Major Primary Timber Processing Facilities in British Columbia

Transcription

1 Major Primary Timber Processing Facilities in British Columbia 2016

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3 Major Primary Timber Processing Facilities In British Columbia 2016 Timber Operations, Pricing and First Nations Division Ministry of Forests, Lands, Natural Resource Operations and Rural Development Victoria, B.C. January 2018

4 Foreword This edition of the Major Primary Timber Processing Facilities in British Columbia summarizes the activity of timber processing mills that operated during It covers sawmills, veneer mills and panel plants, pulp and paper mills, chip mills, pellet mills, shake and shingle, and pole and post mills. Some do not have primary log processing capabilities and process residual fibre from other mills. For mills that produced more than one product (e.g. lumber and veneer), each operation is listed in the respective section of the report. This report does not include remanufacturing plants. Most of the information contained in this report was gathered through 2016 and earlier surveys of individual processing mills. The 2016 surveys included small lumber mills with less than 40 million board feet capacity. If survey responses were not provided, the Ministry of Forests, Lands, Natural Resource Operations and Rural Development (the Ministry or FLNRORD) staff might use trade publications and corporate annual reports to make estimations. In some cases, ministry staff provided estimates based on their knowledge of the operation and information reported in previous years along with production information for selected forest products from Statistics Canada. This report is available free of charge online at: Please note that all remaining errors are the responsibility of Economic Service Branch of the FLNRORD. Any comments or errors could be sent to the contact information at the website or by mail at the following location: Economic Services Branch Ministry of Forests, Lands, Natural Resource Operations and Rural Development PO Box 9515, STN PROV GOVT, Victoria B.C. V8W 9C2 1

5 Acknowledgements The co-operation of mill personnel who responded to the 2016 B.C. Mill List Survey is gratefully acknowledged. The important roles played by FLNRORD s district staff in verifying local mill information and the ministry s contractor Lynette Stork in computer programming are also acknowledged. We highly acknowledged the significant contributions made by: Lynne Christensen of the Cedar Shake and Shingle Bureau (CSSB); Russ Cameron of the Independent Wood Processors Association (IWPA); Michael Armstrong of the Council of Forest Industries (COFI); Patti LeFrancois of the B.C. Log and Timber Building Industry Association (BCLTBIA); and Gordon Murray of the Wood Pellet Associations of Canada (WPAC). The survey and analyses were conducted by Jiali (Julie) Leng and reviewed by Rebecca Ewing and Tim Bogle. Additional supports were provided by Patrick Russell, Stephen Davis, Alex Barnes, John Cook and Judith Elkins. 2

6 Table of Contents Introduction... 5 Primary Log Use and Wood Fibre Supply in British Columbia, Primary Log Use... 5 Wood Fibre Supply... 5 Product Recovery from Lumber Mills... 8 Fibre Used by Pulp, Pellet and Panel Mills... 8 Provincial Log Supply and Demand Provincial Chip Supply and Demand Time Series Data ) Lumber Mills Number of Mills Mill Capacity, Output, and Input Average Capacity, Capacity Utilization, and Lumber Recovery Factor ) Veneer and Plywood Mills Number of Mills Mill Input Average Capacity, Capacity Utilization, and Veneer Recovery ) Pulp and Paper Mills Number of Mills Mill Input, Output, Harvest Residuals ) Pellet Mills Number of Mills Mill Capacity, Input, Output, and Capacity Utilization Related References Appendix: List of Mills Lumber Mills Pulp and Paper Mills Veneer, Plywood, OSB and Other Panel Mills Chip Mills Pellet Mills Pole and Post Mills Shake and Shingle Mills

7 Abbreviations for Products CHP - Chip PLE - Pole LBR - Lumber PLT - Pellet LVL - Laminated Veneer Lumber PLY - Plywood OSB - Oriented Strand Board PNL - Other Panel PLP - Pulp PST - Fence Post PPR - Paper UTI - Utility Pole SS - Shake and Shingle VNR - Veneer 4

8 Introduction This report presents summary statistics derived from the 2016 and earlier mill surveys, and selected analyses of these statistics. Fibre supply and log use in the province are examined through a series of tables and pie charts. These are followed by time series statistics for lumber, veneer mills, pulp and paper, and pellet mills. The final sections provide a list of the primary mills operating in the province in Each year, surveys are sent to mill operators. Based on responses, mills are classified as a) open with response, b) presumed open without response, c) did not operate at all during the year (temporary or indefinite closure) or d) closed (permanently). Statistics in this report are derived from mills in category a) and b). Mills that have announced permanent closure during 2016 are recorded as category a) for Some historical data has been adjusted in this report to reflect revised information received from mill representatives for the 2016 Mill List report, meaning some historical data presented in this report might not be consistent with the data published in previous reports. Primary Log Use and Wood Fibre Supply in British Columbia, 2016 Primary Log Use Figure 1 shows the estimated primary log use was 67.8 million cubic metres in 2016, up from 66.5 million cubic metres reported in 2015 and the 2014 level of 67.1 million cubic metres: Lumber mills accounted for an estimated 72.9% of the total primary log use in 2016, up from 71.9% in The number of lumber mills operating in 2016 was 139 1, above the 136 mills reported in The percentage of log consumption volume milled by veneer and OSB mills increased slightly from 9.6% in 2015 to 10.0% in Chip mills and pulp mill wood rooms 2 proportion of log use was down from 8.8% in 2015 to 6.1% in provincial log export was 9.2% of primary log use, up from 8.3% in Wood Fibre Supply Total harvest volume in 2016 was 65.7 million cubic metres, down 4.1% from Interior companies harvested 72% of the provincial total and coastal companies harvested the rest. The harvest mix on the Coast was hemlock (34%), Douglas fir (30%), red cedar (20%), balsam (10%) and other (5.5%). In the Interior, lodge pole pine (42%) and spruce (27%) dominate the harvest mix. Total log import volume remained low at 19, 000 cubic metres in Several small mills were added to the 2016 mill list. These mills have been operating previously but have only been reported in the list this year. 2 When pulp mills are unable to obtain adequate chip supply from lumber mills, operators may choose to purchase whole logs and chip them at the mill site. 5

