FORT ST. JOHN -- Northern British Columbia’s resource sector has been dealt a significant blow as Canfor announces the closure of its operations in Fort St. John.
The company stated in a press release that a review of ongoing financial losses, challenges in accessing economic fibre, increased U.S. tariffs, and a weak lumber market led to the decision to shut down operations in Fort St. John and Vanderhoof by the end of 2024.
This closure will affect 220 jobs in Fort St. John, with Canfor describing the decision as ‘incredibly difficult.’
“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,” said Canfor.
The City of Fort St. John has responded to the news, with Mayor Lilia Hansen expressing shock and sadness over the announcement.
“This news is a significant hit to our community and the families directly affected. 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,” said Hansen.
Canfor adds that they will work with employees and union partners on a transition plan that includes severance pay. The company emphasizing its commitment to advocating for changes across British Columbia to help the industry ‘thrive in the future.’
In June, Canfor announced it would begin curtailing its operation located on 259 Road, reducing employee hours.
The announcement comes following mill closures in Houston, Bear Lake, and Prince George earlier this year.
In 2021, Canfor also closed its mill in Taylor, with the site since being sold to Buffalo Rail and Infrastructure who plan on developing a logistics and distribution centre at the site.
Only 36% of B.C.’s forests currently are considered both legal and economical to harvest, with most already under tenure, limiting the ability to attract new entrants into the industry, according to an April report released by the province.
