Canfor temporarily shutting down lumber mills across B.C.

Low lumber prices and the high cost of fibre are the cause of curtailment, according to the company

Canfor has announced it will be temporarily closing down operations at almost all of its B.C. dimension mills.

The company said in a news release Wednesday, it will be shutting down operations for one week starting April 29. WynnWood mill outside of Creston will be the only facility of 13 to remain open.

Canfor cited low lumber prices and the high cost of fibre for the cause in having to curtail operations, which will impact 2,000 hourly employees.

“We regret the impact the curtailments will have on our employees, their families and their communities. We appreciate the hard work of our employees and contractors across all our operations,” said Michelle Ward, director of corporate communications.

She said two other mills in Mackenzie and Isle Pierre will be down for a second week in May.

This is the fourth curtailment that has been announced by Canfor since November of last year.

READ MORE: Canfor curtailing sawmill operations in B.C.

READ MORE: Canfor adds to mill curtailments with brief B.C. Interior shutdowns

Local 1-2017 President Brian O’Rourke said the union doesn’t feel good about the news.

“We heard today that they are going to be curtailing all their operations in B.C. and they are citing low lumber prices and high logging costs. They will be curtailing for one week,” he said.

He added that previous curtailments by Canfor in December were all due to fibre and lumber costs, as well. However, the union has no control over temporary shutdowns.

“We are hoping it will only be short term, a one week thing, and hopefully things will pick up and run as they did normally,” O’Rourke said.

Meanwhile, UNBC economist Dr. Paul Bowles said the scale of the shutdown is unexpected, however, there were signs that something along these lines would continue to happen.

“The price of lumber has fallen by 40 per cent from a year ago, so with weakening demand, big companies are worried about how many losses they are able to sustain in the short run,” he said.

Bowles explained that the point of the curtailment is to bring companies back into profitability by getting the price to go up and taking out some supply from the market.

“Which would eventually be felt by consumers as well,” he said.

“It is going to mean that workers, their income is going to be reduced and interrupted because of this. So that is going to have an impact on the provincial economy but especially in those communities such as Vanderhoof, that are heavily reliant on the lumber industry. It is going to mean less demand there and less activity in the services in the community,” Bowles added.

Dr. Kathy Lewis, Chair of Ecosystem Science and Management and a forestry professor at UNBC, said she doesn’t find the curtailment surprising.

“We have known for quite a long time that there was going to be a short fall in timber supply, so this was no surprise at all. But it is a short, middle-term problem,” she said.

Lewis said in the long run, the industry is going to be strong.

“In fact the industry itself is working to change what they are doing to make better use of wood that is available. So I think the long term prognosis is pretty good, but there will be some short-term problems,” she added.

In terms of timber supply, Lewis said forests are a renewable resource which leads to a fairly good picture for the industry in the long term. However, if various disturbances are added to climate change, it brings more elements of uncertainty.

“So there will always be uncertainty around timber supply and so the industry has to adapt to that and they have been,” Lewis added.

“We have major mills that have been making dimensional lumber, but they are also engaged in making other products from the forest such as pellets and chemicals and different kinds of solid wood products and so on, that allow them to make more of the trees that they cut,” she said.

Canfor Corporation has 13 sawmills in Canada with the total annual capacity of approximately 3.8 billion board fleet.

With files from Blair McBride


Aman Parhar
Editor, Vanderhoof Omineca Express

aman.parhar@ominecaexpress.com

Like us on Facebook and follow us on Twitter

Just Posted

Terrace Minor Softball closes season with wins

Teams with be competing in nationals in Saskatoon

Bicyclist crashes into car

Police briefs July 12-14

Malicious Monster Truck Tour returns to Northwest

Crowds gathered at the airport for show

Terrace SAR rescues shopping carts in Skeena River

Many have yet to be retrieved due to high water level

Joaquin ‘El Chapo’ Guzman sentenced to life in prison

Experts say he will likely wind up at the federal government’s Supermax prison in Florence, Colorado

Olympic softball qualifier gets $150K boost from provincial government

2019 Americas Qualifier to be held in Surrey from Aug. 25-Sept. 1

Gas price inquiry questions Trans Mountain capacity, company denies collusion

The first of up to four days of oral hearings in the inquiry continue in Vancouver

‘Benzos’ and fentanyl a deadly cocktail causing a growing concern on B.C. streets

Overdoses caused by benzodiazepines can’t be reversed with opioid-overdose antidote naloxone

Will you be celebrating national hotdog day with any of these crazy flavours?

The popularity of hotdogs spans generations, cultures

Former home of accused Penticton shooter vandalized

Ex-wife of man who is accused of murdering four people had her house vandalized

Survivor of near-drowning in B.C. lake viewing life through new eyes

“If I died that day, the baby wouldn’t know his dad,” said 31-year-old Mariano Santander-Melo.

‘Beyond the call’: Teen in police custody gets birthday surprise by B.C. Mountie

Unusual celebration started when Staff Sgt. Paul Vadik went to visit the teen in his Coquitlam cell

Thunderstorms forecast across B.C.

Environment Canada has issued a thunderstorm watch for B.C.’s central Interior

Most Read