West Fraser expanding Alberta production
West Fraser Timber Co. Ltd., the Canadian lumber-producing giant, has entered into an agreement to acquire Spray Lake Sawmills located in Cochrane, Alberta.
The transaction is anticipated to close later this year following the completion of Canadian regulatory reviews and satisfaction of customary conditions, West Fraser said.
Based in Vancouver, British Columbia, West Fraser is paying 140 million Canadian dollars (US$102.39 million.)
Spray Lake Sawmills produces treated wood products, dimensional lumber, and a variety of wood residuals and biproducts. It has an annual lumber capacity of 155 million board feet and holds two Forest Management Agreements granted by the Government of Alberta with a total Annual Allowable Cut of approximately 500,000 m3 (cubic meters).
“We are excited to welcome Spray Lake Sawmills to the West Fraser family,” said Ray Ferris, president and CEO of West Fraser. “Spray Lake Sawmills has an experienced, dedicated group of employees who we will look to further the legacy of this proud mill. With its solid safety performance, and focus on sustainability and community, the mill is an ideal fit for West Fraser.”
West Fraser said this move allows it to grow its footprint in Southern Alberta and expand its Canadian treated wood business, while providing access to a high-quality timber supply.
In West Fraser’s second quarter financial report, the company said it expects 2023 SPF shipments of 2.6 billion to 2.8 billion board feet, and in the U.S. South, SYP shipments guidance of 2.9 billion to 3.1 billion board feet.
