EMPLOYEES

An employee backed purchase of the Harmac Pacific mill site has created a diversified industrial site centered around a highly competitive, low cost Northern Bleached Softwood Kraft pulp production facility. The shared focus of all owners is to maximize the profit potential of the Harmac Pacific pulp mill and associated property and facilities.

The organizational ownership structure is unique to British Columbia industrial manufacturing, for a business of this scale. Harmac Pacific has moved from a traditional labour model based upon the often conflicting self interests of owners, managers and labour, to a new model based upon employee ownership and common interest, focused on a commitment to the profitable operation of the business.

Each permanent employee has committed to purchase a $25,000 ownership stake in the company over a three year period. Employee ownership currently stands at 25% of the company equity. This ownership interest, combined with a flattened organizational structure, has eliminated the inefficiencies that have developed in the forest products industry in this region.

The Harmac Pacific business model is designed to be responsive and adaptable to changing business conditions. This has proven to be critically important in today's global market. Encouragement of creativity, short decision making processes and the rapid implementation of ideas has greatly improved and will continue to enhance the effectiveness and competitiveness of the operation. Based upon the profitability of the company, the employee owners/shareholders will benefit through the distribution of dividends as approved by the Board of Directors.