VANCOUVER ISLAND, B.C. – A pair of Vancouver Island forestry giants are now sharing resources.
A release states that TimberWest Forest Corporation and Island Timberlands Limited Partnership have entered into an agreement to “provide for shared use of facilities, align best practices and enhance forest stewardship.”
TimberWest and Island Timberlands will continue to be stand-alone companies with no change in control while sharing corporate services.
No significant changes are anticipated to sustainable harvest levels, contractor and field workforce employment as a result of this affiliation, according to the release.
Both companies will continue to process logs for domestic mills.
The release notes that the affiliation will enable TimberWest and Island Timberlands to deliver a range of economic, social and environmental benefits by sharing facilities, forestry planning and best practices.
According to the release, benefits include:
- optimizing logistics through the use of shared roads, sort yards and infrastructure;
- enhancing forest health through coordinated stewardship and silviculture across adjacent private timberlands;
- integrating best practice approach to watershed, ecosystem, species at risk and visual quality management;
- a commitment to seek extension of the Progressive Aboriginal Relations certification;
- improving safety outcomes by applying best practices across both operations;
- expanded recreational access, trail connections and campsites; and
- ongoing investment in forestry research and innovation, including an existing commitment of up to $10m over five years to the Digital Technology SuperCluster.
“As affiliated companies, TimberWest and Island Timberlands can each do more to plan and invest for the future of a stable and competitive coast forest sector,” said TimberWest CEO Jeff Zweig.
“This new affiliation will position both companies for long-term success under strong Canadian ownership to the benefit of our many stakeholders and the communities where we live and work,” noted Island Timberlands President, Darshan Sihota.
This affiliation is subject to customary closing conditions, including approval under the Competition Act (Canada).
British Columbia Investment Management Corporation (“BCI”) and the Public Sector Pension Investment Board (“PSP Investments”) acquired TimberWest in 2011.
BCI and investing entities managed by Alberta Investment Management Corporation (“AIMCo”) have been limited partners in Island Timberlands since 2005.
