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Author Topic: Mill closures  (Read 876 times)

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Offline sawguy21

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Mill closures
« on: May 11, 2019, 08:49:08 PM »
More bad news. Tolko Industries is closing the Quesnel BC plant permanently with the loss of 150 jobs in the mill and more in the bush. They say it is not sustainable due to lack of timber supply due to the pine beetle and poor markets. This hits a community of less than 10,000 hard.
They are also cutting shifts at the Kelowna operation with another 90 people unemployed. It's not pretty.
old age and treachery will always overcome youth and enthusiasm

Offline WDH

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Re: Mill closures
« Reply #1 on: May 12, 2019, 07:37:38 AM »
This is why some of the Canadian lumber companies have moved to the Deep South. 
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Offline tule peak timber

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Re: Mill closures
« Reply #2 on: May 12, 2019, 09:00:02 AM »
I have been reading about some mills in the NW US announcing that they are not buying logs at some locations.My readings have been brief at best.....I'm having trouble correlating a booming economy with these stop buys ?
persistence personified - never let up , never let down

Offline KirkD

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Re: Mill closures
« Reply #3 on: May 12, 2019, 10:41:41 AM »
You should see the amount of high grade logs on the shore in North Bend Oregon getting loaded on ships and being exported. Compare what you see there with what you see at some of the local mills and you know we are exporting our best stuff.
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Offline Larry

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Re: Mill closures
« Reply #4 on: May 12, 2019, 10:49:10 AM »
Some close and some open....

South Arkansas had a new $190 million mill open last fall.  Another mill with a 10 million upgrade re-opened a couple of weeks ago.

A few years ago, at my local lumber yard douglas fir was cheaper than SYP.  We don't have douglas fir within a thousand miles of here while SYP is local.  Never could understand.  Tables have turned and now douglas fir is more expensive than SYP :'( :'(.  Must be some correlation that I don't understand.

Larry, making useful and beautiful things out of the most environmental friendly material on the planet.

We need to insure our customers understand the importance of our craft.

Offline tule peak timber

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Re: Mill closures
« Reply #5 on: May 12, 2019, 10:58:03 AM »
Why I am not in the stock market, I don't get it .
persistence personified - never let up , never let down

Offline sawguy21

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Re: Mill closures
« Reply #6 on: May 12, 2019, 12:12:45 PM »
This is why some of the Canadian lumber companies have moved to the Deep South.
They have not left, they bought mills that process species not available here to get into new markets. Kirk, we see the same thing and it is heartbreaking. Our best is going to Asia for framing, the lumber I see peddled in many lumberyards is little better than firewood. :-[
old age and treachery will always overcome youth and enthusiasm

Offline tule peak timber

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Re: Mill closures
« Reply #7 on: May 12, 2019, 12:22:49 PM »
Flying out of Atlanta after the Sawing project at Jake's, Customsawyer, I was seated next to some Canadian and Malaysian guys that talked about building a big mill in Georgia. They travel worldwide building mills. We yapped across the entire country.......
persistence personified - never let up , never let down

Offline dgdrls

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Offline Stuart Caruk

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Re: Mill closures
« Reply #9 on: May 17, 2019, 10:36:25 PM »
A large local mill just told their independent loggers they are no longer needed. A buddy just bought 3 new shovels and has huge payments with no more work.... the mills are running at very reduced capacity and not buying anything they don't need. Boom to bust it appears.

Construction is doing O/K, but nothing like it was years ago. It's starting to look like a repeat of 2006 and people need to save their cash reserves.
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Offline Southside

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Re: Mill closures
« Reply #10 on: May 17, 2019, 11:06:18 PM »
It's starting to look like a repeat of 2006 and people need to save their cash reserves.


I don't see it that way.  People don't want commodity junk any longer.  Lot of remodeling, additions, barns, etc being built and Lowes just does not cut it for quality.  The big operations either can't or won't adapt to the changes - and for that I am grateful - so they go the way of the dinosaur.  
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Online Ron Wenrich

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Re: Mill closures
« Reply #11 on: May 18, 2019, 06:40:41 AM »
I think Southside makes a pretty good point.  My BIL recently did some remodeling and extension to his son's house.  He did remodeling as a profession before he retired.  He got the wood from a big box store.  He used to buy from the smaller lumber yards, but they seem to be going by the wayside.  All the wood moved.  He had walls that moved as much as ", and they were well built.  He had to have his drywall inspected before he could finish.  The reason is there is to much nail pop in walls.  That doesn't come from shoddy work, it comes from shoddy lumber.

The industry has partial blame for this.  They have been forcing junk lumber on the unknowing consumer.  Forest rotations continue to get shorter.  That leads to smaller trees, and more juvenile wood in the lumber.  Growth rings are very wide, and that all leads to more unstable wood.  Throw in the automation in the mills and you are hard pressed to find anything with a boxed heart.  Sawing process doesn't take any of the stress out of the log, but puts it all into the product.  Add that the kilning process is more of a cosmetic process than an actual drying process.

Consumers are also to blame.  They don't have the foggiest idea about buying wood.  Different projects can use different qualities of wood.  But, many have no idea what that stamp on there means.  Neither do the workers at the big box store.  Builders will use low quality wood to win contracts.  When the final consumer doesn't like the finished product, the builders turn to alternative products.  Siding has gone from wood to aluminum to plastic.  Floors are becoming plastic.  Studs are becoming steel.  Furniture is becoming pressed board.  

That includes industrial consumers.  The business next to me puts boxes on the back of delivery trucks.  These trucks use wood between the box and the frame.  We sold some to them, and they complained about it.  We didn't do any surfacing or drying.  But, they wanted cheap.  After that, they went to processor who didn't dry wood.  The wood moved as it dried.  A lot of it got thrown out.  I'm sure they never did any economic study on how much the actual wood cost, considering waste as a factor.  

There are 3 legs in economics for purchasers.  Quality, low price and speed of delivery.  Pick any two.  Quality is usually the one lagging.

Never under estimate the power of stupid people in large groups.

Offline DDW_OR

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Re: Mill closures
« Reply #12 on: May 18, 2019, 03:32:54 PM »
log prices in NW Montana are 8 to 10 per ton.
Self loaders charge $110 per hour for the whole time they are away from their home.

my trees are worth more as firewood than lumber.

will try selling Live edge Fir slabs
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Offline tule peak timber

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Re: Mill closures
« Reply #13 on: May 18, 2019, 04:11:18 PM »
When I was looking for property last year in NW Montana I hardly ever saw a cedar over 3 inches in diameter. White fir was what the loggers were leaving behind on land that was for sale.I was in Heron to Plains area. Lots of stumps...... :o
persistence personified - never let up , never let down


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