Business
Western Announces Cash Proceeds of $15 million on Saw Log Agreement Termination
Western Announces Cash Proceeds of $15 million on Saw Log Agreement Termination.
About this update from Western Forest Products Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: WEF\n\nDUNCAN, BC, Sept. 26 /CNW/ - Western Forest Products today announces that\nit has reached an agreement with TimberWest Forest Corp to end a saw-log\nsupply arrangement. TimberWest is paying Western $15 million (Canadian) to\nterminate the agreement under which TimberWest provided up to 330,000 cubic\nmeters of saw logs annually from its private lands at Vancouver Log Market\nprices. The agreement had been in place since 1997.\n\"This agreement made very good sense for Western when the Crown land wood\nsupply was fully allocated,\" says President and Chief Executive Officer\nReynold Hert. \"Now that the Bill 28 take-back has created a larger open market\nwood supply we should have the flexibility to buy additional specific log\ntypes from this new supply.\"\n\"This move is the latest step in Western's review of our business and it\nadvances our commitment to achieve maximum value from all elements of our\noperation,\" says Hert.\nThe $15 million will be added to the cash currently in the Working\nCapital Reserve account. In addition to cash on hand and the availability\nunder its line of credit, this cash forms part of the Company's overall\nliquidity and may be used to fund the Company's operational requirements\nincluding capital improvement projects.\n\nAbout Western:\n\nWestern is an integrated Canadian forest products company and the second\nlargest coastal woodland operator in British Columbia. Principal activities\nconducted by Western and its subsidiaries include timber harvesting,\nreforestation, sawmilling logs into lumber and wood chips, value-added\nremanufacturing and producing NBSK pulp. Over 95% of Western's logging is\nconducted on government owned timberlands in British Columbia. All of\nWestern's operations, employees and corporate facilities are located in the\ncoastal region of British Columbia and its products are sold in 25 to\n30 countries worldwide.\n\nForward Looking Statement\n\nThis press release contains statements that are forward-looking in\nnature. Those statements appear in a number of places herein and include\nstatements regarding the intent, belief or current expectations of Western,\nprimarily with respect to market and general economic conditions, future\ncosts, expenditures, available harvest levels and future operating performance\nof Western. Such statements may be ind...