2007 FPAC Annual Review.

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ASK* FPAC 2007 ANNUAL REVIEW


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*ASK IF IT HAS BEEN SUSTAINABLY SOURCED. ASK THAT IT NOT CONTRIBUTE TO DEFORESTATION. ASK FOR A MINIMAL ENVIRONMENTAL FOOTPRINT. ASK FOR A COMMITMENT TO CONTINUAL IMPROVEMENT. OR SIMPLY ASK THAT IT BE FROM CANADA.


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ASK: IF NOT FROM CANADA, WHERE? In a marketplace where consumers increasingly demand sustainably produced and environmentally friendly goods, Canada’s forest products industry has a track record that positions it miles ahead of the competition. “Made in Canada” is synonymous with products that are legally sourced, certified to globally recognized standards, and produced with minimal environmental impact. The industry is a leader in alternative fuel use and has managed to reduce its carbon emissions from pulp and paper mills by 44%, better than seven times Kyoto targets. Furthermore, the industry has pledged to attain carbon neutrality by 2015, without purchasing offsets and through all stages of the product life cycle. But not all jurisdictions subscribe to the same principles of environmental improvement and sustainable forest management. In some countries, illegal logging and deforestation are rampant, environmental laws lax, and certification rare. Our pledge on the environment comes amid the toughest economic times for the sector since the Great Depression. This reflects seismic changes in global markets, such as competition from emerging markets and the rapid rise of the Canadian dollar. But it also incorporates homegrown hurdles such as soaring energy, fibre, and transportation

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FOREST PRODUCTS ASSOCIATION OF CANADA

costs and a tax regime that discourages investment. Realigning government policies to encourage capital investment, stimulate R&D, train future workers, and promote renewable energy would accelerate our recovery while reducing our environmental footprint. The industry has the vision and determination to overcome its current set of challenges and capitalize on the shifting global marketplace demands for environmentally friendly and sustainably produced products. The path to renewal will not be easy; nor will it happen overnight. But the industry is prepared to take the steps necessary to follow through on its vision to remain a world-leading producer of quality and sustainably produced forest products.

Avrim Lazar President & CEO, FPAC

John Weaver Executive Chairman, AbitibiBowater Inc. Chairman of the Board, FPAC

TWO NEW PLEDGES HAVING FULFILLED OUR PLEDGE TO BECOME THE WORLD’S FIRST NATIONAL FOREST INDUSTRY ASSOCIATION THAT IS 100% THIRDPARTY CERTIFIED FOR SUSTAINABLE FORESTRY IN ALL OF OUR OPERATIONS, FPAC COMPANIES HAVE MADE TWO NEW PLEDGES: CARBON NEUTRAL: WITHOUT PURCHASING OFFSETS

TRACEABILITY: SOURCE ALL FIBRE FROM LEGAL SOURCES

Having already reduced greenhouse gas emissions to a point seven times Kyoto targets, we’re going a giant step further. By 2015, the Canadian forest products industry will be carbon neutral through all aspects of the life cycle of our products, and we will do it without buying carbon offset credits. Complementing this pledge are our two goals of becoming net green power producers by 2020, and diverting all good wood and paper from landfills.

Illegal logging not only is a major driver of deforestation in some countries but also undermines the viability of legally harvested and traded forest products. For this reason FPAC members have signed on to a commitment to purchase and use wood from legal sources only. FPAC members have committed to tracing their fibre supplies back to the forest area of origin to assure customers that the wood fibre they are using comes from legal sources.

THESE PLEDGES SHOULD BE UNIVERSAL BENCHMARKS THAT DEFINE SUSTAINABILITY, AND THE CANADIAN FOREST PRODUCTS INDUSTRY HOPES PRODUCERS OF WOOD AND PAPER PRODUCTS AROUND THE WORLD EMBRACE THEM.


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“Greenhouse gas (GHG) emissions resulting from deforestation are estimated to represent more than 18% of global GHG emissions. At the current rate of deforestation, most of the top 10 deforesting nations would clear their forests before 2100. Deforestation is highly concentrated in a few countries. Currently around 30% of land-use emissions are from Indonesia and a further 20% from Brazil.” Stern Review: The Economics of Climate Change, October 2006.

Canada’s commitment to sustainable forestry practices has made it a global leader with respect to original forest cover, protected forest, and certified forest. It is also why Canada has a deforestation rate of virtually zero. Photo: Aerial photograph of cut and charred trees and a clear-cut access road in a deforested section of the Amazon Rainforest, north of Manaus, Brazil. Photographer: Robert Rattner.

