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After several large layoffs happened at BC mills, the province has announced additional support for the forestry industry.
On Tuesday, the Ministry of Forests announced the BC Timber Sales (BCTS) Value-Added Manufacturing Program which will provide a dedicated fibre supply to small and medium-sized manufacturers.
A news release says BCTS will dedicate 10% of its available timber supply to the program for companies who have minimal or no forestry tenure to bid on. More volume is expected in the future.
“Our government’s vision is to build a stronger, more resilient forestry industry through more value-added manufacturing,” said Bruce Ralston, minister of forests.
The new licensing program will be open to facilities that produce high-value products such as mass timber, plywood, veneer, panelling and flooring.
A news release says value-added wood products are increasingly in demand to alternatives like carbon-intense cement and value-added facilities have better withstand global market volatility.
Earlier this month, Canfor Pulp Products Inc. would be closing its pulp mill in Prince George at the end of March, which will result in the lost of about 300 jobs.
Canfor president and CEO Kevin Edgson blamed “challenges in accessing cost-competitive fibre.”
On Monday, Tolko Industries said layoffs and closures at its Soda Creek and Armstrong lumber mills would be extended through February.
Vice president of solid wood, Troy Connolly, said the high cost of logs and weak lumber markets continued to impact the operations at the two mills.
More than 350 employees are impacted by the closure.
The new BCTS Program supports other recent initiatives from the Province, such as the $90-million BC manufacturing jobs fund.