Weyerhaeuser expands internationally, closes plants in Canada

CLARESHOLME, Alb. — Weyerhaeuser has announced it will permanently close its joists plant here next month, a move that will put 85 employees out of work. The decision to close the plant was prompted by the decline in housing starts in the North American market, according to Cathy Slater, Weyerhaeuser's vice-president of veneer technologies. The Claresholme plant was acquired from Trus Joist in 1966 in 1999. It has an annual production capacity of 30 million lineal feet, and is the smallest of the seven joist facilities Weyerhaeuser owns. Meanwhile, Weyerhaeuser has signed a letter of intent to buy Los Piques, a plywood mill in Uruguay, from co-owner Global Forest Partners LP. Under the agreement, the company will acquire complete ownership of the Los Piques, and half of the 81,000 hectares of planted forests that Weyerhaeuser and two GFP investment funds own through separate joint ventures in Uruguay. The GFP investment funds will assume ownership of the remaining hectares from the joint ventures. "This agreement significantly restructures our international holdings in alignment with our long-term strategic direction, simplifies our investment and management structure in Uruguay and maximizes our flexibility," Craig D. Neeser, Weyerhaeuser senior vice-president, industrial wood products and international, said in a prepared statement.

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Domtar to sell struggling forest products unit

MONTREAL — Building products supplier Domtar Corp. has said it will sell its forest-products division to Conifex Inc. for $285 million. Both companies are based here. Conifex is a forest products and sawmill company, and in a prepared statement it said that the purchase price includes $50 million, which it will use as working capital for its now-expanding business. Analysts have estimated that Domtar's forest-products business, which includes sawmills and timber rights in Quebec and Ontario, had been losing money, and that it would eventually be closed, as Domtar's business strategy is now focused on its fine-paper business. Domtar said it would invest $35 million, or take a 19.9% equity stake (whichever is less) in Conifex. The deal is expected to be completed by the end of the year.

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Lumber industry weathers storms: report

OTTAWA — Despite trade friction with the U.S., rising energy and material costs, lower lumber prices and a higher domestic dollar, Canada's lumber industry remained profitable between 1995 and 2006, according to a study by Statistics Canada. The study reveals, that while the industry has lost thousands of jobs since 2000, labour productivity gains have been made through restructuring. That, combined with a jump in lumber prices and operating revenues in 2004, helped the industry maintain positive profit margins. At the same time, while production volume kept rising until 2004, employment started to decline in 2001. The total number of hours worked in the industry dropped, as did the number and length of work shifts. In 2006, employment in the lumber industry dropped 27% from an all-time high of 74,145 in 2000. That same year, the lumber industry added $7.6 billion to Canada's gross domestic product and accounted for more than 4% of total merchandise exports. Lumber shipments were also down 15.5% in 2006 to $11.9 billion.

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Environmental concerns influence buying decisions

TORONTO — Decisions by Canadian consumers about purchasing eco-friendly products are just as likely to be influenced by an employee at a home-improvement store as they are by Stephen Harper, according to a new poll by Ipsos Reid. But either way, the environment is playing a bigger role in which décor and renovation products consumers buy. Most Canadians (79%) claim to have taken "some" (63%) or "a lot" (16%) of action in their homes to reduce greenhouse gasses, according to the survey. Almost four in 10 (38%) have added insulation in the past two years, and one in 10 (13%) plans to do so this summer. Homeowners in Central Canada seem to be the most interested in environmental upgrades to the home, with 19% of residents of Quebec and Ontario claiming to have "done a lot", and about two-thirds in both provinces saying they have done "some" to help the environment. Household income does not appear to be a driving factor; equal proportions of high- and low-income households (78%) are doing "some" (62% and 63% respectively) or "a lot" (16% and 15% respectively) to increase energy efficiency in their homes.

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Wal-Mart not welcomed by neighbourhood

TORONTO — A proposed plan to build a power centre on the eastern edge of the waterfront here met sharp resistance last week from local city council. According to the Toronto Star, developers Rose Corp. and SmartCentres Inc. want to build a two- or three-storey facility that would probably include a Wal-Mart. Local Councillor Paula Fletcher is heading up a group that says the low-paying jobs offered by the giant retailer won't be good for the area. But at City Hall, developers insisted the building — nearly 700,000 square feet and with 2,000 parking spots — will have an urban-oriented, pedestrian-friendly design. The fight will be taken to the Ontario Municipal Board this fall, where the city is expected to lobby for a smaller retail footprint.

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