Slocan Forest Products is closing one of its two mills at Quesnel in northern British Columbia, but will spend C$35m to rebuild the larger operation.
Slocan said the move was part of the trend to consolidate at larger, more modern mills and capacity after the closure of the speciality mill would slightly exceed the combined output of 282,500 million board feet.
The company said half of the 300 workforce will go, but the modernisation will secure 200 existing logging and hauling jobs.
Divisional manager Kerry Staples said: “It was a very tough day, but now we are going to start building all over again.”
The closure came two months after Canfor announced it would close two of its 11 mills in the region. Forest industry consultant Les Reed said: “I expect a lot more of this to happen.”
