Volume 2, Issue 10 November, 2004

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President's Memo
COFI Convention 2005: Securing the Future - 2010 and Beyond
New B.C. Chief Forester to be Based in Prince George
Tolko Buys Riverside
COFI Staff Changes
Managing Wildlife in BC's Interior Forests - COFI and WLAP Join Forces to Engage Professional Biologists
Tembec to Modernize Elko Sawmill
Fort St. John Holds Forestry Appreciation Day
Bulkley Valley - Lakes District Community Dinner
BC Forest Safety Council Officially Launched
Weldwood Quesnel Division Wins Safety Award
Softwood Lumber Trade Update
New Forest Education Program Inspires Students to Look at Forest Industry Careers

Next COFI Board Meeting:
December 7, Vancouver



Upcoming COFI Events

COFI Board Meeting
December 7, Vancouver

Community Dinner
November 25, Kamloops

Annual Convention
April 14-15, 2005, Prince George




As we approach year end our budget and business plan preparations are well underway. Recognizing that the industry is under constant pressure to reduce costs and be competitive it is incumbent on COFI to keep pace. With a cooling of lumber markets and a rapid appreciation of the Canadian dollar coming on top of C$3.8 billion in unfairly collected cash deposits, the industry needs to search for ways to compete - hence mergers and acquisitions activity has increased.

For our part we will be adapting the way we do business to keep up and even stay ahead of members' needs. Our core activities will focus on:

  • Market access
  • Developing new markets
  • Forest policy
  • Timber pricing
  • Environment
  • Worker safety

Most of all we will continue to promote the need for an ongoing positive business climate as British Columbia's most important industry turns the corner toward 2005.



John Allan



The Council of Forest Industries is pleased to announce it will resume holding BC's premiere forest products convention April 14-15 next year in Prince George, BC.

In 2003 the Council of Forest Industries (COFI) amalgamated with the former interior regional lumber manufacturing associations (CLMA, ILMA, and NFPA) to form the new COFI. Picking up the tradition, COFI will resume holding an annual convention modeled on those of the former NFPA, ILMA & CLMA. The convention will alternate between Prince George and Kelowna beginning with Prince George in 2005.

For 2005 convention and accommodation information visit our website: www.cofi.org


Jim Snetsinger is B.C.'s new Chief Forester, and the first to be based at the University of Northern British Columbia, Forests Minister Michael de Jong announced on November 2.

"By basing the Chief Forester position in Prince George, government is recognizing Prince George's role as a forestry capital," said de Jong.

Snetsinger assumed his new role on November 8. He replaces Larry Pedersen who, after 10 years as chief forester, became the assistant deputy minister of B.C. Timber Sales in September.

For more information see the Ministry of Forests website: www.gov.bc.ca/for

Tolko Buys Riverside

Tolko Industries Ltd. emerged as the successful buyer of Riverside Forest Products after increasing its all cash offer to $40.00 per share from $29.00 per share. In addition to increasing its offer price, Tolko entered into lock-up agreements with Van Berkom and Associates and Tembec Inc., under which each agreed to tender their shares to Tolko's all cash offer. Previously, International Forest Products had made a $39.00 cash and shares bid on Riverside to top the original $29.00 Tolko bid.

On October 22, in response to the Tolko offer, and to Riverside's Special Committee having determined that Tolko's offer was superior to Interfor's initial offer, Riverside and Interfor had terminated their agreement for Interfor to acquire all of Riverside's common shares.

As of November 9, Tolko owned over 99% of Riverside's shares.

Tolko, a privately held company owned by the Thorlakson family, has 10 manufacturing divisions in BC, Alberta, Saskatchewan and Manitoba, and employs over 2400 people.

Riverside has close to 3000 employees and contractors throughout the province of BC. Corporate headquarters are in Kelowna and manufacturing divisions are located in Kelowna, Winfield, Armstrong, Lumby, Ashcroft, Williams Lake and Soda Creek.

For more information see the Tolko website: www.tolko.com


COFI and the Ministry of Water, Land and Air Protection (WLAP) have enjoyed a solid and productive working relationship in developing the framework for managing wildlife in BC. This relationship reached a new level of cooperation when WLAP offered COFI financial support to enable us to retain the services of professional biologists to help us with this ongoing work. COFI has now contracted the services of three professional biologists to assist members in developing operational plans that will be consistent with wildlife management needs and objectives in BC's interior forests.

Dennis Hamilton with Nanuq Consulting Limited in Nelson, Greg Ashcroft with G. Ashcroft Consulting in Williams Lake and Scott McNay with Wildlife Infometrics Incorporated in Mackenzie have been retained until March 2005. These three well respected wildlife biologists are a great addition to the COFI team and we look forward to working with them. Their combined work will be a huge assistance to both government and COFI members in managing wildlife, and in particular species at risk, in the interior forests of BC.

