Weyerhaeuser Steps Up Kamloops Mill Closure

Tuesday, February 19, 2008 10:07 AM

The troubles in the lumber industry have hit Kamloops where Weyerhaeuser will close its sawmill putting 196 people out of work. Weyerhaeuser also announced it would sell its timber harvesting license to West Fraser TImber.

The mill closure will take effect May 12th.

"'The decision to close the sawmill was accelerated as a result of continuing challenging markets in the U.S. and the rising Canadian dollar,' said Bob Taylor, general manager of Weyerhaeuser's British Columbia operations.

"The wood supply currently associated with the Kamloops sawmill will be directed to sawmills in Adams Lake and the south Cariboo where future fiber supply is questionable as a result of the mountain pine beetle infestation,' Taylor added.

West Fraser meantime, has advised Weyerhaeuser it would assign its right to purchase the forest license in question to International Forest Products Ltd.

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Tuesday, February 19, 2008 10:07 AM in News by 250 News

Return to Home

Comments

Posted by: Harbinger on February 19 2008 10:44 AM

Did the Americans ever close any of their mills due to their dollar being worth so much more than ours? Even given the fact that their market is 10 times the size of ours?

Posted by: northman on February 19 2008 10:58 AM

Ohh good one Harbinger. Email that one gordo and rich coleman.

Posted by: realitysetsin on February 19 2008 12:00 PM

What does that have to do with it? (am I missing something?)

This isn't a provincial problem. It's market fundamentals. There is too much wood. Period.

Posted by: lostfaith on February 19 2008 1:13 PM

Mills are not making any money with the dollar where it's at.
Why stay operating at a loss?
Shareholders are more important than the people that make them rich.

Posted by: realitysetsin on February 19 2008 4:43 PM

lostfaith - So if you were the sole shareholder of a lumber company you would keep running and jeopardize the company long term rather than shut it down and conserve cash?

I sure wouldn't. Ya it sucks but the companies aren't charities either.

Posted by: Andyfreeze on February 19 2008 7:10 PM

Running at a loss for very long is not an option lostfaith,and it will get much worse very soon!
That's why so many mills are already either down,or going down.
Devastating indeed for so many,but what are the choices?
Hey...maybe the Liberals can use some of the new carbon tax money they just nailed us with to help those on E.I.?
Ya right...