Category Archives: Business & Politics

Business & Politics

CN Rail, Unifor reach tentative deal ahead of potential strike

By Ryan White
CTV News
December 9, 2024
Category: Business & Politics
Region: Canada

Canadian National Railway confirms it reached a tentative agreement with the union representing nearly 3,300 employees working in “mechanical, clerical, and intermodal functions,” likely preventing potential job action. CN says a tentative four-year collective agreement had been made with Unifor, pending ratification by union members. Terms have not been publicly released ahead of the ratification vote. The current contract expires on Dec. 31. In a letter issued Monday to its members, Unifor Council 4000 officials said it was “pleased to announce that a tentative agreement had been reached” following “extensive bargaining focused on securing meaningful gains for members.” …The ratification vote is expected to be held in the coming weeks.

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Green Party of Canada Welcomes Kathy Code as New Shadow Cabinet Critic for Forests

Green Party of Canada
December 6, 2024
Category: Business & Politics
Region: Canada

Kathy Code

OTTAWA – The Green Party of Canada announces Kathy Code as the new Shadow Cabinet Critic for Forests. With decades of experience in ecoforestry, policy analysis, and environmental advocacy, Kathy Code brings expertise and passion to this role. Her environmental leadership spans many initiatives, including director of the Ecoforestry Institute Society… Under her stewardship, the society has upheld Wildwood Ecoforest as a shining example of sustainable forestry practices. …As a founding member of the Fairy Creek movement, Kathy played a pivotal role in organizing the legal team and researching forestry policies, including the Forest Revenue Sharing Agreement between the Pacheedaht First Nation and the BC government. …“Kathy’s heart connection, life long dedication & knowledge will shine a light on the lack of integrity within the resource management of forests,” said Deputy Leader Rainbow Eyes. …Kathy’s extensive experience as a policy analyst, advocate, and community leader makes her an invaluable addition to the Green Party. 

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National President Lana Payne’s remarks on softwood lumber trade dispute to the House of Commons Standing Committee on International Trade

By Lana Payne
Unifor Press Release
December 4, 2024
Category: Business & Politics
Region: Canada

Good morning, members of the Standing Committee on International Trade, members of Parliament, and guests. My name is Lana Payne and I am President of Unifor, Canada’s largest private sector union, with more than 320,000 members across the country, working in every major sector of the Canadian economy… I’d like to remind the Committee that, while the softwood lumber dispute poses a clear and present danger, Canada’s forestry sector continues to experience a perfect storm of repeated and intersecting crises, and a combination of economic, environmental, and global challenges continues to destabilize the broader forestry sector… What we need is a coordinated, comprehensive and inclusive industrial strategy to help transform our forestry sector. The most ambitious and bold redevelopment strategy in modern times.

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MPs call on owner of pulp and paper firm to testify on links to controversial company

CBC News
December 2, 2024
Category: Business & Politics
Region: Canada

Charlie Angus

OTTAWA — Parliament’s Natural Resources committee voted unanimously Monday to call on Paper Excellence owner Jackson Wijaya to testify, following news that he is assuming sole control of controversial pulp and paper giant Asia Pulp and Paper from his father. New Democrat MP Charlie Angus said he wants the committee to hear from Wijaya as well as Canadian government officials who said there was no connection between Asia Pulp and Paper and Paper Excellence, which was recently rebranded as Domtar. …”I don’t think anyone would have opened the door to Asia Pulp and Paper coming in, or the Wijaya family coming in, to take over Canadian forestry operations if it was known that they were Asia Pulp and Paper. So hence the creation of Paper Excellence as the Trojan horse to get into Canada.” The motion also calls for Industry Minister François-Philippe Champagne to appear before the committee. 