STOP DEFORESTATION


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ENVIRONMENTAL COMMITMENT AND LEADERSHIP THAT IS SECOND TO NONE Climate change is all too real. Poorly managed non-renewable and renewable resources, including forests, represent a significant factor in a changing climate and a warming planet. In fact, deforestation is one of the leading causes of global warming. With global demand for wood and paper products growing, it is imperative that this emerging demand be met in the most environmentally responsible way—anything short of this invites disaster. To ensure that Canadian forest products meet and exceed emerging environmental standards, the Canadian industry is committed to four core values:

· Leadership: The industry has demonstrated leadership in the

form of its forest management certification commitments, climate change successes, promotion of green energy, and joint ventures with leading environmental groups. This has led to a culture change within the industry that extends horizontally and vertically throughout companies, earning the trust of stakeholders who are open to consensus-building.

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FOREST PRODUCTS ASSOCIATION OF CANADA

· Credibility: Canada’s world-leading legal and regulatory framework for

“ WE ARE PLEASED THAT FPAC IS TAKING SUCH A LEADERSHIP POSITION ON CLIMATE CHANGE AND NOT WAITING FOR GOVERNMENT REGULATIONS BEFORE TAKING ACTION. MY BIG HOPE IS THAT OTHER CANADIAN SECTORS WILL FOLLOW SUIT AND RISE TO THE CHALLENGE.”

forestry provides a base of credibility. This regulatory regime is highly rated by international experts. Our job as an industry is to deliver on what we promise, as we have done in fulfilling our sustainable forestry management certification commitment.

MIKE RUSSILL, PRESIDENT AND CEO OF WWF–CANADA

· Transparency: By law, the public has input into our forest management planning. That’s a unique feature of our forestry practices, reflecting the high degree of public ownership of Canadian forests. Disclosure is an integral part of our certification standards and environmental/ sustainability reporting in general.

· Consensus-Building: We’re working with leading environmental groups, communities, scientists, and customers to advance files such as land-use agreements, climate change, boreal and coastal conservation, habitat conservation, and species maintenance and recovery.

WHERE?

greenhouse gases from the atmosphere than we emit. Achieving this will require greater recovery and recycling of wood and paper, increasing the capacity of forests as carbon sinks, and further reducing fossil-fuel use in the manufacturing and delivery of our products. Meeting the 2015 goal will also depend on constructive partnerships involving the industry and its customers, consumers, scientists, and other key stakeholders. With this in mind, FPAC, in conjunction with WWF–Canada, will be conducting a two-year research project covering four areas:

· Encouraging potential greenhouse gas savings from renewable energy, LEADERSHIP: CARBON NEUTRALITY On October 30, 2007, FPAC members set a goal to achieve carbon neutrality of the full forest product value chain by 2015, without buying carbon offset credits. That means including withdrawals and releases of carbon during manufacturing, transportation, and the decomposition of used wood and paper. Furthermore, we believe that, in the long run, we can become carbon negative, meaning we would be removing more

cogeneration, and other mitigation options.

· Enhancing forestry-related life-cycle analyses. · Advancing forestry practices that are both carbon and conservation friendly. · Developing recommendations for bioenergy and products whereby forest product use and greenhouse gas savings are maximized while biodiversity impacts are minimized.

Becoming the Green Powerhouse There is a stark contrast between “us” and “them” when it comes to the energy used in producing wood, pulp, and paper. Manufacturing is expanding faster in Asia than anywhere else, and the energy fuelling that boom is generated largely from carbon-emitting sources like coal. The Canadian picture is different. Our mills rely primarily on internally generated power or purchased hydroelectricity. To date, the pulp and paper sector generates 60% of its own electricity from CO2-neutral biomass. The industry’s goal is to become self-sufficient by building more cogeneration capacity where possible. Biomass cogeneration accounts for much of the industry’s 1,700 megawatts (MW) of clean green power capacity (enough power to meet the energy needs of a city with 1.7 million residents) and has been a leading factor in the industry’s ability to reduce GHG emissions by 44%, seven times targets set by the Kyoto protocol. The benefits of becoming energy self-sufficient, and producing surplus green power for resale, are

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*ASK FOR AN INDUSTRY WHOSE COMMITMENT TO, AND RECORD OF, ENVIRONMENTAL LEADERSHIP IS SECOND TO NONE. THE CANADIAN INDUSTRY’S RECORD OF CONSTRUCTIVE PARTNERSHIPS AND ENVIRONMENTAL PROGRESS IS UNMATCHED. MORE IMPORTANTLY, WITH NEW COMMITMENTS TO ACHIEVING CARBON NEUTRALITY, REDUCED FOSSIL-FUEL USE, AND LEGALLY SOURCED FIBRE, THE BEST IS YET TO COME.

