Sustainable forest-sector manufacturing jobs coming
Press Release
Sept. 12, 2024
KAMLOOPS – New support for forest-sector manufacturers throughout the province will create jobs, strengthen local economies and promote the transition to high-value, made-in-B.C. forestry products.
“Making the best use of available fibre is a key part of the blueprint for sustainable forestry in B.C.,” said Brenda Bailey, Minister of Jobs, Economic Development and Innovation. “The BC Manufacturing Jobs Fund (BCMJF) is working with forestry companies throughout our province to create new jobs and highly sought-after engineered wood products. Helping manufacturers expand their operations to create more made-in-B.C. products is what the BCMJF is all about.”
Through the BCMJF, the Government of B.C. is contributing up to $11.4 million to eight forestry-sector capital projects and one planning project in communities throughout the province. These projects will see local manufacturers innovate their business lines using advanced manufacturing equipment and processes to make higher value products, scale up their operations to remain competitive, and improve overall production capacity, while establishing new local jobs and protecting existing ones.
Kruger Kamloops Pulp mill, one of Kamloops’ largest employers, will receive up to $5 million to support the commissioning of a new pressure diffusion washer with an AI-powered control system that will be the first technology of its kind in Canada. The Government of Canada is also providing $4.9 million under the Investment in Forest Industry Transformation (IFIT) Program for this initiative.
This project will allow Kruger to diversify its product offerings to include new, in-demand innovative products. These capital improvements will help keep the business competitive while reducing production costs and removing bottlenecks to render a better-quality pulp product. The investment in the pulp mill’s sustainable future will help protect 340 existing positions and will create four new roles, in addition to 95 jobs during the construction phase, and 1,000 jobs indirectly supported through the biomass value chain. Kruger previously received $50,000 in BCMJF funding to conduct planning toward this capital project.
“We are very grateful for the financial support from the IFIT program and the BC Manufacturing Jobs Fund,” said Irene Preto, general manager, Kruger Kamloops. “We’re especially excited to implement an innovative technology that will optimize our manufacturing processes, improve our environmental footprint, and reinforce Kruger’s position as a competitive supplier of high-quality, ethically sourced and sustainably sound specialty pulp.”
Power Wood Corporation is an Agassiz-based specialty and value-added wood product manufacturer, primarily producing highly specified architectural finished products from coastal B.C. forest products. Power Wood, in partnership with Squiala First Nation, will receive up to $3.4 million for their project to create a new state-of-the-art thermal modification manufacturing facility that will produce high value, thermally modified wood products that are known for their stability and durability.
The Government of Canada is also providing $3 million under the IFIT Program for this initiative via the Squiala PWC Wood Modifying Limited Partnership. This will help Power Wood decrease its reliance on old-growth fibre and diversify its fibre sources to increase the use of under-utilized species primarily from second-growth forests. The project will create 10 full-time jobs, further benefiting Squiala First Nation members who will be prioritized for hiring. Power Wood previously received $50,000 in BCMJF funding to conduct planning toward this capital project.
“The BC Manufacturing Jobs Fund and the Investments in Forest Industry Transformation programs have been the catalyst for our exciting partnership with Squiala First Nation,” said Jake Power, president and managing director, Power Wood Corporation. “Working with the BCMJF and IFIT staff and Chief David Jimmie and his team at Squiala has been a positive experience every step of the way. We are excited that we were able to come together in this partnership to build new manufacturing equipment that will benefit the Power Wood team, the community at Squiala First Nation, the B.C. forest industry and our local communities in Agassiz and Chilliwack.”
The BCMJF is part of a series of programs the Province has introduced to support sustainability in B.C.’s forestry sector. To date, the BCMJF has incentivized nearly $580 million flowing into forest product manufacturing, leading to the direct creation and protection of more than 3,000 forestry-sector jobs – most in regional, remote and Indigenous communities. Nearly one-quarter of all wood product manufacturers in B.C have applied to the program, demonstrating that producers are investing in the future of forestry in the province. The funding has spurred significant growth in off-site, prefabricated housing component manufacturing, allowing more homes to be built quicker, using B.C. wood.
