B.C. invests $11 million on value-added lumber manufacturing amid U.S. uncertainty

Softwood lumber is pictured along the Fraser River in Richmond, B.C., April 25, 2017. THE CANADIAN PRESS/Jonathan Hayward

The British Columbia government is investing up to $11 million toward four projects in the province aimed at boosting the local mass-timber manufacturing sector.

Jobs and Economic Development Minister Diana Gibson says in a statement that the funding comes at a time when government investment is needed to strengthen “homegrown B.C. companies” in the forestry sector that provide value-added manufacturing for the province’s lumber supply.

Gibson says the funding also creates more than 100 jobs in several regions, while securing employment for hundreds more in the industry.

Among the projects receiving funding is Nelson-based Spearhead Timberworks, which will get up to $7.5 million to help build a new production facility for curved, laminated timber, bonding layers of wood to create large, durable structural components for buildings.

In Castlegar, Mercer Celgar Limited Partnership, a kraft pulp mill, will receive as much as $1.75 million to modernized its log lines and install equipment, while Penticton’s Greyback Construction will get about $235,000 to renovate a former mill site as it diversifies into prefabricated housing construction.

Another project receiving the funding is Langley-based construction plywood manufacturer Westlam Industries, which will get $1.5 million for a new plant and automated equipment to increase production for building local housing and commercial structures.

The Spearhead investment is expected to create more than 60 jobs, while the Westlam funding may mean hiring up to 46 more workers, the province says.

“We’re working alongside industry to build a stronger, more resilient economy that works better for people and communities,” Gibson says.

The province says the new facility would allow Spearhead to make “high-complexity, high-value” mass-timber construction components that would boost the company’s ability to compete for business internationally.

The funding is being administered through the provincial Manufacturing Jobs Fund aimed at helping local companies grow and create more made-in-B. C. products.

The province says nearly a quarter of all B.C. wood-product makers have applied for funding through the program.

The investment comes at a time of growing uncertainty facing B.C.’s lumber industry, where U.S. President Donald Trump wants to boost American lumber production and has directed investigators to look into the potential harms of importing Canadian lumber.

West Fraser Timber president Sean McLaren has said that demand on Canadian lumber could be hampered by the potential inflationary effects of tariffs imposed by the United States.

This report by The Canadian Press was first published April 23, 2025.