Western Statement on Changes to the Manufactured Forest Products Regulation
TSX: WEF
VANCOUVER, BC, Sept. 16, 2020 /PRNewswire/ - Western Forest Products Inc. (TSX: WEF) ("Western" or the "Company") announced today that the British Columbia provincial government (the "Government") has provided additional information on the implementation of amendments to the Manufactured Forest Products Regulation (the "Regulation"). On January 21, 2020, the Government announced that the Regulation was being amended to include requirements for lumber made from Western Red Cedar and Cypress (yellow cedar) to be fully manufactured to be eligible for export.
The additional information provided by the Government includes the application of a tax on Western Red Cedar and Cypress exported from the Coast of British Columbia within 3,000 miles from British Columbia. The amount of the tax varies depending on the extent of processing applied to the lumber before it is exported.
"We are disappointed the Government has chosen to add additional regulatory burden and costs during a global pandemic to an industry that is already disproportionately impacted by the application of US softwood lumber duties", said Don Demens, President and CEO of Western.
Western is in the process of reviewing the Regulation and the additional information provided by the Government to determine its impact on our business.
About Western Forest Products Inc.
Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets. With operations and employees located primarily on the coast of British Columbia and Washington State, Western is a premier supplier of high-value, specialty forest products to worldwide markets. Western has a lumber capacity in excess of 1.1 billion board feet from eight sawmills and four remanufacturing facilities. The Company sources timber from its private lands, long-term licenses, First Nations arrangements, and market purchases. Western supplements its production through a wholesale program providing customers with a comprehensive range of specialty products.
Forward-Looking Statements
This press release contains statements that may constitute forward-looking statements under the applicable securities laws. Readers are cautioned against placing undue reliance on forward-looking statements. All statements herein, other than statements of historical fact, may be forward-looking statements and can be identified by the use of words such as "will", "may" and similar references to future periods. Forward-looking statements in this press release include, but are not limited to, statements relating to our current intent, belief or expectations with respect to: further regulatory developments; the content of the Regulation and the potential impact of the Regulation on the Company and its business. Although such statements reflect management's current reasonable beliefs, expectations and assumptions as to, amongst other things, the consistency of the regulatory framework within which the Company currently operates and the changes that may occur as a result of the Regulation, there can be no assurance that forward-looking statements are accurate, and actual results and performance may materially vary. Many factors could cause our actual results or performance to be materially different including: economic and financial conditions, international demand for forest products, international trade disputes, development and changes in laws and regulations affecting the forest industry, future developments in the Coronavirus pandemic and other factors referenced under the "Risks and Uncertainties" section of our MD&A in our 2019 Annual Report dated February 11, 2020. The foregoing list is not exhaustive, as other factors could adversely affect our actual results and performance. Forward-looking statements are based only on information currently available to us and refer only as of the date hereof. Except as required by law, we undertake no obligation to update forward-looking statements.
SOURCE Western Forest Products Inc.
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