Reaction To West Fraser Buy Fast

By 250 News

West Fraser Timber's purchase of 13 mills in the US from International Paper for $325 million US dollars was a good buy. That is the immediate reaction of one  industry insider, who says "They had $260 million US in one cheque coming back from the countervailing duties and no doubt that money was burning a hole in their pocket." 

Local Lumber producers say the purchase will make West Fraser the second biggest producer in Canada next to Weyerhaeuser. Previously Canfor held that distinction.

Local lumber producers say West Fraser is simply trying to diversify before the fall down takes place. They are hedging their bets on the mountain Pine beetle. IP had announced earlier that it wanted to get out of the random length lumber business and West Fraser saw the hole.

"West Fraser obviously thinks that we have 5 to 7 years left before the effects of the beetle hit and they are moving now." says one expert. 

Provincial Agriculture Minister Pat Bell says he is pleased to see that a truly BC lumber company is becoming a big player in the US forests. "It can only mean good news for BC. It demonstrates that BC has the technology to compete on the world scale and West Fraser is a truly BC firm."

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