Canfor Corporation remains committed to exploring opportunities to divest some of its northern BC tenure to support other BC manufacturers who are facing similar challenges accessing economic fiber to support their operations.
One person interested in purchasing Canfor's assets is John Brink, a CEO, author, and the longest-serving director (35 years) of the Council of Forest Industries (COFI), the largest industry organization in Canada.
" I have submitted a Letter of Intent to purchase the sawmill operations and tenure from Canfor in Bear Lake, Fort St. John, Vanderhoof and Houston," said Brink in a Youtube post.
In the letter of intent, he said he wanted to purchase sawmill operations and tenure from Canfor in Bear Lake, Houston, Fort St. John, and Vanderhoof. He says that he would buy the sawmill operations in Bear Lake, Fort St. John and Vanderhoof and acquire the forest tenure from Canfor in Houston. Brink says that if Canfor accepts his proposal, he would be creating 5000 new jobs.
“The reason we did is that not only to complement our current operation but to expand our operations to further manufacturing, including mass timber,” he said. “We have already bought equipment for another finger-jointing plant here, as well as expand our operations in Vanderhoof and Houston.”
As a value-added producer, the Brink Group does not have timber rights and relies on primary producers for the fiber it uses for its products. The recent Canfor closures put that fiber supply in jeopardy.
Access to fiber has been Brink’s biggest challenge, and he said that his proposal would help with that. He noted that he would also expand his operations in Prince George by adding another finger joint plant and cross-laminated timber plant.
“(The closures) puts us, and others, in a position where we can no longer protect our company … that we will have sufficient fiber,” he said. “I’m the sole owner of all my companies, I have to protect the interest of my employees.”
Brink wants to do more than just purchase sawmill operations and tenure. Brink said that he would build a new sawmill in Houston and expand a remanufacturing facility in Houston and add a remanufacturing facility in Fort St. John.
In a news release, Canfor said that they “have received indications of interest from several parties and will be considering options and engaging in discussions as appropriate.”
On Sept. 4 Canfor Corp., citing weak demand, high tariffs, a fiber shortage, and a variety of other factors, announced it had cut production on both sides of the U.S.-Canadian border.
Following a thorough review of its Canadian operating conditions, including the persistent challenge of accessing economic fiber, it decided to close its Plateau and Fort St. John operations located in northern British Columbia. These closures will impact approximately 500 employees and will remove 670 million board feet of annual production capacity from our BC operations.
Canfor's Southern U.S. operations will see reduced production. Facing persistent weak lumber markets, Canfor said it will indefinitely curtail one shift at its Darlington, South Carolina, plant, and reduce operating hours at its Estill, South Carolina, and Moultrie, Georgia, locations. The company will also implement curtailments across other southern US operations to better align with market demand. These changes will reduce lumber production by approximately 215 million board feet on an annualized basis.
Don Kayne, president and CEO said, "Our company has proudly operated in BC for more than 85 years, supporting jobs and economic activity in communities around this province. During that time, we have always been prepared to manage through challenging times and fluctuations, recognizing the cyclical nature of our business.
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