Interfor sign - Castlegar Division.

Interfor looking forward to growth in log supply and marketplace

Pending purchase of two timber supply tenures a positive step forward for company.

The vice President and chief forester of Interfor, Richard Slaco, said the pending purchase of two timber supply tenures from Springer Creek Forest Products in Slocan is a positive step forward for the company.

“We have an agreement to purchase but it hasn’t closed yet,” said Slaco, who was reached by telephone at his office in Delta. “The general view is that the market has definitely improved. Lumber prices in North America have increased to the point where the businesses are operating — after years of being in pretty tough circumstances — so that’s a very positive and encouraging development.”

Slaco said the Interfor business in Castlegar and Grand Forks is part of a turn-around story.

“Both those mills were purchased out of bankruptcy,” he said. “For us, it was being part of a transformation to the business itself and then being in a position to take advantage when the market improved.”

Slaco added the closing of the deal is an administrative process within the Ministry of Forests.

“So what we are waiting to receive from them is a notice to proceed with the transaction. Once we have that — which is the remaining hurdle and we are not anticipating any problem with that — then we would be in a position to actually close the deal and have the tenures.”

The decision to move forward on the tenure purchase was a combination of having the operations running more efficiently and a marketplace that is more favourable.

“I would say both of those things are a work in progress, but they’re definitely positive developments that have occurred,” said Slaco. “It will help with strengthening the log supply to service the Castlegar mill.”

When the tenures are complete they will add 174,000 cubic metres to the annual allowable cut for Interfor’s operations.

Slaco said it was too early in the process to comment on what the tenure purchase may mean for local workers or the local economy.

Just Posted

Castlegar athletes excel at 55+ Games

Castlegar residents bring home 28 individual medals and six team medals.

Castlegar Rebels split weekend opener

Rebels opened KIJHL regular season with a win over Grand Forks and a loss against Spokane.

Disability employment awareness month: open house and inclusive employer award

Events take place in Nelson and Castlegar this week

Kootenay author to launch memoir at Castlegar library

D.M. Ditson will share intimate memoir about sexual assault, PTSD and recovery.

LETTERS: On trails, environment, fall fair

Castlegar News letters to the editor for this week

VIDEO: Liberals make child care pledge, Greens unveil platform on Day 6 of campaign

Green party leader Elizabeth May unveils her party’s platform in Toronto

Winnipeg student, killed in bus crash, remembered as passionate, kind

University of Victoria student Emma Machado, 18, was killed in the bus crash near Bamfield on Friday

Boy overdosed on illicit anti-anxiety drug found on Kelowna classroom floor, RCMP say

Noah Mills, 8, ingested a pink powdery substance off his Kelowna classroom floor

20 day search for missing Labradoodle in Princeton, B.C. ends with tears of joy

The search brought out bloodhounds, and groups hoping to find Mordy

Fewer trees, higher costs blamed for devastating downturn in B.C. forestry

Largest driving factor is the province’s complex stumpage system that results in high fees, expert says

Canucks sign Brock Boeser to three-year, US$17.6-million deal

Young sniper will be in Vancouver Tuesday

B.C. forest industry looks to a high-technology future

Restructuring similar to Europe 15 years ago, executive says

RCMP conclude investigation into 2017 Elephant Hill wildfire

Files have been turned over to BC Prosecution Service

Most Read