COFI V.P. Optimistic

By 250 News

    Prince George, B.C. -  The  shut downs and shift adjustments  taking place in  the  B.C. Interior`s  forest industry will represent about 1000 person days of employment says Dave Routledge,  the Vice President of Northern Operations for the Council of Forest Industries.

Routledge   says the industry is facing  one of the  most difficult times  in recent history as  the over supply and  reduced demand  have  been  compounded by the high flying dollar “Imagine  losing 1% of  you income every month, that is what  has been happening to the lumber producers for the past three years.”

Companies are suffering.  All have reported losses, some larger than others, but all in the lumber business have been curtailing production in an effort to reduce the supply.  Canfor is already into curtailments in an effort to cut a further 255 million board feet from the market a series of curtailments are either underway or planned:

• November  5^th  to 12th :  P.G. Sawmill,  Houston, Chetwynd  and  Vavenby
• November 12^th to 19^th :  P.G. Sawmill,  Vavenby, Houston, Quesnel, Plateau. Polar at Bear Lake, Radium,  Clear Lake, Grande Prairie Alta.
• November 19^th – 26^th: Vavenby back up, but one shift will be dropped, Radium and Grande Prairie down
• November 26^th - Dec. 3^rd :  Fort St. John sawmill down.
• Over Christmas, Isle Pierre,  Quesnel and Vavenby  will be down for one week,  all other mills will be shut down  December 24^th  through to January  7^th.

Tolko is  taking two weeks  off  at its Quesnel sawmill,  it will be down  from the 13th of November through  to the 23rd and the planer mill production will be  reduced.

The  meddling with the sub-prime mortgage  business  in the United States as  evidence of what  can happen when there is interference in the markets  “That created an artificial boom in the housing  industry so there had to  a correction, in this case, an over correction.”

One industry expert suggests some mills will continue operation only as long as the operating losses are less than the cost of closing up shop.

“I don’t agree with  the thought the  forest industry is done,  that kind of thinking leads us into a  downward self  fulfilling spiral" says Routledge, "There are other  forest products  out there, like green bio- energy products,  engineered lumber, ethanol and methanol production,  debris fibre for  power, these are all good business synergies.”

Routledge  says  it won’t be easy but he is optimistic  “There will be some pain, but  we will be better off in the long run… This   will be the new beginning of a stronger more diversified industry.”

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