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Canfor announces mill closures in Vanderhoof and Fort St. John

Canfor announced it is shutting down the northern B.C. sawmills due to weak lumber markets, regulatory practices and financial loses among other reasons
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Canfor's Plateau sawmill in Vanderhoof. The forestry company announced it is closing 2 mills in northern B.C.

Canfor announced it is shutting down two of its northern B.C. sawmills, in Vanderhoof and Fort St. John, citing weak lumber markets and financial loses among other reasons. 

The company's decision to shut down its Plateau and Fort St. John operations will impact around 500 employees and will remove 670 million board feet of annual production capacity from our BC operations, it said in a Sept. 4 news release.

Reflecting on the 85-years of the forestry company's operations in B.C. Canfor's President and CEO Don Kayne said they arrived at the decision after a thorough review of operating conditions, including the persistent challenge accessing economic fibre, ongoing financial losses, weak lumber markets and increased US tariffs. 

"The operating challenges we face have been further exacerbated by increases in the punitive US tariffs announced on August 13th – tariffs that are expected to more than double again next year," Kayne said.

"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."

The closures will significantly impact employees, First Nations partners, contractors, suppliers, and communities. Kayne said the company plans to work with union partners on an employee transition plan, including severance, with operations expected to wind down by the end of the year.

In response to the reduced timber supply, the company will explore divesting some northern BC tenure to support other local forest companies, he said.

"Finally, we will continue to do all we can to advocate for changes that will allow our industry in BC to once again be able to thrive in the future," Kayne added.



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