GOOD NEWS AT TWO SAWMILLS
A new canter line, grade optimizer and planer were part of a $24 million capital investment at Canfor Corporation’s Vavenby sawmill in B.C. The Vancouver-based company restarted the mill on September 6 and when it reaches full production, the operation will add 240 million board feet of SPF lumber to the company’s annual capacity.
"Our committed, exceptional workforce in Vavenby, the company's capital investment program and the excellent work that government has done to partner with industry in developing new markets for our products has allowed us to restart this facility," said Canfor CEO, Don Kayne. "Lumber from Vavenby will go to valued Canfor customers around the world."
Since 2002, the Province of British Columbia and the Government of Canada have worked in parallel with the forest industry in opening new markets for B.C. lumber. Increased global demand means that facilities like Vavenby are able to re-open, providing employment and economic benefits.
British Columbia's Minister of Environment, Terry Lake, and Clearwater Mayor, John Harwood, attended the opening event. "It was exciting to see the restart of this sawmill, which will create 96 jobs at the mill by the end of September and a further 30 jobs in logging and trucking," remarked Terry Lake, MLA for Kamloops-North Thompson. "The significance in a community the size of Vavenby-Clearwater can't be overstated, and emphasizes the continuing importance of the work to develop new markets for forest products."
Meanwhile, AbitibiBowater (NYSE: ABH) (TSX: ABH) recently announced a capital investment plan that will lead to the restart and upgrade of its currently idled sawmill located in Ignace, Ontario. The C$32 million investment includes the addition of an energy system and kilns to dry lumber, and a planer and packaging system to allow for the production of finished lumber ready for market. Engineering, design and construction activities will occur over the next two years, with a return to production forecast for 2014.
This is the fourth significant announcement by AbitibiBowater in Ontario, resulting in over C$100 million in investments.
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