Brink Forest Products to cut 50 jobs at its Prince George lumber plant
Brink Forest Products to cut 50 jobs at its Prince George lumber plant
The company is reducing operations to 20%, citing a lack of fibre and U.S. tariff costs, among factors
A major employer in Prince George and northern B.C. is scaling back operations as the province's forestry sector continues to struggle.
John Brink, CEO of Brink Forest Products, announced he will be cutting the number of employees from 85 workers to approximately 30 at his Prince George finger-joint lumber plant starting next week.
"We had to lay off 50 of those employees that have been with us which is a devastating experience for them," he said.
In the last year, Brink's facilities in both Vanderhoof and Houston indefinitely ceased operations, resulting in more than 100 jobs lost.
Between the three plants, Brink employed roughly 400 people.
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"In northern B.C., it is a graveyard of sawmills through the communities," he said. "Secondary manufacturers, in a lot of cases, rely on primary manufacturers for an input of fibre."
Brink says his company is not only navigating ongoing fibre supply challenges, but rising U.S. tariff costs, and limited access to financing.
The U.S. Department of Commerce has consistently levelled high tariffs on Canadian softwood, with current levels nearing 50 per cent.
"Since 2017, Brink has paid up to $100 million in duties and tariffs," he said, adding the company now faces about $1 million in monthly tariff-related costs and is also dealing with ongoing fibre supply challenges and limited access to financing.
As Canada is set to impose retaliatory tariffs of 15, 25 or 50 per cent on a number of products from the U.S. starting on Sept. 8, Brink expects costs to continue to rise.
"Parts and pieces that we need imported from the United States, in a lot of cases, glues that we need for finger-joint and gluing things together, all of that may be subject to duties."
Brink says he has not been able to access federal or provincial support. He says he applied to a federal loan guarantee program administered through the Business Development Corporation of Canada more than a year ago, but has not received any funding.
"So far we have not been successful in convincing them that we and our employees should be helped in assistance," he said. "And then from the federal government, from the B.C. government, we have heard a lot of talk, but not much in terms of action"
Brink says despite the hurdles he remains hopeful and will continue to operate the Prince George plant at about 20 per cent capacity.
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