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The Railroad on the Wrong Side of Trump’s Tariffs

By Esther Fung
The Wall Street Journal
December 2, 2024
Category: Business & Politics
Region: Canada, United States

A $28 billion merger in 2023 created Canadian Pacific Kansas City, connecting Mexico, the U.S. and Canada. …The railroad is the ultimate bet on the promise of the free flow of goods and a key cog in an intricate supply chain that underpins North American trade. It is a bet that suddenly got a lot riskier… with Trump’s threat last week to impose new 25% tariffs on Mexico and Canada. Railroad boss Keith Creel and his executive team have spent recent weeks trying to reassure shareholders that the incoming Trump administration won’t disrupt CPKC’s business and that the logic of its network still holds. …However, it would get more expensive if Trump makes good on his promise. And the movement of freight trains through the U.S.-Mexico border has also been cited as contributing to the flow of illegal immigration. …“Free trade in North America increased significantly during the first Trump term,” said Patrick Waldron at CPKC. 

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Softwood lumber duties a top priority, new Forests minister says

By Nelson Bennett
Business in Vancouver
December 9, 2024
Category: Business & Politics
Region: Canada, Canada West

Ravi Parmar

As the new minister of Forests, Ravi Parmar may have one of the toughest cabinet posts in BC. He will be under pressure to do something about the regulatory burden in B.C. that has been killing B.C. forest sector jobs at a time when B.C.’s forest sector faces crippling tariffs and duties. …A big part of the problem is a shrinking annual allowable cut (AAC). But forest industry leaders point out that… there is an adequate amount of AAC to keep the existing mills running, except that it has been made inaccessible due to cost and red tape. …“Regulations are only one part of the fibre story that we have here in BC,” Parmar said. He blames the big forestry companies for essentially cutting and running – i.e. harvesting the most valuable timber first, when prices were high, and not making the investments needed to access some of the less economic timber.

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Creditor protection extended for forestry company San Group

By Kendall Hanson
Chek News
December 9, 2024
Category: Business & Politics
Region: Canada, Canada West

A BC Supreme Court Justice has approved a short extension of creditor protection as a court monitor works with San Group to reorganize its business operations. The court-appointed monitor from Deloitte asked for the extension as he tries to clarify the value of the company’s assets. …In April, San Group’s Acorn mill in Delta was damaged by a significant fire. One claim for $12.1 million has recently been denied by the insurance company. The company is filing two more claims, jointly worth nearly $30 million. Also, the bomb cyclone was bad for San Group. Log booms in Alberni Inlet got loose, and management has reported losing $6 million in log inventory. The company has third parties trying to recover the logs. …All involved say they believe the company is working in good faith. …The monitor plans to have another report for the next court hearing about San Group’s future on Dec. 19.

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To do list for BC’s new forests minister

Resource Works
December 6, 2024
Category: Business & Politics
Region: Canada, Canada West

BC’s new forests minister, Ravi Parmar, has been busy gathering opinions on the state and possible fate of the province’s forest industry. Now it’s time for [him] to sit down with real experts, pick their brains, catch up on BC forestry economics, and come up with a sensible, realistic, and achievable forestry plan. While promising to be “bold”, he is already saying that basic policies will remain in place. In January, he will receive his official “mandate letter” from Premier David Eby …If we were to write Parmar’s mandate letter, it would first require him to take an unbiased look at his government’s Review to Action scheme and its “commitments” for old-growth forests. …said to have been based on input from what the government called “independent” review panels, Resource Works CEO, Stewart Muir, found out in 2022 that the purportedly independent “Old Growth Technical Advisory Panel” was heavily loaded with bias.

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Port Alberni creditors of the San Group hope they’ll get paid after protection filing

By Kendall Hanson
CHEK TV
December 6, 2024
Category: Business & Politics
Region: Canada, Canada West

Port Alberni businesses who are creditors of the San Group, a Langley-based company with two lumber mills in the Alberni Valley, are reeling — some saying they’re still owed money. The San Group recently filed for creditor protection with court documents showing it owes $194 million. Michael Ryles owns a company the San Group owes money to after selling a log-loader to the company. Ryles is one of several Alberni business owners CHEK News spoke to Friday, with some saying they’re still owed tens of thousands of dollars. Ryles is sympathetic to the San Group and hopes it will find a way forward to help the Alberni Valley. …The San Group’s Port Alberni manufacturing plant was behind a locked gate Friday, and no noticeable work was happening inside. …The company’s next creditor protection hearing happens Monday in Vancouver.

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B.C. sawmill company San Group seeks creditor protection

Nelson Bennett
Business in Vancouver
December 5, 2024
Category: Business & Politics
Region: Canada, Canada West

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.

