2007-12-17
Evolution of the markets

Since our last publication, many changes have occurred with respect to wood buyers. For the western portion of the territory, the Louisiana-Pacific mill in Bois-Franc will only receive our inventory estimated at 4000 green metric tons (GMT). These deliveries will cease indefinitely at the end of January 2008 until June (minimum). We renewed our agreement with Portage-du-Fort’s Smurfit-Stone with sharply increased volumes in poplar and assorted softwoods and deliveries of birch and maple. Gestofor Inc. (hardwoods) and Claude Forget Inc. (softwoods) have opened a wood purchasing yard in Danford. With these opportunities and our markets with Temlam (aspen), Smurfit-Stone, Fraser Papers and Max Meilleur & fils Ltd., we believe we will have the capacity to sell our entire production in the coming months. Regarding the Laurentians sector, the Scierie Carrière Ltd. and Forespect Inc. are hardwood buyers. The Irving Company appears to want to reopen the yard in Brownsburg Chatham. Claude Forget Inc. and Jean Riopel Inc. are softwood buyers. It will also be possible to produce hemlock in 47-inch lengths for Kruger. In the Lanaudière region, Claude Forget Inc. and La scierie familiale Gagnon (cedar) jointly operate a wood purchasing yard in Saint Félix de Valois. Unfortunately, we no longer have an agreement with Grand Mère’s Abitibi Bowater for 4-foot length wood. We have, however, increased our volumes at Kruger for these species in addition to having an agreement for a large volume of hemlock in 47-inch lengths. For the Montérégie sector, the previously mentioned markets are available as well as Windsor’s Domtar (hardwood pulp). And finally, we are concluding an agreement to deliver a certain quantity of wood to Silicium Bécancour Inc. near Trois Rivières. In closing, we invite you to communicate with out forest technicians for more information. Armand Plourde, General Manager