West Fraser Timber Co. (TSX,NYSE:WFG) is planning to add another Alberta sawmill to its suite of Canadian assets.
West Fraser already owns half a dozen lumber and plywood mills in Alberta. The company says it has entered into an agreement to buy another one – Spray Lake Sawmills in Cochrane – for $140 million.
Spray Lake Sawmills produces treated wood products, dimensional lumber and a wood residuals and biproducts, the company says. It has an annual lumber capacity of 155 million board feet and holds two forest management agreements with the Government of Alberta with a total annual allowable cut of approximately 500,000 cubic metres.
“We are excited to welcome Spray Lake Sawmills to the West Fraser family,” West Fraser CEO Ray Ferris said in a press release. “Spray Lake Sawmills has an experienced, dedicated group of employees who we will look to further the legacy of this proud mill. With its solid safety performance, and focus on sustainability and community, the mill is an ideal fit for West Fraser.”