Weyerhaeuser to Honor MacBlo Forestry Pledge
5/14/99
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Title: Weyerhaeuser to Honor MacBlo Forestry Pledge
Source: Reuters Limited
Status: Copyright 1999, contact source for permission to reprint
Date: July 13, 1999
Byline: Allan Dowd
VANCOUVER, July 13 (Reuters) - U.S. forest-products giant Weyerhaeuser
Co. removed a potential political roadblock to its takeover of MacMillan
Bloedel Ltd. on Tuesday, agreeing to honour the Canadian forester's
environmental pledges. The issue of how Weyerhaeuser would handle
MacBloÕs move to phase out clear-cut logging has hung over the $2.45
billion dollar deal, with observers warning that if it backs away it
could cause problems in both the regulatory and marketing arenas.
Federal Way, Washington-based Weyerhaeuser had declined to immediately
endorse MacBlo's (MB.TO) environmental agreements when the takeover was
announced last month, saying it needed more time to study them.
``We have now had an opportunity to better understand MacMillan Bloedell
forest practices in coastal British Columbia and to meet firsthand with
environmental leaders,'' Weyerhaeuser Chief Executive Steven Rogel xsaid
in a statement.
The Canadian logging industry -- along with many environmentalists --
were stunned when MacBlo announced last summer it would phase out the
use of clear-cut logging practices in coastal forests over the next five
years.
In clear-cutting, loggers remove all trees from a large area similar to
the way a farmer harvests a field. MacBlo agreed to switch to ``variable
retention'' logging, which targets trees either individually or in
smaller groups.
Critics argue clear-cutting causes excessive environmental damage and
does not allow the forest to be logged on a sustainable basis.
Supporters dispute the damage claim, and contend it is safer for loggers
working in the rugged coastal terrain and more economical.
Weyerhaeuser already had extensive logging operations in Canada, but
none in the coastal region of British Columbia, where MacMillan Bloedel
operates and where clear-cutting has become an international
environmental issue.
Greenpeace, which has been meeting with Weyerhaeuser since the merger
was announced, said it was ``relieved'' by the announcement, but worried
Weyerhaeuser would back away once regulatory approval was received.
``This is our concern; Is this real and substantive ... or are they just
trying to smooth things over so they can get the deal?'' said Karen
Mahon, a forest activist for the environmental group, which has fought
MacBlo with international boycotts.
Weyerhaeuser said it would also honour MacBlo's agreement with natives
and four environmental groups to limit logging the old-growth forests of
Clayoquot Sound, which had become one of Canada's most famous
environmental battlegrounds.
Canadian Fisheries Minister David Anderson had warned that environmental
issues would be considered in the regulatory process -- which includes
approval of transfer of MacBlo's logging licenses to Weyerhaeuser.
``The forest practices and agreements referred to are specifically
tailored to address conditions and circumstances unique to B.C.'s
coastal region,'' Weyerhaeuser said in a statement.
Greenpeace said it was pleased Weyerhaeuser recognised B.C.'s coastal
forest had unique environmental conditions, but concerned the statement
meant it was uninterested in stopping clear-cutting in its other U.S.
and Canadian operations.