Carrier Forest Products to indefinitely curtail operations at Big River sawmill

“Management remains committed to reviewing all options to resuming operations in the future,” the release said.

Carrier Forest Products cited persistent weak market conditions as a major factor behind the decision. The company also pointed to the recent decline of the Canadian dollar, which it said has significantly increased the cost of cross-border financing.

In addition, management said the long-term effects of last year’s wildfires have reduced the timber volumes available to the Big River mill, creating further challenges for the operation.

“As each new and significant challenge emerged, management was cautiously optimistic that the headwinds facing both the industry generally, and those specific to the Big River facility, would improve,” the company said in the release. “However, that has not occurred, and certain recent events do not indicate that improvement will be seen in the short term.”

The company said it has determined the curtailment cannot be avoided under current conditions.

Carrier Forest Products expressed regret over the impact the decision will have on employees, their families, local communities, suppliers and customers.

Jeff Bromley, chair of the United Steelworkers Wood Council which represents the workers at the mill, said that the collective agreement offers the workers some help.

“It is certainly devastating, but hopefully it is a temporary curtailment and not a permanent one,” Bromley said.

A curtailment means that workers retain their seniority and position and will get their job back if the mill re-opens within a certain period of time. It is a short-term layoff and members keep some benefits for several months afterwards.

Reeve Clint Panter, speaking on behalf of the Rural Municipality of Big River and the Town of Big River said the closure will impact all residents in the area, but they have survived the mill being closed before.

“The effects will be far reaching even beyond the layoff of the employees in the industry. The extended industry around here, all the log trucks and the gravel hauling and whatnot, it’s going to have an impact for sure. But you know, that being said, Big River’s faced some hard times before. People are resilient beyond measure, I’d say, and maybe this is an opportunity for the community to grow and expand in different directions,” Panter said.

Panter said the last time the mill shut down, residents stayed in the community but found work elsewhere, in places like Fort McMurray. That actually resulted in increased development in the area. He acknowledged the job situation in the oil sands of Alberta is not the same as before, but has faith in the community.

The Big River sawmill, located about 130 kilometres northwest of Prince Albert, is one of the community’s largest employers. The upcoming curtailment marks the most significant disruption to operations since March 27, 2020, when Carrier Forest Products indefinitely suspended production and laid off approximately 120 employees amid the onset of the COVID-19 pandemic and changing market conditions.

The facility has also faced previous challenges. The mill was shuttered during the forestry sector downturn in 2006 and remained idle for several years before being purchased by Carrier Forest Products. Following extensive refurbishment work, the operation officially reopened in May 2014.

According to Bromley, the Big River mill has not had any curtailments since it was purchased by Carrier about 15 years ago.

Other mills in Ontario and British Columbia have already been curtailed by recent economic changes.

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by paNOW Staff

Carrier Forest Products to indefinitely curtail operations at Big River sawmill

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