Gov. Gregoire vows to 'vigorously recruit' buyers for Weyerhaeuser mill

For Immediate Release: November 23, 2005

OLYMPIA - Nov. 23, 2005 - Gov. Chris Gregoire today applauded Weyerhaeuser�s agreement to sell the Cosmopolis pulp mill the company has slated for closure and vowed to vigorously recruit potential buyers.

�I am pleased that Weyerhaeuser will entertain potential buyers for the Cosmopolis mill,� Gov. Gregoire said. �I will seek every opportunity to find the best possible answers for the people of Grays Harbor.�

Upon Weyerhaeuser�s October announcement of plans to close the mill, Gov. Gregoire spent a day in Aberdeen listening to mill employees and members of the community firsthand. While there she announced her plans to make available $50,000 for a feasibility study.

Soon after she met privately with Weyerhaeuser officials to discuss the planned closure. During that meeting, the governor requested they meet with her, union officials, Grays Harbor community leaders, and members of the state legislative Coastal Caucus as well as a representative of Congressman Norm Dicks to discuss strategies. Gov. Gregoire led that meeting Friday, Nov. 18, at her office in which Weyerhaeuser officials said they would entertain potential buyers.

In a follow up to that meeting, Weyerhaeuser Chief Operating Officer Rick Hanson yesterday wrote Gov. Gregoire that the company �is willing and prepared to meet with any potential buyer who meets our criteria for the disposition of the mill.� Hanson said the company will also share non-proprietary information for the feasibility study.

The governor and members of the Coastal Caucus, led by Rep. Lynn Kessler and Sen. Jim Hargrove, had asked Weyerhaeuser officials to discuss whether the company would consider selling the Cosmopolis mill.

Said Sen. Hargrove, �Our meeting was productive but I want to make sure that a neutral third party conducts a genuine feasibility study to ensure that no stone is left unturned in our efforts to keep the mill open.�
Added Rep. Kessler, �We're committed to looking at all possible options to keep the mill open, whether that means finding another corporate owner or through an employee buy-out. We're counting on Weyerhaeuser to join us in this effort."
Hanson�s letter stated that criteria for potential buyers include �realistic financing, certainty and timing of closing a sale, and indemnification from any future environmental and operations liability.� The company also wants written assurance from the state Department of Ecology that it has completed �all required remediation prior to completion of a sale.� Weyerhaeuser will make available a prospectus to potential buyers, he added.

�We remain committed to working with you if a qualified buyer is found and to identify economic development opportunities for the region,� Hanson wrote.

Also attending the Nov. 18 meeting at the governor�s office were:

Rep. Jim Buck
Rep. Brian Blake
Rep. Dean Takko
Sen. Mark Doumit
Lt. Gov. Brad Owen
Michael Tracey Director of the Economic Development Council
of Grays Harbor County
Gary Nelson Director of the Port of Grays Harbor
Jim Tusler Washington State Labor Council
John Rhodes Association of Western Pulp and Paper Workers
Bill Messenger Local Union President
Sara Crumb Deputy District Director, Congressman Norm Dicks

The group agreed to reconvene next month for an update and discussion of further strategies.

# # #