Prince George, B.C. – Kitwanga Lumber Co. Ltd. (a subsidiary of Pacific BioEnergy),  has  announced it has filed for bankruptcy protection.  The action comes after efforts this fall to seek new niche markets for the specialty wood products mill proved unsuccessful.  The outlook for 2012 is not expected to improve.

 

KLC restarted in June as lumber markets and prices looked stable and were expected to stay consistent through the remainder of the year and beyond.   Continuing global economic uncertainty throughout the summer led to a decreased demand for lumber and decreased prices.  KLC soon became unprofitable and was temporarily shut down in October.

  

The mill  produced  specialty lumber  which was used by other producers  in the  manufacturing of other wood products.  40 employees  have been off the job since October,  a further 40 indirect jobs  have been impacted by the  mill’s closure.

 

 

Pacific BioEnergy Corporation (PBEC) spent two years trying to make KLC successful while also working on plans to develop a wood pellet plant in Kitwanga.   PBEC still believes there is a bright future for the Northwest BC bioenergy industry.