GREEN ENERGY Pulp & Paper Energy Sources, 1990

Pulp & Paper Energy Sources, 2006

22 49

24 0

58

2 16

30 FOSSIL FUELS

NET ELECTRICITY PURCHASES

BIOMASS

OTHER (NET) PURCHASES

Percentage of Energy from Biomass— FPAC Members (pulp & paper facilities) Source: FPAC Energy Monitoring Report, 1990–2006.

If not from Canada,

WHERE?

BEYOND KYOTO

10 0 -10 -20 -30 -40 -50

1990

ACTUAL -44%

2000

2001

2002

2003

2004

2005

KYOTO TARGET -6%

Total Direct Greenhouse Gas Emissions from FPAC Members (pulp & paper mills) versus Kyoto Objectives (percentage reduction) Source: FPAC Energy Monitoring Report, 1990–2006.

compelling. Doing so would lower our energy costs and fossil-fuel consumption, and divert millions of tonnes of wood waste from decomposing in landfill sites. Zero Waste Zero good wood and paper in landfills—that is the industry’s ambitious target for itself and Canadians. Be it sawdust or paper, old lumber, or discarded paper packaging, good recovered fibre can be made into new products or used to generate green energy. FPAC will be joining corporate partners to help extend awareness of recycling to new locations, with the goal of raising Canada’s paper recycling rate. Canadian mills recycle more than five million tonnes a year of paper sourced entirely within North America. Curbside recycling is well established and increasingly common in large office towers, especially government buildings. Several Canadian cities boast waste-wood recovery programs, while others have, or will soon have, ventures to recycle demolition wood and urban forestry residue into bioenergy. But there remains room for improvement.

LEADERSHIP: SUSTAINABLE FORESTRY Civilization is fast encroaching on the world’s tropical forests, making deforestation a global concern. In some countries where forests are publicly owned but not inventoried, forest fires are used to clear the

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THE PLANET-FRIENDLY CHOICE JUST THE FACTS

1. Canada’s record of forest management and regeneration is unsurpassed, with a rate of deforestation that is virtually zero (United Nations FAO State of the World’s Forests 2007 report).

CERTIFICATION LEADERS FPAC MEMBERS (95 million hectares)

138.0

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42.32 5.62

4.8

4.37

Canadian Certification in a Global Context (millions of hectares) Source: Canadian Sustainable Forestry Certification Coalition, December 2007.

1.9

Chile

7.78

France

9.09

Malaysia

15.68

Brazil

18.21

Germany

22.53

Australia

140 120 100 80 60 40 20 0

Russia

Certification Leadership In 2002, FPAC pledged that all of its forestry operations would become certified to one of three internationally recognized standards for sustainable forest management (SFM). This has been achieved: 138 million hectares are now third-party certified. SFM standards elevate forestry practices to a higher level as they drive continual improvement. Certification standards give local communities a say in the setting of goals or benchmarks to improve forest management. Moreover, they meet social development objectives, such as accommodating more aboriginal participation in forestry.

CANADIAN FOREST PRODUCTS:

Ensuring that Canadian Forest Products Are Legally Sourced Illegal logging drives deforestation, undermines the viability of legally harvested and traded forest products, and has a significant negative impact on the environment. Correspondingly, FPAC members have committed to tracing their fibre supplies back to the forest area of origin to assure customers that the wood fibre they are using comes from legal sources.

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land for farming, mining, or construction. Not so in Canada. Canada has 91% of its original forest cover, dating back to the beginning of European settlement, and that’s not likely to change. Canada’s managed forest—the portion available to logging and other largescale commercial activities—constitutes less than half of the country’s total forest area. Our annual harvest is well below 1% of the managed forest. Forest companies are legally obliged to regenerate. With improved tending practices, seedling survival rates in British Columbia have improved to 97%, compared with only 57% three decades ago.