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From Jasper’s fires to Alberta’s forests: a call for action

By Jason Krips, President and CEO
Alberta Forest Products Association
December 5, 2024
Category: Business & Politics
Region: Canada, Canada West

The Alberta Forest Products Association just wrapped up our 82nd AGM and conference. This year’s event was held in Banff, which is new for us, as we’ve been going to Jasper for decades. Sadly, the fires in Jasper meant that community was not able to host us this year. As an industry, we are heartbroken to see what happened in Jasper. We were also very saddened to learn that firefighter Morgan Kitchen was killed fighting the Jasper fire. Our wildland firefighters make tremendous sacrifices to protect our communities and deserve our gratitude. …the AGM was a great opportunity celebrate our successes as an industry and as an association. Despite ups and downs in markets and in the forest industry across Canada, Alberta has remained relatively stable. This means that we are able to not only focus on the present, but also on the future. Three initiatives that we are especially proud of are the Work Wild Program, Love Alberta Forests campaign, and our Forestry Talks podcast.

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B.C. startup turning junk wood into lumber

By Nelson Bennett
Business in Vancouver
December 4, 2024
Category: Business & Politics
Region: Canada, Canada West

Vancouver cleantech venture capital firm Chrysalix Venture Capital is getting behind a B.C. company that developed an innovative process for turning aspen and other junk timber into lumber at a new manufacturing plant in Fort St. James, B.C. Deadwood Innovations, a B.C. company, developed a thermochemical process that takes aspen and other low-quality timber that is unsuitable for sawmilling and transforms it into durable, high-quality lumber. …The new engineered wood process may address a problem the B.C. with a declining harvest by adding aspen and other poor timber to the fibre basket for making lumber. …Deadwood Innovations developed a thermo-chemical treatment process that increases the wood’s density and strength so that it can be formed into lumber. …Chrysalix’s investment will help finance Deadwood’s first commercial scale plant in Fort St. James, in partnership with the Nak’azdli Whut’en First Nation’s Nak’azdli Development Corp.

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Slow responses raise questions about BC NDP’s priorities

By Rob Shaw
Business in Vancouver
December 4, 2024
Category: Business & Politics
Region: Canada, Canada West

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.

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B.C. communities affected by forestry closures see increase in food bank use

CBC News
December 5, 2024
Category: Business & Politics
Region: Canada, Canada West

As more northern B.C. forestry jobs are lost amid continued pressure on the lumber industry, food bank operators in small towns say they’re seeing an increase in demand. The communities of Vanderhoof and Fort St. John are set to lose 500 jobs at the end of December when Canfor is slated to close sawmills in both communities. Food bank operators say they’ve already seen an uptick in usage this year… The future for B.C.’s forestry sector continues to be murky, as U.S. tariffs on softwood lumber could get even steeper… Patricia Budgell, with the Fort St. John Salvation Army, says their food bank is already seeing double the visits that it saw in 2023. …”It’s been really tough because, again, with the industry shutdown, a lot of those industries, when they were active, [were] supporting the food bank through sponsorships and items and donations,” she said.

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Unifor and PPWC target Kruger, Inc. to begin Western pattern bargaining

By Unifor
Cision Newswire
December 3, 2024
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER, BC – Two of the country’s largest pulp and paper unions, Unifor and the Public and Private Workers of Canada (PPWC), have selected Kruger, Inc. in Kamloops, B.C. as the target to establish pattern bargaining across the forestry sector in Western Canada. “We believe workers are stronger when we work together, strategically, to build and protect good jobs and advocate for the workers’ vision of a brighter future for the Canadian forestry sector,” said Unifor National President Lana Payne. “Unifor and PPWC have a strong history of solidarity, and this partnership is one of the ways we walk the talk as we urge corporations, industry leaders and governments to work with us to build a strong and value-added domestic forestry industry.” … Payne shared some of the union’s vision for industry-wide collaboration on December 2 when she appeared before the House of Commons Committee on International Trade regarding the softwood lumber dispute.

