A sawmill in British Columbia could be forced to halt production within days as its remaining log inventory runs out, adding to the pressure facing the province's lumber industry amid constrained fibre availability and difficult operating conditions.<\/p>\n
The Valemount Industrial Park sawmill, operated as part of Valemount Community Forest Ltd. in Valemount, BC, had only around 15 to 20 operating days of logs remaining at the end of July and no new logging contracts in place to replenish its supply.<\/p>\n
At a July 29 board meeting, the remaining inventory was estimated to be sufficient for roughly 18 days of production, potentially taking operations only to around August 16. Unless additional fibre can be secured, the board will have to decide whether to curtail the mill again, reduce costs and wait for conditions to improve, or continue supporting production through revenue generated elsewhere at the Industrial Park.<\/p>\n
The shortage has already resulted in layoffs. The sawmill normally employs seven full-time workers in addition to a manager and bookkeeper, but only five employees remain. Some of those previously laid off have since found other jobs, potentially making it more difficult to restart production for short runs if logs become available.<\/p>\n
The mill has been producing cants in various dimensions and lengths since 2022.<\/p>\n
The immediate fibre shortage comes on top of questions about the economics of the operation. Running the sawmill costs just under C$600 per hour, while board members have asked whether lumber can consistently be produced and sold for more than its manufacturing cost.<\/p>\n
General manager Andy Hubbell argued that the mill can operate profitably when running efficiently, but said repeated equipment failures and repairs to the aging facility have contributed significantly to previous losses.<\/p>\n
Recent improvements have increased throughput. Hubbell told the board that the mill had produced almost 10,000 board feet from around 183 logs during one recent operating day.<\/p>\n
The remaining log inventory is now effectively being used as a production test. Management is tracking incoming log volumes and costs, lumber output, labour and operating expenses and sales in an attempt to establish a clearer picture of the mill's underlying profitability.<\/p>\n
The debate has also exposed wider financial pressure at the Valemount Industrial Park. Rental income from companies occupying other parts of the site is currently helping support sawmill operations, raising concerns among board members that lease revenue could be masking losses from lumber production.<\/p>\n
Cash flow has also been strained, with discussions at the board meeting referring to delayed payments and limits on the operation's borrowing capacity. One board member raised the possibility of bankruptcy if money owed to Valemount Community Forest were called in, although Hubbell rejected that characterization and said the operation would instead have to shut down or sharply reduce sawmill production if its borrowing limit were reached.<\/p>\n
The situation is one of the central problems confronting British Columbia's sawmilling sector: securing sufficient economically available timber to maintain production.<\/p>\n
For Valemount, the decision is now immediate. Once the remaining logs have been processed, continued production will depend on securing another source of fibre and demonstrating that the sawmill itself can operate economically without relying indefinitely on income from the surrounding Industrial Park.<\/p>","protected":false},"excerpt":{"rendered":"
A sawmill in British Columbia could be forced to halt production within days as its remaining log inventory runs out, adding to the pressure facing the province’s lumber industry amid constrained fibre availability and difficult operating conditions. The Valemount Industrial … Continue reading