San Group Announces Manufacturing and Value-Added Curtailments Due to Lack of Logs

The San Group announced that it is curtailing operations at its Sawmill locations and its Value-Added Plant in Port Alberni, British Columbia. These curtailments are temporary in nature and related directly to available log supply off the Coast of BC. San Group is a non-tenured company and relies on open market purchasing, Timber Sales and First Nation partnerships in accessing logs. These curtailments will affect upwards of seventy-five people across these operations.

“We sincerely regret having to take downtime at our facilities and apologize to our employees and customer base,” said San Group’s CEO and President, Kamal Sanghera. “Unfortunately lack of log supply has put us in a situation where we cannot continue to run efficiently on key product lines connected to our markets and customer demand. Despite our location in what once was the breadbasket of Forestry and Manufacturing on the West coast of Vancouver Island, most of the logs that currently feed our large log mill are distributed into Port Alberni from suppliers on the North Island and Central Coast. That supply is very lean right now. our small log line is currently running on local log sources and will continue to operate for now.”

Sanghera went on to say, “if the logs are available, we will run both mills. The restricted log supply is having a direct impact on our value-added facility in Port Alberni. Due to the lack of primary lumber, commencing Monday, we are shutting down this value-added location for a minimum of two weeks to allow working inventory to rebuild. We remain overly concerned about the long-term outlook for log supply and economic viability of operating in B.C.”

The company will continue to source logs for both facilities and is actively seeking short and long-term supply options.

About San Group

San Group Inc. is a vertically integrated forest products company, operating in the coastal region of British Columbia. San Group’s operations includes timber harvesting, sawmilling, lumber remanufacturing, value added lumber manufacturing, global distribution sales and consumer retail sales via their San Cedar Direct stores. San Group is proud to manufacture and export 100% Canadian-Made wood products to over 27 Countries. Awarded as 2018 Business in Vancouver, BC Wood Products Exporter of the Year in the Natural Resources Division and Overall, 2019 Ernst & Young, Entrepreneur of the Year, 2020 Business Examiner Manufacturer of the Year and 2022 Business of the Year, Vancouver Island. From Harvest to Home – San Group, a Global leader of Value Added Canadian-Made lumber products.

Contact:

Kevin Somerville – Vice President, Operations – (604) 561-5871

Source: SanGroup Inc.