Working with WLAP staff and existing staff biologists in member companies, the work of these three biologists will include providing members a better understanding and application of the wildlife management under the Forest and Range Practices Act, the revised Wildlife Act, the revised Land Act and any other applicable provincial legislation. The combined services of all of these professionals will also assist members in understanding the provincial and federal recovery strategy process, the action plan process, and linkages to the federal Species at Risk Act as it relates to provincial activities and laws.

For more information contact Peter Affleck by e-mail: affleck@cofi.org or by phone: 604-891-1212.


COFI Staff Changes

After more than 5 years of service, Kitty Chiu is moving on to new opportunities. Many of you know Kitty as the "face" of COFI at reception. Kitty's last day will be December 10. We wish Kitty well and welcome Dawn Howat who will be assuming Kitty's duties.



Tembec has announced that it will modernize its Elko, British Columbia, sawmill in 2004 and 2005. The project will include the upgrading of both primary saw lines, as well as the secondary processing equipment. The project will require approximately 14 months and create about 25 person-years of employment during construction.



Fort St. John - the "Energetic City" - held its first ever Forestry Appreciation Day, on Saturday, October 23rd, 2004 at the Peace Arena, to thank the forest sector for being an important contributor to the local economy.

The Council of Forest Industries was in attendance with a display booth in support of the event.

Mayor Steve Thorlakson spoke about the new and exciting Slocan-LP Corp's Fort St. John OSB plant being the "largest in the world". Minister of Energy and Mines, Richard Neufeld, and Fort St. John municipal councilor, Karen Simpson, also addressed the crowd. "We'd like to thank COFI and Slocan-LP for being here today" said councilor Simpson.

For more information contact Steve Kozuki, COFI Northern Operations, by e-mail: kozuki@cofi.org or by phone: (250) 564-5136.



West Fraser CEO Hank Ketcham fields questions.


Over 80 community leaders attend the Bulkley Valley - Lakes District dinner.


Burns Lake acting Mayor Susan Schienbein.

COFI's Bulkley Valley - Lakes District community dinner was held in Burns Lake on November 3rd. A core component of COFI's regional community relations programs, the dinners are held annually in various locations throughout the interior. The dinners draw together municipal government, chamber of commerce, service club and business leaders from the region to hear about forest industry issues of the day and to network with senior forest industry representatives.

This year the Bulkley Valley - Lakes District dinner featured West Fraser CEO, Hank Ketcham speaking about the current trend of consolidation in BC's forest industry as a consequence of the need to stay competitive in an increasingly global forest products business environment.

Burns Lake acting Mayor Susan Schienbein welcomed Hank and guests to the Village and noted the value of the dinners for both industry and communities.

Over 80 guests from Kitimat to Vanderhoof received the presentation and then probed Mr. Ketcham's views on a range of topics from the effect of the province's recent forest policy changes to the challenges ahead due to beetles, the ongoing softwood dispute and the increasingly global forest products markets. The lively discussion reflected area residents' keen interest in understanding the external forces being exerted on the resource and on the industry in order that they may take local proactive measures to maintain community and economic stability into the future.

For more information contact: Doug Routledge, Vice President, Northern Operations by email: routledge@cofi.org or by phone: (250) 564-5136



On November 4th, 2004 the creation of the new BC Forest Safety Council (the Council) was announced simultaneously in Prince George and Nanaimo.

The Council's mandate is to work within the forest industry to eliminate fatalities and serious injuries and create an environment of working safely and encouraging improved health and safety programs, performance, and results.

Bringing together the entire forest sector under one organization, the Council will be developing programs and initiatives in four critical areas.

  • Promoting Cultural Change to ensure that safety is treated as an over-riding priority and a shared responsibility throughout the sector.
  • Promoting a Safety Conscious Legal Regime in which the laws, regulations and compliance programs encourage and support safety.
  • Developing a Competent and Confident Workforce where workers are trained and certified and encouraged to work safely.
  • Encourage Qualified Companies where safety programs are encouraged and rewarded.

BC Forest Safety Council Chair, Jim Shepherd

The interim senior officers of the Council are: Chair Jim Shepherd, Chief Executive Officer of Canfor; Vice Chair Keith Playfair, independent contract faller; and Secretary Treasurer Ron Corbeil of the Steelworkers - IWA Council.

John Allan, COFI President, is a Director with Anne Mauch as his alternate. The Council office is located at: #1501- 700 West Pender St. Vancouver, B.C V6C 1G8.

