Crown Forest in uptrend

Press, 19 April 1985, Page 16

Crown Forest in uptrend

PA Wellington Crown Forest Industries, the Canadian subsidiary of Fletcher Challenge, Ltd, is poised to make increasing contributions to the results of its parent company in future, according to Crown Forest’s chief executive, Mr L. C. Ryan. Mr Ryan, here for a Fletcher Challenge board meeting, said that “decisions and actions” in Crown Forest are leading to multimillion dollar improvements from cost savings, loss avoidance, stepped up productivity, and higher value differentiated products. In a statement released after a luncheon for investment analysts here, Mr Ryan said such action contributed to a turnaround from two years of heavy losses. “It is only a question of time before they are translated into increasing benefits to the bottom line,” he said. International newsprint price increases in North America have failed to hold in January and again in April but it is predicted they will become effective in May. The solid wood products industry continued to suffer from excessive supply and weak prices and, although there was no reason to expect a major recovery, Crown Forest was making a strong thrust toward high value-added products, more market orientedproduction, and differentiated products. Crown Forest will be com-

mitting SC6S million to a capital spending programme this year. It will rationalise its Flexpak operations, withdraw from its Winnipeg operations and concentrate them in an upgraded expanded plant in Richmond, B.C. Studies are almost complete for a new pulp digester which will double the output of “kerf’ pulp and should be installed and operating by 1987. The company’s two fordrinier newsprint machines at Elk Falls will be converted to twin wire production to maintain the mill’s leading position, Mr Ryan said.