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2. Canada retains more original forest cover (91%) than any other country in the world (World Resources Institute). 3. Canada has the most protected forest area, more than 40 million hectares, in the world. (Center for International Forestry Research and UNEP World Conservation Monitoring Centre). 4. 80% of Canada’s forest lands are in the boreal region (Canadian Forest Service). 70% of Canada’s boreal region is not accessed (Global Forest Watch Canada). And less than 1% is harvested annually (Natural Resources Canada). 5. All forestry operations of FPAC members must be third-party certified (Canadian Standards Association, Forest Stewardship Council, Sustainable Forestry Initiative®). Canada is home to 10% of the world’s forests (UN) but accounts for 40% of the total amount of certified forest in the world (Canadian Sustainable Forestry Certification Coalition).

6. Nearly all (93%) of Canada’s forests are publicly owned and regulated (Natural Resources Canada). Companies operating on these lands are bound by comprehensive legislation and enforcement: 20- to 25-year forest management plans; all harvested areas must be promptly regenerated; rolling five-year development plans and site-specific annual operational plans; and forest management schemes subject to public review. 7. Canada’s laws and regulations are some of the most stringent in the world— conclusion of an independent third-party report conducted by Dr. Benjamin Cashore, Associate Professor of Sustainable Forest Policy and Chair of the Program on Forest Certification, School of Forestry and Environmental Studies, Yale University. 8. Canada’s forest products industry is a global leader in climate change mitigation. The Canadian pulp and paper industry has reduced greenhouse gas emissions by 44% since 1990—better than seven times Canada’s Kyoto targets (FPAC energy survey).

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Global demand for forest products is forecast to grow over the years ahead. If that demand is not sourced from sustainable producers, the consequences for the world’s climate will be disastrous. The Canadian industry reforests all areas that it harvests.

The industry plants more than 500 million trees per year. Canada has the most certified forest, the most protected forest, and the most original forest in the world. There is simply not a more sustainable forest products supplier than Canada.

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In the forest products sector, as in most other sectors, the ability to meet or exceed the performance of leading global competitors on the basis of cost is key to success. Using this as a measurement, mills need to be first-quartile or, at minimum, second-quartile performers to produce the cash flow that will lead to accelerated capital investment and increased R&D. While there are some world-class mills in Canada, only a minority of operations boast first- or second-quartile status— the result of older technology and higher input costs. Reducing the costs of the following inputs is a prerequisite for renewal:

38.4

22.1 21.8

17.2 15.8

9.9

9.5

8.1

7.8

7.1

7.0

6.4

Forest Products Exports 2005 (CAN$ billions) Source: FAO, February 2007.

Belgium

Netherlands

Brazil

4.9

China

40 30 20 10 0

· Fibre: In much of the country, fibre costs are among the highest

in the world. Making provincial tenure systems more flexible and market-driven would remove entrenched inefficiencies that translate into higher costs.

· Energy: Expanding green power generation will shelter mills from energy inflation and improve environmental performance.

· Technology: Our technology lags behind the gold standard established by recently built mills in Europe, Asia, and Latin America, with their

ECONOMIC CORNERSTONE

EXPORT POWERHOUSE

Indonesia

What will it take for the Canadian industry to capitalize on this opportunity? It will require controlling our production costs, optimizing our corporate structures, sharpening our customer focus, and continuing to improve our environmental performance.

WHERE?

Austria

Additional funding is being directed into research projects to develop new products, technologies, and processes. This investment will lead to technologies that will aid in the manufacture of cutting-edge goods such as composite-wood construction products and bioactive paper. Meanwhile, other emerging forestry nations will eventually have issues they need to confront, most notably land-use competition, volatile energy costs, fibre shortages, and environmental pressures. Canada’s competitive advantage increases as consumers increasingly wield their purchasing power by insisting on sustainably sourced products.

France

Nevertheless, future prospects remain solid, as global demand for forest products is forecast to grow annually. Canada should, and can, realize its share of that growth. We have abundant natural resources—water, fibre, and energy—and expertise in converting these resources into the best products available. And of increasing importance, the industry is a global leader in producing its products in an environmentally sustainable manner.

