Trade Resources Industry Views Western Forest Products Plans to Invest $16 Million Into Its Saltair Sawmill

Western Forest Products Plans to Invest $16 Million Into Its Saltair Sawmill

News that Western Forest Products plans to invest $16 million into its Saltair sawmill is seen as a hopeful trend for the future of the forest company's other mills in the region. Lee Doney, a WFP spokesman, said that thanks to the company's efforts to cut costs in recent years and growing markets in Asia and Europe, WFP can now focus on a long-term strategy in preparation for the recovery of B. C. 's forest industry. Doney said he expects further announcements regarding expanding operation at the company's two Nanaimo sawmills, which have been operating with skeleton crews since the forest industry tumbled in 2009, in about six months. Darrel Wong, president of the United Steelworkers Local 1-1937 which represents the approximately 120 workers at the Saltair mill and at the two WFP mills in Nanaimo, said WFP's announcement gives him the most hope for the long-suffering industry that he has felt for years. "It's been hard slugging over the past few years, but we're cautiously optimistic for the future and we're now looking at the long-term future of our operations so we can be prepared for the expected turn-around in the industry, " Doney said Tuesday. With Premier Christy Clark at his side in Nanaimo last fall, Doney announced WFP will inject $200 million into its sawmills on Vancouver Island over the next three years, due largely to increasing lumber sales to Asia. The $16-million investment into the Saltair operation is the first specific announcement of where some of that money will be spent. The upgrades at Saltair will include new edgers, stacker and sorters designed to increase mill productivity by 15%. The retrofit is expected to take one year and will provide jobs for contractors and suppliers who specialize in mill infrastructure upgrades. Doney said the fact that the Saltair mill will continue running while the retrofit takes place is one of the reasons why WFP chose it for the first of many planned upgrades of its Island mills. Currently, operations at WFP's two Nanaimo sawmills employ approximately 100 people, well below the approximately 300 workers before the industry's troubles began. Wong said WFP's investment in its mills is "good news" for all of the company's workers. "Many of the mills are working with antiquated equipment so we're happy that WFP is working to upgrade its operations, " he said. "This is the most optimistic I've felt in years. " Source: canada.com

Source: http://www.canada.com/Western+Forest+Products+will+invest+sawmill/6155335/story.html
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Western Forest Products will invest $16M in sawmill
Topics: Construction