Vancouver, British Columbia, Canada 08 July 2008 -- International Forest Products Limited (Interfor) (TSX: IFP.A) announced today that it will permanently close its Queensboro Sawmill Division, located in New Westminster, British Columbia, following more than one year of continuous curtailment.
During the curtailment period, 95 of the mill’s 110 employees accepted the company’s offer of voluntary severance. The mill’s remaining employees will receive severance following the effective date of the closure.
Interfor will take a provision of CAD 21 million after-tax or CAD 0.44 per share in its 2nd quarter accounts to adjust the carrying value of plant and equipment at the site and to account for the balance of severance owing to the mill’s remaining employees. The equipment at Queensboro will be redeployed to other Interfor sites or sold.
Cushman & Wakefield LePage has been retained to market the site, with a goal of completing the sale prior to the end of the year.
The sale is expected to generate proceeds that will more than offset the provision taken in the 2nd quarter.
Interfor is one of the Pacific Northwest’s largest producers of quality wood products. The company has operations in British Columbia, Washington, and Oregon, including two sawmills in the Coastal region of British Columbia, three in the Interior of British Columbia, one in Washington, and two in Oregon. For more information about Interfor, visit www.interfor.com