Tag Archives: New Brunswick

Acadian Timber Corp reports net income of $4.3 million in first quarter, 2012

May 4th, 2012 | Posted in Financial News | No comments »

Acadian TimberAcadian Timber Corp. generated net sales of $18.6 million on sales volume of 352 thousand m3, which represents a $3.1 million, or 14%, decrease in net sales compared to the same period in 2011. Net income for the quarter is $4.368 million.

Results for the first quarter were impacted by Acadian’s implementation of a short-term vendor managed inventory program (VMI) with one of its larger customers. At the end of the first quarter, Acadian held 72 thousand m3 of harvested logs in inventory related to the VMI. As purchase commitments are filled under the VMI during the second quarter of 2012, additional sales of approximately $3.4 million and Adjusted EBITDA of approximately $1.5 million are expected to be realized.

Adjusted EBITDA of $4.8 million for the first quarter was $2.5 million lower than in the first quarter of 2011, and Adjusted EBITDA margin decreased to 26% from 33% in the same period of last year. This decrease in margin is attributed to a lower contribution from the land management services agreement and significantly lower sales of higher margin spruce-fir sawlogs owing to the sale of these volumes being delayed until the second quarter as a result of the VMI.

“Operating conditions were excellent during January and February followed by exceptionally warm weather in early March causing an early spring break-up disrupting production and sales” said Reid Carter, Chief Executive Officer of Acadian. Mr. Carter further noted that “we were pleased with the results in our Maine operations during the first quarter as strategies to improve contractor availability resulted in harvest levels meeting targets.”

Acadian Timber Corp. is a leading supplier of primary forest products in Eastern Canada and the Northeastern U.S. With a total of 2.4 million acres of land under management, Acadian is the second largest timberland operator in New Brunswick and Maine.

Acadian owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine, and provides management services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian also owns and operates a forest nursery in Second Falls, New Brunswick. Acadian’s products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to approximately 90 regional customers.

Read full release from Acadian Timber

J.D. Irving Ltd. responds to New Brunswick’s new Crown Forest management plan

April 2nd, 2012 | Posted in Woodlands | No comments »

J.D. Irving Ltd. has several concerns with New Brunswick’s new Crown forest management plan.

Among their concerns are that the new standards will require that they cut younger, smaller wood before it has properly matured to maximum volume. This will result in more pulp wood in a market that is already oversupplied with pulp wood since most of New Brunswick’s pulp mills are closed.

Irving believes New Brunswick should complete a full economic impact study of these proposed changes before implementation.

Irving would also like the province to define a long term timber objective and targets (for jobs, tax revenues, and tree growth), set out in the same amount of detail as the environmental priorities. Irving said a timber objective is something industry has been appealing for since 2001 and they are disappointed by further delay.

Read J.D. Irving’s response to the new plan

New Brunswick releases its Crown forest management plan

March 30th, 2012 | Posted in Woodlands | No comments »

The New Brunswick provincial government announced today a Crown forest management plan that balances social, ecological and economic needs.

“This balanced plan reflects the significant and helpful input I received from New Brunswickers during more than a year of consultations,” said Natural Resources Minister Bruce Northrup. “It will keep our public forests vibrant and healthy while providing benefits in terms of a wide range of jobs and recreational opportunities.”

Northrup said he was especially thankful to First Nations for their input on how the province’s public forests should be managed.

“First Nations people have a special connection to the land that has been passed on from generation to generation,” said Northrup. “This plan respects the views expressed by First Nations leaders.”

The major features of the Crown land management plan include:

  • establishing an annual allowable cut (AAC) for softwood species (spruce/fir/jack pine) of 3.27 million cubic metres, which is the same AAC as in the 2007-2012 management plan
  • a reduction in the hardwood AAC from 1.77 million cubic metres in the 2007-2012 plan to 1.41 million cubic metres. This 21 per cent reduction will ensure a sustainable hardwood supply in the future
  • implementation of non-clearcut harvesting measures to maintain the diversity and important ecological features of the Acadian forest
  • meeting all 20 of the provincial conservation objectives established to maintain healthy wildlife populations and old-forest habitat types
  • doubling to eight per cent the amount of forested Crown land designated as Protected Natural Areas. In total, 9.4 per cent of Crown land will be designated as Protected Natural Areas
  • designating 28 per cent of the total Crown forest as “conservation forest,” which is managed primarily for biodiversity conservation purposes. The conservation forest includes the Protected Natural Areas

The conservation forest remains well above the 23 to 25 per cent proposed in 2009, Northrup said.