BCMJF has also led to increased production of mass timber, engineered wood and bioproducts, with B.C. based companies leading the way in innovative uses of waste wood, residuals and available fibre for high-value, high-demand products and exports. The Province has partnered with 60 forestry-product manufacturers with more to come, dedicating more than $82 million to the industry in collaboration toward a stable, sustainable forestry sector in B.C.
Clean and Competitive: A Blueprint for B.C.’s Industrial Future lays out the Province’s work to drive new investment, create new jobs and seize new opportunities in growing clean-energy and sustainable industries. Supporting local manufacturing sectors helps leverage B.C.’s strengths to create good jobs and opportunities in every community and will improve the quality of life for people, while strengthening B.C.’s diverse economy.
Quotes:
Bruce Ralston, Minister of Forests –
“The forestry sector drives British Columbia’s economy, and has done so for more than 100 years. Since Premier Eby first announced historic investments into the forestry sector, wood manufacturers around the province have been launching new business lines and mill upgrades, supporting local jobs. We’re using B.C.’s strength to support people and businesses in rural communities. It’s not the time to pull back.”
Jonathan Wilkinson, Minister of Energy and Natural Resources –
“This federal government is supporting cutting-edge technologies and good jobs in British Columbia’s forestry sector. Contributions to Squiala PWC and Kruger Kamloops through NRCan’s Investment in Forest Industry Transformation Program will help create and preserve jobs in the region while expanding its supply of high-value forestry products in a changing market. By partnering with provinces, territories and First Nations, we can strengthen and maintain the long-term sustainability of the forest sector.”
Quick Facts:
The BCMJF supports high-value industrial and manufacturing capital projects in all sectors that will create and protect well-paying jobs.
The BCMJF has committed up to $123 million toward 112 projects to date, representing $1 billion in total capital investment in B.C.
Every million dollars invested results in $7 million in total direct capital investments in B.C., $590,000 in tax revenue to the Province, and $5.3 million in provincial GDP.
Funded projects will create more than 1,700 jobs and protect more than 2,300 jobs.
Learn More:
To learn about the BC Manufacturing Jobs Fund, including a list of recipients and updated application deadline information, visit: gov.bc.ca/ManufacturingJobsFund
To learn more about Clean and Competitive: A Blueprint for B.C.’s Industrial Future, visit: news.gov.bc.ca/files/Clean_and_Competitive.pdf
Two backgrounders follow.
Contacts:
Ministry of Jobs, Economic Development and Innovation
Media Relations
250 883-2068
Ministry of Forests
Media Relations
250 896-7359
BACKGROUNDER 1
Manufacturers receive funds from the BC Manufacturing Jobs Fund
Langley – Cloverdale Fuel Ltd. is a wood-waste processor that has been in business since 1945. Cloverdale collects a variety of wood-waste residuals from other forestry sector operators that would otherwise go into landfills and processes it into biofuel to be used by universities, hospitals and municipalities to generate energy and heating, supporting a circular economy. It will receive up to $830,000 to commission new equipment that will double production of high-grade biomass fuel and reduce emissions by moving away from using fossil fuels to power their production process, while creating 15 full-time jobs.
Kamloops – Thompson River Veneer Products Ltd. is a value-added wood manufacturer that purchases dry, low-grade and green veneer from coastal producers and produces custom, high-value plywood panels used in residential and commercial construction. It will receive up to $583,000 to improve their equipment by commissioning six additional press platens, which will increase productivity and improve the surface quality of the panels, helping make the business more competitive through accessing higher-value markets, while creating up to 11 additional full-time jobs.
Kelowna – Command Industries Ltd. is a contract manufacturing facility that manufactures metal components used in the construction of mass timber buildings. Command will receive up to $550,000 for its project to purchase advanced equipment that will double its production capacity, allow for the creation of new and specialized products, and bring more of the manufacturing process in-house. This funding is anticipated to create up to 12 full-time jobs.
Squamish – Fraserwood Industries Ltd. is a value-added timber remanufacturer specializing in mass timber products. It is receiving up to $465,000 to support the expansion of their facility to accommodate new equipment that will optimize productivity, drive new product development, and allow the company to scale up to meet demand as an important niche producer in the local mass timber ecosystem, while creating 10 full-time jobs.
