Pacific Lumber Company - Overview

Overview

The Pacific Lumber Company was started in 1863. Though it employed over 350 people in its final days in 2008, there were over 1,600 employees at the turn of the millennium. The company itself was a tourist attraction that once welcomed visitors for a tour of the (now permanently closed) largest Redwood Mill ever constructed, which included an unusual hydraulic debarker. The quaint town adjacent to the mill is still open to public visits. Pacific Lumber has been at the center of multiple controversies since a hostile takeover by Maxxam, Inc. (of Texas), that was completed in 1986, changing its status from stable employer to one of controversy and finally instability. The controversy is partly a result of a departure from long-standing management practices that ensured sustainability. The company maintains that it is still a sustainable operation, but its policies and practices bear little resemblance to those before 1986. The tale of the company since then is that of constant legal battles, hearings, and lawsuits played out in courts that have involved environmental agencies and organizations as well as the State and Federal governments. 1999 saw the sale of thousands of acres of land to become the Headwaters Forest Reserve. In that agreement, strict rules were put into place requiring the company to manage its holdings under more-restrictive practices. This in part led PALCO to file for bankruptcy in January 2007. By late in 2008 The Pacific Lumber Company ceased to exist.