Forest Minister's Ten Signs Forest Industry is Recovering

By Submitted Article

Prince George, B.C. - This is National Forest Week, and the Provincial Minister of Forests and Range, Pat Bell,  is optimistic about the future for that  sector.  He has  circulated a  top ten  list of  signs he  things  are early indications  the industry is starting to recover.

"Despite the challenges we are facing in the industry right now I believe there are signals that we are seeing early signs of a recovery"   says Bell in  his weekly newsletter.

Here  is  Minister Bell's top ten list :

 1. The sale of the Pope and Talbot sawmill in Fort St James to the new company "Conifex". The Executive of this company have significant experience in the forest industry and has plans to re-open the mill this fall. Further they are looking for other potential purchases in the Interior.

2. Interfor is investing $100 million in a complete rebuild of their "Adams Lake" sawmill. They have a clear vision for the future and plan to be a major player in the interior as well as the coast. In addition Interfor has recently re-opened their sawmill in Grand Forks on a trial basis.

3. The Canadian dollar has moderated and held in the $.93 range for a few weeks now. Analysts see some recovery this fall to the .98 cent range followed by a weakening early in the year to .90 or even less. Low dollars help our industry as we typically sell in American currency.

4. This year for the first time we will sell about one billion board feet (BBF) of lumber into China. This compares to under .5 BBF in 2007 and just .2 BBF in 2006.To put this into perspective we shipped about 10 BBF to the US in 2007.

5. We are out competing the rest of Canada in the US market. In 2000 we had just 45.8% of the lumber coming from Canada into the US. Since 2005 we have held a minimum 56.8% share of Canadian lumber into the US and this year we are currently holding 58.2% (as of the end of June). It's a tough market out there but we are out competing the rest of Canada!

6. The Kyahwood finger joint plant in Moricetown has recently reopened on 2 shifts employing about 70 people.

7. The potential purchase of the Pope and Talbot pulp mill in Mackenzie by Worthington Properties and their expressed intent to reopen the mill even without a chip supply agreement.

8. The purchase of the Harmac pulp mill in Nanaimo. 287 employees have put their own money on the line to re-open this mill.

9. Pinnacle Pellet has recently built a brand new pellet plant near Dunkley lumber. This plant will help improve the utilization of fibre from our area and keep our mills competitive! 

10. Japan's housing starts jumped 19 per cent over the same month one year ago to 97,212 units, the first such increase in 13 months. This figure must be qualified because in July 2007 new home starts plunged by 23 per cent (the biggest July drop in 14 years) after new building standards were imposed.
As in recent months, wood framed unit construction shot up significantly, by 21 per cent from one year ago to 45,335, which accounted for 47 per cent of total July starts. July building permits were also up, by 55 per cent from one year ago, and 5.5 per cent from June.

Email | Print | Facebook | Twitter | Digg | Del.icio.us