PAGE 12 a _The Herald. Loouers Supplement, OS TMURSDAY, MAY 2 Col Gel President’s Address to Terrace and District Chamber of Commerce on the Future of his Firm in the Northwest _ a : i Lam pleased and honoured to. the last six quarters. Assuming any. favoured. or special. are now engaged... ctoral feature = : Logging wa y back then have the opportunity tobe with 2 continuity of production, we , Teatment of-any kind. ~ _-_. In our forestry planning, we. ; . ie 7 you tonight and to ‘discuss “expect this irend to continue 1 have now. spoken:.on the . have accelerated studies of our i Pe el oe . : a op 2 Canadian Cellulose’s role in the ® aver the balance of the present changing. -cireumstances « and. “resource inventories, both in the ie : . ene Nae - aaa development” of .the Nor- * year. . “the structure of our ownership. I’ north and the interior, tothe” ; thwestern- part of “British -‘ To this point the improvement would now like-to swell on the .- point: where .we: are ‘now: in a. will change. a thé plan will Columbia. 1 note with par- - in earnings is the result of furure—where we go fram here... position. 10. commission: the’ - affected accordingly, but at this ticular interest the notation at factors largely external to the The. substantial, accumulated . ‘Second ‘stage..of. this “work moment in’ time’ the concepts the. bottom. of .the stationary company. The single most losses of 1967 fo 1972 were the., detailed examinalion as a part. and» framework”. - used by your. President, Warne .. important of these has been the ~ despair. of minority common. of overall{preconstruction * reasonable valid.) i” atl Gaunt, which reads “Progress. strengthening of demand and and. preferred shareholders of | feasibility. ‘Studies. . In “this _ : in the woods industry entre of prices for pulp in our “three. “Columbia Cellulose, as well as ° planning, we are c ring all ae the © Pacific.” Northwest.”)."- 1? major “markets -- the , United the. previous -‘majorily. owner. feasible alternative studies, -In - cansot think of a better goal and ©. States, Western. Europe and The reasons for these losses are | this ‘Planning, we are. con: attitude as our company looks’~ Japan. This strengthening has : _ well-known ‘and- need not. be sidering .a view ta achieving a and our part. of-thig process. ahead tothe nex! decade in this been possible, in substantial detailed; satisfactory return on in- Terrace is an important hub in: region.?: 6.25000. “measure because new. pulp’, Those of us who lived lhrough vestment;:. the” - future northwestern British ‘Columbia ‘ * "Fn ihinking through my.address capacity ‘has - nol come on- the experience of those years, desirability of a.more balanced and Canadian Cellulose has had: to you this evening, [ thought it -stream, ar has nol been com-~ with: insufficient capital ‘lo and. diversified product‘range;: astake here since our beginning appropriate to describe the new... milled, at a rate approaching | C3‘TY cul, much less develop and the wisest and best: use of _ over twenty-five years aga. The = and ‘dynamic changes, which demand. This imbalance our business, tend lo be°: public resources. +. future af” this region appears: vg have’ oveurred |in Canadian, “between demand. and supply somewhat conservative’ in Paradoxically, our earnings to be a bright one, and yet Ido’: : Cellulose and the implications will’ not be “easily, or even approaching the period ahead, are beyond what could other- not need to remind - this © that" these ‘changes: have in perhaps readily corrected. The ou. wise be expected because,.in audience that several natural.” terms. of the “regions and Industrialized world does not Our financial forecasts we sharp contrast to recent years. protilems face northwestern communities in which we havea surplus of available and believe to be on the cautious market pulp is al a premium. B.C.--many areas of ever- _ operate... have used, the wards aecessible low-cost wood. Even side. In marketing, our policy is This favourable condition will mature timber, difficult terrain -. if it'did, the escalation of con. ™W¥ based more on long-term notlast beyonda certain period... conditicas for logging and’ relationships and reliability Yet, in view of the fact that the transpart development, high» : : company has not utilized its full annual precipitation,. pars. quota of timber, coupled with ticularly in the coast portion of our projections that lumber the area, longer regeneration: prices should in general remain cycles athan are found. in.” satisfactory, our- sawmill ex- . Saurthern B.c., - including - *, pansion programme-—both inthe Vancouver Island, and .very: - North and the Interior--will - different species and trer sizes ~ provide needed downside cost in the coastal - portion, as protection asa result of a larger -gompared to the Interior sec- residuals base. tions of the region. a A Capital budget for the year co of $19 million hasbeen approved’ The problems for the forest -. by the directors. This industry relates to cast. These programme includes $1 million conditions conspire to produce for overdue improvements: in | 9 critical result. They. have... working conditions; camplete © imposed raw Materials costs residuals recovery . from ‘livered to the plants ranging | existing sawmills; reduce the {rom $25 to $40 per ton of- backlog of maintenance and. -finished pulp output higher than . - . improvements work from our the Prince George or. B.C. south. G predecessor company; and coast average, thus, the long- . GIOSS commence a.. longterm ‘mm profitability ~ of —the- . _vegion's forest economy was ",”. found to require: a especially in: the sense of Cellulose, hasbeen confused for to long-term contracis with a mill, it is estimated that the ~ One-expansion of the railway’: responsibility that has imbued a crown corperation such as - range of customers who are pollution. contro! . programme system, me our new board of directors as B.C. Cellulose. Ocean Fallsand reliable. who are soundly aver the next several years will Two - Exp well'ag the broad spectrum of B.C. Hydro. It is not a crawn managed. who in the main are involve a capital expenditure in capacity, and. -- _ our. management ‘personnel. coporation. — The majority pon-integrated and = in- excess of $52 million, in-1973 _ Three- the resultant increase Canadian Cellulose is also an shareholder has selected an - dependent, and who we thus dollars. at pulp mills and chip supply. : MD international company. We sell independent board of directors: expect will be in partnership sawmills, for liquid effluent an Assumiag that all relevant our products in twenty-four the composition of ‘which with us in lean years as well as air emission. . environmental, social , .com-” countries. and. ‘we have — reflecis the international nature goad. We have adopted a policy : munity: and regional criteria’ . shareholders (in «fourteen of the company’s business.and of spreading risks, beth in’ In corporate “development, af met, Northwestern British»: nations of the world.) - provides a broad specirum of marketing and capital our priority, emphasis is Columbia will face a-period of The company is also a major | professional and business ex- budgeting. both in pulp and unquestionably within. British perhaps twenty. years. 