The Huu-ay-aht First Nation has bought into Western Forest Product’s west coast operations.
The $7.2 million deal gives the First Nation a 7% share of the company’s operations in and around TFL 44.
United Steelworkers Local 1-85 President Norm McLeod believes it’s a good deal for workers
“I think there will be more use of the TFL, we’ll be able to access more fibre, and it will be good for the mills and good for the union,” he said.
McLeod says having local voices in the shareholders group will hopefully benefit west coast workers.
Earlier this year, Western sold their Sarita Bay lands to Huu-ay-aht, and now leases the log sort area back.
WFP President and CEO Don Demens says the deal increases the overall fibre basket on the west coast, and is good news for Port Alberni mills.
“Only about 20% of the logs harvested in the Alberni can actually fit into the mill; we import more logs into Alberni than go out of Alberni,” he said. “This creates a better opportunity and a bigger land base to be able to get the right logs for the facilities.”
Demens said the $7.2 million deal with Huu-ay-aht also gives the company certainty and stability for their mills.
The deal still has to be ratified by Western’s board, and the Huu-ay-aht People’s Assembly.
