January 11, 2000
(Forest Resources and Agrifoods)

Forest product sales reach $640 million in 1999

The pulp and paper and sawmill industries were significant contributors to the economic growth experienced by Newfoundland and Labrador in 1999 according to Forest Resources and Agrifoods Minister, Kevin Aylward.

In 1999, sales from the province�s pulp and paper mills reached approximately $600 million and saw their products being shipped to more than 40 countries worldwide. During the same period, sales of forest products from Newfoundland and Labrador sawmills reached approximately $40 million. In addition, the forest sector created approximately 10,000 direct and indirect jobs throughout the province in 1999. In the past year, the forest products industry also saw the creation of new jobs stemming from increased activity in the value-added wood products industry. The forest industry is presently the third largest contributing sector to the economy of Newfoundland and Labrador behind the fishing and mining sectors.

Mr. Aylward feels the contribution made by Corner Brook Pulp and Paper and Abitibi Consolidated to rural economies is quite significant. He said: "The investment made by the pulp and paper industry through such things as salaries and capital expenditures provide many communities, particularly those in rural areas of Newfoundland and Labrador, with a level of economic stability. Both Corner Brook Pulp and Paper and Abitibi Consolidated are key partners in the continued development of an effective forest industry in these areas."

Minister Aylward commented on the significant growth experienced by the sawmill industry in 1999. He said: "Production levels in the province�s sawmill industry have almost tripled since 1992. In 1992, the industry produced 38 million board feet of lumber. Last year this number reached a 10 year high of 110 million board feet with growth in 2000 expected to surpass the 115 million board feet mark." The minister praised the efforts of sawmill operators for this significant growth increase. He said: "Sawmill operators throughout the province must be commended for adopting a proactive approach toward building an integrated sawmill industry in Newfoundland and Labrador. By taking advantage of new technological advancements in the sawmill industry producers have been able to successfully expand into such areas as value-added processing. This growth has enabled sawmills to pursue new market opportunities throughout parts of North America and Europe."

Media contact: Cynthia Layden-Barron, Communications, (709) 729-6183.

2000 01 11                                                     10:30.a.m