Plenty Of Potential In Forest Sector

The forestry industry is indeed on the up-and-up but officials stress we aren’t out of the woods yet.
There’s been considerable optimism with recent announcements in Atikokan, Hudson and Kenora..
Rod McKay is the Manager of Kenora Forest Products and he addressed delegates attending the Kenora District Municipal Association.
McKay says a number of challenges remain including a changing pulp and paper industry, concern for future sawmills and a major shortage in skilled workers.
He notes high energy costs are still an issue.
McKay says he’s frustrated to hear from the province that there are plans to address the energy issue, but there continues to be no action.
He stresses an emerging problem is high insurance costs.
McKay says rates at the Kenora Mill have gone up 10-times.
However, McKay notes there’s plenty to be optimistic about.
He says there’s plenty of value added opportunities including cross laminated lumber.
McKay says the lumber is cost effective and would be perfect in the construction of housing units for northern First Nations.
Bio-mass energy and making rayon out of wood are other avenues for forest companies and there’s even some talk of a group in China eyeing the Resolute Mill in Fort Frances to make rayon.
McKay notes lumber exports are on also on the rise.
Last year, B.C. lumber exports to China totaled $680-million.
The figure has steadily increased since 200.
Officials note changes to the forest tenure system have been positive for companies and First Nations.
McKay says forest companies have managed to adapt to a changing industry.