{"id":79111,"date":"2020-04-30T09:19:41","date_gmt":"2020-04-30T09:19:41","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/almost-40-sawmills-forced-close-canada\/"},"modified":"2025-09-19T08:53:10","modified_gmt":"2025-09-19T08:53:10","slug":"almost-40-sawmills-forced-close-canada","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/almost-40-sawmills-forced-close-canada\/","title":{"rendered":"Almost 40 sawmills forced to close in Canada"},"content":{"rendered":"
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The Forest Products Association of Canada says the demand for toilet paper has skyrocketed \u2014 increasing by 241 per cent during the COVID-19 pandemic.<\/em><\/p>\n

Association president Derek Nighbor told the House of Commons finance committee today that the forest products industry has rarely enjoyed such a high profile.<\/p>\n

That's not just because it produces toilet paper, which Canadians began stockpiling as soon as it became clear early last month that orders to stay home were imminent.<\/p>\n

He says the sector is supplying the pulp needed to make sanitary wipes, paper towels, protective masks and hospital gowns.<\/p>\n

And he says it's supplying the wood pellets, biofuels and green energy that feed heating systems and provincial power grids.<\/p>\n

Yet, Nighbor says 39 sawmills across the country have been forced to shut down due to the pandemic and that has meant a reduction in the supply of wood chips that are needed to make pulp.<\/p>\n

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The interconnectedness of Canada\u2019s forest sector was central to Nighbor\u2019s remarks to MPs. While lumber markets have struggled, experiencing a near 40 per cent price drop in recent weeks, many sawmills have made the tough decision to temporarily shut down. Those closures have not only put thousands out of work, but the impacts are now being felt downstream by pulp mill workers and their communities. \u201cWe are a highly integrated sector. Our sawmills are our industry\u2019s heartbeat. We need to find a way now to keep our sawmills operating so chips can continue to feed our pulp and paper mills. If we don\u2019t have chips flowing, our industry\u2019s biggest artery is cut off \u2013 and thousands more will be out of work,\u201d Nighbor said.<\/p>\n

The forest sector\u2019s inability to tap into the federal government\u2019s wage subsidy program in a significant way has been a source of frustration for FPAC and its members. The program\u2019s construct simply does not fit with forest sector business models.<\/p>\n

Nighbor recommended adjustments like government considering individual mills or segments, which would allow more operations to qualify for support, and keep more Canadian forestry workers working. He also suggested that government consider a sliding scale, so that if revenues are down by 10 or 15 per cent, a company could qualify for wage supports at perhaps 50 per cent, instead of 75 per cent.<\/p>\n

He also stressed the need for easily accessible supports for the months ahead to help companies manage cash flow challenges. The industry is confident about the future, but needs an immediate boost to get through the next few months.\u201cOn the lumber side, our markets took a massive hit in late 2018. We have been in recovery mode since and just as we were starting to turn the corner, COVID-19 hit.<\/p>\n

We need liquidity supports now,\u201d said Nighbor. \u201cMeasures that move with speed and ease in the face of markets that are falling for the short-term. Measures that are not going to force companies to provide more security as many of our companies just do not have the flexibility to do that right now. Measures that are responsive to the realities of this crisis \u2013 and have lenders who are prepared to be more risk tolerant than our main street banks,\u201d Nighbor added.<\/p>\n

While the main discussion with MPs was about the here and now, Nighbor was clear about his optimism for the future. \u201cOur industry is not looking for a bailout, but rather bolstered cash flow supports to keep our businesses operating through these difficult next two to three quarters. As we look to 2021 and beyond, Canada\u2019s forest products sector has the opportunity to be one of the bright lights in the Canadian recovery \u2013 especially for northern and rural communities,\u201d he concluded.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Forest Products Association of Canada says the demand for toilet paper has skyrocketed \u2014 increasing by 241 per cent during the COVID-19 pandemic. Association president Derek Nighbor told the House of Commons finance committee today that the forest products … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":64218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715],"tags":[3313,4292,3348],"class_list":["post-79111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","tag-canada","tag-coronavirus","tag-sawmills","topic-forestry","topic-sawmilling","area-north-america"],"acf":[],"yoast_head":"\nAlmost 40 sawmills forced to close in Canada - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/almost-40-sawmills-forced-close-canada\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Almost 40 sawmills forced to close in Canada - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The Forest Products Association of Canada says the demand for toilet paper has skyrocketed \u2014 increasing by 241 per cent during the COVID-19 pandemic. 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