“At 23 to 25 per cent, less than half of the province’s 20 wildlife habitat and old-forest habitat targets would have been met,” he said. “Biologists have told me that at 28 per cent, the conservation forest will be able to fully meet all of these conservation targets.”

New Brunswick has six target levels to ensure the Crown forest can support desired population levels of vertebrate species that require forests to survive. Another 14 targets relate to forest types and are designed to maintain functional amounts of old forest community types across their natural range. All 20 targets for wildlife and habitat are fully met within the new management plan.

Northrup said conservationists had repeatedly stressed that meeting these targets was their top priority. The major concern of the forest industry and of the 10,000 people who work directly in it was to maintain the AAC for softwood, which is used to produce most of the province’s lumber products.

“This management plan addresses both of those concerns,” Northrup said. “It strikes the best balance possible while preserving jobs in rural and northern New Brunswick, where forestry remains a major employer and a $2.7-billion industry.”

The softwood AAC has been set at a level that is sustainable and is based on an in-depth analysis of Crown wood supply undertaken by the department over the past year.

“This new analysis has shown us that Crown wood from managed softwood stands grows differently from the non-managed forest; it has less rot and yields more usable wood,” he said. “As a result, there’s more Crown wood out there than previously thought and this has certainly been instrumental in allowing us to maintain the softwood  harvest level while meeting all of our conservation objectives.”

Based on projections, it is expected the softwood AAC can be maintained at the current level until more of the province’s managed stands begin to generate an even larger wood supply.

“All our information indicates there will be a rapidly growing wood supply beginning around 2030 as these managed stands mature,” said Northrup. “Until then, we are confident there will be enough wood to at least maintain the softwood AAC at the present level and that is our objective.”

Northrup said the reduction in hardwood AAC on Crown land is unavoidable if New Brunswick is to have a sustainable hardwood supply in the future.

“It would be in no one’s interest to harvest hardwood species at a level that would require an even larger AAC reduction in the future,” he said. “This reduction is necessary and, at the same time, it represents an opportunity for the province’s private woodlot sector to sell more wood into the marketplace, which is a top priority for our government.”

The recent report by the Private Land Task Force on timber objectives noted that many previously harvested private woodlots have regenerated primarily with hardwood species.

“This supply of private wood can fill the void caused by the reduction in the Crown land hardwood AAC,” said Northrup. “This is potentially a 350,000-cubic-metre increase in demand, which is an amount equal to one-third of all wood harvested from private woodlots last year.”

The new management plan sets out the major objectives for Crown land management and will allow foresters and biologists to proceed with detailed planning in time for harvesting operations beginning April 1, 2013. The management plan objectives will be in effect for 10 years – from April 2012 to March 31, 2022 – which is double the length of previous management plans.

“The Crown Land Task Force on timber objectives recommended we move to a 10-year planning cycle in order to provide greater certainty on allocation levels as well as commitments to conservation measures,” said Northrup. “We agree with this approach and will take the necessary legislative steps to implement a 10-year management plan.”

Providing certainty on harvest levels over a longer time period will give industry the predictability it needs to make investments to modernize their businesses in order to compete in the international marketplace, he said. It will also reduce costs related to management planning for both industry and government.

“Our government sees a strong forest industry as essential to fostering job creation and economic growth in our province,” said Northrup. “We believe there are great opportunities ahead for forestry and especially for value-added forest products. Achieving these opportunities will require companies to be innovative and we will continue to work with industry to create a climate where they feel secure in investing in their future and in the future of our province.”

Source: Government of New Brunswick

$17 million in funding for Arbec to reopen Miramichi mill

February 3rd, 2012 | Posted in Funding Announcements, Mill Expansions/Openings | No comments »

The governments of New Brunswick and Canada are providing more than $17 million to Arbec Forest Products to restart the Miramichi OSB mill that was closed 5 years ago by Weyerhaeuser.

