BC forest companies watch dollar like a hawk
October 12, 2004 By Pulp & Paper Canada
The Vancouver Sun reported that British Columbia forest companies are responding to the stronger Canadian dollar in…
The Vancouver Sun reported that British Columbia forest companies are responding to the stronger Canadian dollar in the same way they responded to softwood lumber duties driving out inefficiencies and getting their costs down. The paper reported the province exports $12.5 billion a year worth of forest products and more than 60% of these exports go to the United States. As a result, BC forest companies monitor the dollar closely and work to develop strategies to deal with its fluctuations.
“I think everybody across the country is probably strategizing ways to manage currency issues,” commented Lyn Brown of Norske Skog Canada. Brown noted that every one-cent rise in the Canadian dollar knocks $15 million off the company’s bottom line. “We have been working hard on the cost-reduction side and we have seen some improvements, but we see those erased by the strength of the dollar,” she added.
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