Displaying items by tag: Canfor
Canfor and Great Pacific Terminate Arrangement Agreement Canfor to Remain a Public Company
Canfor Corporation (TSX:CFP) (“Canfor”) has agreed with Great Pacific Capital Corp. (“Great Pacific”) and 1227738 B.C. Ltd. (the “Purchaser”), a wholly-owned subsidiary of Great Pacific, to terminate the previously announced arrangement agreement dated October 28, 2019 (the “Arrangement Agreement”) with respect to the proposed plan of arrangement (the “Arrangement”) of Canfor.
Based on the Canfor shareholder votes cast by proxy prior to the December 16, 2019 proxy cutoff, the “majority of the minority” vote required to approve the Arrangement pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, will not be achieved.
Approximately 45% of the votes cast by proxy by minority shareholders as at the proxy cutoff were in favour of the Arrangement.
The special meeting of Canfor shareholders, scheduled for Wednesday, December 18, 2019 at 9:00 a.m. (Vancouver time), has been cancelled.
Pursuant to the Arrangement Agreement, the Purchaser will pay 50% of the actual reasonable out-of- pocket expenses incurred by Canfor in connection with the Arrangement from the date of the Arrangement Agreement to the date hereof. AST Trust Company (Canada), as depositary for the Arrangement, will be returning any physical share certificates that have been submitted by shareholders of Canfor in connection with the Arrangement forthwith in accordance with the instructions contained in the letters of transmittal.
Canfor plans to continue to diversify its business and pursue growth strategies in positioning itself for long-term success and sustainability.
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. These forward- looking statements include, among others, statements relating to: the cancellation of the special meeting of Canfor shareholders; the Purchaser’s repayment of 50% of Canfor’s reasonable out-of-pocket expenses incurred in connection with the Arrangement; and Canfor’s ongoing business strategies and objectives. Words such as “expects”, “anticipates”, “projects”, “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. These statements are based on current expectations and beliefs and actual events or results may differ materially.
Although Canfor believes that the forward-looking statements in this news release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management’s expectations and plans as set forth in such forward-looking statements, including, without limitation, the following factors, many of which are beyond Canfor’s control and the effects of which can be difficult to predict: the possibility of adverse reactions or changes in business relationships resulting from the announcement of termination of the Arrangement Agreement; risks relating to Canfor’s ability to retain and attract key personnel; changes in economic conditions, interest rates or commodity prices; risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business; and other risks inherent to Canfor’s business and/or factors beyond its control which could have a material adverse effect on Canfor.
Canfor cautions that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause Canfor’s actual results to differ from current expectations, please refer to the “Risks and Uncertainties” section of Canfor’s Management’s Discussion & Analysis for the year ended December 31, 2018, as well as Canfor’s other public filings, available at www.sedar.com and at www.canfor.com.
The forward-looking statements contained in this news release describe Canfor’s expectations at the date of this news release and, accordingly, are subject to change after such date. Except as may be required by applicable Canadian securities laws, Canfor does not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
About 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, as well as in Sweden with its recent majority acquisition of Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global 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.
Canfor Announces the Purchase of Wynndel Box and Lumber
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.
Canfor Pulp Announces Normal Course Issuer Bid
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.
Canfor Pulp invests $10M in Innovation
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.”
B.C. pulp mills receive funding for green upgrades
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.
Aeration system cuts energy costs at Canfor's Taylor, B.C., pulp mill
Canfor's Taylor Pulp mill has purchased two microbubble aeration systems from Seair Inc. The purchase comes after an extensive period of testing and energy efficiency verification in conjunction with BC Hydro, during which it was confirmed the Seair system reduces the energy required by the mill's effluent system by 3,800 megawatt hours per year. Seair notes that the expected savings in energy reduction alone will be in the range of $285,000 annually using current BC Hydro tier 2 pricing, equivalent to a 12 month payback purely on energy savings.
Seair's aeration have a small footprint, which makes them versatile and easy to fit within existing facilities.
Craig Thomson, energy and environmental supervisor at the Canfor mill, notes: "We purchased our first Seair unit three years ago and continue to be impressed with its performance, reliability, and efficiency. With these additional units we believe we have obtained the optimal balance for our aeration system. Our mill is proof that environmental stewardship and superior economics are not mutually exclusive."
Harold Kinasewich, Seair's president and CEO, adds, "The Taylor mill is the first full Seair implementation at a pulp mill. However, with BC Hydro's continued support, we are presently demonstrating Seair's solutions at a number of other mills and we look forward to additional full implementations."
Seair is a developer of patent-protected diffusion and sterilization technologies, which allow for the efficient diffusion of gases into liquids, thereby facilitating numerous applications in a wide variety of industries, including wastewater treatment, pulp and paper production, food processing, aquaculture, agriculture/horticulture, sterilization, golf course irrigation and pond treatment, animal enhancement and oil and gas.
Maintenance shuts down Canfor Prince George mill
Canfor's Prince George Pulp and Paper mill is moving a maintenance shutdown previously planned for April to this month, in order to coincide with unplanned maintenance requiring the shutdown of the recovery boiler. It was discovered that the recovery boiler had a leak which needed to be repaired.
The total duration of the shutdown of the boiler is expected to be approximately 20 days and the total reduced pulp production in the first quarter is expected to be approximately 15,000 tonnes, including the 4 days and 3,600 tonnes previously scheduled for the April outage. Operation of the paper machine during part of the shut down period is expected to mitigate the financial impact of these outages.
Canfor Pulp operates three pulp mills in Prince George which employ more than 1,100 people. Canfor Pulp, an income trust, was spun out from Canfor Corp. several years ago.