Canfor Closures Causing Ripples

Canfor Corp., which announced in early September the closure of its Vanderhoof and Fort St. John sawmills in northern British Columbia, citing ongoing financial losses, weak lumber markets, and increased U.S. tariffs, said it remains committed to exploring opportunities to divestsome of its northern BC tenure to support other BC manufacturers who are facing similar challenges accessing timber fiber to support their operations.

The company states it has received indications of interest from several parties and will be considering options and engaging in discussions.

The closures will affect 500 employees and reduce 670MMBF of annual production capacity.

CEO Don Kayne comments, “Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province. During that time, we have always been prepared to manage through challenging times and market fluctuations, recognizing the cyclical nature of our business. However, in recent years, increasing regulatory complexity, high operating costs and the inability to reliably access economically viable timber to support our manufacturing facilities has resulted in hundreds of millions of dollars of losses in our BC operations.”

Bruce Ralston, Minister of Forests, comments, “Our number one thought is how we can support the workers, families and communities impacted by Canfor’s decision. We will be there to support workers and communities, while we continue to take action to create the opportunities that are needed in the forestry sector. Following record wildfires and the end of the mountain pine beetle harvest, we are working to increase access to fiber and support to made-in-B.C. wood manufacturing.”

BC Council of Forest Industries (COFI) issued a statement that the closures underscore the urgent challenges facing British Columbia’s forest sector and the need for immediate government action to address the root causes threatening the future of forestry in BC.