Economic threats could hamper San Group asset sale

By Carla Wilson
Victoria Times Colonist
January 18, 2025
Category: Business & Politics
Region: Canada, Canada West

David Elstone

It’s hard to predict the level of interest from buyers for the San Group’s sawmills and manufacturing plants on Vancouver Island and in Langley, given the uncertain economic climate, says a B.C. forestry consultant. Land, facilities and equipment in Port Alberni and on the Lower Mainland will be attractive to some purchasers, said David Elstone, a professional forester and business analyst who is managing director of Spar Tree Group of North Vancouver. But the bigger question is whether buyers would be interested in continuing forest-sector operations or would consider the land more valuable for another kind of use, Elstone said Friday. …Anyone who purchases San Group assets would want to have forest tenure, Elstone said. One of the company’s weaknesses was that it did not control the supply of timber, which forced it to turn to the open market to buy logs at a time when fibre was in short supply.

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