NOHFC & NOGBC Announcement

January 28, 2008

NOHFC & NOGBC Announcement

The project includes the replacement of a sawline, upgrade to the trimmer optimizer and the replacement of approximately 30% of the sawmill building which was severely damaged by the fire on July 11, 2006.

The new sawline is expected to be in operation by mid February and the project to be completed in March.

The new sawline is a significant upgrade incorporating the latest in sawmill technology. The new equipment will be capable of processing logs from 8cm to 50cm at increased feed speeds. Through increased recovery of approximately 33% increase processing speed and better utilization of the wood supply, lumber production will increase by 40%.

Continued capital investment in the sawmill and forest industry is necessary to combat the pressure faced by the industry in today’s economic climate. This $6.6 million investment is essential to remain competitive and to provide stability for the employees, the community and the region it supports.

Today’s announcement demonstrate this government’s commitment to assist in capital investment to create a stonger and more prosperous forest industry in Northern Ontario.

Carlo Bin