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Western Forest Products Inc T.WEF

Alternate Symbol(s):  WFSTF

Western Forest Products Inc. is a Canada-based integrated forest products company building a margin-focused log and lumber business to compete in global softwood markets. The Company’s primary business is the sale of lumber and logs, which includes timber harvesting, sawmilling logs into specialty lumber, value-added lumber and glulam remanufacturing, and wholesaling purchased lumber. It has a lumber capacity of approximately 885 million board feet from six sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities. The Company's product categories include outdoor living, exterior appearance, LIFESTYLE CEDAR, interior living, structural, industrial and WFP engineered products. Its outdoor living products include decking, timbers and fencing products. Its LIFESTYLE CEDAR products include LIFESTYLE CEDAR Decking and LIFESTYLE CEDAR Fencing. Its WFP Engineered Products include curved and arched glulams, straight glulams, and fabricated trusses.


TSX:WEF - Post by User

Bullboard Posts
Post by ACESoveron Feb 28, 2015 12:44am
328 Views
Post# 23475074

Here's the facts

Here's the factsDuke Point ended 4th quarter on one shift basis after runnning sporadically for last 3-5 years (ie one shift every few weeks max). Same mill now on 2 shifts both planer side and sawmill. Sawmill expecting to boot up 2nd headrig and similar plans as Saltair (ie $40- $50 million upgrade) and this mill will; be a "custom cut" mill where the $1000 bf lumber is fetched. WFP has finally wised up and why contract out to independents such as  Mainland S/M, S &R SM's etc when you can do it yourself.

Cow Bay, recent record daily production, over 5000 logs a day throught the quad which equates to over 500,000+ bfd. These guys sell low grade for matting rigs to oil patch. Good profit margins and contracts are already in place so immediate effect of lower oil prices is not effecting production. They also produce a lot of building grade fir and  get top buck.

Ladysmith, had a few weeks shutdown in December but back running one shift. This was Doman's "flagship mill" and is currently seeking employees to fill positions that were contracted out. A few years back this mill was pegged for permanent shutdown but they haven't let it die so what does that tell you. Herb Doman would be rolling in his grave if they ever gave up on this one.

Nanaimo S/M was done on December 5th. The mill was eventually going to get sqeezed out by the Nanaimo Harbours board. Like a lot of Vancouver/Fraser River mills condos and townhomes are the future. I hear the property was leased. It was a big log mill and Duke Point takes up the slack. This mill was the old Mayo Lumber and had it's time. Management made the call.

Saltair, I understand the final tie ins from the upgrades to the old mill will take place in early March. About $50 million in upgrades started in July '13  and what I hear is the numbers have not reached what they expected. A few heads have rolled on this one and I expect  better production numbers down the road.

Somass, "the cedar leader" has been on a one shift basis for years.  I don't see anything changing.

APD, running 2 shifts and puts out some big numbers. I see a lot of Jap squares so I presume this is a big market for this mill.

Chemainus S/M, as far as I know this old Weyerhaeuser runs 3 shifts and and has for years. Again a lot of high grade fir products fetching top dollar.

In summary, I feel WFP is on tract with a unique market separate from the West Fraser and Canfor interior stud mills. The poster who stated these guys are heading for bankruptcy is fear mongering, actually dilusional but what do you expect from day traders who's time horizon is a few days or maybe a few weeks. My own gut feeling is WFP is a potential takeover target.WFP is big but not really big. Maybe a nice fit for Interfor who I hear wants to double in size every five years. Seems like low $2's is a safe bet.

ACE$.
Bullboard Posts