West\u00a0Fraser\u00a0Timber Co. Ltd. has signed a deal to sell two pulp mills in\u00a0Western\u00a0Canada to Atlas Holdings for $120 million US\u00a0($162 million Cdn).<\/p>\n
The sale includes\u00a0West\u00a0Fraser’s Quesnel River Pulp mill in Quesnel, B.C., and its Slave Lake Pulp mill in Slave Lake, Alta.<\/p>\n
The agreement also covers related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel mill.<\/p>\n
The mills will be operated by Edmonton-based Millar\u00a0Western Forest Products, which is part of the Atlas family of businesses.<\/p>\n
The transaction is subject to customary regulatory reviews and closing conditions.<\/p>\n
The announcement reflects a shifting tide in B.C.’s forestry\u00a0industry, as companies consolidate their plans amid a dwindling timber supply.<\/p>\n
This year, West Fraser halted operations at Cariboo Pulp & Paper in Quesnel\u00a0as the Vancouver-based company came up with a plan for its future.<\/p>\n
At the time, the company said\u00a0the decision was the result of a decline in availability of sawmill residuals, which it says is due to infestation, fire and government policy decisions.<\/p>\n
Read more on B.C.’s changing forest industry:<\/strong><\/p>\n On Friday, West\u00a0Fraser CEO\u00a0Ray Ferris said\u00a0the sale of the pulp mill\u00a0will help the company focus on its wood building products business.<\/p>\n The company operates and sawmill and planer mill in Quesnel, and a lumber and plywood operation in neighbouring Williams Lake.\u00a0<\/p>\n The investment also marks a continued sense of optimism in the industry, following news from Canfor that it plans to invest $200 million to build a new mill in Houston, B.C., following a series of closures.<\/p>\n Still, it is widely expected that employment in the industry will not reach levels seen in past decades as fibre supply dwindles after a post-pine beetle boom. In response, the\u00a0B.C. government is providing resources to help workers transition to new careers\u00a0as well as creating a $90-million manufacturing jobs fund.<\/p>\n Ferris said the company will continue to supply wood fibre to Quesnel River Pulp\u00a0under its new owners.<\/p>\n David\u00a0Anderson, CEO of Millar Western, said his company plans to keep\u00a0employees at both the Quesnel and Slave Lake locations.<\/p>\n “This transaction will provide the dedicated and skilled teams at Quesnel River and Slave Lake with a solid future,” he said in a statement.<\/p>\nStability for employees: CEO<\/h2>\n