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Western Forest Products invests $29 million in its sawmills in British Columbia
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CANADA (News release) -- Western Forest Products Inc. announced capital investments totaling approximately $29 million towards its British Columbia (B.C.) operations in Canada. These capital investments represent an increase of $13 million over and above the $16 million of capital investments discussed in the Company's 1Q 2022 Management's Discussion and Analysis.

Specifically, the investments include:

- $12.3 million in a new continuous kiln at the Saltair sawmill in Ladysmith, B.C., allowing for increased capacity for continuous drying of lumber, while reducing energy consumption. The sawmill is the largest single-line sawmill on the coast of B.C. following the previous multi-phase strategic capital investment of over $42 million undertaken to modernize the sawmill since 2013. The facility has three existing kilns on site for drying lumber.

- $7.9 million at the Duke Point facility in Nanaimo, B.C., to optimize the centralized planer facility with new equipment, including a machine stress rated ("MSR") lumber grading machine. The MSR machine provides strict lumber grade quality control with known values for strength and stiffness for lumber utilized in engineered products, including roof trusses, glulam and mass timber. The sawmill and planer have undergone a previous multi-phase strategic capital investment of over $45 million since 2015 to modernize the facility.

- $8.3 million in other capital investments in the Company's B.C. operations, including new kiln control systems at the Saltair sawmill and its Value-Added Division in Chemainus, B.C. to increase supply of kiln dried finished products for customers.

Each of these investments will serve to generate additional value from Western's wood products. Work on these investment projects is underway and is expected to be completed by 2023.

Joel Fournier, Vice President of Canadian Manufacturing, Western Forest Products, says: "We are proud to add to our ongoing investments in our manufacturing facilities on Vancouver Island with substantial upgrades that maximize the value of the wood products we process locally. With the use of wood in multistorey construction growing as a low carbon solution, we have invested in considerable research to determine how we can participate in this growth opportunity. Adding equipment that allows us to manufacture product lines used in glulam and mass timber building represents an exciting step forward for our company and employees, as we pursue growth while supporting the needs of our communities and planet. We are also looking forward to increasing our drying capacity by approximately 72 million board feet, which is an important part of the process in making higher value wood products."

Western Forest Products Inc. is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.

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