A major growth in production by Canada’s leading lumber firms during 2003 is evidence of increasing consolidation in the sector, according to new research.
Vancouver-based market research company RE Taylor & Associates, which has published rankings of Canadian timber companies, said the top 30 firms produced an extra 900 million board feet of lumber compared to 2002. The entire growth came from the 10 biggest companies, while output for the next 20 largest producers declined by 50 million board feet.
RE Taylor believes the increase was mostly caused by the imposition of US duties on Canadian softwood exports to America. Instead of cutting back on production, mills boosted output to reduce unit costs and beat the duties – a gamble which largely paid off.
Canfor tops the 2003 rankings and is expected to grow by a further 60% once its takeover of Slocan Forest Poducts Ltd is complete. A major upgrade planned for the company’s Houston site will make it the world’s largest sawmill.
Next in the rankings are West Fraser Timber Co Ltd, Weyerhaeuser Canada, Abitibi-Consolidated Inc and Slocan.
