Volume 3, Issue 1 January, 2005

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President's Memo
Employers' Advisors Offers Courses on WCB
BC Poised to Benefit from Resource Sector Upswing
Wood Solutions Fair
Southern Interior Forest Education News
Wood Works! Hosts Awards Gala in Vancouver March 7th
West Fraser Completes Purchase of Weldwood of Canada
Canfor Sells Fort St. James Sawmill to Pope & Talbot
Revelstoke Named 2005 Forest Capital of B.C.
Softwood Lumber Trade Update
Dream Home China Grand Opening January 25th

COFI Board Meetings
February 9 Vancouver

Annual Convention
April 14-15, 2005,
Prince George



COFI Staff Changes

Dawn Howat has left COFI and Tamara Byrnes-Ma has been hired to replace her. We wish Dawn success in her future endeavours and welcome Tamara to her new job as Office Assistant.



Those readers familiar with the B.C. forest industry will know that we are immersed in a period of rapid structural change that is massive and largely unpredictable.

Internally, we have seen significant consolidation with more to come. Externally, our cash deposits in the softwood litigation have increased to where B.C. companies have seen U.S. $2 billion stripped from their bottom lines. The appreciation of the Canadian dollar has added significantly to that burden. While the U.S. market has remained strong beyond forecasts of a year ago, traditional coastal markets have not been as rewarding. Therefore it is even more important for us to work closely with our provincial government in fine tuning the execution of the Forest Revitalization Plan (FRP). While the plan embarked on a course of introducing market based reforms, we must also remember that market forces will always prevail.

From a policy perspective, the old days of a cookie-cutter, one size fits all, policy approach is gone. We have a diverse and complex industry that needs implementation of a flexible, adaptive policy environment that allows the forest sector to adapt quickly to changing circumstances, like market and currency fluctuations, that are largely beyond our control.

The FRP framework allows for this to happen. Government and industry now need to deliver its promise on the ground.



John Allan



The Employers' Advisors Office offers free educational seminars for employers on the workers compensation system. Seminars are held regularly in their Abbotsford, Kelowna, Prince George, Richmond and Victoria offices as well as other locations in the province. Subject areas covered include: claims management, claims appeal process, disability management for WCB claims, OH & S legislative and regulatory requirements and many others. For more information about seminar dates and locations go to the Employers' Advisors web page: www.labour.gov.bc.ca/eao

The third annual Northern Natural Resources Forum took place in Prince George on January 12th and 13th. Premier Gordon Campbell told delegates that BC has the resources that China and India, the two fastest growing economies, need. BC is well situated to fill this need, with the Port of Prince Rupert being closer to Asia than any other North American port.

Economic commentator Michael Campbell expressed the view that natural resource sectors are at the beginning of a long-term cyclical boom which will last for perhaps twenty years.

Also attending were Minister of Forests Michael de Jong, Minister of State for Forestry Roger Harris, Minister of Health Shirley Bond, and Canfor's Vice President of Forestry and Environment, Ken Higginbotham. The forum was hosted by Minister of State for Mining, Pat Bell. COFI participated in an "interactive" section of the trade show aimed at potential entrepreneurs. Staffing of the COFI booth was assisted by Keith Fowler and Mark Feldinger of Canfor, Rosaline Ferre of Brink Forest Products Ltd. and Blair Mayes of Dunkley Lumber Ltd.

For more information please contact Steve Kozuki at (250) 564-5136 or by e-mail: kozuki@cofi.org

Wood Solutions Fair

Bayshore Westin Resort and Marina, Vancouver BC

A one-day educational event on wood products and construction, Wood Solutions Fair focuses on wood products and their use in construction. Suppliers and technical experts are on hand to answer your questions about wood. You will be able to apply "on the job" what you've learned from the seminars and the information you will take with you.


Who should attend:

The Wood Solutions Fair is for decision makers in the construction industry. This event is intended for the professionals who need to know what wood products are available and how they can be used:


- Architects
- Engineers - Structural and Civil
- Builders
- Building Designers
- Building Officials
- Construction Technologists
- Specifiers
- Students
- Professors


What you will see:

The Wood Solutions Fair is for decision makers in the construction industry. This event is intended for the professionals who need to know what wood products are available and how they can be used:

Informative seminars solely dedicated to wood products.
Technical information from suppliers, manufacturers, wood engineering consultants and industry associations
The full range of structural wood products and finishing wood products
Exhibits totally devoted to wood products
Consultation with wood industry experts

