Aug 08, 2007. /Lesprom Network/. International Forest Products Limited announced on August 7, 2007 that it has reached agreement-in-principle with Weyerhaeuser Company to acquire Weyerhaeuser's Kamloops sawmill and related timber tenures. The agreement is subject to regulatory approval and is expected to close before the end of the year. Terms of the agreement were not disclosed. The Kamloops sawmill was significantly upgraded in 1986 and produces SPF dimension and specialty lumber products primarily for the North American market. The mill produced 200 million board feet in 2006. Included in the transaction are timber tenures representing annual harvesting rights of approximately 700 000 cubic meters in the Kamloops area. "We are very excited about the acquisition of the Kamloops mill," said Duncan Davies, Interfor's president and CEO. "The acquisition is consistent with our stated goal of adding capacity in the Southern Interior region of British Columbia." Continuing, Mr. Davies said, "Our plan is to significantly rebuild the mill, with the goal of ensuring its long term viability. Planning for the rebuild will commence within 12 months following the date of acquisition, with construction to begin as soon as possible thereafter." With the addition of the Kamloops mill, Interfor's annual production capacity will increase to 1.5 billion board feet. Interfor is one of the Pacific Northwest's leading producers of quality wood products. The company has operations in British Columbia, Washington and Oregon, including three sawmills in the Coastal region of B.C., one in the B.C. Interior, one in Washington and two in Oregon. In addition, Interfor operates value-added and specialty products plants in B.C. and Washington. In April, Interfor announced plans to spend $100 million to construct a new sawmill at its' Adams Lake facility in the B.C. Interior.