6f- — one in terms of the diversity of - perience. Representation in- wood preducts. and by means of Columbia. This-is our base Planned, sustained growth. [- “ its operations and the number of cludes men of stature in the 3p concept of joint ventures, where we sce the greatest op- suggest thal this planned. employees.’ Our wage bill alone fields — of internatianal such as’ with Weldwood of portunity, within this conlext, programme must not anly take* is in excess of $30 million a year: marketing. transportation. “Canada Lid. and Eurocan and our marketing planning is @¢coumt of, but perhaps: give. which... is... predominantly | product utilization, finance. Paper Ltd. in Babine Forest directed to a number of . Primary weight lo, the-” directed: 16 ‘the interior and ~ General business management. “Products Ltd.. at Burns Lake.. mutually ‘strengthening ab- requirements—quantitative and porthern communities, such as . and. having | an extensive” Whereever possible, on jectives. We will continue to and qualitative-in the whole. Terrace.” ‘The company has the knowledge of British Columbia production and raw materials reinforce the increased: con- Pealmef social development. It ~ largest. logging operation in the “a5 well as Forest products. The and on transportation fidence we have ottained in our ™ust be able to rationalize» world centered in: Twinriver company in’ turn ts ad- arrangements. we have entered existing markels. We wilt, complementary, cempeting. or...’ . gf ” ghange “aad dynamics, as aad Canadian’ Cellulose is ‘a. new, struction and equipment costs company in’ a. wide range~of will inhibit expansion that DwaAyS Lie eh might otherwise occur. ‘There is The most ‘important. ere its ~ wood in the world, but it will new status asa public comparly. take .lime ‘before it is. suf- the pronounced changes in its - ficiently, much less fully, . capital“ structure, and the. developed. For Canadian replacement. of Celanese Cellulose there is now a Corporation of New York by the. reasonable, confidence that our “Province of British Columbia as = company will, have’ a time- the * majority® owner. With horizon. in which to plan. nearly -*.73000 . shareholders, : . Canadian Cellulose is second in I would like to briefly com- the forest industry in British ment on one other aspect of Columbiaand sixth in Canada Canadian Cellulose which is a in the number of share holders. - unique characteristic and that “Yet: Cancel is anew company is its ownership makeup. Itisa as well in. its-. management | true public corporation in-every ‘ composition and philosophy; in _ sense of the word “Public” its emphasis on marketing for having bath individual the long - term. and with shareholders ant a governmett reliability; in the momentum it trustee shareholeer on behalf of is now. beginning to generale the public. Furthermore, nearly R.M with what we hope will be ex- all of its timber holdings are than on price. We have cam- pollution cantrol programme, ceptional... morale: . and publicly owned. Canadian pleted a programme of shifting Except for the existing sulphite ecg eran ney |e ene o Aneernes neon core ; WELCOME — LOGGERS ‘ 7 ansion.of sawmill”. . Timber, and. therefore its im- ministered by professional into long-term contracts lo however, soon begin te explore conflicting resource uses. at's pact in. this region is highly business managers. and is guarantee continuity of supply. . the gradual evolution, of long- must be able to complete the. a ; significant... =: operated on the same . com- ° term relationships in new basic stage of transportation. _ . . _” Beyond. the’ legal, financial mercial basis as any other In the near lerm, markets. ‘We have already Tesource and industrial... os R t il and corporate changes. we are forest! products company. allowing for contingencies and commenced to expand our Gevelopment, -wilbout: . e al From. the company’s point of assuming continuity af offshore sales of lumber. Once Samaging or undermining the . “ peu company in one other very = *) co 1 important ‘respect; we are view there isa very cleararms- production. we expect ta the corporate development fulure role of this region im ~, profitable. sales for the first length relationship which has “generate a significantcash flow programme for British ‘erms of the preservation of its -~ quarter. of 1974 were $39 million been maintained in every which will be available for new Columbia is established, we recreational and natural assets. compared with $29.9 million in parlicular to. date with the investment. ‘may undertake a strategic - These requirements, T am the first quarter.of 1978. Ear- major shareholder. As to the’ cos :. examination of-what might be confident. are likely to be fully~- nings calculated on a normal issue frequently raised about ~ The use of this ‘cash: flow ‘useful roles for Canadian -met. And, obviously, these will: - after tax basis were $2.7 milion Canadian Cellulose in the light . “improved and, modified: as”. ™ the perspective of the whole’ These results. reflect the the province. leans over back- . It is.perhaps useful to set out ° events progress. Like any other . process ofthe. Northwes' continuation of an upward trend « “ards to make sure thal it can ‘briefly «. the. longer-range~: company ‘today. we are not ina . - Transportation development.we* in the company's profils ‘over Fecent. arrival.” The: AVR DARE eT ena ae CE ea re ca tet ice Re ae yo . ne . Fresh Buns : Wholesale : Fine pastry — (Supplying camps, | Wedding Cakes ete.) | MOUNTVIEW BAKERY 4637 Lazelle Terrace, B.C. 635-6650 never be said that we receive’. planning process on: which: we * position’ to make longterm’ Aare. a-