TSX: WEF
DUNCAN, BC, Dec. 11 /CNW/ - Western Forest Products Inc. (TSX: WEF) today announced that unusually heavy rainfall with localized flooding, followed by an early heavy snowfall in November will result in extended Christmas shutdowns at three of its sawmills due to short-term log shortages.
President and CEO Reynold Hert stated, "Although we expect and plan for some weather outages, this year's unusually severe November, and prolonged early snow ground cover into December, have resulted in harvest levels being about 50% of the approximately one million cubic metres we would normally expect for the November and early December period. Outside log purchases are also affected since other timber harvesting operators have been impacted by the unusual weather." The additional reduction in harvest follows a high fire hazard summer that had already reduced the log supply in the coastal region.
Western will be taking down-time during the week before Christmas at its Alberni Pacific Division, Chemainus and Somass sawmills in addition to the normal shutdown between Christmas and New Year's. Additional down-time may be required periodically in the first quarter of 2007 until the log inventory is re-established. Logging will continue through the period.
Western Forest Products
Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer with an Annual Allowable Cut of approximately 7.7 million cubic metres (before temporary AAC reductions) of timber and lumber capacity in excess of 1.5 billion board feet from nine sawmills and five remanufacturing plants. Principal activities conducted by the Company and its subsidiaries include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's logging is conducted on government owned timberlands in British Columbia. All of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia while its products are sold in over 20 countries worldwide.
Forward-Looking Statements and Information
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities law. Those statements and information include statements or information regarding the intent, belief or current expectations of Western with respect to the impact on its operations of the severe weather. Such statements or information may be indicated by words such as "expect", "will", "may" and similar words and phrases. Readers are cautioned that any such forward-looking statements or information are not guarantees and may involve known and unknown risks and uncertainties, and that the actual results may differ from those expressed or implied in the forward-looking statements or information as a result of various factors including, changes in government regulation, and misjudgments in the course of preparing forward-looking statements or information. The information contained under the "Risk Factors" section of Western's Annual Information Form and under the "Risks and Uncertainties" section of Western's Management's Discussion and Analysis identifies important factors that could cause such differences. All written and oral forward-looking statements or information attributable to Western or persons acting on behalf of Western are expressly qualified in their entirety by the foregoing cautionary statements. Western does not expect to update forward-looking statements or information as conditions change.