The list of British Columbia forest product companies in financial trouble grows. San Industries and associated companies have sought financial restructuring under CCAA, according to a court filing on November 29, 2024. …San Industries Ltd. et al, otherwise known as the San Group, have a reputation for pushing the envelope on the value-added manufacturing file, attempting to change the conventional approach to forest products manufacturing in coastal BC. …The San Group has no forest tenure of its own and relies on BCTS timber sales and commercial agreements to source its logs.
Regardless of the management decisions of this company and others that have contributed to their financial troubles, the trend is nonetheless alarming. When combined with the knowledge that companies like Interfor have made the strategic decision to exit the BC coastal forest sector, while Canfor and others are closing sawmills in the interior – there is an undeniable reality that what is occurring is unique to British Columbia – there is a common thread underlying all of this.
Is it best to let sawmills and other manufacturing plants fall to the wayside, and let our forests go unharvested? Should British Columbians including those in rural communities continue to tolerate deteriorating investment conditions for BC’s forest products manufacturing sector, or for that matter, the natural resources sector, in general? Absolutely no! The trick is to find the balanced solutions needed to generate prosperity while achieving other values. Unfortunately, efforts by the provincial government of the last few years have failed as this dismal trend continues. Immediate and meaningful action is needed. More troubles are coming.
Another B.C. sawmill company has filed for creditor protection and is planning a restructuring, underscoring the critical state of B.C.’s forest sector. The San Group has received creditor protection under the Companies’ Creditors Arrangement Act, as it undertakes a restructuring. Deloitte Restructuring Inc. has been appointed the company’s monitor. …In 2022, San Group announced the acquisition of Acorn Forest Products in Delta from Interfor. In April this year, the Acorn Forest Products mill was shut down when it was damaged by fire. According to documents filed with Deloitte Restructuring, Acorn Forest Products owes the Vancouver Port Authority $1.9 million in rent. …Under court ordered creditor protection, San Group… can carry on their business “in the ordinary course and in a manner consistent with the preservation of the business and the property. …In October, liens were placed on the company’s Port Alberni sawmill lands as security for nearly $22 million owed to the province in stumpage fees.
Ever since it was barely re-elected, the BC NDP government has promised a renewed focus on growing the economy, creating jobs and generating new sources of revenue. So it is perhaps surprising to hear that since the election, no cabinet ministers, nor the premier himself, have responded to requests to sit down and hear out a series of increasingly urgent concerns from the province’s top business leaders. …None of the ministers responsible for economic growth have responded to a meeting request from the so-called “G7” of B.C.’s business community — [which includes]… the Council of Forest Industries. …The groups issued a letter calling on all parties to prioritize the “deeply concerning” deterioration of the B.C. economy. …“Forestry has shed over 10,000 direct jobs in just four years and hundreds of millions of dollars of lost investment.
VANCOUVER — Western Forest Products announced that the Company and the United Steelworkers Local 1-1937 (USW) have agreed to the terms of a tentative collective agreement. The USW represents approximately 1,000 Western employees. The tentative agreement is subject to a ratification vote by USW membership, which is expected to occur before the end of the year. The USW bargaining committee has advised that they will be recommending that its members accept this agreement. …Steven Hofer, President and CEO of Western Forest Products said, “A new collective agreement will provide critical business certainty to the Company as we look to accelerate the transition to higher value products through reinvestment in our operations. I want to thank the bargaining team members for their work to deliver a fair and balanced agreement.”
When U.S. President-elect Donald Trump said he would immediately put tariffs on all goods being imported from Canada, Mexico, and China, people sat up and paid attention. Not just politicians but the general populations of the countries involved, even Americans. …A tariff is a tax or import duty placed by one country on imports from another country or countries. It effectively raises the cost of bringing foreign goods into a country and is usually used as a form of political leverage, a form of increasing revenues or to protect domestic industries by the importing country. Perhaps the best-known tariff currently in place against Canada is the softwood lumber tariff. …This added cost to our lumber makes it more expensive to U.S. buyers than a U.S.-produced product. …A tariff is a lose/lose deal.
Quebec’s premier is raising concerns about the potential impact of the tariff proposed by US president-elect on the province’s forest industry. In a statement posted to social media on Sunday, François Legault said high interest rates and existing duties on softwood lumber were already putting pressure on the sector, which he said accounts for more than 50,000 jobs in Quebec. “It will be important to protect our economy and our businesses in the coming months, and we are already working on our strategy with the relevant ministers within the government,” he wrote in French. “I have great admiration for all the workers in our forestry industry, whether they are in logging, transportation, sawmills or reforestation.” Legault’s comments echo those of BC Premier David Eby. …“Even before Mr. Trump’s announcement, we were working to support a Quebec industry that is already affected by tariffs in the US: the forestry industry,” Legault said.
