Western Forest Products to shut Nanaimo sawmill by end-2014

VANCOUVER (Scrap Monster): Western Forest Products has announced permanent closure of its Nanaimo sawmill by the end of this year. The move is part of company’s plans to consolidate it’s sawmill operations at Duke Point and Saltair mills in an attempt to reduce operating costs.

According to the company, all the 62 employees currently employed at the Nanaimo mill will be offered jobs at other WFP mills. The company plans to add a second shift of operations at Dukepoint. However, the company did not mention how many employees will be engaged by the additional shift. The workers will also be offered severance packages in accordance with the collective bargaining agreement with United Steelworkers.

The Dukepoint sawmill is currently undergoing a massive $10 million modernization project which is nearing its completion. The huge investments are likely to benefit the company in production of additional grades of lumber. It may also bring down the production costs substantially, said Don Demens, President and CEO in a press release. The company targets increased lumber production from the mill, once the second shift is added.

Earlier in 2008, the mill was shut down for almost two years. It was reopened in 2010 with single production line.

According to reports, the company has started talks with the Nanaimo Port Authority (NPA) with regards to dismantling of the mill. The property where Nanaimo mill is located belongs to NPA.