Company president Duncan Davies said December 19 that the primary reason behind the purchase of two Simpson mills in the southern United States and two in the Pacific Northwest is the opportunity to provide value to the company. The four mills are in close proximity to existing Interfor mills.

But he acknowledged that looming uncertainty over softwood trade with the U.S. is a background motive. The current softwood agreement expires in 10 months and the American lumber industry has indicated it is not interested in renewing it, raising the spectre of another softwood war.

“We view having capacity south of the border as a great hedge against events that we can’t control – whether it’s currency shifts or trade issues,” Davies said December 19 in a conference call with investment analysts.

“We see this as enhancing our ability to withstand anything that might come our way from a trade standpoint. But we are really driven to add capacity in areas where we think we can bring our expertise to bear and create value.”

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