PORT ANGELES, WA -- Peninsula Plywood (PenPly), struggling to pay its bills, is getting a helping hand from the City of Port Angeles.
On Tuesday, Port Angeles city councilmen voted to back a $500,000 grant application being submitted by PenPly to the Washington Department of Commerce.
PenPly plans to apply proceeds from the grant to purchase raw materials needed to manufacture plywood, add up to 20 employees and pay some of its past-due bills, according to the Peninsula Daily News.
Executives of PenPly reportedly told the council that receipt of the grant would not guarantee the mill's future success, but that the plant would certainly "not make it" without it.
The newspaper noted that PenPly owes the city more than $315,000 for electricity and another $70,000 to the Port of Port Angeles for rent.
PenPly recently reduced employee pay by 10 percent. The plant currently employs 115 people.
PenPly reopened the plywood plant, formerly owned by bankrupt Kluckovan Inc., in March 2010.
Posted by Rich Christianson
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