9 Figure 1: Estimated British Columbia Primary Log Use Number of Mills Est. Volume Used (000 m³) Per Cent Number of Mills Est. Volume Used (000 m³) Per Cent Number of Mills Est. Volume Used (000 m³) Per Cent Primary Log Use Lumber Mills 48 7, % 91 41, % , % Veneer/OSB Mills 5 2, % 12 4, % 17 6, % Pulp Mill Wood Rooms % % % Chip Mills 10 1, % 12 2, % 22 3, % Shake & Shingle Mills % % % Other Mills % % % Log Exports 5, % % 6, % TOTAL , % , % , % Log Availability Coast Interior Province Total Harvest 18,241 47,501 65,742 Log Imports 19 TOTAL 18,241 47,501 65,762 Difference % -2, % -2, % *Total harvest includes all logs, special forest products, species and grades billed to crown, private and federal land. Waste, reject and Xmas trees were excluded. Total Primary Log Use million m3 Veneer/OSB Mills 10.0% Pulp Mill Wood Rooms 1.2% Lumber Mills 72.9% Chip Mills 4.9% Shake & Shingle Mills 0.9% Other Mills 0.8% Log Exports 9.2% Sources: B.C. Mill List Survey data; Natural Resources Canada's trade data for total provincial exports and imports; BC Ministry of Forests, Lands, Natural Resource Operations and Rural Development log export statistics for the proportion of exports from the Coast versus Interior. Note: Statistics above do not include mills that were closed or did not operate in

10 Figure 2: Estimates of Product Recovery from Lumber Mills Units Coast Interior Province Number of Mills Log Input (million m 3 ) Lumber Output Lumber Output (nominal measure) (mmfbm) Lumber Recovery Factor (mfbm/m 3 ) Conversion Factor * (m 3 /mfbm) = Actual Volume of Lumber Produced (million m 3 ) As Per Cent of Log Input (%) 46.6% 45.1% 45.3% Lumber Shrinkage Shrinkage (5% of lumber production) (million m 3 ) As Per Cent of Log Input (%) 2.3% 2.3% 2.3% By Product Chip Output (from Lumber Mills) By Product Chip Output (million bdu) By Product Chip Recovery Factor (bdu/'000 m 3 ) Conversion Factor* (m 3 /bdu) = Volume of Chips Produced (million m 3 ) As Per Cent of Log Input (%) 42.9% 37.2% 38.1% Sawdust and Shavings - Estimated Volume (million m 3 ) As Per Cent of Log Input (%) 8.1% 15.5% 14.3% Estimated Product Recovery from Lumber Mills By-product chips 38.1% Lumber 45.3% Lumber shrinkage 2.3% Sawdust & Shavings 14.3% Notes: * Conversion factors are used to convert lumber output or by-product chips in nominal measure to solid wood equivalent. mmfbm = million board feet; mfbm = thousand board feet; m 3 = cubic metres; bdu = bone dry unit = 2400 pounds. Conversion factors used in the analysis are based on Forintek Canada Corp., "Conversion Factors for the Forest Products Industry in Western Canada", Special Publication No. SP-24R, 1985 and "Major Primary Timber Processing Facilities in British Columbia 2007", Appendix 1, page The provincial estimated lumber output in Figure 2 is within 1% of Statistics Canada s sawmilling output for B.C... 7

11 Product Recovery from Lumber Mills Figure 2 estimates product recovery from lumber mills. It shows that 45.3% of the volume of wood entering lumber mills was converted to lumber, 38.1% was converted to chips primarily used as input to pulp mills, and an estimated 14.4% was sawdust and shavings available for bio-energy (i.e. fuel for kilns, pellet/panel manufacturing, and electrical energy production). Fibre Used by Pulp, Pellet and Panel Mills Figure 3 combines information from Figures 1 and 2 with a chart showing the sources of fibre used by pulp, pellet and panel mills: Pulp mills used an estimated 26.3 million cubic metres in solid wood equivalents, representing an increase of 3.4% from Residual chips from sawmills contributed 71.5% of pulp mill inputs while whole log chipping provided 20.3% of the fibre. Pulp mill use of fibre derived from harvest residuals 4 expanded to 3.4% of total use from 2.9% last year. Pellet and panel mills used an estimated 5.3 million cubic metres in solid wood equivalents, representing a 16.6% increase from This increase was mainly driven by the opening of two new pellet plants 5 in In 2016 versus 2015, there was a 10.4% increase of fibre produced from harvest residuals 6. The largest consumers of harvest residuals were pulp mills followed by pellet and chip mills. The harvest residual data is important for the B.C. government and the Forestry and Fibre Working Group to establish a baseline on fibre use to determine the effectiveness of policy changes and inform any necessary adjustments to achieve B.C. s fibre use goals. These goals include generating more value from the forest resource and increasing fibre use in harvesting operations. 4 The ministry started collecting the harvest residual data through adding harvest residual consumption questions to the mill list survey in This new data element may be underestimated because the residual fibre volume consumed by some major timber facilities may not be reported or inaccurately reported to the survey. 5 Canfor with its partner Pacific Bioenergy officially opened two new pellet plants in July 2016 at their existing sawmill sites in Chetwynd and Fort St. John. 6 Harvest residuals in this report refer to fibre removed from the cut block following harvesting activities and transported directly to pulp, chip or pellet mills (i.e. not a sawlog or a traditionally defined pulp log). 8

