Wednesday, May 23, 2007

Interior forestry industry suffering some troubles


It's not a surprising situation in Mackenzie today, that is from the vantage point of the north coast, which went through similar contractions in its industrial base a few years ago.

The Northeastern BC town suffered a major hit today, when Canfor announced that it was closing its mill there indefinitely, planning to use up its log supply in town with no plans for any further logging for the near future.

The announcement comes on the heels of reports that Canfor as a forestry company is in play, with venture funds seeking to purchase it, a situation that many suggest will see major changes at the forestry giant in the province.

The word of the indefinite closure has left the town council concerned for the short and long term prospects for the community, anticipating a drop in housing prices and a short term exodus of residents who will leave the community for other pastures.

The announcement out of Mackenzie was part of a wider group of temporary shutdowns announced over the weekend, signs that the BC forestry industry is far from being a healthy participant in the overall BC economy.

It all sounds vaguely familiar to folks in Rupert, who went through similar situations with North Coast Timber and Skeena Cellulose in the last five years. Ironically, a number of families from this side of the province moved to the MacKenzie area at the time, looking for a more stable situation.

It would seem that for some, it was a temporary fix, as the troubles in the BC forestry sector apparently haven't been solved, instead they continue carry forward, moving from region to region, changing the nature of the province's industrial base in the North.

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