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Green Diamond to stop redwood lumber business; 80 jobs to be lost

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EUREKA- The Green Diamond Resource Company announced Wednesday that it will stop manufacturing redwood lumber and begin transitioning their focus toward producing more Douglas Fur lumber. During the transition company officials said a total of 80 jobs will be cut.

The company has 430 employees in California. During the transition 50 people will loose their positions at the Eureka, Brainard facility and 30 at the Korbel location.

Officials said they will continue to process and sell the remainder of the redwood lumber and keep employees on until everything is sold. The company expects to sell the lumber by the end of the year.

Green Diamond will continue to harvest 400,000 acres of timberland, but will sell the logs to local sawmills. Senior Vice President Neal Ewald said manufacturing the lumber was no longer economically viable. "We've had difficulty being profitable," he said.

The company will continue harvesting and manufacturing Douglas Fur at the Korbel sight. Ewald said they expect to double the amount of redwood harvesting in the area over the next fifty years as more lumber becomes available.