Deal reached for B.C. company to purchase Sask. sawmill, plywood mill

THESTARPHOENIX.COM  MAY 7, 2009

SASKATOON — A British Columbia company has reached a deal with Weyerhaeuser to purchase and reopen the Carrot River sawmill and Hudson Bay plywood mill, providing a major boost to the beleaguered forest industry in Saskatchewan.

C&C Wood Products Ltd., headquartered in Quesnel, British Columbia, has signed an asset purchase agreement with Weyerhaeuser, it was announced Thursday.

“We’re very excited about the potential that exists in the province of Saskatchewan,” said C&C vice-president of sales and marketing Kris Hayman.

“We feel that working together with Weyerhaeuser and the provincial government, we can successfully bring a value-added approach to the wood products industry.”

The deal between C&C and Weyerhaeuser has been a long time coming. In November 2006, C&C signed a letter of intent to purchase the two mills. That was put on hold when the company’s president died of a heart attack.

The Carrot River sawmill and Hudson Bay plywood mill have been idle since January 2007.

Weyerhaeuser still owns the OSB mill in Hudson Bay.

The Ministries of Energy and Resources and Environment are working with the two companies to assign the Pasquia-Porcupine Forest Management Agreement (FMA) in the area to the two companies. It is currently controlled only by Weyerhaeuser.

“C&C Wood Products has expressed great confidence in Saskatchewan’s forest resource and this agreement is a demonstration of that confidence,” said Energy and Resources Minister Bill Boyd.

“The future of our forest industry lies in developing more value-added wood products for global markets, and C&C has an excellent reputation for its value-added operations.”

C&C Wood Products Ltd. specializes in the manufacture of wood panelling, specialty board products and wood pellets for domestic and offshore markets.

The government will work to ensure that a quality wood supply is made available to the two mills, Boyd said. The government will also work with the two companies on transportation infrastructure and establishing a roads and transportation agreement.

Final due diligence is expected to be finished within two months and assignment of the FMA is expected to take place then.

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