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Winter mill curtailments welcome B.C.’s new forests minister and critic to their roles

By Michael Reeve
CFJC Today Kamloops
December 2, 2024
Category: Business & Politics
Region: Canada, Canada West

KAMLOOPS — While the Tolko Heffley Creek Mill was a hive of activity on Monday (Dec. 2) morning, come December 20, the mill will be shut down. “They’ve had significant curtailments at this plant alone. They have already lost 30 per cent of their capacity, they’ve dropped their graveyard shift,” said BC Conservative Forest Critic and Kamloops-North Thompson MLA Ward Stamer. “That also impacts the logging contractors. …And nobody has a crystal ball, but I’m quite sure there will be more curtailments as this unfolds.” …“This temporary downtime is due to high fibre costs, poor weather conditions during the fall harvesting season and weak North American lumber and plywood markets,” said Tolko Communications Advisor Chris Downey. …Keta Kosman, owner of the Madison Lumber Reporter, does however see a light at the end of the tunnel. “We’ve seen a bottom. …Now we know where that is and that gives a stability to the lumber manufacturers and the builders,” said Kosman.

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Sinclar Group announces our new Chair for the Sinclar Board of Directors

By Greg Stewart, President
Sinclar Group Forest Products Ltd.
October 29, 2024
Category: Business & Politics
Region: Canada, Canada West

After 14 years of dedicated leadership, Dr. Charles Jago is stepping down as Chair of the Sinclar Group Forest Products Board of Directors. …Charles is a long-serving community member of northern BC, providing leadership and valued guidance on the boards of several local institutions. He is a former President of the University of Northern British Columbia and the namesake of the Charles Jago Northern Sport Center. …On behalf of the Sinclar Board of Directors, I express our sincere gratitude to Dr. Charles Jago for his leadership and commitment to the success of our company. With Dr. Jago’s departure, I am pleased to introduce our new Board Chair, Betty Ann Shiels. Betty Ann is a long-time resident of Prince George. She obtained her B. Comm from the University of Alberta and began her career in Prince George with Deloitte, Haskins & Sells. She … was an Assurance and Advisory partner with Deloitte for 20 years…

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Investment in Deadwood Innovations, Developers of a Breakthrough Lumber Upgrading Solution for the Forestry Industry

By Chrysalix Venture Capital staff
Global Newsire
December 3, 2024
Category: Business & Politics
Region: Canada, Canada West

Chrysalix Venture Capital, a leading early-stage fund that specializes in transformational industrial innovation, is excited to announce an investment in Deadwood Innovations, developers of a solution to upgrade low-grade lumber, waste & underutilized species into high strength, durable & sustainable products in premium engineered wood markets… The investment will support the development of the first commercial-scale facility in Fort St. James, British Columbia, in partnership with the Nak’azdli Development Corporation. CEO John-Paul Wenger stated, “Partnering with Deadwood Innovations and Chrysalix enables us to demonstrate how investment, innovation, and collaboration can deliver meaningful economic reconciliation, diversify the forestry sector, and promote responsible forest management practices.”

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The Truck Loggers Association is looking for an Executive Director

Truck Loggers Association
December 3, 2024
Category: Business & Politics
Region: Canada, Canada West

The Truck Loggers Association (TLA) is an advocacy organization seeking a dynamic and visionary executive director to lead our organization in lobbying government for fair policies to meet the needs of our members. The executive director will play a key role in shaping the future of the association by effectively influencing policymakers, ensuring membership growth, and advancing the interests of forest dependent contractors, suppliers and communities who depend on a sustainable forest industry. The executive director is responsible for executing effective advocacy, delivering strategic leadership, and overseeing the day-to-day operations of the Truck Loggers Association including member services, communications, and financial management. This individual will work closely with the Board of Directors, staff, and key stakeholders to further the TLA’s mission and vision. This is a full-time permanent position. This is a remote-work position requiring regular travel to meetings and events throughout the province.

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West Fraser to temporarily close Quesnel sawmill during holidays

By Austin Kelly
The Quesnel Cariboo Observer
December 2, 2024
Category: Business & Politics
Region: Canada, Canada West

QUESNEL, BC — West Fraser will be closing one of its four facilities in Quesnel for seven days in the last two weeks of the year. The Quesnel Sawmill will be closed with around 280 employees affected. The company cites a lack of log supply as the cause of the temporary closure. “Past infestations, wildfire, government policy decisions, and land-access constraints have severely reduced the available timber supply,” the company said in an email statement. “A percentage of our fibre supply comes from the open market which has been difficult to source this year.” Employees of the mill have the option to take vacation days to receive pay during the closure. …The other West Fraser facilities in Quesnel will continue to operate on their normal schedules despite the closure.