Provincial Funding

$15.3 million will be coming from the province of New Brunswick, including:

  • $1.5 million payroll rebate
  • $5.6 million term loan
  • $1.2 million contribution for capital expenditures and start-up costs
  • $7-million loan guarantee

Federal Funding

The $2 million from the federal government will being called a “repayable contribution” for necessary upgrades.

Plans for the Mill

Arbec Forest Products bought the Miramichi mill from Weyerhaeuser last month for $31 million. The company is undertaking a repair program, mill maintenance and equipment startup. Arbec plans to have the mill operational this fall, with a goal of reaching full operation by the spring of 2013. At least 100 jobs will return to the mill and the economically depressed region of the Miramichi in northern New Brunswick.

Under the Crown wood allocation agreement, Arbec Forest Products Inc. can annually harvest 277,802 cubic metres of mixed hardwood pulpwood and softwood pulpwood, which is more Crown wood than Weyerhaeuser had when the mill closed.

Once fully operational, at least half of the mill’s wood supply will come from private woodlots.

Sources:
Company receives financial assistance and wood allocation to reopen Miramichi mill (New Brunswick)
Miramichi mill to re-open -Will create more than 100 jobs (CBC)
Feds and New Brunswick ante up $17 million to help reopen shuttered mill (Canadian Business)

Weyerhaeuser sells Miramichi mill to Arbec Forest Products

January 13th, 2012 | Posted in Mill Sales/Transfers | No comments »

5 years after shutting it down, Weyerhaeuser has sold its Miramichi, New Brunswick mill to Quebec’s Arbec Forest Products.

Arbec Forest Products is planning to re-open the mill later this year.

Arbec planned to purchase the mill in 2008, but pulled out of negotiations when they were unable to get a Crown land allocation from the New Brunswick provincial government.

Miramichi Mayor Gerry Cormier said the $31 million deal was great news for the community.

“It’s a big economic spin-off as you know. You’re talking a hundred and some jobs, plus the spin offs. It’s really going to change the face of this city and this area.”

It appears that Arbec Forest Products is receiving government funding of $10.3 million for its business development plan, including $2 million from the Atlantic Canada Opportunities Agency (ACOA).

Sources:
Weyerhaeuser sells Miramichi mill – Arbec may re-open it this year (CBC News)
Former Weyerhaeuser mill poised to re-open? (Miramichi Online)
ACOA Project Details (ACOA)

J.D. Irving closing Doaktown and Kedgwick sawmills in New Brunswick

October 25th, 2011 | Posted in Mill Closures & Layoffs | No comments »

J.D. Irving is temporarily closing its sawmills in Kedgwick and Doaktown, New Brunswick.

Kedgwick will close between December 2 and spring, 2012.

Doaktown will close between December 23 and February 23, 2012.

There will be 57 hourly employees at Kedgwick affected, and 115 hourly employees at Doaktown.

J.D. Irving is blaming the shutdowns on poor market conditions.

Just two weeks ago, J.D. Irving announced it was closing its Deersdale mill indefinitely on October 28.

Earlier this year, Irving closed its mill in Clair, putting 73 people out of work.

Read more:
Irving closes Doaktown, Kedgwick sawmills (CBC)

J.D. Irving closes Deersdale sawmill in New Brunswick

October 13th, 2011 | Posted in Mill Closures & Layoffs | No comments »

J.D. Irving is closing its Deersdale sawmill near Juniper, New Brunswick on October 28.

65 unionized workers, and 8 staff members, will be on layoff. Irving spokeswoman Mary Keith said “Where we have positions to fill in our other operations and a skill set that those employees would have that would match those jobs, we’d be looking to place them there, but at this point it is a layoff for those people.”

The closure is being called indefinite, and is due to a lack of wood supply. Irving is diverting the wood it has available to its other mills in Chipman and Sussex.

Earlier this year, Irving closed its mill in Clair, New Brunswick, laying off 73.

