Footner forest products closure in a relationship

Ainsworth Completes the Acquisition of the Remaining 50% of Footner OSB Mill in High Level, Alberta

Tolko High Level Lumber Division & Footner Forest Products Ltd. . The companies have developed a positive working relationship with all conifer and .. Issues will be brought to the planning team for resolution and closure. Footner Forest Products, which opened a $million oriented strand Mayor George Schmidt in reaction to the company's closure news. 2 “Exploring the Relationship Between Aboriginal Peoples and The . Certification of forest products and of sustainable forest management (SFM) a spiral of defaulted mortgages on employee housing and resulting in the closure of the .. The First Nations have been offered a 15% equity position in the Footner mill but.

The acquisition of the Minnesota OSB facilities has also resulted in us obtaining additional intellectual property that has enabled us to access new specialty product markets across our entire operations. All three OSB facilities were completed on-time and on-budget. The Barwick facility currently has an estimated annual production capacity of mmsf, which we believe we can increase to mmsf by the end of The Minnesota OSB facilities have an estimated aggregate annual production capacity of 1, mmsf.

Ainsworth closing Alberta mill, affecting jobs - The Globe and Mail

We believe we can increase the annual production capacity of our Minnesota OSB facilities to 1, mmsf by the end of We are a leader in the value-added markets we serve, including export-standard OSB and specialty industrial products.

We have the largest installed capacity designed to serve the growing Japanese OSB market. Both our Mile House and Grande Prairie facilities were specifically designed to economically produce three-foot wide panels used in Japanese construction, as compared with four-foot wide panels used in North America. We are also a principal supplier of specialty overlaid plywood used to manufacture long-lasting concrete forming panels for the construction markets in Canada, the United States and the United Kingdom.

Growing Value-Added Product Mix. Our business strategy is to continue to increase our revenues generated from value-added products, including OSB webstock, rimboard, radiant barrier OSB panels, jumbo OSB panels, export-standard OSB and specialty overlaid plywood.

These products command premium pricing, particularly during cyclical lows for commodity products, which enhances our profitability.

Ainsworth closing Alberta mill, affecting 150 jobs

Value-added products also exhibit more stable pricing than commodity OSB. Our core management has skills and experience in all aspects of the value-added engineered wood products business, including product development, manufacturing, marketing and distribution, among others. We believe that our value-added product strategy improves our financial results and helps us maintain profitability through industry cycles. We also believe that our recent acquisition of the Minnesota OSB facilities has provided us with a significant opportunity to expand our value-added product mix.

The addition of the second production line at our Grande Prairie facility, which is currently under construction and is scheduled for completion in Marchwill further support our value-added product strategy. The continuous-press technology that will be employed in this new line will allow us to produce a number of structural engineered wood products, including OSB and oriented strand lumber, or OSL.

The Mile House, Grande Prairie and High Level facilities are within close proximity to western ports, providing us with a transportation cost and logistical advantage for supplying the western United States and Japanese markets. For example, the proximity of our Mile House facility to the port of Vancouver allows us to supply our Japanese customers with less lead-time and at a lower cost than our North American competitors.

In addition, all three of our western OSB facilities have rail access, which facilitates the cost-effective shipping of our products into the central and western regions of the United States.

The Barwick facility, located close to the U.

Ainsworth Completes the Acquisition of the Remaining 50% of Footner OSB Mill in High Level, Alberta

The Minnesota OSB facilities, located in northern Minnesota, close to our Barwick facility, have increased our presence in this important market and further diversified our customer base. In addition, each of the Minnesota OSB facilities has direct access to rail and highway transportation, which allows them to provide cost-effective shipping to the western and central regions of the United States. We have some of the most modern, productive manufacturing facilities in North America.

Our facilities generally operate at or near their estimated annual production capacities, other than High level, which is still ramping up to its designated annual production capacity. Oriented Strand Board Grande Prairie.

Grande Prairie uses a foot wide forming line and press that provides the flexibility to produce, on a cost-efficient basis, a variety of panel dimensions and grades to suit both North American and Japanese markets. We are currently constructing a second production line, which is expected to be in operation by March and which is expected, following an initial ramp up period, to add an estimated additional mmsf of OSB annual production capacity to the Grande Prairie facility.

We own and operate our Mile House, British Columbia facility, which has an estimated annual production capacity of approximately mmsf. The Mile House facility was the first OSB facility to adopt a nine-foot wide forming line and press that provides significant efficiency advantages over the more traditional eight-foot wide press and allows us to profitably serve the Japanese residential market where three-foot wide OSB is the standard.