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Tolko announces temporary layoffs for 2 Williams Lake mills

By Monica Lamb-Yorski
Black Press Media
November 29, 2024
Category: Business & Politics
Region: Canada, Canada West

WILLIAMS LAKE, BC — Employees working for Tolko Industries learned this week there will be temporary layoffs at both mills in Williams Lake. Lakeview sawmill will stop production after Friday, Dec. 13 and resume operations on Monday, Jan. 6, 2025. Soda Creek sawmill will stop production after Friday, Dec. 20 and start up again on Monday, Jan. 20, 2025. During this time, the planer mills at both sites will continue operating as required and Tolko will continue to operate its shipping departments to meet customers’ needs. Tolko managers were giving the employees the news in-person during shifts on Thursday and Friday, Tolko communications advisor Chris Downey confirmed. “This temporary downtime is due to high fibre costs, poor weather conditions during the fall harvesting season, and weak North American lumber and plywood markets,” Downey noted in an emailed response.

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B.C. Premier David Eby vows to seek out new export opportunities in wake of Trump tariff threats

By Justine Hunter
The Globe and Mail
December 2, 2024
Category: Business & Politics
Region: Canada, Canada West

David Eby

B.C. Premier David Eby is promising to seek new export opportunities for the province after U.S. president-elect Donald Trump threatened to impose a 25-per-cent tariff on Canadian goods. British Columbia exports billions of dollars’ worth of commodities and products every month, with just over half bound for the United States. …B.C. has less exposure [than Canada as a whole] to [a focus on US markets] thanks to a long-running policy… of maintaining a diversified trade portfolio. …In 1987, Mike Harcourt, then the NDP opposition leader, endorsed the Social Credit government’s early trade missions. …David Emerson helped steer Canada toward trade diversification. As deputy finance minister under then-Premier Bill Bennett and deputy minister to Premier Bill Vander Zalm, he crafted B.C.’s Asian Pacific trade strategy …Mr. Eby said, he’ll renew his government’s commitment to diversification. “This was definitely the right direction, obviously, in hindsight, and we do have to redouble those efforts, given the instability south of the border.” [A Globe and Mail subscription is required to access this full story]

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Western Forest Products and United Steelworkers Reach Tentative Collective Agreement

By Western Forest Products Inc.
Globe Newswire
November 28, 2024
Category: Business & Politics
Region: Canada, Canada West

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.”

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Corner Brook Pulp and Paper schedules temporary Christmas shutdown

By Diane Crocker
The Telegram
December 11, 2024
Category: Business & Politics
Region: Canada, Canada East

NEWFOUNDLAND AND LABRADOR — Corner Brook Pulp and Paper will be temporarily shutting down production over the Christmas holidays. Kruger, the mill’s parent company, told The Telegram that production will stop on Dec. 24 and operations will resume on Jan. 2, 2025. The company said the decision to shut down is proactive and aims to address the current imbalance in the global newsprint market demand. “This will contribute to rebalancing our order book and create a more favorable and sustainable business environment for 2025”. This shutdown will be the second one in just over a year because of market conditions.

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Port Hawkesbury Paper says it shouldn’t have to pay for Nova Scotia Power bailout

By Taryn Grant
CBC News
December 9, 2024
Category: Business & Politics
Region: Canada, Canada East

Nova Scotia Power’s largest industrial customer says it shouldn’t be responsible for paying down any part of a $500-million federal bailout of the utility. Port Hawkesbury Paper (PHP) filed an application with the Nova Scotia Utility and Review Board asking for clarity on its role in repaying the federally backed loan and associated costs. “It would be unfair, unduly discriminatory and seriously adverse to PHP to require PHP to pay additional future costs,” the company said in its submission. The federal bailout came after several years of Nova Scotia Power deferring some charges to its customers, accumulating hundreds of millions of dollars in what it calls unrecovered fuel costs. The paper mill, however, said it paid for all its fuel and power costs up front unlike other customers. Therefore, it says, it didn’t contribute to the circumstances around the bailout and shouldn’t incur any more charges.

