Eacom Timber Corporation ETRFF

RE: Check your information

[House7575]

Whitewood, I didnt say the Tembec mills were closed. If you pay attention to the comma's in Maddison's statement it is clearly his statement. My statement, to which Maddison is referring is pasted below. Before telling someone to check their information, do the same. That said, we are all in agreement that the Tembec assets were a good deal for CFP.


Its simple. CFP picked up Tembec assets because it provided an opportunity to diversify their fibre basket at a very attractive rate from both a $/M3 and $/MFBM. They picked up ~1 million M3 of AAC outside of Moutain Pine Beetle territory'. As for Tackama, this was a panel mill near the BC/Yukon border. Aside from the fact that the mill is in the middle of nowhere and CFP was at a cost disadvantage for hauling, there is no money to be made in panels for the foreseeable future. Canfor is ultimately moving to a pure 'lumber' play. As for Rustad, CFP has several other mills in the area that they are spending $ on. Rustad is near the heart of the MPB devestation and was going to require significant upgrades to allow it to properly deal with the deteriorating MPB wood. Sooner than later, more mills will close in the BC interior, simply because of decreases in AAC due to the MPB. Decreasing Supply and Increasing demand from both Asia and the US will drive up Western SPF lumber in the future. CFP is looking forward, focusing on its cores locations and diversifying in a manner that will allow them to take advantage of the next market upturn - which wont happen until sometime after 2012/2013.