Canfor Corp. has made the difficult decision to close two sawmills in northern British Columbia, impacting around 500 workers. The company cited various factors for the closures, including challenges in accessing economically viable timber, financial losses, weak lumber markets, and the recent increase in U.S. tariffs.
In a statement released on Wednesday, Canfor announced the closure of the Plateau mill in Vanderhoof and its Fort St. John operation, resulting in the removal of 670 million board feet of annual production capacity. President and CEO Don Kayne expressed deep concern over the impact of the closures on the company’s B.C. operations, which have faced significant financial losses in recent years.
Kayne attributed the closures to the combination of economic challenges and the “punitive U.S. tariffs” that were implemented last month. The company believes that delaying the closures would only prolong the effects of the anti-dumping duties and jeopardize additional operations.
Following the U.S.’s decision to nearly double duties on softwood lumber on August 14, Canfor found it necessary to wind down operations at the affected mills. The Canadian government criticized the move, calling it unfair and unwarranted.
Despite the devastating impact on employees, families, First Nation partners, contractors, suppliers, communities, and customers, Canfor is committed to working with union partners on an employee transition plan, including severance packages.
Local officials, including Fort St. John Mayor Lilia Hansen and Peace River North MLA Dan Davies, expressed shock and sadness over the closures. They emphasized the need for better regulatory conditions to support the local economy and workforce in light of this unfortunate turn of events.
