Temporary Shutdown at Skeena Sawmills

Skeena Sawmills Ltd. is extending a shutdown of operations commencing February 8th. This shutdown period follows the log scale closure announced early January.

In previous communications the company cited high operating costs and secure fibre availability as critical factors in the January log scale closure. “Over the past month the challenges facing the industry have not improved” said Greg DeMille, Skeena’s Chief Operating Officer. “There continues to be significant economic pressures industry-wide. High operating costs combined with weak lumber markets have resulted in additional temporary and permanent mill closures across the province. Following the suspension of log deliveries, we continued sawmill and chipping operations for an additional month. With no improvement in the current operating conditions, we have been forced to implement a temporary shutdown.” DeMille added.

The Northwest region has a history of very high operating costs and challenging fibre quality. An improvement in market conditions and the availability of economically accessible fibre are critical for Skeena to continue operating with success. Despite the short-term challenges, Skeena remains committed to investing in its facilities for the long term and is confident that it will be able to resume operations once conditions improve.

“We at Skeena Sawmills and Skeena Bioenergy understand the critical role that our business plays within the community of Terrace and the surrounding area” said Sandra Wu, Skeena’s Chief Executive Officer and President. “We pride ourselves on providing stable and secure employment for local residents, contractors, and suppliers. We are using this downtime to undergo a comprehensive evaluation of our economic fibre supply, and develop innovative solutions to provide sustained success for our business and community. Our continued investment throughout these challenging market conditions demonstrates our belief that the forest industry of the Northwest has great potential for development and sustainable growth.” Wu added.

Skeena Sawmills is one of the largest employers in Terrace, employing 150 local residents plus contractors and suppliers. Skeena is a diversified forest products company and a key supplier for both the domestic and international markets.

Source: Skeena Sawmills Ltd.