Canfor is closing its Plateau sawmill in Vanderhoof and its Fort St. John sawmill, putting approximately 500 employees out of work.
The company says the decision comes “following a review of operating conditions, including the persistent challenge accessing economic fibre, ongoing financial losses, weak lumber markets and increased US tariffs.”
“Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province,” said Don Kayne, President and CEO. “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 B.C. operations.
“The operating challenges we face have been further exacerbated by increases in the punitive US tariffs announced on August 13 – tariffs that are expected to more than double again next year. Continuing to operate under these conditions would prolong the punishing anti-dumping duties and put additional operations at risk. As a result, we are making the incredibly difficult decision to close our operations in Vanderhoof and Fort St. John.”
Forest Minister Bruce Ralston said the province’s first concern is for the laid-off workers.
“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,” he said in a news release. “The U.S. Department of Commerce’s decision to increase punishing softwood lumber duties, on top of low prices for lumber, is hurting forestry communities. We will continue to fight unfair duties and stand up for forestry workers.”
He added that following record wildfires and the end of the mountain pine beetle harvest, the province is working to increase access to fibre and support to made-in-B.C. wood manufacturing.
“We are devastated by the decline in our province’s foundational forest industry, and we recognize the impact these closures will have on our employees and their families, as well as our First Nations partners, contractors, suppliers, communities and customers,” said Kayne. “We are committed to supporting our employees and will work with our union partners on an employee transition plan, including severance. The wind down of operations is expected to be complete by the end of the year.
“With the dramatic reduction in available timber supply, we will explore opportunities to divest some of our northern BC tenure, which may help support other B.C. forest companies facing the same significant challenges in accessing economic fibre.”