The company began scaling down operations at the existing mill last Friday, with plans for up to 60 job losses. The new mill will employ 125 people and provide lumber for all the company’s West Coast markets.

Construction is scheduled to begin before the end of the year for completion in early 2008.

Weyerhaeuser vice-president Rob Taylor said the new mill would be more efficient. “It has good rail and transportation links, good proximity to customers and will be relatively easy to construct,” he said.

During construction the company said it would evaluate the timing for consolidating its Bauman and Coburg sawmills.