Recently Reopened BC Sawmill Forced To Close
A northwestern British Columbia sawmill has shut down after only a few months of it’s reopening, due to a rapid decline in lumber demand.
The Kitwanga Sawmill near Hazelton reopened July 8, 2011 with optimism that the B.C. forest sector was rebounding from a steep downturn, but mill owner Pacific Bioenergy announced recently that they have temporary shut down because of market events that were completely unforeseen when they started up this summer. The mill’s 45 employees and staff have been laid off temporarily.
Lumber prices have tumbled from a high in the $300 US range for 1,000 board feet in early 2011 to $229 US, which is below break-even for all but a handful of B.C. mills.
“We started the mill in the early summer period. All the experts leading up to that period in time were predicting stronger market outlooks,” said Wayne Young, Pacific Bioenergy’s president. Young also said the company is looking into options such as custom cutting lumber to keep the mill running until prices improve for commodity lumber. Pacific Bioenergy also has plans to build a pellet plant at Kitwanga.
Latest News
New Northwest Pellet Mill Gains Approval
New Northwest Pellet Mill Gains ApprovalAir quality officials recently issued a final notice and...
Collins Sues PG&E Over Dixie Fire
Collins Pine Co. and several affiliated companies have filed a lawsuit against Pacific Gas and Electric utility seeking compensation for property and business losses stemming from the Dixie Fire in July 2021, which was caused by PG&E’s equipment and negligent operations, according to the complaint.
Prairie Wood Products Closes Due To FS Transport Grant Dispute
Prairie Wood Products Closes Due To FS Transport Grant DisputeClaiming that a change in policy...
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.