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Business stable for Canoe Forest Products in Salmon Arm despite some industry closures

Although the company isn害羞草研究所檛 immune, market forces remain kind to plywood/veneer production
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An aerial shot shows the Canoe Forest Products Ltd. plywood/veneer plant in Canoe. (Image courtesy of Canoe Forest Products Ltd.)

So far, so good at Canoe Forest Products Ltd. in Canoe, one of Salmon Arm害羞草研究所檚 largest employers.

Although B.C. companies such as Canfor and Tolko have been in the news recently due to mill closures or extended shutdowns, Canoe Forest Products, a plywood/veneer plant about five kilometres east of downtown Salmon Arm, has remained stable.

For instance, the plant didn害羞草研究所檛 shut down for any extra time over Christmas, which has happened in the past.

害羞草研究所淧lywood has held up better than some of the other commodities in terms of volume of sales and pricing,害羞草研究所 said Marcello Angelozzi, general manager. 害羞草研究所淚t害羞草研究所檚 been fairly consistent as far as sales goes. We haven害羞草研究所檛 seen a big dry spell, knock on wood, but it doesn害羞草研究所檛 mean we害羞草研究所檙e immune.害羞草研究所

He said no changes to shifts or staffing are currently contemplated.

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Canoe Forest Products is a member of the Gorman Group of Companies, which also has operations in West Kelowna, Revelstoke, Lumby and Oroville, Washington.

Angelozzi said sister companies such as Revelstoke害羞草研究所檚 Downie Timber have seen some curtailments because of market slowdowns over the past year.

害羞草研究所淲e haven害羞草研究所檛 been spared as a group害羞草研究所 On the lumber side, they害羞草研究所檙e feeling it more than us,害羞草研究所 he said of the Canoe plant.

Any temporary shutdowns or staff reductions in the group of companies have been market driven at this point, he said.

Right now in the industry, for some companies sales aren害羞草研究所檛 strong enough and prices are lower than what makes operating worthwhile.

Currently Canoe Forest Products has about 200 employees. It sells nearly 100 per cent of its products domestically, across Canada.

Angelozzi said the long-term issue will be fibre supply 害羞草研究所 trees.

He said a combination of diminishing annual allowable cuts and old growth deferrals could have big impacts on future fibre supply.

The annual allowable cut is defined as the annual amount of timber that can be harvested on a sustainable basis within a defined forest area. Old growth deferrals are stops or pauses to logging to help protect ecosystems while First Nations, the province and other partners develop a new approach for old-growth forest management.

The industry will have to adjust to a new reality with less fibre, Angelozzi said.

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martha.wickett@saobserver.net
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Martha Wickett

About the Author: Martha Wickett

came to Salmon Arm in May of 2004 to work at the Observer. I was looking for a change from the hustle and bustle of the Lower Mainland, where I had spent more than a decade working in community newspapers.
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