July, 2008 Volume 08-137

By John Kuch Production ManagerMill Report

Midsummer already, summer sure seems to go fast. Too bad that lumber won’t move that fast. Lately we have seen a slowdown in demand for cedar merch items and a weakening in prices. Things like 2 x 6 STD are getting very difficult to sell and prices have come down. Hopefully, we are at the bottom of the market and things will turn around for fall construction. Clears are still in demand but without merch selling it is difficult to produce just clears. The bottom line to all this is that if markets for cedar don’t improve we are going to have some tough days.

On a brighter note, the Japanese hemlock market is looking pretty good. Demand is increasing and prices have remained firm. There is a ship which is going to stop at Port Alberni in September; let’s hope that this will be a regular event. This reduces our shipping costs on that portion of the lumber by $40.00 per thousand board feet.

Until next month please play safe and work safe.

Safety - - -Changes in the Weather- - - Can be Hazardous!

Summer brings with it a new set of hazards. Hot, dry weather can cause heat stress problems. Dry weather in the woods can loosen ground cover and cause slips and falls. More time is spent on the water for recreational purposes. Take time to assess the new types of hazards a new season creates. Good footwear with ankle support is a must for bush travel. Life jackets are an essential for safe boating. Most accidents are recurring and we have the knowledge to prevent it from happening to ourselves. Put safety first in all your activities and have a great summer at home and at work.

Remember: We must all do our part in preventing fires. No smoking in the woods!! – No lunch fires!! Ensure cable friction points are avoided!! –Powersaw fuel must be done carefully!! – Fire extinguishers must be fully charged and ready to use on all equipment! – Fallers must carry flame-out extinguishers!! The company environment management system and corporate policy prohibits fires and/or smoking on logging operations or other activities in the woods.

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4890 Cherry Creek Road, Port Alberni, BC, Canada V9Y 8E9 Phone: (250) 723-8118 Fax: (250) 723-7766

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