Printer Friendly

REPAP LUMBER SALES TO INCREASE 80 PERCENT

 MONTREAL, Jan. 13 /PRNewswire/ -- Repap Enterprises Inc. today announced that its 1993 lumber sales are expected to be $160 million, an increase of over 80 percent from last year. At today's prices, Repap's 1993 operating margin for its solid wood business would exceed the 1992 operating margin by $40 million. These developments will minimize the impact of weak global pulp markets.
 George S. Petty, chairman and CEO of Repap Enterprises Inc., stated that "Record lumber prices are proving to be a very positive development for us. World markets, coupled with our technologically advanced sawmill operations in British Columbia are a boost to Repap's competitiveness."
 A 22 percent increase in U.S. housing starts, when combined with reduced supply, has pushed the price of traditional two by four random lengths to a record (U.S.) $302 per 1,000 board feet which is an increase of 24 percent over last year's high. The lower Canadian dollar has also contributed to an additional increase in revenues.
 The world shortage of sawlogs is likely to continue because larger tracts of forest have been taken out of production in the U.S. Northwest for various environmental reasons and also as a result of cutbacks in annual allowable harvests in British Columbia.
 "The recent acquisition of the Carnaby sawmill in British Columbia increased the company's annual allowable harvest by 50 percent," said Mr. Petty. "In addition, we took advantage of cost saving opportunities through an extensive log rationalization program to optimize lumber yield and value-added premiums," he added. With the acquisition of the Carnaby sawmill in British Columbia, Repap is now the 12th largest Canadian lumber producer with an annual capacity of 545 million board feet.
 Increased economic activity in China, Taiwan and Korea is also putting upward price pressure on wood supplies normally directed at the Japanese market.
 In response to increased demand and prices for lumber, Repap has recalled 130 workers at its The Pas, Manitoba sawmill for Jan. 18, one month ahead of schedule. Repap's Blackville, New Brunswick sawmill has moved to a full 12 month operation and is considering double shifting to meet the demand for quality construction grade spruce lumber. This is in sharp contrast to the seasonal one shift operation over the past 3 years.
 Repap Enterprises Inc. is a fully integrated North American forest products company. In addition to five sawmills, it has world-class coated paper operations in Wisconsin and New Brunswick, kraft pulp mills in New Brunswick and British Columbia, and an unbleached kraft paper mill in Manitoba. Repap is also the innovator of the revolutionary ALCELL? solvent pulping technology.
 -0- 1/13/93
 /CONTACT: Daniel D. Veniez, vice-president, corporate affairs of Repap Enterprises Inc., 514-846-1316/


CO: Repap Enterprises Inc. ST: Quebec IN: PAP SU:

PS -- NY040 -- 4432 01/13/93 13:20 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 13, 1993
Words:467
Previous Article:HARBOUR GROUP ELECTS NEW DIRECTOR
Next Article:1992 FUTURES TRADING VOLUME ESTABLISHES NEW RECORDS
Topics:


Related Articles
REPAP PROJECTS CASH POSITIVE IN Q2
IMPROVED SALES AND PRODUCTIVITY TURN REPAP CASH POSITIVE
REPAP ANNOUNCES 1993 YEAR END RESULTS
REPAP ANNOUNCES 1993 YEAR END RESULTS
REPAP ANNOUNCES FIRST QUARTER RESULTS
REPAP ENTERPRISES INC. REPORTS RECORD NET INCOME IN THE THIRD QUARTER
REPAP ENTERPRISES INC. -- PAPER DEMAND IMPROVES
REPAP ENTERPRISES INC. REPORTS FIRST QUARTER RESULTS
REPAP ENTERPRISES INC. SECOND QUARTER RESULTS
Repap Enterprises Inc. Third Quarter Performance Mirrors Second Quarter

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters