Ainsworth terminates agreement
October 13, 2008 By Pulp & Paper Canada
Ainsworth Lumber has terminated an agreement with the Manitoba government on a planned engineered wood production f…
Ainsworth Lumber has terminated an agreement with the Manitoba government on a planned engineered wood production facility that was to be built in northeastern Winnipeg, MB. The agreement, set out in May 2006, looked at the possibility of issuing a Forest Management License for 838,000 cubic metres of timber annually, renewable on a 20-year basis. However, upon completing its strategic review, Ainsworth concluded the likelihood of building the facility in the foreseeable future is not strong, and as such, elected to terminate the agreement.
Ainsworth originally planned to build an engineered wood manufacturing plant that would produce both oriented strand board and oriented strand lumber, in conjunction with the First Nations Forestry Limited Partnership.
“Excellent progress was made over the past three years with the Government of Manitoba and the First Nations Forestry Limited Partnership to develop a framework to deliver on this project’s potential,” Robert Allen, CEO of Ainsworth said. “The decision to terminate the commitment agreement is in no way a reflection of the support provided by the government and the regional First Nations,” he added.
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