The Minister and the Companies hereby enter into this forest management agreement in respect of the forest management area comprising, subject to paragraphs 4, 5, and 6, public lands within the boundaries shown outlined on a map registered in the Department, a copy of which is annexed hereto as Appendix "A". Out of the forest management area the following are excepted: Whenever any of the productive or potentially productive land excepted under paragraph 4 or subsequently withdrawn from the forest management area becomes available for disposition and where such land is intended to be returned to timber production by the Minister, the Minister shall notify the Companies when such land becomes available and where the Companies request that such land be returned to timber production by the Minister, the Minister shall return these lands back to the forest management area in a productive or potentially productive state.

In no case, however, shall the Companies have to pay fees or royalties for in situ right-of-way material located and used where it is found within the right-of-way. In keeping with public values and recognizing that certain portions of the forest management area may have other resource values, the Minister reserves all land rights on the forest management area not specifically given hereby, including by way of example, but without limiting the generality of the foregoing: The Minister shall consult with the Companies on an ongoing basis as may be required to minimize any conflict between the operations authorized under the permits and licences issued pursuant to subparagraph 2 and the respective operations of the Companies.

On the forest management area, the Companies shall, in accordance with the approved forest management plan follow sound forestry practices in managing the land base for the purpose of achieving and maintaining a perpetual sustained yield of timber from the productive forest land, while not reducing the productivity of the land.

Without limiting the generality of the foregoing, if there is any dispute as between the Companies concerning finalization of the detailed forest management plans required to be submitted in accordance with this paragraph 10, the Minister may, in his sole discretion, direct that the Companies proceed to binding arbitration to resolve such dispute, which arbitration, if so directed by the Minister, shall occur in accordance with the provisions set forth in paragraph Subject to paragraphs 10 3 and 10 9 the Companies may not commence or carry on any construction project or any operation on the forest management area until the relevant plans which are required to be submitted pursuant to this Agreement have been submitted by the Companies and approved in writing by the Minister.

The Companies may not digress from the approved plans without the Minister's consent in writing, with the understanding that the Minister shall provide a full explanation whenever consent is withheld. When, in the opinion of the Minister, any plan approved by him becomes obsolete or inadequate, he may, by reasonable notice in writing, require the Companies to submit a revised plan for his approval within a specified time, or within any extended time he may subsequently allow.

These ground rules may be altered by mutual agreement of the Minister and the Companies. Such operating projection shall be in accordance with the standards and shall cover the period of time specified in the ground rules referred to in paragraph The Companies shall have thirty 30 days from the date on which such notice is given to them by the Minister within which to amend the plan, or to justify the exclusion of such timber from the plan, but if they fail or elect not to do either within such period, they shall not be deemed to be in default and the Minister may dispose of such timber to any person by license or permit not exceeding one year in duration without compensating the Companies and the volume of timber so disposed will be charged by the Minister as production against the annual volume of either deciduous production or coniferous production, as the case may be, in the forest management area.

The Companies shall not hinder or obstruct the lawful timber operations of licensees, permittees or respective operations of each other. No claim shall be made by either of the Companies against any licensee, permittee or the Minister for reasonably unavoidable incidental damage to timber.

As part of its operations under this Agreement the Companies shall, at their own expense, furnish all of the seedling trees and propagules required for their respective reforestation needs. Seed, seedling trees and propagules used for reforestation programs under this Agreement shall be produced in accordance with the rules established by the Minister governing the source and type of tree seed and species used to reforest public land.

Each Company shall be solely responsible for reforesting to the required reforestation standard all productive and potentially productive lands burned by fire within the forest management area, when the fire has been caused by the Company, its employees, agents or contractors. For the purposes of the foregoing, it is agreed by all of the parties to this Agreement that neither Tolko nor Footner is the agent of the other. The Companies and the Minister may enter into an agreement which will define the programs and conditions that, in the Minister's opinion, will establish a sustainable increase in the allowable cut approved by the Minister in the management plan submitted under paragraph Until such time as a Fire Control Agreement has been entered into, each Company agrees to have on hand in good working order such fire fighting equipment and shall train such employees in fire suppression as specified by the Minister.

If the cause of any fire is disputed by either Company, the dispute shall be resolved by means of civil suit in the Courts of Alberta.