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The forest products industry is a competitive sector, and producers around the world often struggle to consistently earn their cost of capital. Canada’s pulp and paper sector has faced challenges in this regard in recent years as a result of structural changes in key product markets and the entry of low-cost producers into global markets. While much of Canada's wood products sector enjoyed strong performance during the middle years of this decade, the severe downturn in the U.S. housing market has created an extremely challenging environment. Across the industry, the

1. GETTING COSTS RIGHT

Russian Federation

The Canadian forest products industry represents 3% of Canada’s GDP. The industry directly employs more than 300,000 Canadians (another 600,000 indirectly) and is the economic lifeblood of some 300 communities from coast to coast. However, the industry is facing a significant set of challenges that places these jobs and communities at risk. Our position as the world’s most successful forest products exporting nation is under siege by intensifying global competition, higher input costs, and a stronger domestic currency. How the industry emerges from this challenge will have a significant impact on the Canadian economy in general.

unprecedented appreciation in the value of the Canadian dollar, coupled with its level of volatility, has exacerbated the challenges faced by the industry.

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A VISION FOR A STRONG AND GLOBALLY COMPETITIVE INDUSTRY

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3.0 2.5 2.0 1.5 1.0 0.5 0.0

2.7 2.2 1.8 1.6 1.0

0.8 0.5

Forest Products Industry

Oil and Gas

Motor Chemical ManuVehicle Manu- facturing facturing

Mining

Rail Plastics Transport and Rubber

Industrial Contribution to Canada’s GDP 2006 (per cent) Source: StatsCan, March 2007.

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*ASK WHAT OTHER INDUSTRY CONTRIBUTES THIS MUCH TO

economies of scale and state-of-the-art process systems. It is the industry’s job to raise the necessary capital to renew the capital stock. Although the industry is a significant investor in research and development, more is needed. Toward that end, governments, through competitive taxes and an investment-friendly climate, can strengthen

THE CANADIAN ECONOMY:

the business case for such large projects by eliminating capital taxes and sales taxes on capital inputs and extending write-offs on capital investments. Also, measures such as refundable Scientific Research and Experimental Development (SR&ED) tax credits would provide the industry with significant means to innovate its way out of these challenging times.

· Personnel: Canada’s personnel costs are among the highest in the

ND

world, while labour productivity is well below world-class levels. Industry and labour have to work together to close the gap.

R&D LEADERSHIP

· Transportation: The monopoly rates Canada’s railways charge

912 546

537 170

143

131

129

40

Petroleum and Coal Products

Plastics

Electrical

Transportation and Warehousing

261

Computers and Peripherals

1,400 1,200 1,000 800 600 400 200 0

Mining, Oil, and Gas

WHERE?

1,293

Motor Vehicles

· $80 BILLION IN REVENUE · EXPORT SALES IN EXCESS OF $40 BILLION—2 LARGEST CONTRIBUTOR TO CANADA’S TRADE BALANCE · 3% OF CANADA’S GDP · MORE THAN 300,000 DIRECT JOBS; 600,000 INDIRECT JOBS · ECONOMIC LIFEBLOOD FOR MORE THAN 300 COMMUNITIES FROM COAST TO COAST · LARGEST INDUSTRIAL EMPLOYER OF ABORIGINAL PEOPLE IN CANADA · ANNUAL WAGES SIGNIFICANTLY EXCEEDING THE NATIONAL AVERAGE

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Research and Development Expenditures 2006 (CAN$ millions)

shippers captive to a single carrier are harmful to mills, and to the northern and remote communities they support. Governments need to take steps to ensure that railways provide competitive freight rates and service levels.

2. GETTING THE INDUSTRY STRUCTURE RIGHT Markets, not governments, should play the central role in determining how companies structure their business. Ad hoc government bailouts of failed mills distort competition and undermine healthy companies. Until 2007, no Canadian-based company ranked among the world’s

Source: StatsCan, April 2007.

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20 largest forest product companies, in part because federal regulators placed constraints on acquisitions and mergers. The result is that Canadian-based companies often find themselves competing against huge multinationals and negotiating with customers many times their size. Although there will always be room for smaller companies that offer a competitive value proposition, Canada needs to allow the emergence of forest products companies of a world-class scale. Governments can best assist recovery by creating a policy environment that is equal for all producers and that is pro-export, pro-investment, and non-discriminatory.

3. GETTING THE FUTURE RIGHT The destiny of Canada’s forest products industry is to be nimble and swift. While cost competitiveness will always be key, Canadian producers can differentiate themselves from their competition by evolving to a more relationship-based business where producers design and manufacture what the customer wants. With such a

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strong customer focus, proximity to our North American customers becomes an even greater strength and an important part of defending our home market.

REASSERTING A GLOBAL MARKETPLACE POSITION

OPPORTUNITY

Canada’s forest products industry must remake itself to take advantage of growing market demand. Most of the new capacity being added to global wood and paper markets is in developing countries with low labour and fibre costs, and weak environmental regimes. That’s not where Canada’s future lies. The case for Canadian wood and paper builds on the premise that a world increasingly concerned about the planet will buy products that are high quality and have low environmental impact.

