Business
West Fraser Announces Operational Changes At Hinton Pulp
West Fraser Announces Operational Changes At Hinton Pulp.
About this update from West Fraser Timber Co. Ltd.
[{"type":"text","content":"\n\n\n\n\nVANCOUVER, March 21 /CNW/ - West Fraser Timber Co. Ltd. today announced\nit will permanently close the No. 1 pulp machine and wood room at its pulp\nmill in Hinton, Alberta in the fourth quarter of 2006.\n\"These closures are expected to improve the position of our pulp business\nby reducing costs and increasing efficiencies,\" says Hank Ketcham, Chairman,\nPresident & Chief Executive Officer.\nAs part of Hinton's performance improvement plan, West Fraser will spend\napproximately $20 million over the next two years to modernize the No. 2 pulp\nmachine to increase its speed and productivity.\n\"Today's announcement represents decisive action to improve the\nperformance of our kraft pulp business in Hinton,\" says Gerry Miller,\nExecutive Vice-President, Pulp & Paper.\nThe operational changes will result in the loss of approximately 100 jobs\nat Hinton Pulp and reduce by approximately 70,000 tonnes the mill's annual\nproduction of Northern Bleached Softwood Kraft (NBSK) pulp.\nWest Fraser expects the closures of the No. 1 pulp machine and wood room\nin Hinton to result in an after-tax charge related to asset write-downs and\nrestructuring costs of approximately $25 million in the first quarter of 2006.\nBuilt in 1956, Hinton Pulp underwent an expansion in 1989 and was\nacquired by West Fraser in December 2004 with the purchase of Weldwood. The\nmill is currently configured with two pulp lines and employs approximately 470\npeople. In 2005, Hinton produced 420,000 tonnes of NBSK pulp, which was sold\nto customers in North America and around the world.\nWest Fraser is an integrated forest products company that produces\nlumber, LVL, MDF, plywood, pulp, linerboard, kraft paper and newsprint. The\nCompany has manufacturing operations in British Columbia, Alberta and the\nsouthern United States. West Fraser has approximately 6,900 employees and is\nheadquartered in Vancouver, British Columbia.\n\nForward-Looking Statements\nSome information contained in this release is prospective and may be\naffected by known or unknown risks and uncertainties which are mostly outside\nthe control of West Fraser. The results or events mentioned in such\nprospective information may differ substantially from actual results or\nevents.\n%SEDAR: 00002660E\n\n\n","length":2322,"tagName":"div"}]