Unfortunately, there are lots of factors going against a re-build:
Yes, it was insured but had just been written down to its actual value, not replacement. So as Canfor, like all BC (and Canadian forestry operations) is bleeding red ink and would have to come up with extra money, they may walk away from the insurance;
Yes, it was one of the few lumber product mills in BC making money but its prime market, the Canadian housing industry, is expected to drop in the next 12-18 months, the time it will take to re-build the mill;
And finally the wood supply, due to the beetle kill, is dropping significantly. And plywood plants need very high quality logs to get the veiner they need.
My prediction is that unless there is a significant insurance payout predicated on a new mill, the mill will not be re-built. If that is the case, it will be just the first of a wave of mill closures in central BC as a result of reduced timber availability and poor markets.
