Conifex to acquire Domtar's wood operations

Wood & Wood Products, Sept, 2007

MONTREAL -- Conifex Inc., a newly-formed forestry and sawmilling company, announced it is acquiring Domtar's Forest Products Division, including sawmills and timber rights in Quebec and Ontario.

"Our goal is to become the Leader in forestry and sawmilling in Eastern Canada and the business we are acquiring provides us with a solid foundation to build upon," said Ken Shields, chair of the board of directors of Conifex.

The transaction, which is expected to close before the end of the year, is subject to government approvals for the transfer of forest licenses, regulatory approvals and customary dosing conditions.

Conifex is acquiring the Ear Falls, Nairn Centre and White River sawmills in Ontario and the Grand-Remous, Lebel-sur-Quevillon, Malartic, Matagami, Ste-Marie and Val-d'Or sawmills in Quebec. Also included is Domtar's interests in the joint ventures of Elk Lake Planing Mill Ltd., Gogama Forest Products Inc., Nabakatuk Forest Products Inc., Olav Haavalsrud Timber Co. Ltd. and Anthony-Domtar Inc. The sawmills have approximately 4.8 million cubic meters of annual harvesting rights and a production capacity of approximately 1.1 billion board feet.