British Columbia’s forests minister says the province will fight against “unfair duties and stand up for forestry workers” after Canfor Corp. announced the closure of two northern B.C. sawmills, partly blaming “punitive” U.S. tariffs imposed last month.
Bruce Ralston says the U.S. Department of Commerce’s decision to increase punishing softwood lumber duties, on top of low prices for lumber, is hurting forestry communities.
Canfor Corp. announced Wednesday that it was 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.
Ralston says the forest sector is a “foundational part” of the province and the government will work to support local jobs.
He says the province is focused on supporting the approximately 500 workers who are impacted by the closures, and is also working to increase access to fibre and support for made-in-B.C. wood manufacturing.
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.
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.
READ ALSO: Canfor announces mill closures in Vanderhoof and Fort St. John