This fall, the New Brunswick government is expected to decide whether it will increase the amount of wood that can be harvested in the province by forestry companies.

Source:
Irving closes Deersdale sawmill (CBC)

Concern that Brown Spruce Longhorn presence in New Brunswick could close borders

September 2nd, 2011 | Posted in Pest Management | No comments »

Brown Spruce Longhorned BeetleAndrew Fedora, executive director of the Federation of Nova Scotia Woodland Owners, who also is on the steering committee of the National Task-force set up for the pest, is expressing his concern about the recent discovery of Brown Spruce Longhorn beetle in New Brunswick.

“If the maritime region isn’t perceived to be doing all it can do to prevent the spread of that bug, then that could severely restrict trade relations with the U.S.,” he said. “It doesn’t have a passport, and with that, there’s a threat of tighter regulations.”

The brown spruce longhorn beetle is very invasive, more invasive than it is destructive. After a beetle is found in a new area, a one kilometre wide quarantine zone is place, restricting the movement of all spruce roundwood, bark, and chips.

Read more:
Beetle could close borders (Telegraph-Journal)

Brown spruce longhorn beetle found in New Brunswick

September 1st, 2011 | Posted in Pest Management | No comments »

Brown Spruce Longhorned BeetleThe Canadian Food Inspection Agency (CFIA) has confirmed the presence of the brown spruce longhorn beetle (BSLB) near a campground within the Kouchibouguac National Park in New Brunswick. This is the first find of BSLB in New Brunswick and the first outside of Nova Scotia.

It is suspected that the pest was transported to New Brunswick on firewood. This new find is nearly 165 kilometres away from the closest positive BSLB site located in Westchester Station, Nova Scotia.

“The CFIA is committed to working closely with other federal departments and agencies, provincial and municipal governments, and industry towards slowing the spread of BSLB,” said CFIA President George Da Pont.

Materials that could spread the beetle will be restricted from moving in and out of a minimum one-kilometre area surrounding the find-site in the park. Restricted materials will include spruce logs (including spruce firewood), bark and wood chips (larger than 4 centimetres). Further restrictions may be required.

Although BSLB does not pose a risk to human health, it is a highly destructive beetle. Since its discovery in 1999 in Point Pleasant Park in Halifax, it has killed thousands of spruce trees in Nova Scotia, and poses an economic and environmental threat to urban and forested areas of North America. Until now, the only location for the pest in North America was in Nova Scotia. The pest has the potential to spread through the spruce forests of North America.

The most important way to limit the spread of this invasive beetle is to avoid transporting spruce materials such as spruce firewood. Firewood should be bought locally, burned on-site and never transported. In June 2008, the CFIA launched an ongoing Don’t Move Firewood awareness campaign in an effort to slow the spread of all invasive pests.

Source: Canadian Food Inspection Agency

New school in Fredericton to be heated with wood pellets

August 25th, 2011 | Posted in Biomass | No comments »

A new school being constructed in Fredericton, New Brunswick will be the first in the province to be heated with wood pellets.

The school will be equipped with a wood pellet fired hot water boiler.

The hot water boiler plant will use wood pellets as the base fuel while automatic controls will engage natural gas boilers to provide extra heat during extreme weather conditions. The 500 kw boiler will use about 300 tonnes of pellets annually.

“We are committed to implementing provincial policies that encourage the use of wood pellets and other bio-fuels to heat provincial buildings,” said Transportation and Infrastructure Minister Claude Williams. “The Department of Supply and Services is reviewing provincially owned buildings to identify viable opportunities for conversion to biomass energy. We are also encouraging the installation of biomass boilers to cover base heating requirements on new construction projects, particularly in areas of the province where natural gas is not available.”

Natural Resources Minister Bruce Northrup said the provincial Wood First policy being developed will “encourage the use of wood in constructing provincial buildings and of wood pellets to heat these buildings. This will directly benefit our wood producers while utilizing a renewable New Brunswick resource.”

Last fall, the province of PEI approved two proposals that would see five public buildings – 4 schools and a community hospital, heated by wood biomass.

Source:
New Fredericton school first to be heated with wood pellets (Farm Focus of Atlantic Canada)