The bulk of the investment—$38.5 million—will be made in a new planer plant at its Radium Hot Springs sawmill. Canfor also plans to install a new biomass energy system and modify the existing mill.

The company will also spend more than $1 million to upgrade its drying capacity at its Canal Flats sawmill.

Work on the new planer mill is scheduled to start next month, with operation anticipated in the fourth quarter of this year.

The investment is the first round in Canfor’s planned multi-year capital investment program, which is intended to increase at Canfor's Southern Interior mills.

“These investments are critical to support the restart of our Radium division, which was indefinitely closed in May 2009,” said Canfor CEO Don Kayne. “The fibre in the Kootenay region is amongst the best in the world, and these investments will secure our ability to make top-quality products here to supply global markets.”

“The secure source of fibre the agreement establishes will give WoodEx the long-term stability to make some much-needed upgrades to its operation,” Douglas Riddell, president and CEO of WoodEx recently told the Columbia Valley Pioneer newspaper.

The article also stated that the Akiqnuknik Development Corporation would like to harvest up to 100,000 cubic metres of allowable cut volume through the deal in the future.

Source: Columbia Valley Pioneer.

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

“The main reason for the request for these machines was their unique design of front mounted track drive, torsion bar suspension, rubber bushed 'live' steel track and balanced weight distribution,” said Wayne Farenholtz, president/general manager at KMC-KOOTRAC/Kootenay Tractor. “This unique design allows the KMC Track Skidder to operate in very wet conditions and traverse steep slopes where other ground-based machines could not.”

The timber harvesting companies in South America also found that after a period of time, KMC Track Skidders' low ground pressure caused minimal soil disturbance compared to the crawler tractors and rubber tired skidders that they were previously using. The Chilean loggers also found that the KMC left a better “foot print” than the oxen that they were using for steep slope skidding.

Due to the worldwide downturn in the forestry industry, the demand for new specialty logging equipment has subsided but KMC is still able to supply remanufactured Track Skidders to companies in South America.

KMC staff are now getting inquiries for their newest designed tracked vehicles to be used as attachment carriers for the oil and gas exploration contractors as well as power line installation contractors. KMC is also getting inquiries from other countries in South American such as Argentina and Peru for the unique KMC Steel Tracked Vehicle.
For more information, visit www.kmc-kootrac.com or call KMC-Kootrac toll-free at 1-800-562-5303.

“However we believe the American market will come back and when it does there will be massive pent-up demand for our lumber products.”

Fortunately the Chinese market for Canadian wood products has increased substantially to offset the American decline.  The major decline in the American housing market can be directly attributed to the shutdown of two Tembec facilities, namely the finger-joint operation and planer mill in Cranbrook.

Foreclosures in the US are down, and when combined with an uptick in the building market, Tembec see these as positive signs that the American lumber market is ready to rebound. Tembec is an integrated forest company headquartered in Ontario with operation throughout North America.