Natural Resources
January 16, 2009

Marketing Consultant Retained for Forestry Industry

The Provincial Government�s Forest Industry Diversification Program is taking another significant step forward with the hiring of a consultant to develop a marketing strategy for the Newfoundland and Labrador sawmill industry.

The marketing strategy is an important component of the Forest Industry Diversification Program announced in Budget 2008. As a result of a Request for Proposals process, Laue Guay Inc. of Westmount, Quebec, has been retained to develop an integrated marketing strategy to support the diversification and export market for the solid wood products industry.

"Our government is working with industry to ensure the continued sustainable development and diversification of the forest industry," said the Honourable Kathy Dunderdale, Minister of Natural Resources and Minister Responsible for the Forestry and Agrifoods Agency.

"While the solid wood products industry has experienced a number of challenges in recent years, it can remain a viable source of future economic and social value provided we evolve with the changing circumstances and diversify into other markets."

The marketing strategy will benefit all integrated sawmills in the province and support value-added wood enterprises. It will identify and develop overseas markets to reduce Newfoundland and Labrador�s reliance on the U.S. commodity markets. The value of the contract is $230,700.

Laue Guay Inc. has a solid track record in international marketing and product development within the forestry sector. The company is knowledgeable about global forestry and marketing issues, as well as the issues facing Canadian companies.

The $14-million Forest Industry Diversification Program is designed to attract investment in the industry, stimulate new value-added product development and capture new markets. The solid wood products industry in Newfoundland and Labrador is made up of two sectors: a sawmilling sector, which primarily manufactures lumber, and a value-added manufacturing sector, which produces an array of products, such as flooring and cabinetry.

The Terms of Reference for the contract were developed by the departments of Natural Resources, and Innovation, Trade and Rural Development based on industry consultations held as part of the ongoing review of the forest industry. The Terms of Reference are available at: //

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Media contact:
Tracy Barron
Director of Communications
Department of Natural Resources
709-729-5282, 690-8241

2009 01 16                                                   10:20 a.m.

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