Trade Mission Paying Off for Forestry Companies
By 250 News
Friday, November 05, 2010 01:49 PM

Minister Pat Bell and USW Local 1-424 President Frank Everitt at construction site in China
Prince George, B.C.- Companies taking part in the forestry trade mission to China have generated sales of 418 million board feet of lumber, says Forests, Mines and Lands Minister Pat Bell.
"Total sales orders taken by the 2010 trade mission are five times greater than the China mission of just two years ago," said Bell. "This incredible surge in demand shows that B.C.'s annual trade missions and other marketing efforts to grow the Chinese marketplace are paying off in spades."
Tolko Industries benefited with two major contracts finalized during the trade mission.
One contract will see Tolko's Soda Creek division shift its focus to supplying stud lumber to China National Beijing Materials (CNBM). The second signing was the renewal of a contract that has Tolko shipping the entire output from its Quesnel operation to China.
Other B.C. mills that have re-opened or added shifts to take advantage of strong demand in the rapidly growing Chinese market include Canfor in Quesnel, Western Forest Products in Ladysmith, and National Choice Specialty Wood in McBride.
"Given the downturn in the U.S. market, the continued increase in sales to China is excellent news for our folks," said Frank Everitt, president, local 1-424, United Steelworkers Union. "The momentum in the China market not only provides for continued employment for workers across the North, but also opportunities for more mills to re-open."
In addition to volume, the B.C. forest industry is also seeing a significant increase in the quality of lumber being exported to China.
An estimated 35 per cent of softwood exports to China are now construction-grade quality, compared to just 10 per cent a few years ago when the bulk of orders were for economy and utility grades.
"It's clear to me that government's strategy for marketing B.C. wood products in China is working," said Hank Ketcham, president and CEO, West Fraser. "Since my first trade mission two years ago, I've noticed a dramatic increase in wood sales. As well, instead of us promoting wood, many developers we met with were telling us the benefits of working with wood."
The forestry trade mission, led by Bell and including senior executives from industry, made several major breakthroughs to promote wood-frame construction and boost the demand for B.C. lumber in China's major population centres of Shanghai, Tianjin, Beijing and the Hebei and Sichuan provinces.
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