April 14, 1965 -- The sale of Wizewood Ltd. of Hudson Bay, to MacMillan Bloedel and Powell River Ltd., Vancouver, was announced today by Premier W. Ross Thatcher.
Mr. Thatcher said an agreement has been reached
under which Wizewood will be taken over by MacMillan Bloedel and
Powell River (Saskatchewan) Ltd., wholly owned subsidiary of the
well-known B.C. Company. The purchase price is $1,750,000. April
15th is the effective date of the agreement which is between MacMillan
Bloedel and Powell River (Saskatchewan) Ltd. And the Government
Finance office, the major shareholder and creditor of Wizewood.
Wizewood manufactures waferboard, a multi-purpose
building product, at its plant in Hudson Bay. The Company has been
in production since December 1961, with a six month halt in 1963
as a result of damage in a fire.
Wizewood's timber cutting rights, with certain
amendments, have been transferred to MB & PR, the Premier said.
The Company has agreed to keep on staff all present
employees of Wizewood, give preference to Saskatchewan people whenever
practical in future employment policies and use Saskatchewan products
and services wherever possible, Mr. Thatcher said.
In addition, it has agreed to operate the plant at the maximum
capacity that is economically justifiable and expand production when
feasible.
Equitable arrangements have been offered to the private investors
in respect of their interests.
"Before the present Government took over," Mr. Thatcher said,
"heavy losses had taken place. Last year the Company lost $300,000
including depreciation. More over, investigation by industrial research
experts indicated such losses would likely continue."
Mr. Thatcher said the entry of MacMillan Bloedel
and Powell River into the Saskatchewan industrial picture was a
highly significant event.
"MacMillan is one of the most rapidly growing
companies in Canada. We are delighted to be able to welcome them
to Saskatchewan."
At a press conference Monday morning, the cheque
for the purchase price of $1,750,000 was handed over to Government
officials.
Charles A. Specht, MB & PR President addressed
reporters with the remark that, "We are determined to be a good
industrial citizen, and are well equipped to make an important contribution
to industrial growth."
He went on to say his Company was confident about
the future of Wizewood and if it does not expand in due course,
it would be a rare exception among their many operations. The company
plans to modernize and expand Wizewood as conditions warrant.
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