NEW YORK — The U.S. increasingly relies on Canadian crude oil to meet domestic demand and that relationship faces potential strain amid the threat of tariffs from President-elect Trump. More than 50% of crude oil imported to the U.S. comes from Canada, up from 33% in 2013. The increase follows a jump in production from Canada’s western provinces and growing pipeline capacity to its southern neighbor. Trump has threatened blanket tariffs of up to 25% on products from both Canada and Mexico. That has raised concerns about higher energy costs trickling through the entire U.S. economy. “All three countries remain heavily reliant on each other economically, and hefty taxes on key U.S. imports like crude oil or softwood lumber risk exacerbating U.S. consumer inflation,” said the Americas for UBS Financial Services. …Canada, with its proximity to the U.S., is also the nation’s biggest trading partner.
The monitor for the San Group of companies has been granted broader powers by the Supreme Court of B.C. to manage and make decisions about the financially troubled forestry company, which has operations in Port Alberni. The San Group’s protection from creditors was extended at a court hearing in Vancouver on Thursday. The next hearing is set for Jan. 16. Expanded powers granted to Deloitte include the ability to administer the company’s restructuring and any winding down of the business, plus liquidating property and disposing of assets. The monitor is permitted to continue running the business, and said it anticipates working with current management. The various parties are expected to be back in court to ask for approval for a sale and investment solicitation process. …The court agreed the company can increase its borrowing limit to $1 million — up by $400,000 — to keep operations going.
Vancouver, BC – Canfor Corporation announced that it has acquired 7% of outstanding shares of VIDA AB effective today. The shares were acquired from certain minority shareholders utilizing their option privileges under the February 2019 agreement in which Canfor purchased 70% of VIDA AB, Sweden’s largest privately owned sawmill company. After concluding this transaction, Canfor owns 77% of VIDA AB. [END]
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.
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.
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.
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.
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…
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.
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.
LOS ANGELES — President-elect Donald Trump’s threatened tariffs on top trade partners China, Mexico and Canada would deal a blow to the $1.7 trillion U.S. transportation industry and worsen a nearly three-year trucking recession, sector experts said. The industry that moves everything Americans make and buy is considered an economic bellwether, and will be among the first to signal any unintended consequences of trade policies that Trump says will help, not hurt, U.S. businesses. …Virtually every transportation company operating in the United States is exposed to tariff-related revenue downturns. …Trump’s new tariffs on Mexico and Canada, in particular, would hit one of the rare growth areas for trucking. The value of cargo that moves between those countries and the U.S. – which includes finished vehicles, auto parts and avocados from Mexico as well as steel and lumber from Canada – reached $88.5 billion in September 2024, up 7.7% from the year-earlier.
SPOKANE, Washington — Brazil’s Suzano is exploring an offer for Clearwater Paper, according to people with knowledge of the matter. The company is working with an adviser as it seeks to reach an agreement, said the people. A deal hasn’t been finalized and it’s possible one won’t be reached. Representatives for Suzano and Clearwater declined to comment. Spokane, Washington-based Clearwater, which manufactures pulp and paperboard products, had a market capitalization of $409 million as of Thursday’s close and its shares have fallen 31.6% this year. Clearwater’s shares jumped as much as 19% after the close of regular trading Thursday. Suzano, which is the largest supplier of hardwood market pulp in North America, has been pushing further into the US, most recently buying two paperboard mills in Arkansas and North Carolina in a deal valued at $110 million. [END]
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.”
ARKANSAS — News about lumber mill shutdowns is always disheartening, and South Arkansas has had its share of that in 2024. West Frasier mothballed its Huttig mill this year, putting 140 people out of work. AHT Products closed its flooring mill in Warren unexpectedly, putting another 130 out of a job. Fortunately, there’s no lack of good news in the timber industry. PotlatchDeltic brought its $131 million Waldo sawmill upgrade online. Teal Jones Group is staffing up its new $110 million mill in Plain Dealing, LA, and will employ 125. Georgia-Pacific said it will expand toilet tissue production in Crossett, creating 50 jobs in a $90 million expansion. Canfor has completed the purchase of Domtar’s former El Dorado mill and about $50 million worth of improvements have been made. Finally, Weyerhaeuser announced a $500 million facility near Monticello that will employ about 200 workers. …That’s roughly $800 million and almost 400 new mill jobs coming online. This is positive local economic news going into 2025.
MILTON KEYNES, England — Rockwell Automation announced that West Fraser has made significant gains towards stringent carbon-reduction and energy saving targets at its plant in Cowie, 