Displaying items by tag: Canfor Pulp

Canfor Corporation announces that it has entered into an agreement to purchase the assets of Wynndel Box and Lumber Ltd., located in the Creston Valley of British Columbia.

Wynndel Box and Lumber produces premium boards and customized specialty wood products sold under the brand name WynnWood. It has access to exceptionally high-quality fibre, and will advance Canfor’s ability to produce a broader mix of higher value specialty products. The acquisition of assets includes a sawmill located in Wynndel, BC with an annual production capacity of 65 million board feet, and approximately 65,000 cubic metres of annual harvesting rights in the Kootenay Lake Timber Supply Area. The agreement is expected to close in the second quarter of 2016 and is subject to customary closing conditions.

“This acquisition will further increase our focus on specialty markets worldwide,” said Canfor Corporation President and CEO Don Kayne.
“We are pleased to further grow and diversify the product line we are able to provide to our global customers, and to welcome our new colleagues at WynnWood to Canfor.”

Canfor is a leading integrated forest products company based in Vancouver, British Columbia (“BC”) with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas. Canfor produces primarily softwood lumber and also owns a 51.9% interest in Canfor Pulp Products Inc., which is one of the largest producers of market northern bleached softwood kraft pulp and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.

Forest companies say they can no longer get enough rail cars to move their products to market at a time when the U.S. housing market is going through a major recovery.

U.S. housing starts topped one million in March on a seasonally adjusted rate, more than double the low point hit during the recession, prompting a run on rail cars that Canadian mills use to get their wood products to market. It’s not just lumber that’s being affected. Oriented strand board, plywood and even pulp inventories are building at the mills, forcing companies to turn to trucks – which are also in short supply.

“If you had a pickup truck, we would use it,” Bob Hayes, transportation vice-president at Canfor Corp. said Tuesday.

Earlier this year, Canfor came within four hours of shutting down a pulp mill because of a rail car shortage. Pulp production is also up and because it is perishable, it cannot be stored outside, Hayes said. Canfor has erected a big-top style tent at one of its Prince George pulp mills to store inventory but so far hasn’t had to use it.

However, the rail car crunch is adding to costs, from additional trucking to causing ships to be delayed in port, he said.

“We were trucking this week from Prince George to Squamish terminal. We have never done that before. We had to find emergency trucks this weekend to go from Prince George to Squamish to keep the product flowing to the vessels and to keep the warehouses from overflowing,” Hayes said.

“I think transportation and the lack thereof, is going to be the biggest challenge for B.C. forest products companies to get their product to market in 2013 and beyond. Usually economics will drive solutions, but right now, that solution is to constrain the industry.”

Catherine Cobden, executive vice-president of the Forest Products Association of Canada, said the rail car shortage is systemic, with both CN and CP unable to deliver enough cars to meet growing demand.

“It’s very disappointing at a time when markets are rebounding and we are gearing up to support and supply, not just our traditional markets but our growing emerging markets,” she said.

“Our members are saying in some cases they are only getting half the cars they need to service their marketplace. Obviously this is a very difficult and untenable position for us.”

U.S. housing starts reached 1.036 million units in March on a seasonally adjusted rate, seven per cent higher than February and 46.7 per cent above March 2012, according to the U.S. lumber publication Random Lengths. March’s rate was the highest since 2008. The 2013 forecast had been for from 885,000 to 985,000 starts.

Doug Routledge, acting president of the B.C. Council of Forest Industries, said B.C. sawmills have responded by returning to two shifts. Employment in the forest industry has climbed marginally, from 51,490 direct jobs in 2009 to 56,340 in 2012, according to Statistics Canada.

“Most mills are back on a two-shift capacity which would be equivalent to normal production levels. A few mills, not many, have added in a graveyard shift. But it’s being buffered by transportation issues – not just railcars – where people are not able to get rid of finished inventory. That is buffering the ability to put on that third shift here and there,” Routledge said.

Canfor Pulp Products Inc. (TSX:CFX) has announced that it has received regulatory approval for a normal course issuer bid to purchase for cancellation up to 3,563,489 Common Shares or approximately 5% of the 71,269,790 Shares outstanding on February 25, 2013, at prevailing market prices in accordance with the rules of The Toronto Stock Exchange. The normal course issuer bid will commence on March 5, 2013 and continue until March 4, 2014, unless completed or terminated earlier. Canfor Pulp believes the normal course issuer bid is in the best interests of the company. Purchases of Common Shares made under the bid will be effected through the facilities of the TSX, alternative trading systems, or as otherwise previously approved by the TSX.

Canfor Pulp's parent company, Canfor Corporation, has today also announced its initiation of a normal course issuer bid for the purchase of up to 5% of its issued share capital, through the facilities and in accordance with the Rules of The Toronto Stock Exchange.