12 Figure 3: Estimated British Columbia Log and Fibre Use Total Primary Log Use million m3 Veneer/OSB Mills 10.0% Lumber Mills 72.9% Log Exports 9.2% Pulp Mill Wood Rooms 1.2% Other Mills 0.8% Chip Mills 4.9% Shake & Shingle Mills 0.9% Logs Used in Lumber Mills million m³ By-product Chips,36.8% By-product Chips from Lumber Mills 71.5% Chips from Whole Log Chipping Mills 20.3% Sawdust 1.7% Lumber, 44.5% Sawdust & Shavings, 14.4% Harvest Residual 3.4% Pulp Mill Wood Rooms 3.1% Fibre Used in Pulp Mills million m3 Lumber Shrinkage, 2.2% Harvest Residual in Pellets 4.8% Sawdust in Pellets 93.7% Sawdust in Panels 1.5% Fibre Used in Pellet and Panel Mills million m3 Harvest Residual Used in Pulp, Chip and Pellet Mills million m3 * B.C. is a net importer of chips. A small amount of imported chips may be consumed by some pulp mills. 9

13 Million Cubic Metres Provincial Log Supply and Demand As shown in Figure 4, the primary provincial log use volume estimated in this report exceeded the harvest volume by 2.1 million cubic metres (3%) in This difference could be due to a number of factors, including the seasonality inherent in timber harvesting, log inventory changes, different company reporting years, or the estimates made for mills that did not complete the survey. Figure 4 monitors the trends of the primary log use and log supply for selected years over the period of : Over the last 12 years, log use volume captured by the mill list survey represented 96% of the total log supply. The harvest and log use dipped in the recession and bounced back to lower levels compared to pre-recession period. Large and medium sawmills consumed most of the whole log inputs. Veneer and OSB mills are the second-largest consumers of logs in the province, followed by chip mills and pulp mills. 90 Figure 4: B.C. Primary Log Use and Log Supply For Selected Years* Total Log Use Total Available Logs Log Exports Other Mills Shake & Shingle Mills** Chip Mills Pulp Mill - Wood Rooms 20 Veneer/OSB Mills 10 Lumber Mills *Note: The ministry did not survey small lumber mills in 2009 and did not publish mill list reports in 2010 and Ministry staff selected the above years with published reports and consistent sample sizes to ensure the data accuracy and consistency over years. **The ministry did not survey shake and shingle mills in 2011 and Log use volume for those mills was estimated based on best available information. 10

14 Provincial Chip Supply and Demand In B.C., the main sources of chip supply are residual chips produced by sawmills and veneer mills, followed by chips produced in pulp mills or in whole log chipping mills. A small amount of imported chips also contribute to the provincial chip supply. Pulp and paper mills are the major chip consumers, converting low-value wood chips into high-value pulp and paper products. Table 1 summarizes provincial chip production and consumption by natural resource areas for 2015 and 2016: The production of whole log chips on the Coast reduced by 33% due to increased use of residual chips. The production of residual chips from sawmills and veneer mills slightly increased on the Coast and in the North. About 30% of chips consumed by Coastal pulp mills were sourced from Interior mills. B.C. is a net importer of chips. Those imported chips played an important role in filling the provincial chip supply and demand gaps in 2015 and Table 1: B.C. Chip Production and Consumption by Natural Resource Areas for Whole Log Chips Production from Pulp Wood Room and Chip Mills (000 BDUs) Coast 1, North South Residual Chips from Sawmills and Veneer Mills (000 BDUs) Coast 1,471 1,500 North 2,612 2,786 South 3,101 3,072 Total Provincial Chip Production (000BDUs) Coast 2,482 2,179 North 3,133 3,101 South 3,760 3,580 Total Chip Consumption by Pulp Mills (000BDUs) Coast 3,490 3,095 North 3,089 2,922 South 3,480 3,502 Differences Between Chip Production and Consumption (000BDUs) Coast -1, North South Provincial Net Import Provincial Chip Balance Reporting Errors, etc % -3.48% 11