North Vancouver – Lauten Woodworking Ltd. is a residential and commercial cabinetry and millwork manufacturer. It is receiving up to $320,000 to support the retrofit of its manufacturing facility and the purchase of new equipment that will enhance processes and efficiencies while creating four full-time jobs.
Richmond – D3 Custom Cabinets is a full-service custom cabinet and commercial millwork manufacturer. It is receiving $226,000 to support the expansion and retrofitting of their current production space and the purchase of new advanced equipment that will enable it to optimize and increase production and add new product lines, while creating up to four full-time jobs.
Coquitlam – Troico Home Solutions & Manufacturing Inc. is a custom cabinet manufacturer which designs, manufactures, and installs custom cabinetry. It will receive up to $50,000 to complete business planning to prepare for the purchase of new advanced machinery and software which will help create new business opportunities, improve sustainability and reduce dependence on old-growth wood inputs.
Contacts:
Ministry of Jobs, Economic Development and Innovation
Media Relations
250 883-2068
Ministry of Forests
Media Relations
250 896-7359
BACKGROUNDER 2
Chief David Jimmie, Squiala First Nation –
“As Squiala looks to diversify revenue streams and explore new opportunities, we’re excited to announce our partnership with Power Wood along with the important support from the BC Manufacturing Jobs Fund and the Investments in Forest Industry Transformation programs. The Squiala economic development board with support from Trevor Pehlke have gone through critical aspects of diligence to ensure the partnership is the right fit for Squiala. Jake Power has demonstrated his professionalism, extensive knowledge in the industry and is a forward-thinking entrepreneur, which aligns with Squiala’s strategic direction. We thank the Province of BC for their support in this important initiative and we look forward to working with the Power Wood team.”
Sylvia Pranger, mayor, District of Kent –
“The district is elated with the significant provincial and federal investment into Power Wood, illustrating first hand the value of supporting the wood-manufacturing sector. Since relocating to its expanded facility in July 2021, Power Wood has been an economic generator to the district and the surrounding communities. We look forward to the positive impacts their partnership with the Squiala First Nation will bring to the region. Congratulations to Jake Power and Chief David Jimmie!”
Robby Gill, director, Cloverdale Fuel Ltd. –
“This funding will help us to build out and fully electrify our recycling process, allowing us to recycle and process waste wood in a more environmentally friendly way. Our facility will now be the largest aggregator and processor of wood waste in southern B.C., and the facility with the smallest carbon footprint.”
Rob Woudwijk, vice-president, Command Industries Inc. –
“The BC Manufacturing Jobs Fund program is assisting Command to accelerate our expansion and growth plans with the purchases of key pieces of manufacturing equipment. These pieces will allow us to broaden the scope of products we currently offer our clients, as well as double our existing production capacity.”
Shawn Bells, general manager, Thompson River Veneer Products Ltd. –
“We appreciate the support from the BC Manufacturing Jobs Fund for our operations in Kamloops, which will help fund investment in our equipment and our workforce, which is essential to our competitiveness and long-term viability.”
Peter Dickson, president, Fraserwood Industries Ltd. –
“Support from the BC Manufacturing Jobs Fund was critical in accelerating our expansion into the mass-timber construction market. This expansion includes a building and finishing equipment that will enable Fraserwood to expand its product offering, create jobs and add more value to BC’s wood products.”
Katherine Walker, co-owner, Lauten Woodworking Ltd. –
“We are extremely grateful for the support from the BC Manufacturing Job Fund. This funding has been essential to our current expansion and modernization. It is allowing us to enhance productivity and create high-skilled jobs. While also contributing to the growth of our community and the business landscape in North Vancouver.”
Sam Jackson, president, D3 Custom Cabinets –
“Thanks to the BC Manufacturing Jobs Fund, D3 Custom Cabinets has not only upgraded our mainline processing equipment and expanded our factory, but also created skilled jobs that empower our community and drive innovation in the wood products processing sector.”
Contacts:
Ministry of Jobs, Economic Development and Innovation
Media Relations
250 883-2068
Ministry of Forests
Media Relations
250 896-7359
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