Further consolidation within B.C.’s forest industry

Friday 6 Sep 2019

 
Canfor announced this week that they plan on curtailing an additional 75 million board feet of production capacity between September, 3 and the end of the year in Canada. The company is a leading integrated forest products company based in Vancouver, with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi and Arkansas, as well as in Sweden with its recent majority acquisition of Vida Group.

Its Houston, Polar, Prince George and Fort St. John sawmills in Canada will be curtailed the week of September, 3. In addition, Canfor’s Plateau and Houston mills will transition to a four-day work week in September, which will remain in effect until market and economic conditions support a return to the full operating schedule of five days per week.

The curtailments are due to the ongoing low price of lumber and the high cost of fibre, which are making the operating conditions in BC uneconomic.

Another major industry player, Interfor, as a consequence of market conditions this week also announced a plan to reconfigure its B.C. Coastal business, including the permanent closure of its Hammond sawmill, located in Maple Ridge, B.C., and the reorganization of its forestry and woodlands operations.

“The Coastal B.C. forest industry has faced significant log supply challenges over the past two decades and manufacturing capacity needs to be brought into line with available log supply,” said Duncan Davies, Interfor’s President and CEO. “Cedar producers have also been disproportionately impacted by duties on shipments into the United States as a result of the Softwood Lumber Dispute.”

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