Monday, September 5, 2016

Canadian lumber producers continued their expansion in US South in 2015

The 20 most important Canadian companies increased production in 2015 (+3.6%), but it was not sufficient to keep paced with the rest of the industry as a result their market share of total Canadian lumber shipments slipped to 74% in 2015 from 80% in 2014.

The global softwood lumber production 2014.

According to Wood Markets, the decline in market share is clearly an indication of the large Canadian companies consolidating production and retooling mills in anticipation of changes in the log profile and projected tightening or outright reductions in the overall timber supply.

The key attraction to investing in the U.S. South is the region’s more readily available and affordable timber supply with close market proximity.

The most active “acquiring” Canadian companies in 2015 were Interfor and Canfor: Interfor increased its U.S. South mill count by three to nine mills, and Canfor added six mills to lift its count in the South to ten.

West Fraser, on the other hand, added no new mills in 2015, but did reap benefits from the completion of several capital upgrades in 2014.

The top 5 Canadian producers were Canfor, West Fraser, Tolko, Resolute and Western Forest Products, with the only change in the order from 2014 being Western moving ahead of Interfor.

Source: Canada Lumber Producers

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