Weyerhaeuser Halts Marketing of Westwood Shipping Unit
Dec. 29, 2008 (Press Release) - Citing weaker shipping markets and tight financing conditions for potential buyers, Weyerhaeuser Company today announced it is discontinuing active marketing of its Westwood Shipping Line.
Weyerhaeuser had announced in May that it was exploring a strategic alternative for Westwood, a wholly-owned subsidiary that operates a fleet of seven ships used by customers to ship forest products, containerized and oversized cargo.
“We did not feel that the current market conditions would allow us to recognize a reasonable value for our assets and operations,” said Guy Stephenson, Westwood Shipping Line president. “We look forward to continuing to provide safe, uninterrupted service to our customers while pursuing new business opportunities and expanding our service.”
Westwood serves customers in more than 20 ports in Japan, Korea, China and North America with a fixed-day, weekly sailing schedule.
The announcement does not affect the company’s exploration of strategic alternatives for four regional short line railroads – the DeQueen & Eastern; Columbia & Cowlitz; MSV; and Golden Triangle. Weyerhaeuser primarily uses the short line railroads to source mills in Arkansas, Oklahoma, Mississippi and Washington. In addition, some third-party customers use the lines for select transportation needs.
SOURCE: Weyerhaeuser Company