The closure will take effect from May 18, with the company planning to support customers from its other MDF facilities.

The Bennettsville mill is currently offline related to market conditions caused by the COVID-19 pandemic.

The decision was made to close the facility permanently based on a broader assessment that the older manufacturing platform is no longer competitive in the prevailing MDF market compared to the company's other more advanced MDF platforms.

“The decision to close this mill was a difficult one," said Pablo Franzini, president of Arauco North America.

"We are working diligently to provide options for affected employees to help them through a difficult transition. We are committed to meet all of our customers' needs from our other facilities.”