Canadian forestry companies’ attempts to break into new markets in Asia to reduce their dependence on the US will take decades to bear much fruit, according to industry analysts.
Moves by organisations such as the Canfor Corporation to sell wood in China may take up to 20 years before making a real difference, such is the importance of the American market.
Canadian companies have been looking to develop offshore markets due to the softwood lumber dispute with the US, which has resulted in punishing duties on Canadian mills.
Analysts say Canadian companies have exported timber frame houses to Japan for the past decade without making a serious impact. Any growth in demand would also be quickly capitalised on by others, such as Russian sawmills in the region.
Canfor chief executive Jim Shepherd is to visit China during October in a bid to expand the company’s business in the country. Canfor wants to persuade the Chinese to use wood to replace deteriorating cement rooftops on Chinese apartment buildings.
Meanwhile, 15 of the biggest French construction companies have completed a tour to Canada focusing on the benefits of timber frame housing. The tour was sponsored by the Canada Mortgage and Housing Corporation, which said demand for timber frame homes in France currently outpaced supply by 2:1.
