BC-based San Group receives creditor protection, seeks approval for sale and investment-solicitation process. In related news: Roseburg Forest Products lays off 79; Sierra Pacific signs agreement with USDA; and J.P. Morgan acquires 40,000 acres on Washington’s Olympic Peninsula. Meanwhile: Ontario’s Origin Materials converts wood into plastic; and straw buildings make a comeback in Slovakia.
In Forestry news: AFPA’s Jason Krips call to action on Alberta’s forests; Ontario’s Graydon Smith tables bill on carbon capture and fire mitigation; retired deputy chief of US Forest Service opines on old-growth protection; Quesnel, BC gets ready to launch its community forest; and Mission, BC shows how a municipal forest can be profitable.
Finally, an explanation for 2023’s record-breaking temperatures—Earth’s albedo.
Kelly McCloskey, Tree Frog Editor
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.
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.
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.”
The U.S. exported 839,226.4 metric tons of wood pellets in October, down from 898,128.2 metric tons the previous month, but up from 835,490.8 metric tons in October 2023, according to the USDA Foreign Agricultural Service. The U.S. exported wood pellets to approximately a dozen countries in October. The U.K. was the top destination for U.S. wood pellet exports at 700,824 metric tons, followed by Denmark at 92,850.8 metric tons. The value of U.S. wood pellet exports fell to $154.72 million in October, down from $167.05 million in September and $155.41 million in October of last year. Total wood pellet exports for the first 10 months of 2024 reached 8.25 million metric tons at a value of $1.53 billion.
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.
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, 