By Adam Berls

forestry

Policy impacts played role in Canfor cuts in Northern B.C.

May 10, 2024 | 12:41 PM

PRINCE GEORGE — 400. That’s the approximate number of how many jobs will be impacted by Canfor’s announcement that they would be indefinitely curtailing one production line at Northwood Pulp Mill as well as the permanent closure of the Polar Sawmill and the suspension of planned reinvestment in Houston, B.C.

The President & CEO of Canfor Pulp, Kevin Edgson, told us what led to the decision regarding the Northwood curtailment.

“One year ago, we were forced to shut down the PG Pulp line. At that time, we felt confident that we had enough fibre supply to be able to continue to operate the remaining two lines at Northwood and one at Intercon. Unfortunately, the continued impact of policy decisions have made fibre or chips scarce.”

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Minister of Jobs Brenda Bailey expressed disappointment with the decisions made by Canfor, but reconfirmed the government’s decision to maintaining a good supply of fiber.

“My heart goes out to people because, when you have these types of downturns, it’s not just the individuals that are affected. It’s the families, it’s the community. It’s all the additional jobs that are related to that. It’s a real concern and we’re working really hard to make sure that we can do a good job of supplying fibre.”

Canfor says that the indefinite curtailment of one production line at Northwood, isn’t market related, with Kevin Edgson saying that it would be “disingenuous to say that this is market related” and that the “pulp market today is in an upswing and the lumber market, though not as good as times past, is currently above the long term average.” Edgson also mentioned that in past years, Canfor would have been “very profitable at these levels, but our costs have been driven up because of the policy impacts.”

Owner of Brink Forest Products Ltd., John Brink says that the industry is in “major distress” and that “as long as we have politicians and bureaucrats involved, we will not have a viable industry.”

The indefinite curtailment at Northwood will impact approximately 220 jobs across Canfor Pulp and the closure of the Polar Sawmill will affect approximately 180 employees. According to Canfor, they will continue to operate both lines at Northwood over the next few weeks, followed by an “orderly wind-down process of one line at the beginning of the third quarter.”

Pattison Media is owned by Jim Pattison Industries, a majority shareholder in Canfor.

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X: @AdamBerls

Email: Adam.Berls@pattisonmedia.com