Closure of Two Northern BC Sawmills by Canfor Impacts 500 Employees, Citing US Tariffs as Cause

Canfor Corp. has announced the closure of two sawmills in northern British Columbia, affecting around 500 workers. The company cited “punitive” U.S. tariffs as a contributing factor to the decision.

The closure of the Plateau mill in Vanderhoof and the Fort St. John operation will result in a loss of 670 million board feet of annual production capacity, according to a statement released on Wednesday.

Challenges such as accessing economically viable timber, financial losses, and weak lumber markets were also mentioned as reasons for the closures. However, the recent increase in U.S. tariffs was the final determining factor.

President and CEO Don Kayne stated that Canfor’s B.C. operations had incurred significant financial losses in recent years, partly due to regulatory complexities. The impact of the “punitive U.S. tariffs” announced on August 14 further exacerbated their challenges.

Kayne explained that delaying the closure of the two mills would prolong the adverse effects of anti-dumping duties and jeopardize additional operations.

On August 14th, the U.S. substantially increased duties on softwood lumber, a move that Canada criticized as unjustified and unfair. The duties rose from 8.05 percent to 14.54 percent.

Kayne anticipates the completion of the wind-down of operations at the mills by the end of the year, describing it as an “incredibly difficult decision.” He expressed the company’s devastation over the decline of the forest industry in the province and acknowledged the impact of the closures on various stakeholders.

Canfor plans to collaborate with union partners on an employee transition strategy, including severance packages. Fort St. John Mayor Lilia Hansen expressed her community’s shock and sadness at the news, emphasizing the significant impact on families and the local economy.

Peace River North MLA Dan Davies characterized the closures as an unexpected turn of events and criticized government forestry policies. He expressed sympathy for the affected families and emphasized the need for corrective measures.