TEAL-JONES CURTAILS ITS COASTAL LOGGING OPERATIONS

Teal-Jones has curtailed all harvesting operations on the BC Coast due to weak lumber markets and the high cost of fibre. The shutdown is effective immediately and includes Teal’s Fraser Valley and its Honeymoon Bay – TFL46 operations.

Weak North American and global lumber demand has resulted in persistently weak lumber prices in 2019. As a vertically integrated producer of lumber and other wood products, Teal-Jones’ economics have been further negatively impacted by high stumpage rates and higher harvesting costs on the BC Coast. Current stumpage rates remain high relative to lumber prices, and harvesting costs have been adversely impacted by new regulations to bring out more residual waste fibre. These negative factors have made it impossible for the company to continue operating its forest licenses economically.

The curtailment will result in substantial loss of employment for the company’s forestry employees and contractors. In addition, the reduction of fibre flowing to Teal’s milling operations will result in downtime and lost wages at the company’s lumber, shake and shingle mills in Surrey, BC.

For further information, please contact:

Gerrie Kotze
Vice-President and Chief Financial Officer