Mayor Shane Brienen says he expects to learn more about Canfor’s plans to build a sawmill here while attending the 2024 Council of Forest Industries convention this week in Vancouver.
The company closed its existing mill here last spring, citing its age and unprofitability, resulting in the loss of hundreds of jobs and ongoing economic uncertainty.
Although Canfor announced last fall it would build a new mill to produce higher value lumber, a project that would take between 28 to 32 months, the company has been largely silent since then.
But rumours have now been spreading of a delay in demolishing the old sawmill, a necessary step to allow the construction of a new facility.
“I have a feeling the teardown is delayed. I’m pretty sure that’s what’s happening here,” said Brienen.
But, added Brienen, he has not heard that Canfor is shelving its building plan.
“So hopefully I’ll have a little bit of an update on the situation at that point,” he said of attending the Council of Forest Industries convention.
Brienen did add that the overall ongoing forest industry situation in B.C. is challenging.
“Mackenzie, Bear Lake. There’s shutdowns and curtailments and prices are low,” he said.
Canfor announced Sept. 14, 2023 it would spend approximately $200 million on a new mill capable of producing approximately 350 million board feet of lumber a year.
“This project represents another significant investment by our company …. and ensure that we can continue to deliver the high-value products that are in demand by our customers around the world,” said Canfor president and CEO Don Kayne at the time.
Based on that news release, Canfor said detailed project planning and permitting requirements would start immediately. Demolition and site preparation is scheduled for this spring, the release continued.
While Canfor is not providing updates as to its Houston plan, its financial reporting for 2023 outlines its position in relation to its activities in B.C.
“The company continued to face significant challenges accessing economically viable fibre, both logs and residuals, to support its B.C. operations, which resulted in closure announcements early in 2023,” the company stated March 5.
While forecasting global challenges for now, it feels the “underlying global lumber market fundamentals in the longer term remain solid.”
Canfor was far more cautious in its lumber predictions specific to B.C., citing high logging costs and “persistent constraints accessing economically viable for its sawmills.”
“The company will continue to adjust operating rates in B.C. to align with demand and economically available timber supply.”
Economic and other uncertainties have resulted in sustained pressure on the District of Houston beginning last year and into this year to either freeze property taxes or raise them as little as possible.