West Fraser Timber is divesting 89% of its interest in the Babine and Decker Lake sawmills, along with the timber t…
West Fraser Timber is divesting 89% of its interest in the Babine and Decker Lake sawmills, along with the timber tenures that accompany those properties. Hampton Lumber Mills of Portland, OR is buying the share.
The company’s decision to sell its stake in the facilities comes as part of the consent agreement it signed in December of 2004 with the Commissioner of Competition in connection with its purchase of Weldwood Canada, that requires West Fraser to sell the mills in concordance with antitrust legislation.
“It has been very difficult for us to bring to an end a long and mutually beneficial relationship with our business partner BLNDC and the Burns Lake community,” president, West Fraser chairman and CEO Hank Ketcham said. “Hampton is a well respected company and we wish them, BLNDC and the employees of Babine and Decker Lake and the Burns Lake community well,” he added.
The sawmills have a combined annual capacity of roughly 365 million board feet, while the timber tenures have an annual allowable cut of approximately 450,000 cubic metres.
The price tag on the deal was not disclosed.
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