Bowater Canadian Forest Products Inc. announced yesterday the indefinite shutdown of its Ignace sawmill operation.
This shutdown took effect yesterday and will impact 29 direct Bowater employees and 20 contractor ones.
This decision is the direct result of lumber quotas imposed upon Bowater’s Ontario operations.
These quotas are the result of the provincial government’s decision to select option “B” when implementing the softwood lumber agreement, and not providing a quota allocation mechanism that addressed the needs of new entrants.
The quota allocation takes effect Jan. 1.
Under the terms of the softwood lumber agreement, U.S. lumber prices would have to improve to $355/mfbm (U.S.) before the quota volume restrictions are lifted.