i=

mark sawmill complex
on Keith Ave. is answer-
ing to a new name as of
July 10. The former
holding of Westar
Timber, a sudsidiary of
B.C. Resources Invest-
ment Corporation, is
now called Skeena
Cellulose. As the name
indicates, the new

. owners are a pulp and

paper concern and_.their
management strategy for
local forests will have a
determining effect on the
regional economy for
years to come.

by Michael Kelly

Repap Enterprises
Inc., a Montreal-based
company, was founded
by George Petty in 1970
and since then has grown
into a corporate entity

with annual sales of $900.

million per year and
assets totalling nearly $1
billion. The company
specializes in the
takeover and revitaliza-
tion of pulp and paper
mills, and Petty has con-
tinued as board chair-
man and Chief Executive
Officer. The Terrace

supply that feeds both
mills. Repap paid about
$100 million for their
new western branch, of
which $75 million came
in the form of a loan
from the B.C. Develop-
ment Corporation, The
turned-over Terrace and

Prince Rupert mills and

ancillary operations will.
be known collectively as
Skeena Cellulose and
will constitute a wholly
owned sudsidiary of
Repap. ;

The new owners
visited both Terrace and.

Prince Rupert in order to

personally announce the
completion of the sale.
The appearance of near-
ly a dozen of the cor-

poration’s top ex-

ecutives, some of them
accompanied by their:
spouses, conveyed to
concerned locals the
message that this new
undertaking is a serious
step for the company.
The Terrace sawmill was
shut down for the day
and employees assembl-
ed in the Tillicum
Theatre to get ac-
quainted with the new
owners of the mill and
get answers to their ques-

Rim. We have a unique |

possibility to build .a

. Viable long-term business

which will .become an
economic miairistay of

the Northwest. We are -

willing to make the
capital commitment

‘necessary for long-term
development, and we can

exert our purchasing
power here to. ensure
continuous operation

‘and stability for this

area.”

Repap’s history com-
prises success stories
with similar ventures in
Ontario, Quebec, Penn-
sylvania, Wisconsin and,
most recently, the
Miramichi Valley in New
Brunswick. Petty stated

_ that the company intends
to put the disused ‘B’

mill in Prince Rupert in-
to production by late
September of this year,
increasing the overall
output of the total com-

‘plex by more than 30

percent, The corpora-
tion’s strengths appear
to be first class profes-
sional management prac-
tices and a marketing
strategy that addresses
long-term requirements
in continental and global

Mayor Jack Talstra welcomed visiting dignitaries recently with presentation of the tradl-

tlonal Terrace Kermodel Bear
transferring ownership of the Westar S
-behind Mayor Talstra are (left to right): the Hon. J

CEO George Petty; Repap President, Joa Kaas; Hilda Kass;

pin. The group was in town to issue the official confirmation
awmill to Repap Enterprises of Montreal. Standing
ack Heinrich, Minister of Forests; Repap
and Ellean Papushka.

sawmill, the latest in a
string of acquisitions for
Repap, is part of a
package which includes
the Westar pulp mill
complex in Prince
Rupert and Tree Farm
License 1, the timber

Wind Shear

Since 1964 more than two dozen
aircraft accidents nationwide
have been related to wind shear
—a sudden shift in wind speed or
direction, .

AtUCLA, meteorologist Roger
M. Wakimoto conducts research
aimed al understanding the
signals that precede microbursts,
the most destructive type of wind
shear characterized by violent
dotvnbursts of air.

‘The early signs are critical,”
hesaid. ‘If microbursts could be
identified quickly, then pilots
could simply delay lift-off or
delay landing for several min-
utes until the microburst passed."

Damage caused by microbursts
is not limited to aircratt crashes,

Studies have convinced Waki-
moto that damage to homes and
forests believed to be duc to tor-

~ nadoes actually resulted fram

microbursts.

tions concerning the
future of the operation.

The executives later at-
tended a reception where
they met the mayor and
city members, represen-
tatives from the Kitimat-
Stikine Regional
District, -and local
business people and met-
‘chants.

“We're very excited,
this is a tremendous op-
portunity for all of us,”’
said Repap president
Joseph Kass. He. em-
phasized that the com-
pany had based previous
successes in similar
operations on an in-
tegrated approach to
forest resource use and a
long-term view.

Chairman and CEO
George Petty was equally
enthusiastic. ‘‘This
takeover is a milestone.
As we were flying in

here, I found myself aw- .

ed by the wood resource
I saw... this area is the
doorway to the Pacific

markets. In the context
of Repap’s present
operations, the Skeena
Cellulose extension fits
in well - for a pulp and
paper enterprise.

The Terrace sawmill,

however, even after
Repap - executive
assurances, remains

‘something of a question
mark. Petty said that he
is impressed with both
the productivity and
marketing at the mill,
and stated that Repap
has no immediate plans
for it except to continue
the present operations
and improve = and

upgrade it as oppor-

tunities come up. He said
that a six-month study
will be undertaken to
assess the situation, and
that further decisions
will be made as the infor-
mation is analyzed.
When asked to con-
firm that a ‘‘memoran-
dum of agreement’’ had

been signed between

Terrace Review — Wediesday, Jily 16, 1986 3

Local sawmill sale completed.

‘TERRACE — The land-

A flotilla of out-of-town representatives were recently In Terrace to announce the formation

tenets

of Skeena Cellulose, a new company that consists of Westar's former holdings In Terrace
and Prince Rupert. Those present Included Forest Minister Jack Heinrich (left), George and
Ginger Petty (center, and Joe and Hilda Kass.

-Repap and. BCRIC, in
guarantee of maintaining
current employment
levels at the Terrace mill
for a specified period of
time, Petty replied,
‘'Yes,’’ When asked
about the length of time
the guarantee would be
in force, he said, “‘I
don’t remember,”’

The Review contacted
Sandy Fulton, president
of Westar, in Van-
couver. Fulton,
however, said he had
no knowledge of such
an agreement. ‘‘I’m
not aware of it, there
might be a reference to
the terms of sale. There
could have been some
sort of commitment

made, but I really can’t
speculate.’’ Don

deCorsey of the B.C.”

Development Corpora-
tion, who had a role in
drafting the loan to
Repap, said that he had
no. knowledge of the
agreement, but he did
not rule out the possibili-
ty; deCorsey did state,
however, ‘‘It is their full
intention that the
sawmill continue to
operate, and they believe
it will be a profitable
sawmill.”” _

The Terrace sawmill
and the Prince Rupert
pulp operation have been
tied together for several
years by a woods

directed at Tree Farm
License 1, the largest
forest tenure in B.C.
Having both mills draw-

ing off the single timber

supply ensures that high-
grade sawlogs aren’t
misused in pulping, and
also that pulp logs sawn
off the cutblocks go to

their appropriate use.

Petty stated that the Ter-
race sawmill will be used
as a primary source .of
wood chips for. the
Prince Rupert pulp mill,
and whatever else the
future holds that aspect
seems to assure con-
tinued operation of the
newly-rechristened
Skeena
Sawmill.

Cellulose.

”

Sear,

oS Tata

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Fae aras ¥,

management scheme

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