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Weyerhaeuser Co. said Monday that it is permanently closing two veneer plants in Oregon and cutting more than 100 workers at those sites.

The company said shrinking demands for veneer products drove the gradual reduction and closure of the plywood mill in Springfield and a veneer plant in Coburg. The closures are effective immediately.

Cathy Slater, vice president of veneer technologies said the decision was difficult.

"There's a shrinking demand for plywood panels because of the decline in housing starts and the increase availability of alternative products," Slater said.

The 128 employees affected by the closures will get severance packages. Weyerhauser employs approximately 4,000 people in Oregon.

The company had curtailed business at both mills for the for the past year. The Springfield plywood mill has been operating on a reduced shift schedule since January. And work at the Coburg plant has been trimmed back since Oct.

The two plants will be decommissioned during the next few months.Associated Press via the Eugene Register Guard