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Irving Paper temporarily reduces operations at Saint John, New Brunswick mill

JD Irving
December 4, 2024
Category: Business & Politics
Region: Canada, Canada East

Irving Paper will once again shut down 50% of its operations in response to NB Power’s record high industrial electricity rates, and remain down for at least a week. “NB Power’s continued delays at the Point Lepreau generating station have resulted in electricity rates being over 100% higher than historic levels,” said Mark Mosher, VP Pulp & Paper. “No business can absorb price increases of that level without negative impacts. Irving Paper has shut down or reduced its operations over 30 days so far in 2024, with more expected.” …Irving Paper has historically been the provincial utility’s biggest customer with annual costs in the range of $60 Million. Projections see that increase to well over $80 Million in 2024 and $100 Million in 2025, with significant downtime built in to avoid a much higher bill. …“Without clear policy to address these bigger structural competitive issues, NB’s industrial base will continue to contract.”

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Tariffs are a lose-lose situation when nations rely on trade

By Angela Doris
The Pembrooke Observer
December 2, 2024
Category: Business & Politics
Region: Canada, Canada East

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.

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Espanola looking to move away from forestry a year after Domtar idled the mill

By Aya Dufour
CBC News
November 29, 2024
Category: Business & Politics
Region: Canada, Canada East

ESPANOLA, Ontario — It’s been a year since Domtar indefinitely idled Espanola’s pulp and paper mill and laid off 450 employees. Potential buyers have since toured the place, but an offer has yet to materialize. As the town heads into municipal budget deliberations, staff aren’t anticipating the paper machines to be turned back on any time soon. Domtar is in conversation with the province to reassess the value of the decades-old plant in a bid to reduce its municipal tax bill. …The town has applied for funding from the Federal Economic Development Agency for Northern Ontario to develop an economic diversification strategy that would involve moving away from the pulp and paper industry. …Ian Dunn, president and CEO of the Ontario Forest Industries Association, argues there’s still a lot of untapped economic potential in the province’s forestry sector…as there’s “huge opportunity” in the bioeconomy – using forests to produce energy.

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Quebec forest industry already under pressure amid Trump tariff threat: Legault

By Maura Forrest
The Canadian Press in The Montreal Gazette
December 1, 2024
Category: Business & Politics
Region: Canada, Canada East, United States

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.

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B.C.’s resource boom winds down as $100B in projects near completion

By Nelson Bennett
Business in Vancouver
December 10, 2024
Category: Business & Politics
Region: Canada, US West

With the wind-down of construction activity on [four energy projects] B.C.’s most significant economic driver—the resource sector—is now poised for deceleration. …Don Wright, for Global Public Affairs… [said] one of the growth engines in B.C. over the last decade has been population and real estate. “That does bring money into the economy, but it’s not sustainable. …“If you want to build your economy, it is building high-quality sectors,” he said. “It is investing in resources.” But the resource sector in B.C. is not maximizing its potential. “I think it is broadly attributable to the fact that we have been constraining the resource sector, and we’re not having our exports grow along with the economy,” Wright said.  …Mina Lauden, VP for Canfor [said] “I was in Alberta recently, and they were talking about a two-to-three-month permitting window,” Lauden said. “We have about two to three years.”

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Roseburg Forest Products lays off 79 employees

By Drew Winkelmaier
The News-Review Today
December 5, 2024
Category: Business & Politics
Region: United States, US West

RIDDLE, Oregon — Roseburg Forest Products laid off approximately 2.5% of its workforce across all North American locations early last month, while 120 positions are slated to be filled at Oregon facilities through 2026. “As we near the end of 2024, soft demand for wood products and broad-based pricing pressure continue to be a drag on our industry,” said Roseburg Forest Products spokesperson Sarah Smith in an email. “Looking into 2025, we do not expect near-term recovery in demand, and as a result, we are positioning to weather another challenging year.” Roseburg Forest Products manages 600,000 acres of timberland in Oregon, Virginia and North Carolina, according to the company website. Through the harvest of these timberlands, Roseburg Forest Products offers a variety of wood products including plywood, fiberboard and laminate products. …Smith said the move to eliminate these positions was a necessary one to cut “unnecessary costs.”

