Region Archives: Canada West

Bruce Ralston

B.C. Forests Minister Bruce Ralston is defending his government’s plan to allocate 10 per cent of BC Timber Sales fibre available for auction to the value-added forestry sector. Ralston’s plan and how it relates to secondary wood manufacturers was criticized by Prince George businessman John Brink, who said the new program won’t be enough to attract new investment and prevent some value-added companies from going out of business. “We take exception to the comments,” said Ralston, “The 10% dedicated fibre supply for the new program is just a starting point. Government is committed to ensuring additional volume for BC Timber Sales. …Ralston announced the province intends to set aside 600,000 cubic-metres of Crown land timber. …Brink said B.C. companies in the secondary forest industry should have access to six million cubic metres.

Mike Bernier

Canfor is closing another set of mills in northern B.C., this time in Chetwynd and Houston. …Peace River South MLA Mike Bernier called the news “devastating.” “Anytime you have an announcement like this it’s heartbreaking for the families that are affected,” said Bernier, also the Opposition critic for forestry. “For a community like Chetwynd, this is a huge loss to the community.” …Bernier says Canfor still has a business case to operate the Houston mill, which he says was designed and built to deal with the pine beetle epidemic. But companies across the province, including in the Peace region, are struggling to secure long-term tenures for fibre supply, he said. He blamed the provincial government for being reactionary in its response to the mounting pressures in B.C’s forestry sector, despite what he says is still an abundance of supply in the province.

Additional coverage in Alaska Highway News, by Mike Bernier: NDP lack leadership needed for B.C. forestry

PORT ALICE, BC — North Vancouver Island’s Port Alice was founded as a municipality because of its pulp mill. The mill was owned and operated in the early days by Whalen Pulp and Paper Mills of Vancouver — a family business endeavour by the brothers Whalen. Construction began on the mill in 1917 and it produced its first pulp just one year later in 1918. …The mill had a full life up until it was closed permanently in 2015, with 97 years of operation under its belt. Five years after its closure, residents were shocked to find out that Neucel Specialty Cellulose — the latest owner of the mill who’d purchased the operation in 2005 — successfully filed for bankruptcy. When Neucel bought the mill, it had already been in a state of bankruptcy a year prior to their purchase of the operation.

Doug Routley

As the Parliamentary Secretary for Forests and MLA for Nanaimo-North Cowichan, I’m committed to making sure people have strong communities to call home, with good-paying jobs and public services that families can count on. As someone who has worked in forestry, I know personally how vital the sector is for our province. …Last week, we introduced the BC Manufacturing Jobs Fund, which is part of our plan to create more good-paying jobs, build stronger, more resilient forestry communities and create new economic opportunities through innovative, value-added manufacturing. The provincial government is investing $90 million dollars to drive clean growth in rural, remote and Indigenous communities by supporting industrial and manufacturing projects. …The fund also builds on the $185 million we announced in 2022 to support forestry workers, industry, communities and First Nations that may be affected by deferrals of old-growth logging.

Merlin Nichols

When I was Mayor of Chetwynd the crisis that has come home to roost was clearly seen in the ominous silences with which our efforts to avert the crisis were met in Victoria. …we predicted mill closures with devastating effects on the community if the policies the government of the day appeared to be taking were put into effect. …With the closure now announced, it will do us no good to point fingers and cast blame, though blame, if any, primarily rests with political authority. …The assurance by CANFOR’s CEO that the closure was not based on a shortage of fiber, but rather on the difficulty of obtaining permits to harvest, should be the starting point. And from there we go on to chart a workable solution. …Finally, Victoria must play a key role in the negotiations, and without delay, if this operation and this community is to be salvaged. 

John Rustad

The provincial government and Canfor both have a responsibility to the workers when the company closes its Houston sawmill, says John Rustad, Independent MLA for Nechako Lakes. Rustad … doesn’t question the need for a new mill …but says he thought Canfor would have kept the current mill working while the replacement was underway. …What needs to be in place is a program whereby Canfor tops up financial assistance provided by both the provincial and federal governments, Rustad said. Worker support is one of three items Rustad said he’ll be fighting for… Rustad’s third item concerns financial support for the District of Houston which will lose a major part of its property tax revenue when the mill closes down….“I don’t want to see any logs leaving the community. I think the province is going to have to have some very tough conversations with Canfor,” he continued.

The closure of two mills, in Chetwynd and Houston, is not just a blow for local communities, but the sector as a whole.

To better align manufacturing capacity in British Columbia with the available long-term fibre supply, Canfor Corporation is restructuring its B.C. operations by permanently closing its Chetwynd sawmill and pellet plant and temporarily closing its Houston sawmill for an extended period to facilitate a major redevelopment on the site. The Company intends to build a new, modern, globally competitive manufacturing facility that employs state of the art technology to produce high value products from the sustainable timber supply in the region. Project planning, scoping, preliminary engineering and budgeting are underway.  …“We are making these difficult but necessary decisions to create a more sustainable operating footprint in B.C. Our goal is to match our mill capacity with the economically available fibre for harvest to enhance our ability to compete and to operate throughout the market cycles,” said Don Kayne, President and CEO. “…we are putting in place a comprehensive set of support mechanisms to help minimize the impacts of this transition.”

