Canfor has announced the closure of the Fox Creek Sawmill, effective at the end of the summer.
Officials say the decision reflects some of the ongoing challenges facing the operation, including: prolonged weak market conditions, persistent high US softwood lumber duties and tariffs, fibre supply impacts due to recent wildfires, and the conclusion of the mountain pine beetle management strategy.
When the sawmill was destroyed by a fire in 2008, it was rebuilt in 2011, as a single-shift operation to process the uplift in available timber as part of the Province of Alberta’s preventative strategy to reduce the amount of pine beetle susceptible forests.
On Tuesday, a pair of Conservative MP’s implored Canadian Prime Minister Mark Carney to get a softwood lumber deal done with the United States after Canfor announced the closure of its Northwood Pulp Mill in Prince George, leaving 300 people out of a job.
Officials say with support from the Alberta’s Ministry of Forestry and Parks, the sawmill accessed additional sources of fibre to help sustain the operation and support economic activity.
However, with the end of the pine beetle strategy and with wildfire-damaged timber now largely exhausted, there is insufficient fibre in the region to sustain the operation over the long term.
Officials added with the prolonged weak markets and punishing duties and tariffs, this facility is no longer viable.
“This is a difficult decision which we know will have a significant impact on our employees, their families, contractors, and the community,” said Susan Yurkovich, President and CEO, Canfor.
“This decision reflects the challenges facing our operation and does not diminish the dedication and contribution of our Fox Creek team. We are committed to helping those impacted navigate the transition ahead, including seeking opportunities for impacted employees at our other operations.”
The closure of the sawmill will represent a reduction of 120 million board feet of production capacity.
– story done by Thomas Robertson, My Grande Prairie Now staff
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