Weyerhaeuser has announced the completion of the sale of the Carrot River Sawmill and the Hudson Bay Plywood Mill to C&C Wood Products of Quesnel, BC.

An asset purchase agreement between the two companies had been signed in May. The Carrot River Sawmill and Hudson Bay Plywood Mill were closed by Weyerhaeuser in 2007.

To facilitate the sale, the Pasquia-Porcupine Forest Management Agreement area in east-central Saskatchewan was jointly assigned by the Ministry of Environment to Weyerhaeuser and C&C. Under the new FMA assignment, C&C Wood Products has the rights to softwood species while Weyerhaeuser has the rights to harvest hardwood species for use at its oriented strand board mill in Hudson Bay. Operations at the Hudson Bay oriented strand board facility have been curtailed since the summer of 2008 due to market conditions.

“We are pleased to see this agreement successfully concluded,” said Anne Giardini, president of Weyerhaeuser’s Canadian subsidiary. “This agreement promotes the full and efficient utilization of the forest resource,” said Giardini.

“We’re very excited about the completion of this transaction and believe that tremendous potential exists for expanded production of value-added wood products in Saskatchewan,” said Mike Hayman, president of C&C Wood Products.

“Saskatchewan’s forest industry is evolving and this sale marks another stage in its value-added product transformation,” said Saskatchewan Energy and Resources Minister Bill Boyd. “We welcome C&C Wood Products’ investment and optimism not only in Carrot River and Hudson Bay, but also in our province, and look forward to its long and successful involvement with our forest industry.”

Both the Carrot River and Hudson Bay mills were originally built by Saskatchewan Forest Products in the mid-1970s. The mills were subsequently owned by MacMillan Bloedel Limited and were acquired by Weyerhaeuser in 1999 when it purchased MacMillan Bloedel.

Weyerhaeuser Company, one of the world’s largest forest products companies, was incorporated in 1900. In 2008, sales from continuing operations were $8.545 billion ($8.018 billion US). It has offices or operations in 10 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities.

C&C Wood Products Ltd., a fully integrated manufacturer of value added wood products, was founded in 1977. The company specializes in the manufacture of wood paneling, specialty board products and wood pellets for domestic and offshore markets. It has customers throughout North America, Europe and Asia.