- Western Forest Products announced $29 million in capital investments
- Investments include $12.3 million for a new continuous kiln at the Saltair sawmill in Ladysmith, B.C.
- $7.9 million at the Duke Point facility in Nanaimo, B.C.
- $8.3 million in other capital investments in the company’s B.C. operations
- Western Forest Products is one of the largest private employers on Vancouver Island
- Western Forest Products (WEF) is up by 0.65 per cent trading at $1.54 per share as of 1:57 pm EDT.
Western Forest Products (WEF) announced capital investments totalling approximately $29 million for its British Columbia operations.
The investments are part of the company’s ongoing commitment to support value-added manufacturing on the B.C. Coast and grow its value-added wood products business, all while continuing to improve Western’s long-term competitiveness.
These capital investments represent an increase of $13 million over and above the $16 million of capital investments discussed in the Company’s first quarter 2022 Management’s Discussion and Analysis.
Investment highlights:
- $12.3 million in a new continuous kiln at the Saltair sawmill in Ladysmith, B.C., allowing for increased capacity for continuous drying of lumber, while reducing energy consumption. The sawmill is the largest single-line sawmill on the coast of B.C. following the previous multi-phase strategic capital investment of over $42 million undertaken to modernize the sawmill since 2013. The facility has three existing kilns on site for drying lumber.
- $7.9 million at the Duke Point facility in Nanaimo, B.C., to optimize the centralized planer facility with new equipment, including a machine stress rated (MSR) lumber grading machine. The MSR machine provides strict lumber grade quality control with known values for strength and stiffness for lumber utilized in engineered products, including roof trusses, glulam and mass timber. The sawmill and planer have undergone a previous multi-phase strategic capital investment of over $45 million since 2015 to modernize the facility.
- $8.3 million in other capital investments in the Company’s B.C. operations, including new kiln control systems at the Saltair sawmill and our Value-Added Division in Chemainus, B.C. to increase supply of kiln dried finished products for customers.
According to the company, each investment will generate additional value from Western’s wood products. Work on these investment projects is underway and is expected to be completed by 2023.
Ravi Kahlon, B.C. Minister of Jobs, Economic Recovery and Innovation, commented:
“Congratulations to Western Forest Products on these substantive value-added investments on Vancouver Island. These projects will strengthen our province’s position as a world leader in mass timber and developing value-added wood products. When we work together towards achieving clean growth, we are supporting our StrongerBC Economic Plan, helping to fill the jobs of tomorrow while building an economy that works for everyone.”
Katrine Conroy, B.C. Minister of Forests, went on to say:
“Investing to upgrade Western’s operations is great news for forestry workers, communities and the industry as a whole. These capital investments support our government’s vision to increase innovative, made-in-B.C. manufacturing and get more value out of every tree harvested.”
Western Forest Products Inc. is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets. With operations and employees located primarily on the coast of British Columbia and Washington State, Western is a premier supplier of high-value, specialty forest products to worldwide markets. Western has a lumber capacity in excess of one-billion board feet from seven sawmills and four remanufacturing facilities. The Company sources timber from its private lands, long-term licenses, First Nations arrangements, and market purchases.
Western Forest Products is one of the largest private employers on Vancouver Island with six sawmills and two remanufacturing plants, providing 3,500 jobs that support nearly 20 healthy and vibrant communities across the province. These operational upgrades are an extension of the Company’s significant investment in value-added manufacturing on the B.C. Coast. Since 2013, Western has invested over $450 million throughout its entire operating platform.
Western Forest Products (WEF) is up by 0.65 per cent trading at $1.54 per share as of 1:57 pm EDT.
