A fibre-supply agreement shared between Western Forest Products and TimberWest has been dissolved.
A fibre-supply agreement shared between Western Forest Products and TimberWest has been dissolved.
The deal was first established in 1997, and stipulated that TimberWest was required to offer Western an annual volume of 330,000 m3 of saw-logs from its private lands, at market prices.
According to TimberWest, the abrogation of the agreement will be beneficial, in that it will free up fibre in the company’s timberlands and will permit it to sell it at maximum value.
Western has also confirmed the conclusion of the deal made good sense. “Now that the Bill 28 take-back has created a larger open market wood supply, we should have the flexibility to buy additional specific log types from this new supply.”
TimberWest paid Western $15 million to terminate the agreement.
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