15 Time Series Data 1) Lumber Mills In 2016, B.C. sawmills sales (primarily lumber) was CA$5.5 billion, or 58% of total Wood Product Manufacturing sales in the province 7. The largest markets for B.C. softwood lumber exports were the U.S., China and Japan. The following section provides summary statistics from 1990 onwards for lumber mills with capacity greater than or equal to 40 million board feet per year. Number of Mills Table 2 and Figure 7 show that there were 18 operating mills on the Coast and 51 in the Interior for a total of 69 lumber mills in the province in Mill Capacity 8, Output, and Input Figure 5 demonstrates that Coastal lumber capacity began to decrease in the early 2000 s, and has remained fairly steady from 2009 onwards. Coast lumber log input and production also declined to 2009, and have increased since, rising to about 80% of capacity in Figure 6 shows that Interior lumber capacity rose temporarily during the early 2000 s; along with the mountain pine beetle salvage efforts and the strong U.S. lumber demand prior to the recession. Since the sharp decline in production in the recession, production has increased, but has not reached the pre-recession highs when salvage of beetle killed wood was at its peak. Average Capacity, Capacity Utilization, and Lumber Recovery Factor Figure 7 shows that as the number of mills declined in both the Coast and Interior regions, average sizes of mills increased. Both mill numbers and average capacity have been stable since Figure 8 shows that capacity utilization for both the Coast and Interior dropped markedly during the recession and has recovered since The level of capacity utilization is substantially lower on the Coast than in the Interior. Figure 9 shows that the Interior s lumber recovery factor (LRF) rose steadily to 2003 and flattened out after that. Increasing processing of beetle-killed timber put downward pressure on the upward trend of the Interior s LRF. 7 Source: 2016 Economic State of the B.C. Forest Sector report 8 For lumber mills, capacity is measured assuming mills run two 8-hour shifts, 240 days per year. Actual production can be higher or lower than capacity depending on actual mill production schedules 12

16 Table 2: British Columbia Lumber Mill Summary Statistics for mills with estimated annual capacity of at least 40 million board feet COAST Number of Mills % Total Capacity billion board feet per year % Total Output billion board feet per year % Total Input million cubic metres per year % % change Average Capacity million board feet per mill per year % Capacity Utilization output divided by capacity 89% 88% 77% 76% 89% 65% 63% 55% 61% 61% 68% 67% 77% 76% 76% -14% Lumber Recovery Factor '000 board feet per cubic metre % INTERIOR Number of Mills % Total Capacity billion board feet per year % Total Output billion board feet per year % Total Input million cubic metres per year % Average Capacity million board feet per mill per year % Capacity Utilization output divided by capacity 93% 97% 99% 111% 111% 107% 86% 74% 91% 95% 99% 106% 101% 108% 108% 16% Lumber Recovery Factor '000 board feet per cubic metre % PROVINCE Number of Mills % Total Capacity billion board feet per year % Total Output billion board feet per year % Total Input million cubic metres per year % Average Capacity million board feet per mill per year % Capacity Utilization output divided by capacity 92% 94% 93% 103% 107% 100% 82% 71% 86% 89% 94% 99% 97% 102% 103% 12% Lumber Recovery Factor '000 board feet per cubic metre % Source: Major Primary Timber Processing Facilities in British Columbia, ministry database, various years Notes: Includes only those lumber mills with a minimum estimated annual capacity of 40 million board feet per year. Capacity estimated assuming two 8-hour shifts, 240 days per year. 13

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20 2) Veneer and Plywood Mills Veneer is produced as a thin sheet of wood of uniform thickness by peeling or slicing logs, requiring higher grade logs with no branches. Plywood is produced by gluing and compressing together, three or more sheets of veneer, with the grain of alternate sheets usually laid crosswise 9.Veneer is also used in other engineered wood products such as laminated veneer lumber. The following section gives a provincial overview of veneer mill statistics from 1990 onwards: Number of Mills As shown in Table 3, there were 12 veneer mills operating in the province in Three veneer mills were on the Coast and nine mills were in the southern Interior. Seven veneer mills in B.C. operated plywood mills on the same sites. Mill Input As shown in Figure 10, total log input to veneer mills moved downward over and upward from 2012 onwards driven by strong demand in the US. The total log input grew from 3.6 million cubic metres to 4.3 million cubic metres over The input reached 4.9 million cubic metres in 2016, up 14% from 2015 or 20% from Particularly, Tolko s Armstrong plant started veneer production in Average Capacity, Capacity Utilization, and Veneer Recovery Figure 11 shows that average capacity of veneer mills grew steadily between 1990 and There was a bump on average capacity in caused by temporary mill closures 11. Figure 12 illustrates a steady upward trend for capacity utilization in veneer mills between 1991 and 2006 as mills shifted from two to three shifts per day. Capacity utilization dropped in due to the major market downturn. Operations in veneer mills were back to pre-recession rates of 130% capacity utilization from 2013 onwards. Figure 13 shows the recovery factor in 2016 was comparable to the average recovery experienced by veneer mills from 1994 to The recovery factor declined over due to the mountain pine beetle epidemic. The recovery factor climbed to a record high in 2013 due to the increasing supply of higher-quality logs to the veneer mills. 9 Source: Statistics Canada: 10 Small mills using an average of less than 25,000 cubic metres of logs per year were not included in these statistics. 11 Temporary closure of Aspen Planer s veneer mill in

21 Table 3: British Columbia Veneer Mill Summary Statistics Number of Mills % Total Capacity (billion square feet 3/8" basis) % Total Output (billion square feet 3/8" basis) % Total Log Input (million cubic metres) % Average Capacity (million square feet per mill) % Average Log Input (thousand cubic metres per mill) % Capacity Utilization (output divided by capacity) 110% 112% 126% 141% 132% 126% 115% 90% 100% 100% 116% 133% 133% 137% 133% 22% Recovery Factor (square feet per cubic metre log input) % % change Source: Major Primary Timber Processing Facilities in British Columbia, ministry database, various years Notes: Output Capacity is estimated based on two 8 hour shifts, 240 days per year. Small mills using an average of less than 25,000 cubic metres of logs per year are not included in these statistics. 18

