Western Forest Products (WFP) announced a significant decision on January 23, 2026: the Chemainus Sawmill Curtailment will extend through at least the end of 2026, with the mill remaining idle since June. Persistent weak market demand is the primary reason for this prolonged Chemainus Sawmill Curtailment. Log supply challenges also contribute significantly to these issues. These conditions impacting the Chemainus Sawmill Curtailment are not expected to improve soon.
Approximately 150 workers are employed at the Chemainus mill. They face continued uncertainty due to the Chemainus Sawmill Curtailment. This news comes as a blow to the community, following the recent permanent closure of the Crofton pulp mill. North Cowichan Mayor Rob Douglas expressed his devastation, calling it another real blow and a significant consequence of the Chemainus Sawmill Curtailment.
Broader Curtailments Affecting Coast Operations and the Chemainus Sawmill Curtailment
WFP also plans short-term curtailments at other sites. The Saltair and Ladysmith sawmills will see reduced operations, facing two-week operating curtailments starting in February. This decision stems from weak market conditions and reflects issues within the BC operating environment, further impacting the overall outlook on operations similar to the Chemainus Sawmill Curtailment.
Factors include a lack of economic log supply and ongoing harvesting permitting delays. A strike by the United Steelworkers Local 1-1937 played a role, impacting log supply to mills. Western Forest Products aims to operate consistently and minimize harm to employees, while exploring opportunities at other locations, despite the challenges presented by the Chemainus Sawmill Curtailment.
Economic and Community Impacts of the Chemainus Sawmill Curtailment
The Chemainus mill closure, a significant Chemainus Sawmill Curtailment, has broad economic implications. It impacts about 120 to 150 workers directly, many of whom have worked there for years. This prolonged uncertainty adds stress to households. North Cowichan is urging for support and pressing provincial and federal governments for assistance in light of the Chemainus Sawmill Curtailment.
Support includes income security and retraining options. Pathways to new jobs are crucial for those affected by the Chemainus Sawmill Curtailment. The municipality established a Mill Closure Response Working Group, including industry and labour partners, to support affected workers and mitigate economic risks. A Community Transition Table is also active, connecting workers with employment services.
Roots of the Industry Challenges Exacerbating the Chemainus Sawmill Curtailment
Weak market demand is a recurring issue, compounded by high U.S. softwood lumber tariffs that have impacted the forestry industry BC for years. Log supply challenges are also persistent, including a lack of available economic logs and permitting delays for harvesting, all contributing to the context surrounding the Chemainus Sawmill Curtailment.
The forestry sector in British Columbia faces significant headwinds, with global competition and challenging operating conditions. The industry is on the edge of collapse, according to some, leading to calls for immediate policy changes to address issues like the Chemainus Sawmill Curtailment.
Western Forest Products’ Operational Context and the Chemainus Sawmill Curtailment
Western Forest Products (WFP) is a major employer on Vancouver Island, supporting around 3,300 jobs and being a significant player in the global softwood market. WFP has faced various curtailments and challenges historically, including temporary shutdowns due to market conditions and log supply, all of which provide context for the recent Chemainus Sawmill Curtailment.
The company’s financial performance has seen fluctuations. While Q1 2025 showed improvement, revenue was $1,063.9 million in 2024 with a net loss. Adjusted EBITDA for 2024 showed a recovery. However, the ongoing market weakness and log supply challenges present a difficult operating environment, directly leading to the extended Chemainus Sawmill Curtailment.
Looking Ahead for the Forestry Sector Amidst the Chemainus Sawmill Curtailment
The extended Chemainus Sawmill Curtailment is significant news for the West Coast, highlighting ongoing struggles in the forestry industry BC. Many hope for a stronger future. Industry groups advocate for policy changes, including faster permit approvals and reduced regulatory burdens, to ensure reliable log supply and better competitiveness. The long-term outlook depends on market recovery and industry support, which are crucial for overcoming challenges like the Chemainus Sawmill Curtailment and preventing further mill curtailment.
