A league table of the top 30 mills, compiled by International Wood Markets Group and published in the Logging & Sawmilling Journal, also shows that 2005 was characterised by acquisitions, the closing of older, smaller mills and investment in new hi-tech facilities.
The top 10 companies actually increased production per sawmill by an average of 14% and expanded their share of total Canadian lumber production to 58%.
Canfor Corporation was ranked as Canada’s largest lumber producer for the sixth year running, with an output of 4.62 billion board feet from 15 mills. West Fraser Timber was second again, producing 3.82 billion board feet from 18 mills.
Russell Taylor, of International Wood Markets Group, said: “Three Canadian companies grew their output substantially in 2005, mainly by acquisitions, and the main focus for many of the larger Canadian firms has been to reduce costs by closing older, smaller sawmills and consolidating or expanding production at new, state-of-the-art, lower-cost mills that are among the most productive in the world.”
He predicted competition and an anticipated drop in North American lumber demand/prices would further fuel market consolidation and lead to increased emphasis on new technology to grow output.
Logging and Sawmilling Journal editor Paul MacDonald said Canadian companies were mitigating the impact of US softwood lumber duties and unfavourable exchange rates by buying American timber producers.