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24 3) Pulp and Paper Mills Pulp is used primarily as a raw material for paper and paperboard products, packaging as well as personal hygiene products and rayon. The main B.C. pulp products are currently bleached softwood kraft pulp and chemi-thermo-mechanical pulp (CTMP). Most of the paper produced in B.C.is newsprint. In 2016, B.C. pulp mills had sales of CA$2.4 billion, which accounted for 56% of total pulp and paper manufacturing sales in the province 12. B.C. total pulp export value was CA$3 billion. China had a dominant share of total pulp exports (61%), followed by the U.S. (12%), Japan (5%) and other destinations (22%). Bleached softwood kraft pulp dominates B.C. s pulp exports 13. In 2016, Paper and paperboard sales were down 21%, and converted paper was up 7.2% 14. Exports of finished paper products were CA$904 million. The following section provides a provincial overview of pulp and paper mill statistics from 1991 onwards: Number of Mills Table 4 shows that 15 pulp mills and five paper mills operated in Five of the 15 pulp mills were on the Coast and 10 were in the Interior. Neucel Specialty Cellulose s Port Alice pulp mill has been idled since Chetwynd Mechanical Pulp mill curtailed its operation in There were no paper and thermo-mechanical pulp (TMP) operations at Howe Sound s pulp and paper mill in 2016 due to the closure of both operations in Mill Input, Output, Harvest Residuals Pulp Mills Pulp mill input had been stable since recovering from the economic downturn at about 10 million BDUs versus 12 million BDUs between 1995 and Total pulp output declined similarly, from about 7 million tonnes in to 5.7 million tonnes in Chips produced in pulp mills or in whole log chipping mills have historically been among the most expensive chips consumed by the pulp mill compared to by-product chips from sawmills. However, these chips play a critical role in maintaining a consistent overall chip supply to pulp mills. In 2016 vs.2015, whole log chips consumed by pulp mills substantially decreased by 2.9 million cubic metres. This decline resulted from the increased use of residual chips from sawmills. Only four pulp mills reported producing chips in 2016 vs. seven mills in Pulp is a subcategory of the Paper Manufacturing NAICS code. Data source: Statistics Canada 13 Data source: Statistics Canada 14 Source: Statistics Canada and 2016 Economic State of the B.C. Forest Sector. Converted paper includes products created from purchased paper and paperboard. 21

25 Post-harvest residuals are an increasingly important source of fibre for pulp producers. Harvest residual volume used by pulp mills increased from 797,000 cubic metres in 2015 to 895,000 cubic metres in Paper Mills As shown in Figure 16, total capacity and output of paper mills continues to decline in recent years after the large collapse of paper output beginning in 2006 due to economic downturn and significant reduced demand for printing and writing papers in global markets. The paper mill capacity and output had flattened out in and declined in due to mill closures. As shown in Figure 17, paper mill capacity utilization remained above 90% between 2010 and Due to the closure of Howe Sound s paper operation, the capacity utilization for all paper mills dropped to 87% in 2015 and slightly rose to 91% in

26 Table 4: British Columbia Pulp and Paper Mill Summary Statistics % change Number of Pulp Mills % Total Capacity (million tonnes) % Total Output (million tonnes) % Total Fibre Input (million bone dry units) % Average Capacity (thousand tonnes) % Average Fibre Input (thousand bone dry units) % Capacity Utilization 79% 89% 96% 96% 95% 95% 92% 83% 92% 96% 99% 97% 100% 97% 100% 26% Number of Paper Mills % Total Capacity (million tonnes) % Total Output (million tonnes) % Average Capacity (thousand tonnes) % Capacity Utilization 79% 90% 97% 101% 95% 89% 85% 81% 98% 98% 95% 96% 92% 87% 91% 15% Source: Major Primary Timber Processing Facilities in British Columbia, ministry database, various years Notes: Estimated annual capacity is based on a standardized operation of 345 operating days per year, one 24-hour shift per day. Actual operations may vary from this schedule. Pulp mills included in these statistics are those that use wood fibre input. Historical data for some pulp mills have been adjusted to reflect new information received in

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29 4) Pellet Mills Wood pellets are primarily used as wood fuel, and may also be used in niche markets such as animal bedding. Pellets are made from compacting fibre, usually sawdust, into the desired pellet diameter and length. Wood pellets are predominantly produced from sawmill residues. In 2016, foreign demand for wood pellets was strong and B.C. exports increased roughly 50% 15. The province exported 1.93 million tonnes of wood pellets worth CA$319 million in 2016, as compared to 1.26 million tonnes of wood pellets worth CA$201 million in The U.K. was the primary destination by weight (71%), followed by Japan (14%), Belgium (7%) and Italy (3%). The following section provides an overview of pellet mill statistics for : Number of Mills As noted in Table 5, there were 14 pellet plants in the southern and northern Interior of B.C. Canfor with its partner Pacific Bioenergy officially opened two new pellet plants in July at their existing sawmill sites in Chetwynd and Fort St. John. The Chetwynd plant began testing its operation in 2015 and Fort St. John plant reached its full operation in early Mill Capacity, Input, Output, and Capacity Utilization As seen in Figure 18, the total capacity increased to 2.22 million tonnes in 2016 due to the new mill openings. The total pellet production continues to climb with 2.06 million tonnes produced in B.C. in 2016 an increase of 21% from In , the increase of pellet input (mainly sawdust) was 19.8% - from 1.62 million bone dry units to 1.94 million bone dry units. Figure 19 illustrated that capacity utilization for pellet mills was highly variable over because new or reopened mills brought additional capacity while not necessarily operating for the entire year. 15 Source: 2016 and 2015 Economic State of the B.C. Forest Sector report 16 Chetwynd and Fort St. John plants started reporting survey data for 2015 mill list report during its testing phase prior to its official opening date in

