B.C.-based Canfor Corp. (TSX:CFP) is spending $60 million to buy Southern Interior B.C. assets from Quebec-based Tembec. 

Canfor, which is Canada’s largest lumber producer, will buy Tembec’s Elko and Canal Flats sawmills and approximately 1.1 million cubic metres of combined Crown, private land and annual allowable cut. Jim Pattison owns 38 per cent of Canfor.

The transaction also includes a long-term agreement to provide residual fibre supply for Tembec’s Skookumchuck mill.

The transaction is expected to be finalized in 2012’s first quarter and is subject to regulatory and customary closing conditions.

“This acquisition is a key step in our ongoing approach to strengthening Canfor’s fibre position in B.C. and deepens our ability to meet the needs of our valued global customers,” said Canfor president and CEO Don Kayne.

Canfor plans to invest more than $50 million in its facilities in the next few years to boost productivity.

“Canfor is not only acquiring mills and fibre supply in this agreement, but also a talented employee and contractor group,” Kayne said.

Source: Business in Vancouver