West Fraser Timber Co. Ltd. has entered into an agreement to acquire 13 sawmills from International Paper.

Upon completion of the transaction, West Fraser will be the second largest lumber producer in North America with combined Canadian and U.S. production capacity of approximately 6.2 billion board feet.

WF News Release

News Release (West Fraser Timber Co, Ltd.)

The acquisition marks a significant expansion of West Fraser’s presence in the United States. The 13 mills, which are located in North and South Carolina, Georgia, Florida, Alabama, Arkansas and Texas, employ approximately 2,200 people and have a combined annual production capacity of approximately 1.8 billion board feet of lumber.

West Fraser currently owns two sawmills in the U.S. located in Huttig, Arkansas and Joyce, Louisiana which employ approximately 400 people and have a combined annual production capacity of 420 million board feet.

All of the mills produce lumber from southern yellow pine. Southern yellow pine (SYP) lumber is used extensively in treated wood and strength applications such as treated decks, trusses and joists, while spruce/pine/fir (SPF) lumber, which the Company’s western Canadian sawmills produce, is the preferred species for use in house framing. Currently, 10% of West Fraser’s total lumber production capacity is SYP. Following this transaction that percentage will increase to approximately 36%.

Follow the Web Link below to view the entire news release:

http://www.westfrasertimber.ca/news/docs/West_Fraser_News_Release.pdf