30 Table 5: British Columbia Pellet Mill Summary Statistics % change Number of Mills % Total Capacity (million tonnes) % Total Output (million tonnes) % Total Input (million bone dry units) % Average Capacity (000s tonnes) % Average Fibre Input (thousand bone dry units per mill) % Capacity Utilization (output divided by capacity) 100% 48% 41% 74% 79% 85% 68% 98% 99% 93% 88% 93% -7% Recovery Factor (Tonnes of output per tonne of bone dry input) % Source: Major Primary Timber Processing Facilities in British Columbia, ministry database, various years Notes: Output Capacity is estimated based on three 8-hour shifts, 345 days per year. Historical data may be adjusted to reflect the new information received in

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32 Related References B.C. Ministry of Forests, Lands, Natural Resource Operations and Rural Development (2017, November) Economic State of the B.C. Forest Sector. Retrieved from Cedar Shake and Shingle Bureau (n.d.).retrieved from Industry Canada. Canadian Industry Statistics. Retrieved from Nielson, R.W.; Dobie, J. and Wright, D.M. (1985). Conversion factors for the forest products industry in Western Canada. Forintek Canada Corporation. Vancouver, British Columbia. Special Publication SP-24R. Retrieved from Pulp and Paper Product Council.(n.d.).Retrieved from Spelter, Henry, Rocky Goodnow, and Crystal Gauvin. (2016). Profile 2016: Softwood Sawmills in the United States and Canada. Wood Pellet Association of Canada (n.d.). Retrieved from 29

33 Appendix: List of Mills Figure 20: Administrative Areas and Natural Resource District Boundaries in

34 Lumber Mills (Listed Alphabetically By Company) Mills producing lumber provided in separate tables, one for those with estimated annual capacity above 40 million board feet of lumber, and one for those below. The annual capacity reported in the following tables is estimated based on the same standard operating assumption for each mill (i.e. number and length of shifts and days per year as described below). Actual mill production can be higher or lower than estimated capacity if a mill runs on a different operating schedule than assumed here. Thus while capacity provides guidance on mill output, it is not a measure of the actual production level for the mill. For more information, please contact Mill.Survey@gov.bc.ca. Notes: 1. Measurement units are in millions of board feet. 2. Estimated annual capacity is based on a standardized operation of 240 days per year, two 8-hour shifts per day. Actual mill operations may vary from this schedule. 3. Administrative areas and natural resource districts were applied (see Figure 20 for details). 4. The List of Lumber Mills is available as an Excel spreadsheet online at: 31

35 LUMBER MILLS WITH CAPACITY GREATER THAN 40 MILLION BOARD FEET OF LUMBER IN 2016 Estimated Annual Mill Number Company Location of Mill Administrative Area Natural Resource District Capacity (millions of board feet) 8 Andersen Pacific Forest Products Ltd Maple Ridge Coast Chilliwack Apollo Forest Products Ltd. Fort St James North Fort St. James Aspen Planers Ltd. Merritt South Cascades Babine Forest Products Ltd. -Hampton Affiliates Burns Lake North Nadina Canadian Forest Products Ltd. Mackenzie North Mackenzie Canadian Forest Products Ltd. Houston North Nadina Canadian Forest Products Ltd. Radium Hot Sprgs South Rocky Mountain Canadian Forest Products Ltd. Bear Lake North Prince George Canadian Forest Products Ltd. Vavenby South Thompson Rivers Canadian Forest Products Ltd. Prince George North Prince George Canadian Forest Products Ltd. Elko South Rocky Mountain Canadian Forest Products Ltd. Isle Pierre North Prince George Canadian Forest Products Ltd. Engen North Vanderhoof Canadian Forest Products Ltd. Chetwynd North Peace Canadian Forest Products Ltd. Wynndel South Selkirk Canadian Forest Products Ltd. Fort St John North Peace Carrier Lumber Ltd. Prince George North Prince George Conifex Timber Inc. Fort St James North Fort St. James Conifex Timber Inc. Mackenzie North Mackenzie Decker Lake Forest Products - Hampton Affiliates Ltd. Burns Lake North Nadina Delta Cedar Sawmill LP Delta Coast Chilliwack Downie Timber Ltd. Revelstoke South Selkirk Dunkley Lumber Ltd. Strathnaver North Prince George Galloway Lumber Co. Ltd. Galloway South Rocky Mountain Gilbert Smith For Prod Ltd. Barriere South Thompson Rivers Goldwood Industries Ltd. Richmond Coast Chilliwack Gorman Bros Lumber Ltd. Westbank South Okanagan Shuswap Halo Sawmill Manufacturing LP Pitt Meadows Coast Chilliwack International Forest Products Ltd. Grand Forks South Selkirk International Forest Products Ltd. Hammond Coast Chilliwack International Forest Products Ltd. Adams Lake South Thompson Rivers International Forest Products Ltd. Castlegar South Selkirk International Forest Products Ltd. Delta Coast Chilliwack J H Huscroft Ltd. Erickson South Selkirk J.S. Jones Surrey Coast Chilliwack Kalesnikoff Lumber Co. Ltd. Thrums South Selkirk L & M Lumber Ltd. Vanderhoof North Vanderhoof Lakeland Mills Ltd Prince George North Prince George Ledcor Chilliwack Coast Chilliwack North Enderby Timber Ltd. Enderby South Okanagan Shuswap 70 32