Purchases will be made at the discretion of the Company at prevailing market prices, through the facilities of the TSX, in compliance with regulatory requirements. Daily purchases will be restricted to not more than 21,188 shares, representing 25% of the average daily trading volume of the Company's shares on the TSX, subject to certain prescribed exemptions. There can be no assurance as to the precise number of shares that will be repurchased under the share repurchase program. The Company may discontinue its purchases at any time, subject to compliance with applicable regulatory requirements. The Company intends to hold all shares acquired under the issuer bid for cancellation. The Company has not purchased any of its common shares in the last 12 months.

 Joe Nemeth, President and CEO of Canfor Pulp Products Inc. which owns 49.8% of Canfor Pulp Limited Partnership, has announced three major new investments in innovation for the company in a ceremony opening the new Canfor Pulp Innovation Centre in Burnaby, BC.

Noting that CPLP is the largest producer of market kraft pulp in British Columbia, and the third largest in the world, Mr. Nemeth stated that “Innovation is the cornerstone of globally successful companies. This major investment of more than $10 million is aimed at securing our future as a global leader in pulp.”

The Canfor Pulp Innovation Centre will have an annual operating budget of $2 million and a laboratory of 6,400 square feet. Its staff of nine technical professionals will perform research on a host of challenges and opportunities important to CPLP. Key equipment items in the Centre are a pilot refiner for simulating paper mill treatment of pulps, and extensive, advanced technical instruments for testing pulp and paper.

Complementing CPLP’s in-house research, Mr. Nemeth also announced the company’s commitment to a new research grant program: a collaboration between CPLP and the University of British Columbia and the University of Northern British Columbia. The program will provide a total of $225 thousand over the next three years to university faculty for novel research projects in areas relevant to CPLP’s mandate. “We want to encourage the wealth of academic talent at UBC and UNBC to dedicate renewed efforts and enthusiasm toward the manufacture and development of products from our forest resource, and thereby contribute to the future of one of the largest and most consistent contributors to provincial GDP”, said Mr. Nemeth.

The third initiative is a set of partnerships with government in collaboration with equipment suppliers to implement advanced sensing technology in all three of CPLP’s Prince George mills. CPLP’s investment of $8 million in these technologies will include the Metso Quality Vision System, the Eurocon PulpEye and two sensors developed by FPInnovations in Vancouver. The FPInnovations sensors consist of a patented fibre wall thickness measurement sensor and a specialized wood chip sensor. This comprehensive initiative in sensing technology is supported by matching funding of $2.4 million from Natural Resources Canada and $2.1 million from the BC Ministry of Forests, Mines and Lands. It will provide CPLP with unique capabilities for monitoring the quality of its fibres on-line and thereby provide information to adjust operations and maximize pulp value recovery from the sawmill-produced wood chips it uses.

Representatives from the beneficiaries of CPLP’s research grant program praised these initiatives. Professor Gail Fondhal, Vice President, Research of UNBC in Prince George lauded the grants program saying, “We welcome this contribution as it supports our growing research programs and builds closer links with CPLP whose mills are within view of our campus.” Similarly, Professor Tyseer Aboulnasr, Dean of Applied Science at UBC commended CPLP’s commitment to innovation and in particular, “This valuable University program will enhance and continue UBC’s longstanding link with the industry through our Pulp and Paper Centre.” The program complements existing CPLP initiatives and others currently under development with various universities across Canada.

In closing, Mr. Nemeth noted that CPLP employs 1,200 people in BC and annually produces pulp and paper products worth $1 billion. “Our pulps and papers are recognized around the world as premium products. To remain competitive in a changing marketplace, we must be at the forefront of technologies that affect the production and optimal end-use of our pulps. These innovation initiatives are important steps to accomplish this.”

Cariboo Pulp and Paper Co.’s mill in Quesnel and Canfor Pulp's Northwood mill in Prince George are the latest pulp mills in B.C. to be earmarked for federal government money to reduce their environmental footprint.   The Cariboo and Canfor mills have qualified for $41.5 million and $100.2 million respectively in funding from Natural Resources Canada's $1-billion Pulp and Paper Green Transformation Program.

Conservative MPs were out in full force at four mills across Canada on Thursday in what some politics-watchers viewed as campaigning in anticipation that a federal election could be announced in the weeks or months ahead – following the return of MPs to Parliament Hill in February and the yet-to-be announced release of the 2011 budget.

The federal government has readily accessed the green transformation program’s funds since it was created in June 2009, as a means to address competitive disadvantages the mills face as a result of subsidy programs in the U.S.

As BIV reported in November, West Fraser Timber Co. Ltd. (TSX:WFT), received $37 million to upgrade its Hinton pulp mill. (See “Federal credits fund West Fraser mill upgrade” – BIV Daily Edition; November 15.)

The Hinton mill is one of at least eight facilities in B.C. to be earmarked for funds through the program.

An upgrade to Northwood Mill’s recovery boiler is expected to result in a 70% reduction in sulfur emissions at the plant as well as reductions in particulates.

The Cariboo mill is upgrading its existing power boiler, adding a new steam turbine and making improvements to its hog fuel handling system.

Through the upgrades, Cariboo will create 160 gigawatt hours of steam-generated clean electricity annually that will be sold to BC Hydro – enough to power more than 14,500 homes annually.

