Western Announces Ratification of La-kwa sa muqw Forestry Limited Partnership and United Steelworkers Agreement

Western Forest Products Inc. (TSX: WEF) announced on February 24, 2026, that employees represented by the United Steelworkers Local 1-1937 at La-kwa sa muqw Forestry Limited Partnership (LFLP) have ratified a new six-year collective agreement. This agreement, which is retroactive and set to expire on June 14, 2030, facilitates a safe and immediate return to work, concluding the work stoppage that commenced in June 2025.

LFLP is a partnership involving the Tlowitsis, We Wai Kai, Wei Wai Kum, and K’ómoks First Nations, which collectively hold a 34% stake, while Western retains 66%. This partnership, established in March 2024, encompasses assets and liabilities from Western’s former Mid-Island Forest Operation, including Tree Farm License 64. LFLP plays a crucial role in supplying timber to various coastal British Columbia mills under a long-term fiber supply agreement.

Western Forest Products, based primarily in British Columbia and Washington State, is an integrated forest products company focused on a margin-driven log and lumber business aimed at competing in global softwood markets. The Company boasts a lumber capacity of 700 million board feet across five sawmills, complemented by four remanufacturing facilities and two glulam manufacturing facilities. Western sources timber through long-term licenses, First Nations partnerships, and market purchases, offering a comprehensive range of specialty forest products.

Despite this positive development, investors are cautioned regarding forward-looking statements in the announcement, as actual performance may differ due to various factors, including market dynamics and regulatory changes. For further inquiries, interested parties can contact investor representative Glen Nontell at 604-648-4500.

Western Forest Products Inc. (TSX: WEF) has recently achieved a significant milestone with the ratification of a new collective agreement for its La-kwa sa muqw Forestry Limited Partnership (LFLP), effectively ending a work stoppage that had begun in June 2025. This six-year agreement not only ensures job security for employees represented by the United Steelworkers but also strengthens Western's operational stability moving forward, especially given that LFLP is a critical supplier of timber to Western’s coastal mills.

From a market perspective, investors could view this development favorably. The resolution of labor issues can drive operational efficiency and productivity, potentially enhancing Western’s supply chain stability and reducing the risks associated with mill downtimes. Moreover, LFLP’s partnership with First Nations communities represents a long-term commitment that can foster goodwill, leading to sustained access to resources and enhancement of corporate social responsibility (CSR) standing.

Moreover, with a lumber capacity of 700 million board feet and a broad suite of specialty products, Western is well-positioned to capitalize on the continued demand for forest products, both domestically and internationally. While there are inherent risks related to global economic uncertainties and fluctuating demand for timber, the established long-term agreements like the fiber supply pact with LFLP may mitigate some volatility.

However, investors should remain cautious. The forward-looking statements, while promising, carry inherent risks that could affect actual performance. Therefore, maintaining a diversified portfolio and monitoring global economic indicators, North American housing market trends, and regulatory changes in the forestry sector will be essential for gauging Western's future performance. As the market continues to evolve, Western’s recent labor stability could represent a potential opportunity for growth, provided that external conditions remain favorable.