36 LUMBER MILLS WITH CAPACITY GREATER THAN 40 MILLION BOARD FEET OF LUMBER IN 2016 Estimated Annual Mill Number Company Location of Mill Administrative Area Natural Resource District Capacity (millions of board feet) 626 Porcupine Wood Products Ltd. Salmo South Selkirk ROC Holdings Terrace North Coast Mountain S & R Sawmills Ltd. Surrey Coast Chilliwack Sigurdson Forest Products Williams Lake South Cariboo Chilcotin Stag Timber Ltd. Surrey Coast Chilliwack Terminal Forest Products Ltd. Vancouver Coast Chilliwack Terminal Forest Products Ltd. Richmond Coast Chilliwack Tolko Industries Ltd. Merritt South Cascades Tolko Industries Ltd. Quesnel South Quesnel Tolko Industries Ltd. Armstrong South Okanagan Shuswap Tolko Industries Ltd. Lavington South Okanagan Shuswap Tolko Industries Ltd. Kelowna South Okanagan Shuswap Tolko Industries Ltd. Williams Lake South Cariboo Chilcotin Tolko Industries Ltd. Williams Lake South Cariboo Chilcotin Vaagen Fibre Canada Midway South Selkirk West Fraser Mills Ltd. Chetwynd North Peace West Fraser Mills Ltd. Quesnel South Quesnel West Fraser Mills Ltd. 100 Mile House South 100 Mile House West Fraser Mills Ltd. LeJac North Vanderhoof West Fraser Mills Ltd. Clinton South 100 Mile House West Fraser Mills Ltd. Smithers North Skeena Stikine West Fraser Mills Ltd. Williams Lake South Cariboo Chilcotin Western Forest Products Cowichan Bay Coast South Island Western Forest Products Port Alberni Coast South Island Western Forest Products Port Alberni Coast South Island Western Forest Products Duke Point Coast South Island Western Forest Products Ladysmith Coast South Island Western Forest Products Ladysmith Coast South Island Western Forest Products Chemainus Coast South Island 72 33

37 LUMBER MILLS WITH CAPACITY LESS THAN 40 MILLION BOARD FEET OF LUMBER IN 2016 Estimated Mill Number Company Location of Mill Administrative Area Natural Resource District Annual Capacity (millions of board feet) Mile Wood Products 100 Mile House South 100 Mile House A.J. Forest Products ltd. Brackendale Coast Sea to Sky Abfam Enterprises Ltd. Port Clements Coast Haida Gwaii Alan Hyde Sawmill Sicamous South Okanagan Shuswap BC Custom Timber Products Ltd. Vanderhoof North Vanderhoof Bear Lumber Ltd. Cranbrook South Rocky Mountain Brasier Mill Masset Coast Haida Gwaii Buff Lumber Ltd. Westwold South Okanagan Shuswap C & C Wood Products Ltd. Quesnel South Quesnel Cambie Cedar Products Ltd. Sicamous South Okanagan Shuswap Clarence Palumbo Sawmill Golden South Selkirk N/A 117 Continental Pole Ltd. Pemberton Coast Sea to Sky Coulson Manufacturing Ltd Port Alberni Coast South Island COWICHAN LAKE TIMBER Lake Cowichan Coast South Island Duz Cho Forest Products Mackenzie North Mackenzie E Schuk contracting Ltd. Tatla Lake South Cariboo Chilcotin Eaglecrest Enterprises Port Clements Coast Haida Gwaii Edgegrain Woss Coast North Island - Central Coast Edgewater Holdings Ltd. Prince George North Prince George Entzminger Sawmill Quesnel South Quesnel N/A 301 Errington Cedar Products Ltd. Errington Coast South Island Franklin Forest Products Ltd. Port Alberni Coast South Island G.C. Williams Milling Malcolm Island Coast North Island - Central Coast Gibbs Custom Sawmill McBride North Prince George Gold Island Forest Products Ltd. Slocan South Selkirk Green Forest Products Ltd. Merville Coast Campbell River Greenslide Cattle Co Ltd Revelstoke South Selkirk Gudeit Bros. Cont. Ltd Lumby South Okanagan Shuswap Harold Turner Pritchard South Thompson Rivers Harrop-Proctor Forest Products Horrop South Selkirk Hauer Bros. Lumber Ltd. Tete Jaune Cache North Prince George JCI Touchwood Sawmills Terrace North Coast Mountain Jemico Enterprises Ltd. Chemainus Coast South Island Joe Kozek Sawmills Ltd. Revelstoke South Selkirk John Salo Sointula Coast North Island - Central Coast N/A 184 Kitwanga Forest Products Kitwanga North Skeena Stikine Lagace Lumber Ltd Queen Charlotte Coast Haida Gwaii N/A 34

