BC Gov News

New support for forest-sector manufacturers throughout the province will create jobs, strengthen local economies and promote the transition to high-value, made-in-B.C. forestry products.

“Making the best use of available fibre is a key part of the blueprint for sustainable forestry in B.C.,” said Brenda Bailey, Minister of Jobs, Economic Development and Innovation. “The BC Manufacturing Jobs Fund (BCMJF) is working with forestry companies throughout our province to create new jobs and highly sought-after engineered wood products. Helping manufacturers expand their operations to create more made-in-B.C. products is what the BCMJF is all about.”

Through the BCMJF, the Government of B.C. is contributing up to $11.4 million to eight forestry-sector capital projects and one planning project in communities throughout the province. These projects will see local manufacturers innovate their business lines using advanced manufacturing equipment and processes to make higher value products, scale up their operations to remain competitive, and improve overall production capacity, while establishing new local jobs and protecting existing ones.

Kruger Kamloops Pulp mill, one of Kamloops’ largest employers, will receive up to $5 million to support the commissioning of a new pressure diffusion washer with an AI-powered control system that will be the first technology of its kind in Canada. The Government of Canada is also providing $4.9 million under the Investment in Forest Industry Transformation (IFIT) Program for this initiative.

This project will allow Kruger to diversify its product offerings to include new, in-demand innovative products. These capital improvements will help keep the business competitive while reducing production costs and removing bottlenecks to render a better-quality pulp product. The investment in the pulp mill’s sustainable future will help protect 340 existing positions and will create four new roles, in addition to 95 jobs during the construction phase, and 1,000 jobs indirectly supported through the biomass value chain. Kruger previously received $50,000 in BCMJF funding to conduct planning toward this capital project.

“We are very grateful for the financial support from the IFIT program and the BC Manufacturing Jobs Fund,” said Irene Preto, general manager, Kruger Kamloops. “We’re especially excited to implement an innovative technology that will optimize our manufacturing processes, improve our environmental footprint, and reinforce Kruger’s position as a competitive supplier of high-quality, ethically sourced and sustainably sound specialty pulp.”

Power Wood Corporation is an Agassiz-based specialty and value-added wood product manufacturer, primarily producing highly specified architectural finished products from coastal B.C. forest products. Power Wood, in partnership with Squiala First Nation, will receive up to $3.4 million for their project to create a new state-of-the-art thermal modification manufacturing facility that will produce high value, thermally modified wood products that are known for their stability and durability.

The Government of Canada is also providing $3 million under the IFIT Program for this initiative via the Squiala PWC Wood Modifying Limited Partnership. This will help Power Wood decrease its reliance on old-growth fibre and diversify its fibre sources to increase the use of under-utilized species primarily from second-growth forests. The project will create 10 full-time jobs, further benefiting Squiala First Nation members who will be prioritized for hiring. Power Wood previously received $50,000 in BCMJF funding to conduct planning toward this capital project.

“The BC Manufacturing Jobs Fund and the Investments in Forest Industry Transformation programs have been the catalyst for our exciting partnership with Squiala First Nation,” said Jake Power, president and managing director, Power Wood Corporation. “Working with the BCMJF and IFIT staff and Chief David Jimmie and his team at Squiala has been a positive experience every step of the way. We are excited that we were able to come together in this partnership to build new manufacturing equipment that will benefit the Power Wood team, the community at Squiala First Nation, the B.C. forest industry and our local communities in Agassiz and Chilliwack.”

The BCMJF is part of a series of programs the Province has introduced to support sustainability in B.C.’s forestry sector. To date, the BCMJF has incentivized nearly $580 million flowing into forest product manufacturing, leading to the direct creation and protection of more than 3,000 forestry-sector jobs – most in regional, remote and Indigenous communities. Nearly one-quarter of all wood product manufacturers in B.C have applied to the program, demonstrating that producers are investing in the future of forestry in the province. The funding has spurred significant growth in off-site, prefabricated housing component manufacturing, allowing more homes to be built quicker, using B.C. wood.

BCMJF has also led to increased production of mass timber, engineered wood and bioproducts, with B.C. based companies leading the way in innovative uses of waste wood, residuals and available fibre for high-value, high-demand products and exports. The Province has partnered with 60 forestry-product manufacturers with more to come, dedicating more than $82 million to the industry in collaboration toward a stable, sustainable forestry sector in B.C.

Clean and Competitive: A Blueprint for B.C.’s Industrial Future lays out the Province’s work to drive new investment, create new jobs and seize new opportunities in growing clean-energy and sustainable industries. Supporting local manufacturing sectors helps leverage B.C.’s strengths to create good jobs and opportunities in every community and will improve the quality of life for people, while strengthening B.C.’s diverse economy.

Quotes:

Bruce Ralston, Minister of Forests –

“The forestry sector drives British Columbia’s economy, and has done so for more than 100 years. Since Premier Eby first announced historic investments into the forestry sector, wood manufacturers around the province have been launching new business lines and mill upgrades, supporting local jobs. We’re using B.C.’s strength to support people and businesses in rural communities. It’s not the time to pull back.”

Jonathan Wilkinson, Minister of Energy and Natural Resources –

“This federal government is supporting cutting-edge technologies and good jobs in British Columbia’s forestry sector. Contributions to Squiala PWC and Kruger Kamloops through NRCan’s Investment in Forest Industry Transformation Program will help create and preserve jobs in the region while expanding its supply of high-value forestry products in a changing market. By partnering with provinces, territories and First Nations, we can strengthen and maintain the long-term sustainability of the forest sector.”

Quick Facts:

• The BCMJF supports high-value industrial and manufacturing capital projects in all sectors that will create and protect well-paying jobs.
• The BCMJF has committed up to $123 million toward 112 projects to date, representing $1 billion in total capital investment in B.C.
  • Every million dollars invested results in $7 million in total direct capital investments in B.C., $590,000 in tax revenue to the Province, and $5.3 million in provincial GDP.
• Funded projects will create more than 1,700 jobs and protect more than 2,300 jobs. 

Learn More:

To learn about the BC Manufacturing Jobs Fund, including a list of recipients and updated application deadline information, visit: gov.bc.ca/ManufacturingJobsFund   

To learn more about Clean and Competitive: A Blueprint for B.C.’s Industrial Future, visit: news.gov.bc.ca/files/Clean_and_Competitive.pdf

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