11 10 9 8 7 6 5 4 3 2 1 0

11.1

7.6

8.1

ASK: IF NOT CANADA,

5.0 2.9 1.3

China

India

1.9

USA

1.5

World

Average annual growth in paper and paperboard consumption 1985–2005. Source: FAO, April 2007. Average annual growth in lumber consumption 2000–2005. Source: StatsCan, May 2007.

Global Demand for Paper and Lumber (per cent)

WHERE?

On this score, our industry’s products are among the best. We are focusing on becoming world leaders in every category related to sustainability. We are targeting a sweet spot: a winning combination of competitive price, environmental pedigree, product quality, and service delivery that our customers and consumers want. To achieve this, Canada’s forest industry is working toward four strategic objectives:

· Become world leaders in sustainability and make “Made in Canada” synonymous with environmental leadership.

· Build upon existing partnerships and develop new ones to further environmental and social progress.

· Transform from a traditional commodity manufacturer to a

market-oriented player that is responsive to both North American and overseas customers.

· Level the playing field with competing countries by controlling

production costs, investing in new technologies, and optimizing our corporate structures.

Achieving these goals will entail substantial change. But fearing change is not an option for an industry that faces continual trade wars, an all-time-high dollar, rapidly rising fibre and energy costs, restrictive and injurious policies from all levels of government, declining newspaper circulation, and the damage wrought by the

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mountain pine beetle in western Canada. And while the worst may not be over, Canada does have the opportunity to begin to shape our destiny by leveraging our natural and hard-earned advantages:

· Export-Oriented: North America will remain a core market, and

we will protect and expand it by offering customers tailor-made products and consumer education tools; however, the industry will also build upon its strength and history as a global export leader to continue its expansion into new markets such as China and India.

· Abundant Resources: Our foreign competitors face, or ignore,

issues such as deforestation, drought, energy shortages, unbridled pollution, and reliance on imported fibre that could affect their reliability and competitiveness. Canada—with its abundance of fresh water, high-quality fibre, and green energy—will remain a stable, predictable, and sustainable source of quality forest products.

· Sustainability: Canada’s achievements, such as 100% certification for sustainable forest management, will distinguish us from our competitors. We will help our customers meet their sustainable procurement policies and meet the growing consumer demand for environmentally sensible products.

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FOREST PRODUCTS ASSOCIATION OF CANADA

In a global marketplace that increasingly demands sustainably produced and environmentally friendly goods, Canada’s forest products industry has a track record that is unrivalled. The industry has undertaken an ambitious revitalization plan that focuses on cost-competitiveness, improvements in sustainability, and the deployment of breakthrough technologies that will enable it to overcome its current set of challenges and position it to capitalize on emerging global market opportunities.

CONTACT US The Forest Products Association of Canada Canada: 99 Bank Street, Suite 410, Ottawa, ON K1P 6B9, 613-563-1441 Europe: 12A, Place Stéphanie, 1050 Brussels, Belgium, 32-2-512 50 51 fpac.ca ottawa@fpac.ca

·

ASK: IF NOT CANADA,

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THE FOREST PRODUCTS ASSOCIATION OF CANADA (FPAC) is the voice of Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. The forest products industry represents 3% of GDP, exports more than $40 billion annually, and is one of Canada’s largest employers, operating in hundreds of communities and providing nearly 900,000 direct and indirect jobs across the country. With the help of member companies, FPAC designs programs to promote Canada’s leadership in trade and economic matters, sustainable forest management, and environmental stewardship. This annual review is printed on Canadian offset paper containing 30% post-consumer fibres.

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MEMBER COMPANIES AbitibiBowater Inc. Alberta-Pacific Forest Industries Inc. Canfor Corp. Canfor Pulp LP Cariboo Pulp & Paper Co. Cascades Inc. Catalyst Paper Corp. F.F. Soucy Inc. Howe Sound Pulp and Paper LP Kruger Inc. Louisiana-Pacific Canada Ltd. Mercer International Mill & Timber Products Ltd. NewPage Corp. Papier Masson Ltée SFK Pâte Tembec Inc. Tolko Industries Ltd. UPM-Kymmene Miramichi Inc. West Fraser Timber Co. Ltd. Weyerhaeuser Co. Ltd. FPAC is a proud partner of the Canada Wood program.


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