Millar Western curtails production, reduces workforce

    EDMONTON, Feb. 10 /CNW/ - Responding to the severity of the global
economic decline and unprecedented weakness in market conditions, Millar
Western today announced production curtailments and workforce reductions at
its lumber and pulp operations. Effective February 16, operating rates at the
Whitecourt and Boyle sawmills will each be reduced by one shift, cutting the
company's total lumber output by approximately 15 million board feet per
month. The Whitecourt pulpmill will curtail output by 10,000 tonnes per month.
    Along with staff reductions made at the company's Edmonton head office,
the production curtailments will result in termination or layoff for 138
employees. The curtailments are being implemented to reduce losses and
conserve the company's financial strength through the current economic
downturn. The duration of the curtailments will be subject to market
conditions, and reviewed on a month-to-month basis.

    Millar Western is a privately-owned forest products company headquartered
in Edmonton and producing 450 million board feet per year of dimension lumber
and 300,000 tonnes per year of high-yield pulp at operations in Whitecourt,
Boyle and Fox Creek, Alberta.

For further information:

For further information: Janet Millar, Communications Director, (780)

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