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Tariff threat from Trump would increase costs of Spokane homes

By Thomas Clouse
The Spokesman-Review
December 1, 2024
Category: Business & Politics
Region: United States, US West

SPOKANE, Washington — Threats by President-elect Trump to impose sweeping new tariffs on the US’ top trading partners are revving up an old trade war that has pitted Washington, Oregon and Idaho foresters against Canada for more than 40 years. …It’s not clear whether that 25% tariff on lumber from Canada would cap at that amount or be added to the existing 14.5% tariff on those forest products. Regardless, it would make it more costly for Spokane-area residents to build a home, said Joel White, executive officer of the Spokane Home Builders Association. …Canada leads the world in production of forest products, which includes everything from raw lumber used for building to pulp used for making paper. The U.S. ranks second for world production, and Oregon and Washington lead the nation for where those trees are harvested. While both countries export forest products, they also represent the top importers of forest products from the other.

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Enviva Announces Successful Emergence from Financial Restructuring Process Positioned for Sustainable Growth and Continued Market Leadership

By Enviva, LLC
Business Wire
December 6, 2024
Category: Business & Politics
Region: United States, US East

BETHESDA, Md.–Enviva, LLC, a leading producer of industrial wood pellets, today announced its successful emergence from Chapter 11 bankruptcy protection, marking a significant milestone in the Company’s strategic transformation. Enviva is well-positioned for long-term growth and consistent operating performance, allowing the Company to serve its customers as a market leader and critical partner in meeting their demand for renewable fuel. Enviva’s Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Eastern District of Virginia, with overwhelming support from the Company’s key stakeholders and business partners. As part of its financial restructuring, Enviva has equitized more than $1 billion of indebtedness and American Industrial Partners Capital Fund VIII has become the largest shareholder of the Company. …on emergence, Glenn Nunziata … has been appointed Chief Executive Officer, and James Geraghty … has been named Chief Financial Officer.

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Green Bay Packaging announces major upgrades to Arkansas paper mill

By Jeff Bollier
Green Bay Press Gazette
December 4, 2024
Category: Business & Politics
Region: United States, US East

GREEN BAY — Green Bay Packaging on Wednesday announced a multi-year investment to modernize its 59-year-old pulp and containerboard mill about 40 miles northwest of Little Rock, Arkansas. The company in a media release said the “substantial investment” will enhance infrastructure at the Kraft mill in Morrilton, Arkansas and improve the sustainability of Green Bay Packaging’s operations in the state. “To uphold our commitment to innovation and excellence, we recognize the importance of investing in future technology,” said Matt Szymanski, vice president of mill operations. “These investments only happen because of our hard-working and loyal workforce and a supportive community in Morrilton, Arkansas.” …The company, as part of the modernization, plans to purchase another 300 acres of land near the mill to accommodate future expansions.

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Billerud to invest in its Michigan Escanaba mill and Quinnesec mill

Billerud.com
December 2, 2024
Category: Business & Politics
Region: United States, US East

MICHIGAN — Billerud’s Board of Directors has decided on a strategic investment program of approximately SEK 1.2 billion in the Escanaba mill and SEK 0.2 billion in the Quinnesec mill. These investments will enable the transition towards paperboard production. “We have an exciting plan in North America going forward, benefitting on sizable market opportunities, coupled with our attractive Midwest location, competitive assets and excellent paperboard capabilities in Billerud. …The upgrade of the woodyard in Escanaba is set to begin immediately, with the bulk of the work scheduled for the second half of 2025,” says Ivar Vatne, CEO of Billerud. …Billerud’s total investments in 2024 will amount to around SEK 2.5 billion. In 2025, the total investments are estimated to amount to around SEK 3.4 billion.

