Thursday, June 23, 2016 7:15 am

FEDERAL WAY, Wash. -- Weyerhaeuser Company has announced it will permanently close its lumber mill and plywood mill in Columbia Falls, Montana, in late August or early September.

Weyerhaeuser will continue to operate three mills in Montana: a lumber mill in Kalispell, a plywood mill in Kalispell, and a medium-density fiberboard mill in Columbia Falls.

"For some time now our operations in Montana have been running below capacity as a result of an ongoing shortage of logs in the region," said Doyle R. Simons, president and chief executive officer. "These closures will allow us to align the available log supply with our manufacturing capacity, including adding shifts at our Kalispell facilities. These moves will improve the operating performance of our remaining mills and best position these mills for long-term success."

Approximately 100 positions will be eliminated as a result of the mill closures.

The mill closures follow a decision earlier this year to move corporate positions that do not support manufacturing in Montana to Weyerhaeuser's Seattle headquarters. As a result, the company also plans to close its main office in Columbia Falls at the end of the year.

After the mill closures and office moves, Weyerhaeuser expects to employ about 550 people in Montana.