rail or road. He noted that Pike County was not going to get a navigable waterway, an airport or an interstate anytime soon, so rail was the only viable option to add.
“First and foremost, we have to be able to retain the businesses we have before we worry about attracting other businesses,” said Howard.
He added that the loss of jobs would affect the economy in a trickle down effect – not just the workers, but also businesses such as Plylers Home Center, Wright’s Grocery and gas stations feeling the pinch.
He also worries that Pike County, which came in with a population of 10,100 in the 2020 census, could fall below the 10,000 mark for population in 2030, which would have negative financial repercussions for the county.
“Much of our funding could be affected, so we have to keep that population about 10,000.”
He said it was critically important for all residents of the county to make sure to participate in the next census.
“Any business looking to locate here will look at workforce numbers, so we have to keep our numbers by retaining the businesses we have, building new ones and getting more jobs organically. I’m fighting with everything I can to protect these jobs with all the weight that my office holds, just so everyone knows that.”
