Canfor takes over Tembec assets

A new era has begun in the East Kootenay forest industry, with the completion of Canfor's purchase of Tembec assets in the region.

  • Mar. 28, 2012 1:00 p.m.

By Barry Coulter

Black Press staff

 

A new era has begun in the East Kootenay forest industry, with the completion of Canfor’s purchase of Tembec assets in the region.

On Monday, March 26, Canfor President and CEO Don Kayne visited the area to oversee the launch of that new era.

“We’re thrilled to be here now,” Kayne said.

“We’ve made a big commitment to the East Kootenay. We have the Radium mill here, plus Elko and Canal Flats. Overall in the south here we’ve a much bigger position than we’ve had in a long time.”

The Vancouver-based forest products company announced in November, 2011, that it had reached an agreement with Tembec Industries Ltd. to take over the Elko and Canal Flats sawmills, and approximately 1.1 million cubic metres of combined Crown, private land and contract annual allowable cut. The transaction – worth about $60 million – includes a long-term residual fibre supply agreement for Tembec’s Skookumchuck mill.

“Overall, the industry has been through pretty tough times over the past five years,” Kayne said. “But about a year ago we started to see some optimism out there – as small as it was at the time, it was at least enough for us to make some commitments from a capital standpoint to really focus on modernizing our mills and getting competitive with the best sawmills in the world.

“So we’ve been on that program for about a year and a half. And at the same time, we’re looking for opportunities to improve our overall fibre position and overall quality of the fibre that we have as a company.

“So this opportunity came up with Tembec over the last 12 months that we been focused hard on this area.”

Kayne said the quality of the fibre, or the wood itself, in the East Kootenay is “second to none.”

“You could probably use those words to describe it across Canada,” he said. “We really believe it’s some of the best fibre you’ll find absolutely anywhere.

“There’s a heavy spruce here, it’s bigger wood, it’s white wood, there’s not a lot of beetle in this area – this region has all the things our global customers are looking for in terms of quality.”

 

Just Posted

RCMP busy with thefts, mortar discovery, assault, arrests, more

Submitted Cst. Debra Katerenchuk, Media Relations Officer, Elk Valley RCMP The Elk… Continue reading

First Nations included in latest Columbia River Treaty talks

Seventh round of negotiations between Canada and U.S. wrap up in Washington D.C.

Elk Valley coach sets sight on all girls hockey team

Statistics from BC Hockey show fewer girls are signing up to play… Continue reading

Proposed Hosmer intersection set to improve safety

A proposed intersection in Hosmer aims to improve the safety of those… Continue reading

Maiden Lake flood mitigations to be completed in full

The City of Fernie will forge ahead with all required flood mitigations… Continue reading

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

Canada Day fireworks cancelled in Fernie

Fireworks will not feature as part of Canada Day celebrations in Fernie… Continue reading

Fate of accused in Canadian couple’s 1987 killings in jury’s hands

William Talbott’s lawyer says DNA doesn’t prove murder

Child killed after being hit in driveway on Vancouver Island

The driver of the vehicle remained at the crash scene and is fully cooperating

Eating sandwiches, putting on makeup behind the wheel could land you a fine

RCMP say if you cause an accident while eating you could be penalized

Cat badly hurt in animal trap was likely stuck for days, B.C. owner says

Blu, a three-year-old house cat, suffered severe damage to his hind leg after being stuck in trap for days

40 cats surrendered in apparent hoarding at B.C. home

Officers found the cats living among piles of garbage and feces, suffering from fleas

Vancouver Aquarium drops cetacean ban lawsuit in new lease agreement

Ocean Wise CEO Lasse Gustavsson called the updated lease an exciting new chapter for the aquarium

Thieves steal two $40K chairs featuring gold serpents from B.C. furniture store

Chairs believed to be the only two of its kind in Canada, police said

Most Read