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West Michigan Timber Fraud Earns Prison Term

By Eric Freeman
The Lansing City Pulse
December 3, 2024
Category: Business & Politics
Region: United States, US East

MICHIGAN — The former owner of a West Michigan timber harvesting business has been sentenced to 41 months in federal prison for cheating investors of more than $2 million. Authorities said Trent Witteveen of Montague ran a Ponzi scheme involving phony documents and misusing some investors’ money to repay others. U.S. Judge Robert Jonker also ordered Witteveen, who pleaded guilty to wire fraud, to pay $844,282 in restitution. The grand jury’s indictment laid out the background this way, saying Witteveen “earned his living in the timber harvesting business, initially as a subcontractor or independent contractor to sawmills: He registered a company called Tall Timber and ran the fraud scheme from June 2018 to January 2021, the indictment charged. It described how Witteveen approached landowners whose property had hardwood and softwood trees for purchase by the lumber industry and sawmills, mostly around Pentwater and elsewhere in Northwest Michigan.

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FSC meets with Domtar to discuss implications of transfer of the beneficial ownership of Asia Pulp and Paper

Forest Stewardship Council International
December 6, 2024
Category: Business & Politics
Region: International

Forest Stewardship Council met with representatives of Domtar to discuss the potential implications of the transfer of the beneficial ownership of Asia Pulp and Paper (APP) to Mr. Jackson Wijaya (the current beneficial owner of Domtar) and to agree on the next steps forward in the legal review of the corporate and ownership links between Domtar and APP. …The parties agreed to cooperate on a fast and rigorous process of review to examine the shareholding and ownership relationships, if any, between Domtar and APP because of this planned transfer. This review will be commissioned immediately and concluded after the transfer of beneficial ownership of APP to Jackson Wijaya is complete. The various elements of the agreement will be contained in a MOU. …Both parties agreed to the importance of a high-integrity process of review, which is conducted independently and impartially. 

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UK’s largest forest management business formed after deal

Business Sale Report
December 9, 2024
Category: Business & Politics
Region: International

SWL, the parent company of forestry management company Scottish Woodlands, has bought peer RTS Forestry to create the UK’s largest forest management, consultancy and timber harvesting business. Scottish Woodlands Ltd has 20 offices, with around 250 staff, in all four parts of the UK, and is headquartered at Riccarton, Edinburgh. It is 80% employee-owned and provides a comprehensive range of forest, estate and land-related services. Its history dates back over 75 years. RTS Forestry Ltd employs more than 50 people across four offices – with its headquarters in Crieff, Perthshire and bases in Inverness, Inverurie (Aberdeenshire) and Hexham, Northumberland. It offers wide-ranging services in forest management, consultancy, wood fuel, timber harvesting and utilities. The combined business will therefore have more than 300 employees and operate across all of Scotland as well as in the north of England, Wales and Northern Ireland.

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Metsä Group’s Suolahti, Finland plywood mill to close down in stages

By Metsä Group
Cision Newswire
December 4, 2024
Category: Business & Politics
Region: International

FINLAND — The statutory negotiations concerning Metsä Wood’s Suolahti plywood mill, part of Metsä Group, which began in October, have ended. The company decided to close down the operations of the birch plywood mill by the end of the first quarter of 2025, and operations at the spruce plywood mill will end by the end of 2026 at the latest. The statutory negotiations at the Suolahti mill concerned all the plywood mill’s employees, in total about 370 people. …“We are closing down the mill in stages to better enable the employment of personnel within Metsä Group”, says Jaakko Anttila, Executive VP at Metsä Wood. The Suolahti plywood mill has an annual production capacity of 35 000 m3 of birch plywood and 160 000 m3 of spruce plywood.

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EU Deforestation Regulation enforcement causing issues on UK hardwood market

By Stephen Powney
The Timber Trades Journal
November 28, 2024
Category: Business & Politics
Region: International

James Latham says enforcement of the EUDR has led to cheap uncertified competing hardwood products being diverted to the UK. The company made the comment in its latest trading update in which it reported revenue totalling £186.6m for the six months to September 30, 2024. It said the cheaper, uncertified products were especially in the African sapele markets and had resulted in a significant negative effect on the company’s margins on those products. Jame Latham’s revenue for the period was down 2.3% on the £190.9m reported for the same period last year. The company says cost prices on both timber and panels have remained stable throughout the first half of the year but there are signs of price weakness in some of its commodity products.

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