Canfor closes two northern BC sawmills, affecting 500 jobs, as US tariffs and losses hit hard
Canfor Corp. has announced the closure of two sawmills in northern British Columbia, affecting approximately 500 workers, as per BNN Bloomberg.
The closures, set to happen at the Plateau mill in Vanderhoof and the Fort St. John operation, will eliminate 670 million board feet of annual production capacity.
Canfor cited difficulties in accessing economically viable timber, financial losses, and weak lumber markets as reasons for the decision. However, the sharp increase in US tariffs was the decisive factor.
On August 14, the US nearly doubled its duties on softwood lumber, raising them from 8.05 percent to 14.54 percent.
Canfor President and CEO Don Kayne noted the impact of these “punitive US tariffs” and said the company's BC operations had lost “hundreds of millions of dollars” in recent years.
He also mentioned that the complexity of regulations has added to the company’s challenges. Kayne explained that delaying the closures would only “prolong the punishing anti-dumping duties” and put additional operations at risk.
The wind down of operations at the two mills will be completed by the end of this year. Kayne described the closures as an “incredibly difficult decision,” recognizing the significant impact on workers, First Nation partners, contractors, suppliers, communities, and customers.
Canfor plans to collaborate with union partners to create an “employee transition plan,” including severance packages for the affected workers.
Fort St. John Mayor Lilia Hansen expressed the community’s shock and sadness over the announcement, describing it as “a significant hit to our community and the families directly affected.”
She emphasized the City Council’s commitment to supporting the local economy and workforce by working with industry partners like Canfor.
Peace River North MLA Dan Davies also reacted to the closures, calling them “an unbelievable turn of events.”
He criticized current government forestry policies and expressed his sympathy for the affected families, noting that Canfor has been a long-standing part of the community.
The Canadian government has criticized the US tariffs as unfair and unwarranted, but the rising costs associated with these tariffs have exacerbated the challenges facing the forestry sector in BC.
Despite efforts to maintain operations, Canfor’s decision underscores the mounting difficulties the company faces in the province’s forestry industry.
