Canfor shutting two northern B.C. sawmills affecting 500 staff, blames U.S. tariffs

VANCOUVER — Canfor Corp. has announced it is shutting two northern British Columbia sawmills in a move it says will affect about 500 workers, partly blaming “punitive” U.S. tariffs imposed last month.

It said in a statement Wednesday that shutting the Plateau mill in Vanderhoof and its Fort St. John operation would also remove 670 million board feet of annual production capacity.

The company blamed the closures on the challenge of accessing economically viable timber, as well as ongoing financial losses and weak lumber markets, but said the final blow was the big increase in U.S. tariffs.

President and CEO Don Kayne said in a statement that Canfor’s B.C. operations had lost “hundreds of millions of dollars” in recent years, something he also connected to “increasing regulatory complexity.”

But the company’s challenges were exacerbated by the “punitive U.S. tariffs” announced on Aug. 14, he said.

He said that delaying the closures of the Vanderhoof and Fort St. John mills would “prolong the punishing anti-dumping duties and put additional operations at risk.”

On Aug. 14, the U.S. nearly doubled duties on softwood lumber, in a move the Canadian government called unfair and unwarranted.

The duties increased from 8.05 per cent to 14.54 per cent.

Kayne said the wind down of operations at the mills was expected to be completed this year, calling it “an incredibly difficult decision.”

“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 Nation partners, contractors, suppliers, communities and customers,” Kayne said.

He said Canfor would work with union partners on an “employee transition plan, including severance.”

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 said on social media platform X, formerly known as Twitter.

This report by The Canadian Press was first published Sept. 4, 2024.

Companies in this story: (TSX:CFP)

The Canadian Press