– Danielle Myles is the Manager of Economic Development at the City of Terrace. For more information, please visit www.terrace.ca.
TERRACE – Skeena Sawmills was constructed in 1960 in Terrace B.C to process the large, coastal timber that our region is renowned for. It has weathered economic storms; changed hands a few times, had some extended shutdowns, but still operates today demonstrating the resiliency of this longstanding industry.
As one of the community’s largest employers, Skeena will process up to 300,000 m3 of timber this year and directly employ more than 80 people with approximately 40 additional contractors. The mill has operated under the current ownership since 2012 and plans are in place to start modernizing the plant in the next year.
Investing in Second Growth Forest Opportunities
The BC government is currently putting the finishing touches on a Second Growth Inventory Analysis for the Northwest. This new analysis will help Skeena and other local licensees to make harvesting plans and business decisions for the future based on the substantial second growth volume that is expected to be available.
The Province estimates that for second growth timber less than 100 years old, 80% is hemlock and balsam and that 600,000m3 per year is sustainable immediately for processing and steadily for the next three to four decades. This finding highlights a significant and exciting opportunity for local milling and for forestry related businesses in Terrace.
Skeena has adapted to the 2015 downturn in the Chinese economy, expanding into new Asian markets and are gearing up to make further investments in their facility. Exploring value added opportunities that will continue to diversify the business and add value to the local economy is a priority.
The mill has the ability to expand production significantly, transitioning from its current configuration suited to larger saw logs to a modern facility that specializes in processing of second growth stands. Skeena management is working tirelessly to see that goal become a reality.
Community Forestry and Supporting Local Priorities
More than a decade ago, City officials and our local MLA lobbied the Province for a Community Forest Tenure with the vision of establishing an additional revenue stream that could support vital community services. In 2006, the City of Terrace provided seed funding of $150,000 and in 2007 were granted a 30,000 m3 area based tenure, equating to approximately 600 logging trucks of wood each year.
To date the Community Forest has generated $7.1 million in revenue which has supported local employment and has provided community grants for non-profit groups. Because of the lack of local capacity to process 90% of the marketable Community Forest harvest the wood is being exported to Chinese markets—transitioning to local processing and value added manufacturing opportunities is a goal of the Community Forest, although complicated and reliant on many external factors.
The Untapped Potential
The Northwest has been explored by many proponents as the potential site for deployment of various bioenergy technologies; it is estimated that 2.7 million m3 of annual harvest volume could be available to proponents for bioenergy products, in the Terrace area.
Several investors are currently exploring business opportunities with Terrace based licensees and there is a strong possibility that a smaller scale project will be economically feasible.
There is also growing demand for second growth softwood in Asia and ample opportunity for local wood processors to manufacture value added wood products, particularly if we see an increase in local milling and access. Engineered wood products, flooring, panelling and other construction materials are in high demand throughout many Asian countries as well as in North American markets.
A third opportunity on the horizon for the Northwest is in the pulp sector. The abundance of beetle wood from BC’s interior is running out and as Skeena, the Terrace Community Forest and other licensees look to find markets for the significant amount of “waste fibre,” they are poised to benefit from increasing supply pressure.
