Terrace, B.C sawmill facility to undergo major upgrade

VANCOUVER (Scrap Monster): B.C-based Skeena Sawmills Ltd has decided to carry out major improvements at the sawmill facility located on 5330 Hwy 16 W, Terrace, B.C. The upgrading activities will be carried out in the forthcoming months. Upon completion of the upgrade, the company plans to operate two full shifts. It aims to double the production capacity at the facility, which currently stands at around 300,000 cubic metres of wood per year. The company press release also noted that the company will also add to its existing workforce to achieve new goals.

The company is yet to make an announcement with regards to the estimated cost of improvements it intends to put into execution. The scope of works is expected to be limited to the existing buildings of the facility. According to sources, the planned installation of high speed line will boost the production volume to approximately 1.5 times the volume per two shifts. The works on increasing the lumber mill capacity is expected to start this winter.

The planned operation of the mill in two full shifts will require more additions to the mill’s existing workforce. The mill currently employs nearly 80 people in production and another 15 in back-end roles. The total workforce at the mill, including logging contractor employees comes to around 150. Lionel Chabot, plant manager at Skeena Sawmills noted that the improvements will make the mill better and bigger and help it to cater to the rising demand from the region. He hoped that the new developments will make the region’s only major mill to continue to remain as an economically viable manufacturing facility in the midst of adverse economic conditions.

Last week, the mill authorities had announced their decision to restart the mill operations in sequences, following a nearly two-month long temporary shut down on account of slowdown in timber sales to Asian countries. It has already started the large log line. The small log line will start rolling next week. It also plans to start up its planer mill by next week. The management of the company noted that workers have started coming back to the facility for work, after being laid off for almost two months.

The Skeena Sawmill was built in 1960 by Bill McRae, a legend and pioneer in British Columbia. After two decades of operation, the mill was acquired by West Fraser Timber in 1981. The mill underwent major upgrades by West Fraser in 1981. In 1999, it was upgraded from green to dry lumber. The shortage of logs for the mill and slowdown in Chinese lumber market led to shutdown of the mill in 2007. West Fraser placed the mill in care and maintenance, until it announced the sale of the facility along with associated wood licenses to Roc Holdings Ltd.-a part of Chinese real estate, development and construction conglomerate, in 2011.

In 2012, Roc Holdings carried out a major upgrade of the facility, following which it started operating as a one-shift sawmill operation. The company had subsequently made investments in machinery as well.

Asia continues to remain as the key market for the mill’s products. Almost 95% of the mill’s products are shipped to Asian countries. The remaining 5% of the products are sold locally or to eastern Canada market. Skeena is one of the major sawmills in British Columbia producing Hemlock and Balsam products for the Pacific Rim and the North American markets. In addition, the mill produces Western Red Cedar (WRC) products for the North American market. The proximity of the mill to Prince Rupert pot facility gives it a competitive edge over other northern area mills.