Additional coverage by the Ministry of Forests: Minister Ralston’s statement on Canfor’s restructuring

David Elstone, RPF, is a professional forester and a highly-regarded industry expert with over 25 years of experience within the forest sector. Recently David has served as Executive Director of the Truck Loggers Association (TLA), advocating on behalf of the British Columbia forest industry’s supply chain. David’s company – Spar Tree Group – aims to support the decision-making processes of the many and varied supplier and service providers that form the supply chain for the forest industry. David’s VIEW FROM THE STUMP NEWSLETTER is a highly popular and respected resource, offering timely and thoughtful analysis, editorial views, as well as various information pertaining to the BC forest industry, conveniently summarized all in one document, published 8x per year.

Canfor has announced the permanent closure of its Chetwynd, B.C. operations, as well as a temporary closure of its Houston sawmill. The company said shutting its Chetwynd sawmill and pellet plant is part of what it calls a restructuring of operations in the province, while the temporary closure of its sawmill in Houston is part of a restructuring focused on manufacturing. Though the company did not say how many jobs would be cut, the union representing workers at both locations estimated at least 400 people would be out of a job. Bromley said 120 people work at the Chetwynd sawmill, about 300 kilometres northeast of Prince George, while 280 are employed in Houston, about 300 kilometres west of the same city. Jobs will also be cut at the Chetwynd pellet plant. …Canfor says it will wind down both Chetwynd and Houston operations sometime this spring, removing approximately 750 million board feet of annual production capacity.

Additional coverage in the Vancouver Sun by David Carrigg: Canfor closes Chetwynd sawmill and pellet plant

Taking more capacity out of BC. While Canfor has been proactive in shutting sawmills to balance its log demand to the declining log supply over the last decade, the company announced more closures. …The company plans an orderly wind-down of operations that will conclude in early Q223. The closures will remove approximately 750 mmfbm of annual production capacity, which we estimate represents ~11% of the company’s total capacity. …Canfor’s closure in Chetwynd is likely good news to West Fraser (which has a mill in the District), but this may be short-lived, as the BC government is expected to add further restrictions on the harvesting landbase to protect Woodland Caribou. The economic viability of Canfor’s Fort St. John sawmill was impacted last week by the Province government’s agreement with the Blueberry River First Nations. We suspect that by closing its Chetwynd sawmill, the company can transfer a portion of its wood supply to Fort St. John.

Wood product manufacturers throughout the province will benefit from a new program to provide dedicated access to timber and accelerate the growth of value-added manufacturing, supporting innovation and creating jobs. For the first time, small and medium-sized secondary manufacturers will have a dedicated fibre supply under a new licensing program. The BC Timber Sales (BCTS) Value-Added Manufacturing Program will be open to facilities producing high-value products, such as mass timber, plywood, veneer, panelling and flooring. “Our government’s vision is to build a stronger, more resilient forestry industry through more value-added manufacturing,” said Bruce Ralston, Minister of Forests. “British Columbians expect that we get the most value from our forests and create more jobs for every tree harvested. That’s why we are taking action to ensure innovative, secondary manufacturers have access to the timber they need to invest and grow their operations.”

Related coverage in CBC News: BC announces more forestry supports

Bruce Ralston & Brenda Bailey

Wood manufacturers in BC that have little or no Crown tenure will get increased access to logs through BC Timber Sales. Forests Minister Bruce Ralston announced a new program – the BC Timber Sales (BCTS) Value-Added Manufacturing Program – that will set aside 10% of BC Timber sales for qualifying businesses. It will not be open to conventional lumber producers. Only higher value-added manufacturers will qualify….The announcement was made at Coastland Wood Industries, which makes veneer in Nanaimo. The company has no tenure of its own. …Ralston noted that five large forestry companies in B.C. own 50% of the Crown tenure. Ralston said the new program will start with 10% of BC Timber Sales, but that it’s expected that will eventually expand. “There is going to be significant investment in high value wood manufacturing in the coming decade,” said Jake Power of PowerWood.

Set against a backdrop of tree-clad mountains, the Kitwanga sawmill yard bustles with activity. Flatbed trucks are loaded with lumber, yellow backhoes scoop towering piles of wood chips and forklifts chime rhythmic warnings while reversing around the rutted tracks.  …,More than half of the trees processed in Kitwanga are harvested on Gitanyow lax’yip (territory) through a partnership with Hereditary Chiefs.  …. …The Gitanyow land-use plan is an example of Indigenous and settler governments working together in a way that reflects the principles of the United Nations Declaration on the Rights of Indigenous Peoples, one that is capturing the attention of nations across the country. Underpinning every aspect of the plan and how it plays out on the land is the concept of Gwelx ye’enst — the rights and responsibilities to sustainably pass on the land from one generation to the next.

