Tag Archives: Weyerhaeuser

Weyerhaeuser has reported net earnings of $65 million in their fourth quarter on net sales of $1.6 billion.

This can be compared to Weyerhaeuser’s net earnings of $171 million on net sales of $1.5 billion for the same period last year.

For the full year 2011, Weyerhaeuser reported net earnings of $331 million on net sales from continuing operations of $6.2 billion. This compares with net earnings of $1.281 billion on net sales from continuing operations of $6.0 billion for the full year 2010. Earnings for the full year 2010 include $1.064 billion from income tax adjustments related to Weyerhaeuser’s conversion to a Real Estate Investment Trust (REIT).

“In 2011 we took full advantage of opportunities to improve our performance in a weaker than expected US housing market,” said Dan Fulton, president and chief executive officer. “In Timberlands, we used our long term competitive strength in the Asian export markets to capitalize on emerging Chinese demand. Cellulose Fibers leveraged strong customer relationships and excellent operational performance to deliver a second consecutive year of record financial results. Our Real Estate business maintained profitability despite challenging market conditions, and Wood Products generated improved results. Through the sale of our hardwoods and Westwood Shipping Lines businesses we sharpened our strategic direction, and we remain focused on improving performance to generate superior sustainable returns for our shareholders in 2012.”

Read full results

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)

Weyerhaeuser Company Limited, in Kenora will receive electricity rebates of two cents per kilowatt-hour (kWh) to help manage their electricity costs and improve their energy efficiency and sustainability.

The province of Ontario is providing the rebate through its Northern Industrial Electricity Rate (NIER) program.

Ontario has provided a retro-active payment of $1.2 million for the Weyerhaeuser Company Limited and the company will be eligible for further rebates.

Bill Candline, Plant Manager at the Kenora TimberStrand® mill, said, “This program goes a long way toward levelling the playing field in energy costs.”

Ontario believes these rebates will help Weyerhaeuser keep their costs down, stay competitive, and protect the jobs of its 145 employees.

Read more:
McGuinty Government Helping To Keep Electricity Costs Down, Protect Jobs (Government of Ontario)
Northern Industrial Electricity Rate Program (Ontario Ministry of Northern Development, Mines, and Forestry)

Ontario has announced 3 more wood supply offers.

The latest offers go to:

• AbitibiBowater in Fort Frances, has accepted a wood supply offer for 317,500 cubic metres per year of merchantable and unmerchantable spruce, pine, fir, white birch and poplar. AbitibiBowater will use the wood supply to increase pulp and paper production to previous levels, and generate power at the mill. The new wood allocation will help protect 584 jobs
• Weyerhaeuser Company Limited in Kenora has accepted an offer of 72,000 cubic metres per year of merchantable white birch and poplar. Weyerhaeuser will use the wood supply to increase production at its laminated strand lumber plant, creating 43 new jobs and protecting 157 jobs
• Wincrief Forestry Products L.P. in Kenora has accepted an offer of 17,000 cubic metres per year of merchantable spruce, pine and fir. Wincrief Forest Products will use the wood supply to build a plant to manufacture utility poles at its modular housing plant, creating 12 new jobs.

“This wood supply competition is the largest in Ontario’s history, with just a few offers still to be accepted. I’m very pleased with the number and variety of accepted proposals, which we hope will all mature into successful economic development opportunities that put Ontario’s wood to work and provide jobs for northerners.”
~ Michael Gravelle, Minister of Northern Development, Mines and Forestry

Source: Government of Ontario

The Miramichi region of New Brunswick was hit hard when the forestry sector collapsed. For a time last year, there wasn’t a single mill left operating on the Miramichi.

Here is the current state of the Miramichi mills:

UPM-Kymmene mill

This was Miramichi’s biggest mill operation. UPM-Kymmene closed the operation in 2007, and tore down the Miramichi kraft mill. 400 people lost their jobs.

Umoe Solar, a Norwegian company, purchased the mill in early 2009, and planned to build a polysilicon plant on the Newcastle site, putting at least 300 people back to work.

All the mill buildings have been torn down, and the metal has been removed from scrap.

But a year ago, Umoe Solar pulled the plug on the project, citing global market conditions as the reason.

Miramichi Lumber Products

Formerly known as Newcastle Lumber, the Miramichi Lumber Products mill is the oldest sawmill on the Miramichi River.

Two years ago, the family operated Newcastle Lumber company went into receivership, putting over 100 people out of work.

Last August, the New Brunswick government increased the Crown wood allocation for the mill.

The mill is now back in operation with a more modern infrastructure and a larger wood allocation.

Weyerhaeuser’s OSB mill

This OSB mill in Chatham has been idled since January 2007. Three different potential buyers have teased the hopes of the people of Miramichi, but nothing has materialized.

This mill was the largest buyer of private wood in the region, and it employed up to 150 people.

former Atcon Plywood mill

This little plywood mill is just west of the Miramichi Bridge in the former village of Nelson.

This mill has a colourful history. It was once known as the Nelson Forest Products plywood mill. That mill burned to the ground in 2002 after a freak fire.

Atcon Group of Companies rebuilt the facility in 2005, but the mill was idled in 2008 when the forest sector collapsed.

This mill still retains a 63,953 cubic metre Crown allocation.

It appears, according to the court-appointed receiver overseeing the sale of the former Atcon Plywood mill, that an interested buyer based in Gatineau, Que., has put in a $2.8 million offer to buy this mill. This unidentified buyer is also seeking an additional 27,000 cubic metres of Crown wood supply.

Read more:
Interest sparked in defunct Miramichi plywood mill (New Brunswick Business Journal)

There has been a lot of analysis in the last few days concerning the impact the massive earthquake, and tsunami in Japan will have on North American timber markets.

