Interfor to close Hammond sawmill in Maple Ridge at cost of 147 jobs
Credit to Author: Derrick Penner| Date: Wed, 04 Sep 2019 01:29:48 +0000
Vancouver-headquartered timber giant Interfor will close its Hammond sawmill in Maple Ridge by the end of the year, the company said late Tuesday, eliminating 147 jobs at a facility with a history that dates back to 1908.
“The coastal B.C. forest industry has faced significant log supply challenges over the past two decades and manufacturing capacity needs to be brought in line with available log supply,” Interfor CEO Duncan Davies said in a news release.
The Hammond mill was built to process Western red cedar logs and Davies added that cedar lumber has “been disproportionately impacted by duties on shipments,” under duties imposed as part of the Canada U.S. softwood lumber dispute.
In its news release, Interfor said that the Hammond mill, with a two-shift capacity, has only been operating on a one-shift basis for several years and its closure is part of a larger plan to reconfigure its coastal B.C. business.
Of the 147 employees affected by the closure, 131 are unionized members of the United Steelworkers Local 2009.
Interfor said the mill as it exists now was built in 1963, but the union, on its website said the facility dates back to 1908.
Davies, in the news release, said Interfor will work to mitigate impacts of the closure, by helping workers find job opportunities at its other mills or outside the company.
The reorganization might also provide opportunities to increase the supply of logs for Interfor’s Acorn sawmill in Delta.
Interfor said it expects to complete the closure of its Hammond mill by the end of the year after its remaining log supply is milled and lumber inventories shipped. The overall plan is expected to improve the company’s working-capital position and “the monetization of related real estate.”
The company’s announcement comes in the middle of a tumultuous time for the B.C. forest industry, both on the coast and in the interior.
In June, Interfor made a $60-million bid to purchase timber rights held by rival Canfor Corp. after its decision to close its Vavenby sawmill near Clearwater at the cost of 172 jobs.
At the time, Interfor executive Ric Slaco said the transfer would shore up the operations of its Adams Lake mill in the same region. Approval of that transfer, however, is waiting on a decision by Forest Minister Doug Donaldson.
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