“After a long process of examining all of our options for more than a year -- including an extended search for a buyer of the Kamloops sawmill -- we are announcing today the sale of our timber harvesting licences to West Fraser Timber Co. Ltd., and the closure of our Kamloops sawmill,” said Bob Taylor, general manager of Weyerhaeuser’s BC operations.

West Fraser has informed Weyerhaeuser it will assign its right to purchase Forest Licence A18694 to International Forest Products Limited.

“We understand that the wood supply currently associated with the Kamloops sawmill will be directed to sawmills in Adams Lake and the south Cariboo where future fibre supply is questionable as a result of the mountain pine beetle infestation,” said Taylor.

“The decision to close the sawmill was accelerated as a result of continuing challenging markets in the US and the rising Canadian dollar,” said Taylor. “Today’s announcement is not a reflection on the hard work of our employees, whose dedicated service has been a cornerstone of this operation. Unfortunately, the factors forcing this closure are beyond their control.” The sawmill closure will be effective May 12, 2008 and will affect 196 employees.

Taylor said Weyerhaeuser will work with its employees and the community over the next three months to help to ensure everyone will be treated fairly throughout this difficult process.

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