For more information and to register go to the Canadian Wood Council website: www.cwc.ca



The Southern Interior forest education team has seen some changes in the past few months with the retirement in October of Jeannie Steele, Educational Liaison for Riverside Forest Products and the hiring of Jennifer Stewart as her replacement. This fall, new zone educators in the Cariboo and the East Kootenay, Gail Wallin, Maureen LeBourdais and Norma Blissett, have brought forest education van tours and Pro Day workshops to their regions and are busy working on additional projects for the New Year. The Thompson zone has hired Susan Bondar as their educator, while the West Kootenay has brought on Nancie Dohan, both of whom will be starting their new positions early in January, bringing to six the total number of forest educators in the southern interior. With a hard-working and dedicated team such as this delivering forest education, career information and the wood culture message to teachers and students, it can only have far-reaching and positive results for the industry!

One of the first forest education events of the school year was to hold an educators' workshop in early October, co-hosted by Deb Sluggett and Jeannie Steele along with COFI south forest education coordinator, Debbie Bazett. Newly-hired forest educators and potential applicants heard about the successful program that Deb Sluggett and Jeannie have developed in the Okanagan and left with many ideas and resources for their programs.

Okanagan educators, Deb Sluggett, Jen Stewart and Deb Bazett held a Forest Health Pro Day for teachers on October 22 that brought educators from several school districts together in Vernon and Revelstoke to take part in field trips and seminars. Vernon field trip participants heard presentations on mountain pine beetle, disease and fire, as well as succession and stand measurement and had a chance to observe logging equipment at work, which was a trip highlight. In Revelstoke, participants learned about aspects of forest health such as beetles and disease, as well as caribou habitat. They finished off the day with a tour of the Downie Mill.

November saw Deb Sluggett, Jen Stewart and Debbie Bazett, heading to Vancouver to make a presentation at the provincial Career Educators' Conference on "Growing Jobs in the Forest Sector". Emphasizing the diversity within the industry and the job opportunities and demands for skilled workers in coming years, this workshop was well-received by those who attended. Handouts developed for the career presentation will be sent to counselors to supply students with information on post-secondary programs and career opportunities.

Selkirk recruiter for the School of Renewable Resources, Pete Schroder, visited several Okanagan secondary schools in December to share information about Selkirk's programs with interested students. Further recruitment tours for the interior will be held in the spring, as well as a career fair for students at the ILA's April convention and trade show.

For more information on some of the forest education projects and activities in the southern interior, check out the Learn Forestry website: www.learnforestry.com
or contact Deb Bazett by e-mail bazette@cofi.org
or by phone: (250) 866-9663.


Logging equipment demonstration, Forest Health Pro Day

Educators' Workshop Participants

Wood WORKS! is an initiative of the Canadian Wood Council to promote the use of wood and wood products in construction projects, and to acknowledge the contribution of wood-use advocates and industry leaders. The Wood WORKS! annual Awards Gala is being established in British Columbia to honour excellence in wood-based construction projects, and to recognize the people and organizations that are pioneering and preserving the use of wood in British Columbia. The Wood WORKS! Awards Gala brings together people from all sectors to honour leadership and innovation in wood use. The Gala also serves as an excellent opportunity to publicly recognize and encourage continued excellence in the building and design community, and in the forest industry. This high profile annual event will showcase the use of wood in design and construction projects commissioned after January 2002, providing politicians, senior dignitaries, architects, engineers and project owners with an opportunity to showcase their projects.

Nominations Close February 1, 2005

Interested parties are encouraged to consider the different award categories and to submit nominations on behalf of those whose efforts and accomplishments merit recognition. The first BC Wood WORKS! Awards Gala will be held on Monday, March 7, 2005 at the Four Seasons Hotel in Vancouver. Please note that the Wood WORKS! Awards program encourages self-nominations and multiple submissions. The successful projects will be judged by a panel of professionals, and winners will be notified prior to the Gala event.

For more information go to the CWC Website: www.cwc.ca

West Fraser has completed its $1.26-billion purchase of Weldwood of Canada Ltd. Weldwood was amalgamated with West Fraser's principal operating subsidiary, West Fraser Mills Ltd., effective January 1, 2005. The amalgamated company will continue as West Fraser Mills Ltd.

The consent agreement with Federal Competition Bureau does not change West Fraser's status as the third-largest lumber producer in North America, but it requires the merged company to sell its stake in two British Columbia sawmills and related harvesting rights.

