West Fraser Timber, which has extensive operations in northern B.C., announced it is nearly doubling a planned capital spending plan in 2011 to $230 million.
The Vancouver-based company is the second major B.C. lumber producer to announce a big increase in capital spending. Canfor Corp. made a similar announcement last week.
West Fraser's board of directors had approved a $125-million spending plan in September, but that was increased Monday.
The bulk of the money will be spent on the company's solid wood operations.
West Fraser has sawmills in Smithers, Houston, Chetwynd, Quesnel and Williams Lake. The company also has plywood plants in Quesnel and Williams Lake, and a medium density fibreboard plant in Quesnel.
"Although our industry is still in a fairly fragile state, we believe that this is the time to focus on improving our current operations," West Fraser president, CEO and chairman Hank Ketcham said in a statement.
West Fraser also has sawmills operations in Alberta and the U.S. South.
