Sinclar Group Forest Products Ltd. is closing its lumber operations at Apollo Forest Products in Fort St. James, Lakeland Mills in Prince George, and Nechako Lumber Co. in Vanderhoof, for various periods over the next few months.
Nechako Lumber Co. will cease operations from May 14 to July 29; Apollo Forest Products will curtail operations from June 4 to June 30; and Lakeland Mills will be down from July 2 to July 29.
“The high cost of fibre, compounded by poor market conditions, has negatively impacted our business and forced us to take these measures,” said Sinclar President Greg Stewart, in a news release.
The shut downs are necessary to maintain log inventory and draw down rough lumber inventories at the three operations in the face of the dual challenge of high fibre costs and low lumber prices. Madison Lumber Reporter puts the price of Western Spruce-Pine-Fir two-by-fours at $450 … up from $415 last week, but down from $524 last month and $988 last year. These industry challenges are expected to persist through 2023, said Stewart.
The Premium Pellet operation in Vanderhoof will continue to run, and Lakeland will continue to provide heat to the Prince George Downtown Renewable Energy System.
“We will evaluate conditions on an ongoing basis and adjust our operations as necessary,” said Stewart.
The United Conservative Party is placing the blame for the closure at the foot of the NDP government.
“It’s clear that the industry is in crisis, and government cannot continue to stand by and watch as people lose their livelihoods and communities are hollowed out,” said Mike Bernier, UCP forestry critic. “With the right vision, direction, and support, our forest sector could have a bright future, but instead this NDP government has chosen to manage its decline.”