Policymakers are looking out for indications of what President-elect Donald Trump plans to do to ease housing costs next year. …Trump has spoken frequently of his proposed 60% tariff on goods from China, which he has said would create more manufacturing jobs in the US. …But housing economists and other experts say that could be bad news for building more affordable housing. Selma Hepp, chief economist for CoreLogic, a financial services company, said tariffs are one of her main concerns about the effects of a second Trump term. “One of the biggest concerns is not just lumber [costs], but the overall cost of materials, which have been going up,” Hepp said. Kurt Paulsen, professor of urban planning in the department of planning and landscape architecture at the University of Wisconsin at Madison, said building costs are already high from tariffs on Canadian lumber.
The U.K. is expected to import a record 9.641 million metric tons of wood pellets in 2024, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network in November. The expected record in wood pellet imports for 2024 follows a significant decrease in U.K. wood pellet imports in 2023 and 2023, which the report attributes to changes in global wood pellet prices and competition from other energy sources. The U.K. primarily uses wood pellets for industrial energy production, with more than 93% of the country’s wood pellet demand in 2024 expected to be used for that purpose. …The U.S. is the largest supplier of wood pellets to the U.K., accounting for 73% of imports in 2023 by volume. Other sources of U.K. pellet imports are Canada, Latvia, the Netherlands, Estonia and Brazil.
We are informed that Jackson Wijaya is becoming the beneficial owner of both Domtar, formerly known as Paper Excellence, and Asia Pulp and Paper (APP). Domtar is a company in good standing that has maintained FSC certification since 2008, covering over 7 million ha of forest area, as well as mills and processing plants. 
A founding member of the Forest Stewardship Council (FSC) has called on the green credentials body to “immediately terminate” sustainability certificates for Canada’s largest forestry company. The 
J.P. Morgan Asset Management announced that institutional investors advised by the firm’s wholly-owned timber investment manager, Campbell Global, have led the acquisition of 40,800 productive acres of high-quality, commercial timberland located on the Olympic Peninsula in Washington state. The firm has named the property Tyee to acknowledge the Cascadia region’s indigenous Native American history. Campbell Global was acquired by J.P. Morgan Asset Management in 2021 and is recognized as a pioneer in timberland management, having managed more than five million acres worldwide for pension funds, foundations and other institutional investors since inception. Tyee will be continuously managed for both carbon capture and timber production to meet growing demand for sustainable building products and other uses. Some details of the property include 100% certified in accordance with Sustainable Forestry Initiative standards.
IDAHO — Deep in Idaho’s Clearwater Mountains, along the beautiful Lochsa River, is a stand of ancient cedar trees. These trees stand hundreds of feet tall and are hundreds of years old. They were standing long before Europeans arrived in these mountains. …It’s no accident that these old cedar trees are still standing. They remain standing because they are on public lands. Public lands, in which every American has a stake. Surrounding forests, not on public lands, tell a far different story. …Idaho sold off about one third of the land it received from the federal government upon statehood. …We in the West know what state or private ownership means for forests. Stumps, and lots of them. Both entities manage forests to maximize dollars generated. In contrast, public lands mean trees hundreds of years old, superb wildlife habitat, clear, clean water, and unmatched recreation opportunities. And our heritage. 
OTTAWA — Minister of Agriculture and Forestry Sari Essayah visits Canada with a delegation of the Finnish forestry and bioeconomy actors on 24–28 November. Minister Essayah will deliver the keynote speech at the Scaling Up Bioeconomy Conference. In addition, the Minister and the business delegation will visit the province of Quebec. …In Ottawa, Minister Essayah will meet with federal ministers of Canada, members of the Standing Committee on Natural Resources of the Parliament of Canada and management of the Natural Resources Canada (NRC). The main topics are the outlook of and cooperation in bioeconomy, sustainable forestry and forest management. …In the province of Quebec, Minister Essayah will meet the province’s management to discuss the opportunities in the bioeconomy sector. Finnish expertise in forest and bioeconomy will be showcased at Quebec Forest Industries Association and the local companies.
Changes in cloud cover may account for why global temperatures for the past two years have exceeded the predictions of climate models. 2023 and 2024 saw temperature records repeatedly smashed, with both years now showing average temperatures around 1.5°C above the pre-industrial level. Climate change plus an El Niño weather pattern are partly to blame, but neither factor fully explains the extraordinary warmth. Now,