Economy

Demand from China a boost for Canadian wood producers

(Xinhua)
Updated: 2010-10-21 12:14

VANCOUVER - Demand from China is translating into record-breaking softwood lumber exports for the Canadian province of British Columbia (B.C.) as August was the best sales month to date.

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With B.C. Forest and Range Minister Pat Bell set to make his second visit to China next week, the western province reported shipping 257 million board feet of softwood lumber in August. Through the first eight months of the year, nearly 1.5 billion board feet of wood valued at 342 million Canadian dollars had been shipped, up 71 percent from 200 million Canadian dollars in sales recorded for the same period last year.

Bell, who will be in China from October 28 to November 8 on what will be B.C.'s largest forestry trade mission yet, said he expected sales to be even stronger in the fourth quarter as the province was on track to ship about 2.5 billion board feet this year.

On his trip, he will be joined by such industry heavyweight wood producers as the CEOs of Interfor, Canfor, West Fraser and Conifex, various mayors and the president of a United Steelworkers unit. In addition to stops in Beijing and Shanghai, the group will also travel to second-tier cities to forge relationships with housing developers.

"The upcoming trade mission will add to the growing sales momentum, keeping us on track to reach our goal of exporting four billion board feet of lumber by the end of 2011," Bell said in a press release from the B.C. provincial government.

Bell added the mission would also meet with key government officials, and pursue commercial deals with suppliers, manufacturers and building developers.

He added several agreements would be signed in addition to tours of new wood manufacturing facilities, earthquake reconstruction and commercial wood-frame building sites.

Sales of wood to China have provided a much-needed boost to the B.C. forestry industry. On Monday, the province announced the re- opening of the National Choice Specialty Wood sawmill in McBride.

While the reopening would only account for 10 jobs, it was significant as it was the fourth sawmill to reopen around the province this year, where the output was dedicated primarily to the growing China market.

The mill at McBride, a 700-population town located 120 kilometers from the Alberta border, will produce about 25,000 to 35,000 board feet daily with about half going to China.

"Today's National Choice Specialty Wood mill reopening is proof that our China strategy is working and paying off for both large- and small-sized mills," Bell said.