Another major forestry industry company in northern B.C. has decided to temporarily close three of its sawmills due to a struggling market.
Sinclar Group Forest Products Ltd. has announced it will be curtailing its Prince George, Vanderhoof, and Fort St. James mills based on high log costs and challenging global market conditions.
The curtailment is scheduled to start on Aug. 19 and the company states the above factors are simply out of their control.
“As a long-standing, family-run company, rooted and operating in north-central B.C., the decision we’ve had to make today was not an easy one,” said Sinclar Group President Greg Stewart in a news release. “We’ve deferred the decision as long as possible, due to our commitment to our employees and communities.”
Specifically, Sinclar is placing this curtailment on Lakeland Mills (Prince George), Nechako Lumber (Vanderhoof), and Apollo Forest Products (Fort St. James).
Stewart estimates a loss of up to 25 million board feet will be the result of the production cut.
“We are committed to the long-term sustainability of the company, and to continuing support for our employees and the communities we live and work in,” he said. “I am confident that we will emerge from this difficult period even stronger and more resilient.”
The curtailment does not apply, however, to the Premium Pellet operation or the Prince George District Energy System.
This is the latest closure or curtailment announcements made by regional forestry companies, all blaming the difficult logging market.
Most recently, Canfor announced it would extend its curtailment at its Taylor mill an extra five weeks, scheduled to re-open on Sept. 9.
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