The upgrades will save the mill close to eight gigawatt hours of electricity annually and reduce its greenhouse gas emissions by 18,000 tonnes a year.

Through its Integrated Power Offer, BC Hydro is providing Cariboo Pulp and Paper with financial incentives to make the upgrades.

BC Hydro created the Integrated Power Offer in 2009 to help B.C.'s pulp and paper producers identify ways to secure funding through the green transformation program.

Canfor Pulp Income Fund has announced that Canfor Pulp Limited Partnership (the “Partnership”), in which the Fund has a 49.8% ownership, has received approval from the Canadian federal government for funding of its $100 million capital project to upgrade the recovery boiler at its Northwood Pulp Mill in Prince George, British Columbia. The project is planned for completion in the fourth quarter of 2011 and is expected to provide economic and environmental benefits to the Partnership’s operations.

On October 9, 2009 the Canadian federal government announced the allocation of credits from the billion dollar Pulp and Paper Green Transformation Program (the “Program”). The Partnership was allocated credits up to $122.2 million from the Program. The Program is designed as a reimbursement of funds to be spent on qualifying energy and environmental capital projects. Credits may be used until the program end date of March 31, 2012. The Partnership has previously received program approval to proceed with two other qualifying projects totalling $15.6 million.

Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could" and variations of such words and similar expressions are intended to identify such forward-looking statements. In particular, material forward-looking statements in this press release include the expected effective date of the Arrangement.

In some instances, material assumptions are disclosed elsewhere in this press release in respect of forward-looking statements. Other risks and uncertainties are detailed from time to time in reports filed by the Fund with the securities regulatory authorities in all of the provinces and territories of Canada to which recipients of this press release are referred to for additional information concerning the Fund and Partnership, its prospects and uncertainties relating to the Fund and Partnership and its prospects. Although we believe that the expectations reflected by the forward-looking statements presented in this press release are reasonable, these forward-looking statements are based on management’s current expectations and beliefs and actual events or results may differ materially.

New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual events and results, performance and achievements of the Fund and Partnership to be materially different from those contained in forward-looking statements.

The forward-looking statements speak only as of the date on which such statement is made, are based on current information and expectations and the Fund and Partnership assume to obligation to update such information to reflect later events or developments, except as required by law.

About Canfor Pulp Income Fund
The Fund is an unincorporated, open-ended trust established under the laws of Ontario, created to indirectly acquire and hold an interest in the Canfor Pulp Limited Partnership (the “Partnership”). The Fund indirectly holds a 49.8% interest in the Partnership with Canadian Forest Products Ltd. (a subsidiary of Canfor Corporation) holding the remaining 50.2% interest.

For more information about Canfor Pulp Income Fund and the Partnership, please visit
www.canforpulp.com
Terry Hodgins
Chief Financial Officer and Secretary
Ph: 604-661-5421
This email address is being protected from spambots. You need JavaScript enabled to view it.

Canfor Pulp Limited Partnership has signed a letter of intent with Pacific Carbon Trust for a multi-year deal to sell carbon offsets related to emission reductions at the Northwood pulp mill in Prince George, B.C. The emission reduction project will generate up to 80,000 tonnes in CO2e reductions, announced PCT CEO Scott MacDonald.

"Canfor Pulp has made significant investments over the past two decades to reduce its carbon footprint," said Canfor Pulp president and CEO Joe Nemeth. "Between 1990 and 2010, Canfor Pulp has reduced its carbon emissions by nearly 40%. We are pleased that Pacific Carbon Trust has taken a leadership role in Canada, to provide a vehicle that financially recognizes proactive investments that further reduce carbon emissions."

Located at the Northwood Pulp Mill in Prince George, the aggregated emission-reduction project has three component sub-projects. One is the installation of a side stream scrubber which allows the mill to achieve higher biomass-fuel-burn rates, supporting a reduction in the burning of natural gas.

Also, equipment improvements to the biomass delivery systems will reduce the need to supplement the fuel supply with natural gas, resulting in reduced greenhouse-gas emissions.

In addition, major upgrades to the recovery boiler will increase mill pulp production, improve combustion efficiency, increase internal electricity generation and reduce steam requirements from the mill's power boilers.

Collectively, these improvements will also significantly reduce sulphur and particulate emissions.

Under the agreement, Pacific Carbon Trust will purchase all third-party-verified offsets originating from the project from 2010 to 2012, with future purchases dependent on the parameters of any cap and trade systems developed at the regional or national levels.

To qualify greenhouse gas emission reductions as carbon offsets, project developers must demonstrate financial, technological or other obstacles that are partially or fully overcome by revenues from offset sales.

"The growing demand for carbon offsets is a new and exciting opportunity for the B.C. forest sector," said Forests and Range Minister Pat Bell. "Recognizing the economic and environmental value of this opportunity, Canfor has upgraded its Northwood Pulp Mill with innovative technologies that will help fight climate change and supply the market for forest carbon offsets."

Pacific Carbon Trust is a Crown corporation established in 2008 to deliver B.C.-based greenhouse gas offsets.