Monday, February 11, 2008

Forestry Sector News

Some facts (2005 data):

- Logging operations employ 21,600 people in BC
- Logging and silviculture accounts for 2.9% of GDP

- Wood Product manufacturing employs 43,600 people in BC
- Wood Product manufacturing accounts for 3.6% of GDP

- Pulp and Paper manufacturing employs 12,300 people in BC
- Pulp and Paper manufacturing accouts for 1.5% of GDP

TimberWest to permanently close Elk Falls sawmill

TimberWest Forest Corp. has announced that it will permanently close the Elk Falls sawmill in Campbell River, B.C. The last full operating shift will be May 9. - 2/8/2008

Interfor's Adams Lake mill taking downtime

Interfor's Adams Lake sawmill and planer in Chase, B.C., were down this week and are scheduled to remain down the week of January 28, due to market conditions. The downtime will be re-evaluated early next week, according to a company spokesman. - 1/25/2008

Canfor to indefinitely close OSB, plywood mills

Canfor has announced plans to close its Polarboard OSB mill and Tackama plywood mill, both in Fort Nelson, B.C., for an indefinite duration due to market conditions. The mills will be closed once existing log inventories are utilized and finished products are shipped. This is expected to occur in April for the Tackama mill and during the summer for the Polarboard operation. The Tackama mill has an annual capacity of 270 million square feet (3/8-inch basis) of plywood, and the Polarboard mill has an annual capacity of 640 million square feet of OSB. - 1/18/2008

Tolko schedules downtime

Tolko has announced plans to take a temporary, two-week curtailment at the Manitoba Solid Wood Division between January 28 and February 8. "High log costs, the continued weakening of market conditions, and difficulty managing within the Softwood Lumber Agreement's quota restrictions are the three main factors which led to this decision," said Dave Neufeld, plant manager. The downtime will reduce the mill's production by 6.5 million board feet. The division expects to return to production on February 11. - 1/16/2008

Two AbitibiBowater sawmills shut down indefinitely

Two AbitibiBowater sawmills and two planers, all in Mackenzie, B.C., went down for an indefinite duration beginning January 11. Market conditions were cited. The two mills have an annual production capacity of 475-500 million board feet. - 1/15/2008

Winton Global extends downtime to March

Winton Global Lumber Ltd., Prince George, B.C., has extended the Christmas shutdown of all operations until mid- to late March. Market conditions, and flooding due to an ice jam on the Nechako River, were cited. Upon resumption of operations in March, the sawmill and planer may only operate until the log deck has been utilized and rough lumber processed and shipped. At that time, the operations would be subject to another temporary shutdown. The inventory of logs at the sawmill will allow for about three months of operations. - 1/15/2008

Tembec to reduce production

Tembec has announced plans to cut production via a reduced work week at its sawmill and planer in Elko, B.C., beginning January 14. The company also will reduce production at its Canal Flats sawmill starting the week of January 21. Over the next three months, Tembec will take the equivalent of three weeks of production downtime, through reduced shifts at the mills. The curtailments will reduce production by about 24 million board feet. Market conditions and exchange rates were cited. - 1/14/2008

Well I sure am glad we have a NEW ECONOMY in British Columbia that isn't dependant on the messy forestry sector for a big part of our economic output. The retail sector and the darling real estate sector combined with the uplifting effects of hosting a two week long sporting event in two years will replace this antiquated business of cutting down trees and sawing them into usable lumber to build things with. In the past, the effects of a forestry industry in its death spiral would have had disastrous consequences on our provinces economy. I'm sure glad that those baristas at Starbucks, the framers building lousy overpriced houses, and the real estate agents who consume the coffee and buy the houses will keep our economy afloat. Clearly real estate agents are the most beneficial purveyors of wealth in our provincial economy.

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