Western Forest Products Inc.

EX-99.1 2 exhibit1.htm EX-99.1 Exhibit EX-99.1


[WFP LOGO]

		WESTERN FOREST PRODUCTS INC. 435 Trunk Road Duncan, British Columbia Canada V9L 2P9 Telephone: 250 748 3711 Facsimile: 250 748 6045

Western Forest Products Inc.

FOR IMMEDIATE RELEASE TSX: WEF

Western Forest Products names Duncan Kerr as Chief Operating Officer

July 28, 2005 – Duncan, British Columbia. Western Forest Products Inc. (“Western” or the “Company”) (TSX: WEF) announced today the appointment of Duncan Kerr to the position of Senior Vice-President and Chief Operating Officer. He is expected to assume his duties with Western in early September, 2005.

Mr. Kerr joins Western from RLG International, an international consulting company. He spent 12 years with RLG, the last 7 years as a senior project manager, advising a number of clients on performance improvement measures in the lumber, logging, pulp and paper, and energy sectors. Prior to that, Mr. Kerr was a mining engineer with Westmin Resources Limited. He has a Bachelor of Engineering from McGill University.

Reynold Hert, President and CEO stated “Duncan brings key strengths in improving business performance with a diverse set of both operational and business improvement experience and skills. Duncan’s BC coastal logging and pulp assignments along with interior sawmill operations and international oil and gas assignments will bring a valuable perspective to our business.”

About Western:

Western is an integrated Canadian forest products company and the second largest coastal woodland operator in British Columbia. Principal activities conducted by Western and its subsidiaries include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, value-added remanufacturing and producing NBSK pulp. Over 95% of Western’s logging is conducted on government owned timberlands in British Columbia. All of Western’s operations, employees and corporate facilities are located in the coastal region of British Columbia and its products are sold in 30 countries worldwide.

For further information contact: Reynold Hert 250 715 2207 Paul Ireland 250 715 2209


[WFP LOGO]

		WESTERN FOREST PRODUCTS INC. 435 Trunk Road Duncan, British Columbia Canada V9L 2P9 Telephone: 250 748 3711 Facsimile: 250 748 6045

Western Forest Products Inc.

FOR IMMEDIATE RELEASE TSX: WEF

Western Forest closes one mill and curtails production at a second to improve operating efficiency

August 4, 2005 – Duncan, British Columbia. Western Forest Products (TSX: WEF) today announced the permanent closure of its Silvertree saw mill in Vancouver and the indefinite curtailment of its Saltair saw mill near Ladysmith on Vancouver Island. Both mills will work their last shifts on Friday, October 28, 2005.

While the Saltair mill’s long term future is being determined, the 125 employees will be interviewed for available positions as third shifts will be added at Western’s mills at Cowichan Bay, Ladysmith, and Duke Point. The total employment at Western’s saw mills on Vancouver Island will remain essentially the same, but in a lower cost operating structure.

Silvertree’s 151 employees will be treated in accordance with the severance provisions of the Coast Master Agreement between the industry and the United Steelworkers, including opportunities for employment at the Vancouver Island mills and other locations in the company. The Silvertree site will be sold for other uses. The saw mill began operating in 1947.

“This is a difficult but necessary decision,” says Reynold Hert, President and Chief Executive Officer. “Over several months we have investigated various options for improving the business. We believe the steps we have taken today are the right ones to begin enhancing our operating efficiency and lower operating costs.”

“We regret the impact this news will have on our employees and their families. We will be working with them to support them through this transition.”

Hert says a recent strategic review pointed to the need for Western to optimize operations at its saw mills to achieve greater efficiencies, productivity and significantly lower costs. As a result of the Silvertree closure and the Saltair curtailment the Company will operate saw mills at Nanaimo, Duke Point, Cowichan Bay, and Ladysmith on Vancouver Island. Annual production under this new mill complement is estimated to be 900 million board feet.”

“The Saltair mill curtailment is indefinite,” says Hert, “and we will maintain the mill while continuing to review options against the market and our wood supply for the saw mill and the planer mill. The kilns at the Saltair mill will continue to operate. ”

As a result of today’s announcement the Company will record an $8.5 million write down in the second quarter for the estimated impairment in the carrying value of the Silvertree sawmill, as well as a further estimated $7.2 million in the third quarter that will relate to restructuring and other costs.

About Western:

Forward Looking Statement

This press release contains statements that are forward-looking in nature. Those statements appear in a number of places herein and include statements regarding the intent, belief or current expectations of Western, primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and future operating performance of Western. Such statements may be indicated by words such as “estimate”, “expect”, “anticipate”, “plan”, “intend”, “believe”, “will”, “should”, “may” and similar words and phrases. Readers are cautioned that any such forward-looking statements are not guarantees and may involve known and unknown risks and uncertainties, and that actual results may differ from those expressed or implied in the forward-looking statements as a result of various factors, including general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, changes in government regulation, fluctuations in demand and supply for Western’s products, industry production levels, the ability of Western to execute its business plan and misjudgements in the course of preparing forward-looking statements. The information contained under the “Risk Factors” section of Western’s Annual Information Form and under the “Risk Factors” section of Western’s Form 20-F/A identifies important factors that could cause such differences. All written and oral forward-looking statements attributable to Western or persons acting on behalf of Western are expressly qualified in their entirety by the foregoing cautionary statements. Western does not expect to update forward-looking statements as conditions change.


