Canfor closing 2 sawmills in B.C.

Two sawmills in northern B.C. will be shutting down operations by the end of the year.

Canfor, a Vancouver-based forest products company, announced Wednesday it will be closing up its locations in Vanderhoof and Fort St. John, impacting approximately 500 employees, and removing 670 million board-feet of annual production capacity from the province.

“Our company has proudly operated in B.C. 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 market fluctuations, recognizing the cyclical nature of our business,” said Canfor President and CEO Don Kayne. 

“However, in recent years, increasing regulatory complexity, high operating costs and the inability to reliably access economically viable timber to support our manufacturing facilities has resulted in hundreds of millions of dollars of losses in our BC operations.”

He says “punitive” U.S. tariffs announced last month worsened those challenges.

Fort St. John Mayor Lilia Hansen says she’s deeply shocked and saddened by the announcement. 

“This news is a significant hit to our community and the families directly affected,” said Hansen.

She says her City Council is committed to advocating for better regulatory conditions to support the local workforce.

“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 Nations partners, contractors, suppliers, communities, and customers. We are committed to supporting our employees and will work with our union partners on an employee transition plan, including severance. The winddown of operations is expected to be complete by the end of the year,” said Kayne.