Canfor to close mills in Vanderhoof, Fort St. John

Canfor is closing its sawmills in Vanderhoof and Fort St. John, putting as many as 500 people out of work.

The company made the announcement Wednesday evening, blaming several factors, including U.S. tariffs, weak lumber markets and financial losses.

The move takes 670 million board feet out of annual BC production.

A statement from the company president and CEO was issued Wednesday.

“Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province," said Don Kayne. "The operating challenges we face have been further exacerbated by increases in the punitive US tariffs announced on Aug. 13, tariffs that are expected to more than double again next year. Continuing to operate under these conditions would prolong the punishing anti-dumping duties and put additional operations at risk. As a result, we are making the incredibly difficult decision to close our operations in Vanderhoof and Fort St. John.  

Fort St. John Mayor Lilia Hansen said the community was "deeply shocked and saddened" by Canfor's announcement.

"This news is a significant hit to our community and the families directly affected," Hansen said in a statement.

"City council has worked closely with industry partners like Canfor through recent challenging times, and we remain committed to advocating for better regulatory conditions to support our local economy and workforce."

Peace River North MLA Dan Davies called the closures "an unbelievable turn of events."

"Canfor has been a part of this community for years. Again, horrible government forestry policy that needs to be fixed. My heart goes out to all of the families," he posted on X, formerly known as Twitter.

Kayne went on to say the company is considering divesting itself of some of its land holdings, which may then be taken over by other companies.

"We are devastated by the decline in our province’s foundational forest industry, and we recognize the impact these closures will have on our employees and their families, as well as our First Nations partners, contractors, suppliers, communities and customers. We are committed to supporting our employees and will work with our union partners on an employee transition plan, including severance. The wind down of operations is expected to be complete by the end of the year."

With files from The Canadian Press. This story will be updated.