*For further information contact:*	*Reynold Hert*	*250 715 2207*	*Paul Ireland*	*250 715 2209*

*Media Contact:*	*Gary Ley*	*604 787 5467*

WESTERN FOREST PRODUCTS INC.
FORM 51-102F3
MATERIAL CHANGE REPORT

Item 1. Name and Address of Company

Western Forest Products Inc. (“Western” or the “Company”)
3rd Floor, 435 Trunk Road
Duncan, British Columbia
V9L 2P9

Item 2. Date of Material Change

August 4, 2005

Item 3. News Release

The news release was disseminated in Vancouver via Canada Corporate News on August 4, 2005.

Item 4. Summary of Material Change

Western announced on August 4, 2005 the permanent closure of its Silvertree sawmill in Vancouver and the indefinite curtailment of its Saltair sawmill near Ladysmith on Vancouver Island.

Item 5. Full Description of Material Change

Western announced the permanent closure of its Silvertree sawmill in Vancouver and the indefinite curtailment of its Saltair sawmill near Ladysmith on Vancouver Island. Both mills will work their last shifts on Friday, October 28, 2005.

While the Saltair mill’s long term future is being determined, the 125 employees will be interviewed for available positions as third shifts will be added at Western’s mills at Cowichan Bay, Ladysmith, and Duke Point. The total employment at Western’s sawmills on Vancouver Island will remain essentially the same, but in a lower cost operating structure.

Silvertree’s 151 employees will be treated in accordance with the severance provisions of the Coast Master Agreement between the industry and the United Steelworkers, including opportunities for employment at the Vancouver Island mills and other locations in the Company. The Silvertree site will be sold for other uses. The sawmill began operating in 1947.

The Company has been investigating various options for improving the business. This decision although difficult was necessary for the Company to improve its operating efficiency and lower its operating costs.

The Company will work with the employees and their families to support them through the transition.

A recent strategic review pointed to the need for Western to optimize operations at its sawmills to achieve greater efficiencies, productivity and significantly lower costs. As a result of the Silvertree closure and the Saltair curtailment the Company will operate sawmills at Nanaimo, Duke Point, Cowichan Bay, and Ladysmith on Vancouver Island. Annual production under this new mill complement is estimated to be 900 million board feet.
The Saltair mill curtailment is indefinite and the mill will be maintained while the Company continues to review options against the market and its wood supply for the sawmill and the planer mill. The kilns at the Saltair mill will continue to operate.

As a result of this announcement the Company will record an $8.5 million write down in the second quarter for the estimated impairment in the carrying value of the Silvertree sawmill, as well as a further estimated $7.2 million in the third quarter that will relate to restructuring and other costs.

Forward Looking Statement

This report contains statements that are forward-looking in nature. Those statements appear in a number of places herein and include statements regarding the intent, belief or current expectations of Western, primarily with respect to market and general economic conditions, future costs, expenditures, available harvest levels and future operating performance of Western. Such statements may be indicated by words such as “estimate”, “expect”, “anticipate”, “plan”, “intend”, “believe”, “will”, “should”, “may” and similar words and phrases. Readers are cautioned that any such forward-looking statements are not guarantees and may involve known and unknown risks and uncertainties, and that actual results may differ from those expressed or implied in the forward-looking statements as a result of various factors, including general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, changes in government regulation, fluctuations in demand and supply for Western’s products, industry production levels, the ability of Western to execute its business plan and misjudgements in the course of preparing forward-looking statements. The information contained under the “Risk Factors” section of Western’s Annual Information Form and under the “Risk Factors” section of Western’s Form 20-F/A identifies important factors that could cause such differences. All written and oral forward-looking statements attributable to Western or persons acting on behalf of Western are expressly qualified in their entirety by the foregoing cautionary statements. Western does not expect to update forward-looking statements as conditions change.

Item 6. Reliance on 7.1(2) or (3) of National Instrument 51-102

Not applicable.

Item 7. Omitted Information

Not applicable.

Item 8. Executive Officer

The following executive officer of Western is knowledgeable about the material change and may be contacted respecting the change:

Paul Ireland,
Chief Financial Officer
250-715-2209

Item 9. Date of Report

August 12, 2005.

WESTERN FOREST PRODUCTS INC

By: “Paul Ireland”
Name: Paul Ireland
Title: Chief Financial Officer

Western Forest Products Inc. ———————————————————————————————————
(Translation of registrant’s name into English)

Canada ———————————————————————————————————
(Jurisdiction of incorporation or organization)

3rd Floor, 435 Trunk Road, Duncan, British Columbia V9L 2P9
——————————————————————————————————— (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: [x] Form 20-F [ ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: [ ] Yes [x] No

Exhibit No.		Description

99.1		July 28 news release
99.2		Aug. 4 news release
99.3		Aug 12 Material Change Report

		Western Forest Products Inc.

Date: August 12, 2005	By:	Paul Ireland
	Name:	Paul Ireland
	Title:	Chief Financial Officer