Canfor Corp. has inked a deal to sell its Howe Sound Pulp and Paper Limited Partnership to Paper Excellence B.V.
Netherlands-based Paper Excellence is a subsidiary of Asian-giant Sinarmas, which recently purchased the shuttered Mackenzie pulp mill.
Howe Sound Pulp and Paper operates a pulp and paper facility at Port Mellon, B.C., capable of producing 400,000 tonnes of pulp and 230,000 tonnes of mechanical paper.
The pulp mill employs about 500 people.
Howe Sound Pulp and Paper is owned by Canfor and Oji Paper Co., Ltd. of Japan.
The transaction is subject to customary closing conditions and closing is expected during the third quarter of 2010.
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West Fraser Timber Co. Ltd. has reported earnings after discontinued operations of $63 million on sales of $772 million in the second quarter of 2010.
It's a signficant improvement from the same period last year when the company lost $39 million after taking into account discontinued operations.
"Although the improved results were driven largely by higher prices for all products, we
benefited from higher production and shipments by our lumber division, as well as from our
continued focus on cost control across the Company," said Hank Ketcham, the company's
chairman, president and CEO.
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Canfor Pulp posted record second-quarter earnings of $43.1 million on sales of $247.6 million.
The company operates three pulp mills in Prince George employing about 1,100 people.
