More Downtime at West Fraser

Monday, February 02, 2009 08:27 AM

Vancouver, B.C. - West Fraser Timber has announced more downtime at five of its B.C. sawmills.

The company says week-long shutdowns will begin February 9th which will cut out approximately 25 million board feet of production. In addition, West Fraser says shifts at the affected operations will then move from 5 days to 3 days the following week. The company says the reduced work week will mean a 446 million fewer board feet of production on an annualized basis. The curtailments are in addition to production cuts at its Canadian mills totaling approximately 435 million board feet on an annualized basis.

The company says it also has plans to reduce production at several of its U.S. South sawmils by about 20 million board feet.

West Fraser blames the cuts on the continuing drop in demand as a result of the severe downturn in the U.S. housing market.

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Posted on Monday, February 02, 2009 08:27 AM in News by 250 News

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Comments

Posted by: Eagleone on February 2 2009 12:42 PM

That is nothing... word out today in the industrial markets is that Rio/Alcan is selling its Kemano and Aluminum properties in Kitimat to the Chinese (chinalco) as part of a $9 billion dollar deal to reduce their Rio debts from the Alcan acquisition... Rio needs this capital to survive now.

So I guess we will all be negotiating with the Chinese on our rights not to have our downtown flooded by ice jams... and whether or not the Salmon have any value in their corporate decision making process....

IMO the government of BC must act now to secure the Kemano works as a sovereign BC asset, or international law will penalize us in the future if we have any qualms about how it is run. If Chinalco wants to buy the smelter in Kitimat that is one thing, but they must not own Kemano... and our government should be charged with treason if they allow that to happen.

Posted by: Denaljo on February 2 2009 1:29 PM

Like Gordo proclaimed- BC is for sale!

Posted by: Born in BC on February 2 2009 1:50 PM

"and whether or not the Salmon have any value in their corporate decision making process...."

The Nechako salmon are long gone.

I believe that it is actually two seperate issues. Chinalco is coming in with a cash injection for Rio Tinto AND seperately the packaging unit which likely includes the former Alcan assets in Kitimat and Kemano is for sale.

From 'the economist' "Rio has still not managed to offload Alcan�s packaging business, although it is reportedly in talks with a potential buyer". The article is about the Chinalco injection suggesting that Chinalco is not the buyer and that the buyer is not generally known.

That being said I agree. The BC Govt should make an offer for Kemano right now while Rio needs the cash and repatriate this asset for the people of BC.

The Westfraser announcement is not good news at all. Westfraser has taken little if any downtime.

Posted by: leoleo on February 2 2009 3:51 PM

canfor announced further curtailments today as well and Tembec will follow suit in the a.m.