Weyerhaeuser may sell its Cellulose Fibers business
By Cindy Macdonald
Weyerhaeuser Co. is exploring strategic alternatives for its Cellulose Fibers business, which includes the company’s mill in Grande Prairie, Alta.
The board of directors intends to consider a broad range of alternatives, including continuing to hold and operate the business or a sale or spin-off of the business.
“The people and assets associated with our Cellulose Fibers business are some of the finest in the industry,” said Doyle R. Simons, president and chief executive officer. “We have consistently improved the performance of this business while continuing to meet the needs of our worldwide customers. We believe now is the right time to evaluate all options to ensure the best long-term results for this business and at the same time create the most value for our shareholders by further focusing our portfolio.”
Weyerhaeuser is primarily an owner of timber land and producer of wood products. On Nov. 8, the company announced a merger with another large land owner and producer of wood products, Plum Creek. Together, the two will be one of the world’s premier timber, land and forest products company with more than 13 million acres of productive and diverse timberland in the U.S.
Weyerhaeuser’s Cellulose Fibers business includes five pulp mills, two modified fiber mills, one liquid packaging board facility, and one publishing papers joint-venture facility.
The company noted that there is no assurance that the board’s evaluation process will result in any transaction.