38 LUMBER MILLS WITH CAPACITY LESS THAN 40 MILLION BOARD FEET OF LUMBER IN 2016 Estimated Mill Number Company Location of Mill Administrative Area Natural Resource District Annual Capacity (millions of board feet) 1007 Lake Drive Lumber Terrace North Coast Mountain Lakeside Timber (2007) Ltd. Tappen South Okanagan Shuswap Les Saverella Contracting McBride North Prince George Linde Bros Lumber Ltd. Williams Lake South Cariboo Chilcotin N/A 399 Lois Lumber Ltd Powell River Coast Sunshine Coast Long Hoh Enterprises Canada Ltd Qualicum Beach Coast South Island Ludwig Lumber Black Creek Coast Campbell River McDonald Ranch & Lumber Ltd. Grasmere South Rocky Mountain Murray Kane Site 6LW Clinton South 100 Mile House N/A 408 Nagaard Sawmills Ltd. Port Alberni Coast South Island North Star Hardware and Building SupplieAthalmer South Rocky Mountain Northern Log & Timber Winfield South Okanagan Shuswap Pacific Timber Burns Lake North Nadina Port Hardy Merchandising Ltd. Port Hardy Coast North Island - Central Coast Quadra Island Forest Products Ltd. Quadra Island Coast Campbell River R. Durfeld Log Construction Ltd. Williams Lake South Cariboo Chilcotin Rainforest Sawmill Black Creek Coast Campbell River Rouck Brothers Sawmill Ltd. Lumby South Okanagan Shuswap Saratoga Speedway Mills Campbell River Coast Campbell River N/A 731 SCG Forest Inc. Courtenay Coast Campbell River Schapol Logging Ltd. Enderby South Okanagan Shuswap Shannon Lumber Mission Coast Chilliwack SpikeTop Cedar Ltd. Port Hardy Coast North Island - Central Coast Suncoast Lumber and Milling Sechelt Coast Sunshine Coast T & N Custom Sawmill Enderby South Okanagan Shuswap T.L. Timber Ltd. Cawston South Okanagan Shuswap Take to heart Specialty Wood Product Revelstoke South Selkirk Tenured Wood Product Enterprises Skidegate Coast Haida Gwaii Thomson Bros. Lumber Co. Ltd. Courtenay Coast Campbell River Ukass Logging Ltd. Wilmer Creek South Rocky Mountain Woodco Management Ltd Barriere South Thompson Rivers Woodpecker sawmill Golden South Selkirk

39 Pulp and Paper Mills (Listed Alphabetically By Product) Mills producing pulp and paper are listed in this section. For integrated mills, pulp capacity includes pulp that is used internally to produce paper, and pulp that is shipped from the mill site as market pulp. The annual capacity reported in these tables is estimated based on the same standard operating assumption for each mill (number and length of shifts and days per year as described below). Actual mill production can be higher or lower than estimated capacity if a mill runs on a different operating schedule than assumed here. Thus while capacity provides guidance on mill output, it is not a measure of the actual production level for the mill. For more information, please contact Mill.Survey@gov.bc.ca. Notes: 1. Measurement units are in thousands of tonnes. 2. Estimated annual capacity is based on a standardized operation of 345 operating days per year, 24 hours per day. Actual operations may vary from this schedule. 3. Administrative areas and natural resource districts were applied (see Figure 20 for details). 4. The List of Pulp and Paper Mills is available as an Excel spreadsheet online at: 36

40 PULP AND PAPER MILLS Mill Number Company Location of Mill Product Administrative Area Natural Resource District Estimated Annual Capacity (000s of tonnes) 960 Canadian Forest Products Ltd. Prince George PLP North Prince George Canadian Forest Products Ltd. Taylor PLP North Peace Canadian Forest Products Ltd. Prince George PLP North Prince George Canadian Forest Products Ltd. Prince George PLP North Prince George Cariboo Pulp & Paper Co. Ltd. Quesnel PLP South Quesnel Catalyst Paper Port Alberni PLP Coast South Island Catalyst Paper Powell River PLP Coast Sunshine Coast Catalyst Paper Crofton PLP Coast South Island Domtar Kamloops PLP South Thompson Rivers Howe Sound Pulp & Paper Corporation Port Mellon PLP Coast Sunshine Coast Nanaimo Forest Products Cedar PLP Coast South Island Paper Excellence BV. Mackenzie PLP North Mackenzie Quesnel River Pulp Company Quesnel PLP South Quesnel Skookumchuk Pulp Inc Skookumchuk PLP South Rocky Mountain Zellstoff Celgar Limited Partnership Castlegar PLP South Selkirk Canadian Forest Products Ltd. Prince George PPR North Prince George Catalyst Paper Port Alberni PPR Coast South Island Catalyst Paper Powell River PPR Coast Sunshine Coast Catalyst Paper Crofton PPR Coast South Island Kruger Products LP New Westminster PPR Coast Chilliwack 57 37

41 Veneer, Plywood, OSB and Other Panel Mills (Listed Alphabetically by Product) Mills producing veneer, plywood and other types of panel are listed in this section. For mills that produce both market veneer and plywood, veneer capacity includes market veneer and the veneer that is used within the mill to manufacture plywood. Panel mills that use wood residuals to produce panels or that do not have log-processing capability are also listed in this report. The annual capacity reported in these tables is estimated based on the same standard operating assumption for each mill (number and length of shifts and days per year as described below). Actual mill production can be higher or lower than estimated capacity if a mill runs on a different operating schedule than assumed here. Thus while capacity provides guidance on mill output, it is not a measure of the actual production level for the mill. For more information, please contact Mill.Survey@gov.bc.ca. Notes: 1. Measurement units are in millions of square feet, 3/8" basis (mill. sq. ft., 3/8"). 2. Estimated annual capacity for veneer mills is based on a standardized operation of 240 days per year, two 8-hour shifts per day. For plywood mills, estimated annual capacity is based on a standardized operation of 240 days per year, three 8-hour shifts per day. For OSB and other panel mills, estimated annual capacity is based on a standardized operation of 345 days per year, three 8-hour shifts per day. Actual operations may vary from these schedules. 3. Administrative areas and natural resource districts were applied (see Figure 20 for details). 4. The List of Veneer, Plywood, OSB and Other Panel Mills is available as an Excel spreadsheet online at: 38