By James Peters

B.C. Forestry

Closure of Vavenby sawmill deals blow to Domtar Kamloops chip supply

Jun 17, 2019 | 3:15 PM

KAMLOOPS — Officials with Domtar say the crisis hitting B.C. Interior sawmills will have an impact on the Kamloops pulp mill, but there is no cause for elevated concern.

Domtar spokesperson Bonny Skene says the recently-announced closure of the Canfor Vavenby sawmill will deliver a hit to the Kamloops pulp mill’s chip supply.

“The Vavenby sawmill represented just over 10 per cent of the Kamloops pulp mill’s fibre supply,” said Skene. “So that is an important source of fibre and we’re certainly working to find alternatives.”

Canfor cited tight fibre supply as a major reason for its decision to close the Vavenby mill, as well as “ongoing depressed lumber markets.”

Skene says those market conditions don’t necessarily impact Domtar.

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“Sawmills, of course, selling solid lumber are in very different markets than pulp mills. We sell to different customers for different uses. So the dynamics in each of those markets are very different. We certainly are empathetic to the situation on the saw mill side and monitoring [developments] closely,” said Skene.

Of greater concern for Domtar is a proposed transfer of tenure from Canfor to Interfor for a reported $60 million. B.C. Forests Minister Doug Donaldson would need to approve that transfer.

Skene says that could impact the surplus chips Domtar can bring to its Kamloops mill.

“The tenure in the area of the sawmill has been an important source of fibre to the Kamloops mill, frankly, for decades. That fibre is going to be important to the future, as well,” said Skene.

“We’re monitoring the transfer or any potential transfer of tenure with interest, as you can imagine, and we stand ready to work with the parties involved in order to solidify fibre supply for the Kamloops mill.”