ENDEAVOUR - Representatives from Weyerhaeuser presented the Pasquia Porcupine proposed operating plan for the 2022-2023 year in Endeavour on October 27. The meeting was part of a series held in the Porcupine forest area.
Darcy Parkman, Strategic Planning and Environmental Manager for Weyerhaeuser Company Limited and Hudson Bay Timberlands gave the presentation and answered questions at the conclusion.
Parkman presented a brief mill and market update, an overview of the summer and winter proposed areas for the operating year and the annual report.
The Edgewood mill continues to operate on a five shift basis (three sawmill shifts and two planer shifts). There are no reported plans to alter this shift regime in foreseeable future.
Edgewood currently employs approximately 124 hourly employees in the plant, and approximately 30 staff.
The fiscal year ended June 2021, with a sawmill production increase by approximately eight to 10 per cent.
The Carrot River facility forecasted additional seven to eight per cent growth in the 2022/23 fiscal.
Improvements were made to the residual bins, scale, fuel island, and extensive yard establishment.
It was reported that a 100-million-dollar capital investment into the sawmill has been projected over two years.
The last year saw record-breaking lumber pricing driven by a supply and demand imbalance. This peak was relatively short-lived, and lumber pricing is searching for its “new normal.”
Weyerhaeuser is cautiously optimistic for a positive 2022. The sawmill is making investment now while times are good to position itself for survival during the next down cycle. The supply chain disruptions are currently impacting the demand and price of lumber. Builders are not able to acquire products, materials have increased in cost, thus slowing overall housing starts and lumber demand.
Highlights of the Edgewood operations saw a concentrated harvest on deteriorating, over-mature areas of the Forest Management Agreement (FMA) to reduce the amount of road system open at any one time.
The focus on winter stockpiling of logs continues to help balance inventory needs during summer months.
Fire salvage assessment was seen as a priority and volume utilized where possible before opening additional “green” blocks.
There were a total of 2,119,646 White Spruce and Black Spruce trees planted on the FMA. The proposed tree planting program for 2022 consists of approximately 2.35 million seedlings.
Seedling were ordered for 2023 at a planned increase to 3 million seedlings.
A mill market report was presented and in a typical year, the finished product is delivered out of our warehouse by 70% railcar and 30% truck which means 2000 railcars per year and 2000 truck loads per year.
The majority of Hudson Bay's market is within the United States but there are customers throughout Canada as well.
Product demand is still outpacing supply, with housing markets in the US remaining stable. The mill employs 160 full time positions.
The fire season presentation for 2021 Northern Fires featured where and how much hectares were burned. Areas featured, Bell Fire (3 fires that combined into 1) ~92,000 hectare, Niska Fire of 643 hectares and Cut Over Fire of 184 hectares.
Fires in the southern area included, Pepaw Fire, 1496 hectares, Reserve Fire, 357 hectares, Shenigan Fire, 271 hectares, Ditch Fire, 128 hectares and Porcy Fire, 8 hectares
The evening concluded with a question period from those in attendance.
