WEYERHAEUSER PURCHASES ALBERTA OSB MILL
WEYERHAEUSER PURCHASES ALBERTA OSB MILL TACOMA, Wash., Oct. 30 /PRNewswire/ -- Weyerhaeuser Canada Ltd.
announced the purchase of an oriented strand board (OSB) mill located near Slave Lake, Alberta, from Alta-Stran Inc., for an undisclosed price.
According to an announcement made by Tom Luthy, vice president of Weyerhaeuser's Engineered Fiber Products Business and Fred McDougall, Weyerhaeuser's general manager for Alberta, the mill will provide badly needed additional capacity to meet the growing demand for Weyerhaeuser's oriented strand products. "As a result of successful marketing efforts and growing acceptance of our product in the Japan market, we are 'product short,'" Luthy said. "The Slave Lake operation is an excellent strategic fit with our other mills in the area. It will provide incremental production capacity and allow us to specialize the production from Edson and Drayton Valley. At the same time, because of its location relative to the other facilities, it can be managed with minimal additional overhead costs." Slave Lake will focus on Sturdi-floor (adding an incremental 200 mm square feet annual production) while the other two mills will produce thinner sheathing products. "Another positive feature is the highly dedicated and productive work force," said McDougall. Weyerhaeuser will be offering employment to previous Slave Lake employees under the terms of its agreement with IWA Canada. About $3 million in plant improvements will be required to restart the mill, which has been idle since April 1991. "This purchase reflects our vote of confidence in market development and the expectation that structural panel board prices will remain strong through the next three to four years. However, it is imperative to keep production costs at competitive levels so that we aren't vulnerable during down markets," Luthy said. The Alberta Division of Weyerhaeuser Canada currently operates oriented strand board mills at Drayton Valley and Edson. These mills have established Weyerhaeuser Sturdi-Wood as the premium quality strand board in international markets. Weyerhaeuser also operates a large sawmill-planer mill complex at Drayton Valley that produces 100 million board feet of random length dimension lumber annually, and two small sawmills and planer located at Boyle. The Slave Lake plant is expected to begin operations in January 1993, providing direct employment for about 100 people, and indirect employment for another 100 who will provide contract logging, hauling and forestry services to the mill. -0- 10/30/92 /CONTACT: Tom Luthy of Weyerhaeuser, 206-924-2799/ (WY) CO: Weyerhaeuser Co.; Weyerhaeuser Canada Ltd.; Alta-Stran Inc. ST: Washington, Alberta IN: PAP SU: TNM
SW-LM -- SE010 -- 7268 10/30/92 16:03 EST
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|Date:||Oct 30, 1992|
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