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PRINCE ALBERT MILL CEASES OPERATION; SALES PROCESS STILL UNDERWAY

Released on April 13, 2006

Although Weyerhaeuser's Prince Albert pulp mill officially closes its doors today, the process to find a new owner for the facility is continuing.

"It's been a very difficult time and my thoughts are with the employees and their families today," Minister responsible for the Forestry Secretariat Eldon Lautermilch said. "I want them to know that we are working very, very hard, doing everything possible to help bring the sales process to a positive conclusion."

The sales process has been underway since the October 4th, 2005 announcement of the company's intention to sell or close the Prince Albert facility. That same day, the Premier struck a Task Force - with representation from First Nations, business, human services, unions and the City of Prince Albert - to explore all options for ensuring the viability of the forest industry in Prince Albert. The government has also been working actively, through the Saskatchewan Forestry Secretariat, to attract new forest industries to the province, including a buyer for the pulp mill.

"There are many steps that potential buyers have to go through in order to conclude a sale of this magnitude," Lautermilch said. "As owner of the asset, Weyerhaeuser controls the timing of the sales process, and it's still underway. We will continue to do work with Weyerhaeuser and prospective buyers to assist in moving the process forward."

Lautermilch is encouraged by progress to date, and is optimistic that the province's positive attributes, including a skilled workforce, abundant forest resources, and corporate tax changes in the recent provincial budget, will help attract a buyer.

"We have a first-class work force, a first-class facility and a first-class forest resource in Saskatchewan and all these things will help us in the future," Lautermilch said.

The pulp mill, built in 1966, has been owned by Weyerhaeuser since 1986. The paper mill, built in 1988, closed in early January this year. The Weyerhaeuser pulp and paper complex employed 690 people.

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For More Information, Contact:

Lee Schultz
Minister's Office
Regina
Phone: (306) 787-9126

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