With Canfor announcing the shutdown of a pulp line at one of its Prince George factories … communities that depend on the forest sector have been reacting with fearful caution. …West Fraser, too, announced the full closure of their Perry Sawmill in northeast Florida near Tallahassee. …Local residents …wonder what West Fraser has in store for the B.C. Central Interior. The company has eight operations in Quesnel, the town in which was founded. …West Fraser’s senior vice-president of government and corporate relations, James Gorman, told Black Press that we were living in “challenging times in British Columbia’s forest sector. Despite an abundance of trees in the province… constraints have severely reduced the available timber supply.” Adding, “government initiatives along with naturally occurring phenomenon have the potential to further impact fiber supply. It has never been more important for industry, governments, and First Nations to work together to support forest dependent communities and advance reconciliation objectives.”

VERNON, BC — Tolko Industries announced that downtime at its Soda Creek and Armstrong Lumber divisions will continue through the month of February. “We do not make these decisions lightly,” says Troy Connolly, VP of Solid Wood. …These temporary curtailments will reduce production by approximately 35 million board feet of stud lumber. …“While we strive to ensure consistency and stability for all of our operations, the upward cost pressures in the province combined with the notable decline in lumber demand make the decision necessary.” …As an additional update on Tolko facilities, operations will resume this week at White Valley and Armstrong Plywood Divisions. These locations were forced to take downtime due to a December 28 substation fire, which caused an ongoing power outage at Armstrong Plywood and Armstrong Lumber. Temporary repairs to the substation are complete, and teams are working through the process of restarting.

Premier David Eby made three announcements dealing with the struggling forest industry. Trying to get that industry back on its feet in a timely manner seems akin to pushing a very large boulder up an incredibly steep hill. The forestry sector has been in decline for decades. …The biggest problem right now is the lack of fibre ― or timber ― supply that is forecast to further decline for the rest of this decade. The timber supply was ravaged by the mountain pine beetle infestation that began in 2001. …The initiatives announced by Eby will help parts of the industry but will likely have little impact on the overall health of the sector. …There are more bad times ahead. The deferred logging of 2.6 million hectares of old-growth timber. …Add the volatility of lumber prices and the ever-present threat of U.S. countervailing duties, and the future continues to seem uncertain for what was once B.C.’s number one industry. 

Investigators are still determining the cause of an early morning Jan. 22 fire at Houston’s Canfor sawmill which severely damaged an interior control room. The blaze has further set back a full re-opening of the mill which has been closed for five weeks. Houston Volunteer Fire Department chief Jim Daigneault said firefighters were called out just before 1 a.m. and that three engines responded with 17 department members. “We were on scene for five hours. It was a challenge to make sure it was totally out,” he said of the fire in and around the computer equipment in the trimmer room. “The fire had gotten into a couple of walls and the electrical room floor had been compromised by the fire,” Daigneault added. …The mill, as with Canfor’s other sawmills in B.C., was closed for three weeks in December with the company citing weak markets and high log costs as reasons.

PRINCE GEORGE — Sinclar has announced temporary production curtailments at its lumber operations at Apollo Forest Products in Fort St. James, Lakeland Mills in Prince George, and Nechako Lumber Co. in Vanderhoof. The company says they will last two weeks, starting January 30. “There are factors outside of our control that are having a detrimental impact on our business,” said Sinclar President Greg Stewart. “Regrettably, it is necessary to curtail our lumber operations at this time.” Weak market conditions and constraints on an economical fibre supply are having a significant negative impact across the B.C. forest industry. “Sinclar remains committed to the long-term sustainability of our operations, while continuing to support our employees, local First Nations, and communities,” said Stewart. The Premium Pellet operation will continue to run, and Lakeland will continue to provide heat to the Prince George Downtown Renewable Energy System operations at this time.”

Related coverage in Woodworking Network: And another BC sawmill curtails production

Rob Schuetz

As a forest industry consultant, Rob Schuetz has been crunching numbers watching timber supplies fall and for many months and the math he’s been doing has been ringing alarm bells.  The president of Prince George-based Industrial Forestry Service Ltd., has watched anxiously as residual chip supplies have steadily fallen and the availability of pulp logs needed by local pulp mills to make up the difference has also plunged. Without fibre, pulp mills can’t operate and like many others connected to the industry Schuetz was not at all surprised when Canfor announced last week it intends to permanently close the pulp line at Prince George Pulp and Paper mill.  “It always made sense that one of the pulp mills would shut down,” said Schuetz. “We always knew that a complete shutdown of one of the mills would probably happen within the next couple years. ”

Jake Power

The Power Wood specialty sawmill in Agassiz has navigated turbulence in B.C.’s forest industry without layoffs to date among its 53 workers, but CEO Jake Power isn’t so sure about the future.  “It’s been OK,” Power said. “The last … eight or nine months, the market’s been strong enough that we’ve been able to just kind of buy our way into supply” of its raw materials.  …”At the moment, we’re a little bit nervous about growing our staff,” Power said. “Because we’re in a growth phase, I guess you could say … that we’re pausing hiring in a phase where we should be hiring more.”  …The bigger problem for industry, however, is the short-term uncertainty raised by government’s promise to transform land-use management in ways that will prioritize the ecosystem values of forests over just timber values, and what that will mean for timber supplies.