By CKPG Today

Forestry

Sinclar announces temporary production curtailments at lumber operations

May 1, 2023 | 4:58 PM

PRINCE GEORGE — Bad news for the forestry sector.

Sinclar Group Forest Products Ltd. has announced its curtailing 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 curtail operations from May 14 to July 29, 2023; Apollo Forest Products will curtail operations from June 4 to June 30, 2023; and Lakeland Mills will curtail operations from July 2 to July 29, 2023.

“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.

The company says the curtailments 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.

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These industry challenges are expected to persist through 2023. 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.