ONTARIO SUPPORTS NEW SAWLINE

February 14, 2008

ONTARIO SUPPORTS NEW SAWLINE
McGuinty Government Investment To Create New Jobs In Hornepayne
HORNEPAYNE — Ontario is strengthening the local forest industry by helping Olav Haavaldsrud Timber Company Ltd. invest in innovation and create jobs in the Hornepayne area.

The province is providing a $5-million loan guarantee in support of the installation of a new $7-million saw line that will boost the competitiveness of Haavaldsrud’s Hornepayne facility. The new line will increase the number and size of logs that can be processed while achieving productivity and recovery gains in lumber production. The investment will help secure over 100 existing jobs in the mill, and create about 10 new jobs. The loan guarantee is in addition to a $700,000 grant announced under the Forest Sector Prosperity Fund last summer, and $2.1 million in other provincial assistance announced in January.

“We are helping to secure jobs at the Haavaldsrud facility and to create new positions,” said Mike Brown, MPP for Algoma-Manitoulin. “The new equipment helps to make the company more competitive in what is a very difficult market. I salute the Haavaldsrud family for their commitment to this community.”

“Our government is working with the businesses in Ontario’s north to create more opportunities for hard-working Ontarians and their families,” said Natural Resources Minister Donna Cansfield. “The Loan Guarantee Program is helping our forest sector become more competitive, and creating and securing good jobs right here in Northern Ontario.”

“The new saw line we’re installing will boost the competitiveness and efficiency of our operation here at Hornepayne,” said Carlo Bin, administrator and head of lumber sales for Olav Haavaldsrud Timber Company. “We would not be able to move forward without support from the McGuinty government.”

The investment comes from Ontario’s Forest Sector Prosperity Fund. It and the Loan Guarantee Program are part of the McGuinty government’s $1-billion plan to help forest companies invest in the future of their business and prosperity of local communities.

To date, the Ontario government’s forest sector investments have created or secured 4,770 jobs and leveraged $376 million in investments province-wide.

http://www.mnr.gov.on.ca/MNR/csb/news/2008/feb14nr_2.html

"Nineteen months ago, fire disrupted the lives of our workers, their families and our community. The Olav Haavaldsrud Timber Co. Ltd. committed to its employees and the community that it would rebuild and resume operations as quickly as possible. Continued capital investment in the sawmill and forest industry is necessary to combat the pressures faced by the industry. The Company saw the interruption in operations as an opportunity to make the necessary changes to combat these pressures. The new saw line we are installing will boost the competitiveness and efficiency of our operation at Hornepayne. It incorporates the latest in sawmill technology, increasing recovery by approximately 33% and together with better utilization of the wood supply, increase production by 40%. Today’s announcement demonstrates this government’s commitment to strengthen the local forest industry. We are thankful to the government for their contribution to this very important initiative and for sharing this Company’s vision for the future. We would not have been able to move forward without the support of the McGuinty government.  -Carlo Bin"