On Friday, shares of North American timber companies jumped with the thought that an increase in lumber demand will occur to rebuild Japan’s damage.

Weyerhaeuser is one of North America’s largest exporters of logs to Japan. Shares of Weyerhaeuser climbed as much as 6% during trading on Friday. Last year, more than $1 billion of Weyerhaeuser’s revenue came from sales to Japan.

In Canada, just 2.4% of our exports went to Japan over the last year. British Columbia’s share was 14%. Back in 1995, after Kobe, Japan was flattened by an earthquake, Canada’s exports to Japan surged by 24%.

Shares of International Forest Products Ltd. surged up 12% on the Toronto Stock Exchange on Friday. West Fraser Timber Co Ltd., and Canfor Corp. each went up 6%.

Read more analysis:
Shares of North American timber companies jump as Japan shakes (Reuters)
Forecaster weighs risks of economic aftershocks Rebuilding in Japan likely to mean costs, benefits for Canada (Edmonton Journal)
Timber companies shares spike after Japan quake (KTVB)
Weyerhaeuser, West Fraser, Canfor May Gain if Japanese Rebuild With Wood (Bloomberg)
CANADA STOCKS-TSX breaks 4-day slide as materials rebound (Reuters)

If you would like to donate to the relief exports, please visit
Canadian Red Cross – Japan Earthquake/Asia-Pacific Tsunami

The United Steelworkers have been granted approval from B.C. Provincial Court Judge Terese Alexander to proceed with their private action case against Weyerhaeuser over the death of sawmill worker Lyle Hewer.

“The wheels of justice have ground slowly since Lyle Hewer died a horrific death at Weyerhaueuser six years ago,” USW Western Canada director Stephen Hunt. “The judge’s decision could lead to a full-on prosecution of Weyerhaueuser and set an important legal precedent related to justice for preventable workplace deaths throughout Canada.”

This week’s decision allows the United Steelworkers to proceed with criminal negligence charges against Weyerhaeuser.

Lyle Hewer, 55, died on Nov. 17, 2004 when he entered the bottom of a hopper that feeds waste wood into a large grinding machine called a hog. The hog converts wood waste to chips. The debris wedged above him came loose while he was working on it and engulfed him.

In March 2007, WorkSafeBC handed down the largest fine in its history in connection with Hewer’s death, assessing Weyerhaeuser $297,000.

When the fine was handed down, WorkSafeBC said that mill management ignored safety concerns and condoned a culture where “complacency in the face of danger became the norm.” Following the fatality, the hog was repaired at a cost of $30,000.

However, in spite of recommendations from New Westminster police and WorkSafe BC, the Crown chose not to proceed with criminal charges under the Westray amendments, which make companies liable to charges of criminal negligence in connection with workplace deaths.

Read more:
Union gets judge’s approval to proceed against Weyerhaueuser for sawmill death (New Westminster News Leader)
Weyerhaeuser must stand trial in workers’ death, judge says (Steel This Week)
Weyerhaeuser faces highest fine ever for man’s death – WorkSafeBC has levied the highest fine it has ever imposed — $297,000 — against Weyerhaeuser Canada over a 2004 sawmill death, saying mill management ignored safety concerns and condoned a culture where “complacency in the face of danger became the norm.” (The Vancouver Sun)
Evidence warrants criminal charges in worker’s 2004 death: B.C. court (Canadian Press)

In December, Weyerhaeuser announced that it was unlikely its OSB mill in Wawa, Ontario would reopen.

The Wawa OSB mill was closed by Weyerhaeuser at the end of 2007. At that time, the Wawa mill had 132 employees and an annual production capacity of 470 million square feet of oriented strand board (OSB).

Weyerhaeuser submitted an application for its Wawa operation under Ontario’s new wood allocation competition, but last week the company learned that they were not successful. The company has been promised a full debriefing from the Ontario government as to why their application was not successful.

Weyerhaeuser had several parties interested in operating the facility, if they could secure a wood supply. Now it seems very unlikely that any business proposal will proceed at the site.

Source:
Weyerhaeuser Wawa OSB Loses Wood Allocation (Wawa-News.com)

Weyerhaeuser has reviewed its Wood Products system capacity, and as a result, the company has determined that it is unlikely that its following mills will re-open:

• Wawa, Ontario OSB mill
• Deerwood, Minnesota Timberstrand mill
• Pine Hill, Alabama sawmill

Other options are being sought for these mills, including possible sales.

Weyerhaeuser is in the process of completing its accounting analysis and anticipates that total impairments and other asset−related charges that result from the Wood Products decisions will be approximately $95 million before taxes.

The Wawa OSB mill was closed by Weyerhaeuser at the end of 2007. At that time, the Wawa mill had 132 employees and an annual production capacity of 470 million square feet of oriented strand board (OSB).

Source: Weyerhaeuser

Weyerhaeuser‘s Grande Prairie mill in Alberta will receive over $32 million from the federal Pulp and Paper Green Transformation Program.

Weyerhaeuser plans to use the investment towards a new turbine generator so its Grande Prairie pulp mill can better meet its own energy needs and sell excess electricity to the grid. As a result, approximately 2,800 homes in regions that need electricity will have access to carbon-neutral power.

“This investment is good news for Weyerhaeuser, its workers and the surrounding community,” said Chris Warkentin, Member of Parliament for Peace River. “By expanding its line of forest products to include clean energy for the homes and businesses in Alberta, Weyerhaeuser is able to continue sustaining quality jobs in this region.”

The total value of the turbine generator project is approximately $50 million. The Government of Alberta is contributing $4.5 million and Weyerhaeuser is investing the remaining amount.

Source: Government of Canada