Header: Header: Header:

Recently Reopened BC Sawmill Forced To Close

A northwestern British Columbia sawmill has shut down after only a few months of it’s reopening, due to a rapid decline in lumber demand.

The Kitwanga Sawmill near Hazelton reopened July 8, 2011 with optimism that the B.C. forest sector was rebounding from a steep downturn, but mill owner Pacific Bioenergy announced recently that they have temporary shut down because of market events that were completely unforeseen when they started up this summer. The mill’s 45 employees and staff have been laid off temporarily.

Lumber prices have tumbled from a high in the $300 US range for 1,000 board feet in early 2011 to $229 US, which is below break-even for all but a handful of B.C. mills.

“We started the mill in the early summer period. All the experts leading up to that period in time were predicting stronger market outlooks,” said Wayne Young, Pacific Bioenergy’s president. Young also said the company is looking into options such as custom cutting lumber to keep the mill running until prices improve for commodity lumber. Pacific Bioenergy also has plans to build a pellet plant at Kitwanga.

Latest News

What Is An Encoder Anyway?

Article by Rich Donnell, Editor-in-Chief, Timber Processing March 2020 – We’ve been having some fun with sawmill terminology lately. We always so when we hire a new editor fresh out of college, who has been a sportswriter, and who is…

Wagner Meters Hires Specialist

Wagner Meters announces the addition of Jason Wright to the sales team as a Business Development Specialist for New Products. Starting in 1986 with a small sundry distributor in Medford, Ore…

Find Us On Social

Newsletter

The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.

 

Subscribe/Renew

Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.

Advertise

Complete the online form so we can direct you to the appropriate Sales Representative.