They include interests in Babine Forest Products Ltd. at Burns Lake, and nearby Babine Timber Ltd. in northwestern British Columbia. The two mills have the capacity to produce 300 million board feet of lumber annually and are operated as a joint venture with the Burns Lake Native Development Corp.

West Fraser has also agreed to surrender, temporarily, 75,000 cubic metres of annual cutting rights near Williams Lake in central B.C. over the next 10 years.

West Fraser is an integrated forest products company that produces lumber, laminated veneer lumber, MDF, plywood, pulp, linerboard, kraft paper and newsprint. West Fraser has manufacturing operations in British Columbia, Alberta and the southern United States. West Fraser is headquartered in Vancouver, British Columbia. With the completion of the Weldwood acquisition, West Fraser has approximately 7,500 employees.

For more information go to West Fraser 's website: www.westfrasertimber.ca

Canfor has entered into an agreement with Pope & Talbot for the sale of its Fort St. James Sawmill Division in BC. The transaction, worth $39 million plus the value of inventory, will include the transfer of related harvesting rights of approximately 640,000 cubic metres to Pope & Talbot.

Canfor's sale of the sawmill came as a result of a consent agreement between the company and the Commissioner of the Competition in relation to its acquisition of Slocan. "The Fort St. James Sawmill was not an asset that Canfor wanted to divest itself of but was required to by the Competition Bureau as a condition of approval for the acquisition of Slocan," explained Jim Shepherd, President and CEO of Canfor.

"The acquisition of the Fort St. James mill is a great strategic fit for Pope & Talbot. The mill's production is complementary to Pope & Talbot's existing lumber mills, its geographical location in the northern interior of B.C. diversifies the company's resource base, and the associated timber tenures significantly increases our timber base." said Michael Flannery, Pope & Talbot Chairman and CEO.

The deal is expected to close on March 1st, 2005.

For more information go to the Canfor website: www.canfor.com and the Pope & Talbot website: www.poptal.com

Revelstoke Named 2005 Forest Capital of B.C.

The City of Revelstoke is the 2005 Forest Capital of British Columbia. As the 2005 Forest Capital, Revelstoke will be helping to create a greater understanding of the history and importance of this province's vast forests. The Forest Capital events were kicked off with an opening ceremony on January 10, 2005.

Forests play a part in every community in B.C., whether large or small. Communities awarded this title have used the opportunity to demonstrate the economic, cultural, natural and historic contributions of forests to community life.

The Forest Capital of B.C. program was originally hosted by the B.C. Forestry Association. In 2003, the Association of BC Forest Professionals took on the program and is responsible for reviewing applications and selecting a forest capital that best represents all forest-dependent communities in the province.

For more information see the ABCFP website: www.rpf-bc.org
Or the City of Revelstoke website: www.cityofrevelstoke.com




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



1. International Trade Commission

The U.S. has yet to name its panelist on the ECC and as a result a decision is not expected until later this summer.

The November 24, 2004 ITC affirmative threat finding will be brought before the Court of International Trade (CIT) by the Government of Canada and the Canadian Lumber Trade Alliance.

2. AD/CVD Duties

The December 14, 2004 DOC rate decision will be appealed to NAFTA [subsidy] and CIT [dumping].

Readers are reminded that this section of the newsletter is designed to give a brief snapshot of what are very complex issues.

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


The spacious interior features extensive wood paneling and an open staircase.

SHANGHAI-The hand-carved Douglas Fir front door is installed. The last pieces of coastal Red Cedar are being nailed to the exterior. Shanghai building inspectors are making their final rounds. The Dream Home China pavilion-centrepiece of a demonstration community to promote BC forest products in China's ready for business!

In less than two weeks, BC Forests Minister Michael de Jong officially opens the new facility on January 25th and launches the next phase in BC's aggressive five-year strategy to open up the Chinese market to BC wood products.

Along with executives from BC forestry companies, Minister de Jong's message will be simple and clear -BC is China's best choice for wood products and wood-frame construction is an attractive, cost-effective and energy-efficient solution to China's housing needs. Hundreds of Chinese developers, builders and government officials are expected to attend the grand opening to learn more about BC's forest sector and see firsthand the many benefits of building with wood.

Workers install the final pieces of exterior Red Cedar siding.

The Dream Home China pavilion features a large exhibit area, seminar rooms and meeting facilities for BC forest associations and companies operating in China.

Story and photos courtesy of Forestry Innovation Investment Ltd. For more information see: www.dreamhomechina.com






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