Tausi Insider

Paper Excellence Group, a private company controlled by an Indonesian billionaire, is poised to expand in Canada’s forestry industry by diversifying into the lumber sector with its contentious takeover of Resolute Forest Products RFP-T Inc. Richmond, B.C.-based Paper Excellence has focused in the past on pulp and paper, but the real prize is Montreal-based Resolute’s lumber assets. Wood products such as softwood lumber accounted for nearly 45 per cent of Resolute’s revenue from Canadian and U.S. operations in the first nine months of 2022. Canada’s Competition Bureau said last week that it approved the proposed acquisition of Resolute, subject to conditions, specifically that Paper Excellence’s wholly owned Domtar Corp. division sell its pulp mill in Dryden, Ont., and divest Resolute’s pulp and paper mill in Thunder Bay. Paper Excellence said this week that it is fully committed to its US$1.6-billion bid for Resolute, undaunted by slumping lumber markets and undeterred by lingering c...

West Fraser faces having to pay a new duty rate of 9.38 per cent, compared with its current tariff of 8.25 per cent. Canfor will see its tariff climb to 7.29 per cent for Canadian softwood sold in the United States, compared with the current 5.87 per cent. JONATHAN HAYWARD/The Canadian Press The U.S. Department of Commerce plans to raise tariffs for Canada’s two largest lumber companies, while lowering duties on most other Canadian producers. Based on the Commerce Department’s preliminary assessment, the combined countervailing and anti-dumping duties will rise for West Fraser Timber Co. Ltd. and Canfor Corp. CFP-T, both based in Vancouver. West Fraser, Canada’s largest lumber producer, faces having to pay a new duty rate of 9.38 per cent, likely taking effect by August or September, compared with its current tariff of 8.25 per cent. Canfor will see its tariff climb to 7.29 per cent for Canadian softwood sold in the United States, compared with the current 5.87 per cent. “With these ...

Workers inspect lumber at West Fraser Pacific Inland Resources sawmill in Smithers, B.C., in February, 2020. JESSE WINTER/Reuters Canadian softwood producers are positioned to reap large refunds after paying deposits totalling US$6.1-billion in U.S. lumber tariffs over the past six years. The U.S. Department of Commerce decided this week to maintain the policy of imposing tariffs on Canadian lumber shipments south of the border. Duty rates are set to rise this summer for Canada’s two largest lumber companies, while most other Canadian producers will see a modest decline in their tariffs. After adding interest to duties already held by the U.S. government, the accumulated tariffs paid by Canadian producers since 2017 are now valued at US$6.5-billion, according to a study by CIBC Capital Markets Inc. analyst Hamir Patel. While the trade fight lingers, Mr. Patel said history is on the side of Canadian producers, who recouped 80 per cent of the U.S. lumber tariffs paid in the previous ro...