Sawmill closures ‘gut-wrenching’ amid lumber industry headwinds: Canfor CEO
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- Canfor Corp. is permanently closing its Fox Creek sawmill in Alberta due to insufficient local timber supply and challenging market conditions.
- The company cited U.S. tariffs and weak markets as factors eroding the mill's viability, despite a past government strategy to increase timber availability.
- This closure follows other recent mill shutdowns by Canfor in British Columbia and Sweden, contributing to a difficult period for the forestry industry.
Recent mill closures have been "gut-wrenching" for the forestry industry, which is currently navigating tough market conditions, according to Canfor Corp. CEO Susan Yurkovich. The Vancouver-based company announced the permanent closure of its Fox Creek sawmill in northwestern Alberta, citing a long-term lack of sufficient timber fiber in the region.
Recent mill closures have been “gut-wrenching” as the forestry industry faces tough market conditions.
The viability of the Fox Creek mill, rebuilt in 2011 after a fire, was further impacted by U.S. tariffs and weak markets. A government strategy launched in 2007 to manage forests susceptible to mountain pine beetles had initially increased timber availability. However, a drastic reduction in the beetle population and the exhaustion of wildfire-damaged timber have left insufficient resources to sustain the mill's operations.
This decision reflects the challenges facing our operation and does not diminish the dedication and contribution of our Fox Creek team.
"This decision reflects the challenges facing our operation and does not diminish the dedication and contribution of our Fox Creek team," Yurkovich stated. Canfor, which has operated in Alberta for over 70 years, is focusing on strengthening its other operations in the province, including its Grande Prairie and Whitecourt sawmills, and its PinkWood building materials supplier in Calgary. The company aims to ensure these facilities compete globally while supporting local communities.
Our goal is to ensure these operations can run fully and successfully compete in the global marketplace, while generating jobs and supporting communities across the province.
The closure of the Fox Creek mill, which employs workers in a town of 2,400 people, is expected by late summer. This decision comes shortly after Canfor announced the closure of its pulp mill in Prince George, B.C., due to market oversupply, and two sawmills in southern Sweden due to an imbalance between fiber availability and production capacity. Canfor reported a narrowed second-quarter loss of $18.5 million, down from $202.8 million a year earlier.
These are incredibly difficult decisions that impact our employees, their families, and our local communities.
DistantNews Editorial
Originally published by Global News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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