"The BC Forest Safety Council will be a permanent organization, dedicated to implementing and coordinating policies designed to reduce death and injury in the forests," said the Council's Chair Jim Shepherd. "The creation of the Council is our commitment that action will be taken on the Health and Safety Accord, to which all forest industry organizations and the Steelworkers - IWA Council agreed to support," Shepherd added.

At the same time, the implementation of the BC Faller Training Standard and Certification Program was announced jointly with the WCB.

The Certification Program will require mandatory testing and a skills demonstration by experienced fallers. Any experienced faller must be certified by July 31st, 2005; the cost of certification will rise as that date approaches. And beginning in 2005, new fallers will have to undergo a comprehensive training program in order to become certified. Those fallers who have their certifications will also be required to renew their certifications on a regular basis in order to ensure they can continue to operate safely. There are about 4,000 fallers currently operating in BC.

For more information go to:
BC Forest Safety Council
website: www.bcforestsafe.org

BC Faller Certification
website: www.bcfallersafe.org

or contact: Tanner Elton, Executive Director
by e-mail: elton@bcforestsafe.org or by phone: (604) 891-1214


1. International Trade Commission

The Extraordinary Challenge will be filed the week of November 22, 2004 with a completion date of March 2005 at the earliest.

2. AD/CVD Duties

Cash deposits now sit at approximately C$3.8 billion. Final rates for the first Administrative Review period will be published December 13, 2004 and will set a new cash deposit rate going forward.

For more information please see the following websites:

BC Lumber Trade Council:
www.bclumbertrade.com

Government of Canada:
www.dfait-maeci.gc.ca/eicb/softwood/menu-en.asp

Government of BC:
www.for.gov.bc.ca/HET/softwood


Weldwood Quesnel Division Wins Safety Award

The 2004 North American Occupational Safety and Health (NAOSH) Week BC winner for the forest industry category was Weldwood's Quesnel Division. Weldwood representatives, who submitted an entry based on the 2004 theme Safety & Health: A Foundation for Excellence, received the COFI-sponsored award at the annual NAOSHWeek Safety Forum and Awards luncheon in Langley on October 20, 2004.

The goal of NAOSH Week is to focus the attention of employers, employees, the general public and all partners in occupational safety and health on the importance of preventing injury and illness in the workplace. NAOSH Week events and activities are coordinated by local, provincial and regional committees, comprised primarily of volunteers who share a focus and vision of safer workplaces and communities. The 2005 NAOSHWeek (May 1-7) theme is: Equip. Educate. Empower.

To find out more about NAOSHWeek 2005 and how to participate go to: www.naosh.ca




A Publication of the Council of
Forest Industries


Suite 1501-700 West Pender St.
Pender Place I Business Building
Vancouver, B.C. V6C 1G8

Phone: (604) 684-0211
Fax: (604) 687-4930
E-mail: info@cofi.org
Website: www.cofi.org

Editor: Anne Mauch

Desktop Publishing: Anne Ho



For some high school students spending two days visiting sawmills and pulp mills may not seem like a lot of fun, but for Grade 12 student Scott Dowler and 39 other Grade 10 to 12 students from Mackenzie Secondary School in Mackenzie, BC it was an awesome learning experience. Selected from 103 student applicants, Scott and his classmates were the first students in BC to participate in COFI's Northern Operations new forest education career awareness program Project Manufacturing.

Divided into two groups, one focussing on the trades and the other on professional/managerial professions, the students, together with their teachers, were given in-depth first-hand exposure to a variety of careers. While the trades students learn about careers such as saw filer, millwright, electrician, pipe fitter, carpenter, planerman, heavy duty mechanic, parts person, purchaser, quality control, instrument technician, lab technician and steam engineer, the professional/managerial students, including Scott Dowler, learn about careers such as administrative assistant, foresters, biologists, GIS/mapping specialists, human resources, continuous improvement, accounting, engineering, IT and management and supervisory.

This industry/education partnership program brought together professionals and trades people from Abitibi Consolidated Company Ltd., Canfor, Finning, Wildlife Infometrics and the Ministry of Forests in Mackenzie to host the various trades and professional /managerial sessions. The value of this program, like our Project Natural Resource Management, is that these keen students were learning about careers in the forest industry from professionals who truly enjoy their jobs and who want to share their knowledge and experience with the students.

At the end of the program the students came away energized, inspired and with a broader understanding of careers available in the forest industry. And for Scott Dowler who now wants to become an engineer, the program "was an awesome experience and really helps you decide what careers you would be interested in. Everyone should get a chance to experience this!"

For more information contact: Chris Lear by e-mail: lear@cofi.org or by phone: (250) 564-5136.


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