Q4 Research Update: Pulp/paper and chip mills reduced wood-using capacity, while sawmills completed projects that offset losses from closures.

Pulp/paper and chip mills reduced wood-using capacity in Q4 2024, while sawmills completed projects that offset losses from closures in North America. ATHENS, GEORGIA – December 17, 2024 – Over the past quarter, Forisk updated 259 mills out of over 2,300 mills in the North American Forest Industry Capacity Database (“Mill Capacity Database”). The updates included 24 closures, 4 new mill startups or restarts, and 5 mills completing expansions. “Mills reduced wood-using capacity by 3.3 million tons across North America from Q3 to Q4 2024, but that is only a 0.4% decline in overall operating mill consumption,” remarked Amanda Lang, COO & VP of Client Services for Forisk Consulting. The biggest losses were in the pulp/paper sector and chip sectors. Canfor shut down a pulping line at the Northwood Pulp mill in British Columbia, and McKinley Paper in Port Angeles, WA closed. In eastern Canada, RYAM Temiscaming closed and White Birch Paper converted from using wood to buying recycled feedstock; this reduced wood use by almost a million tons in the region. In addition, 3 chip mills closed across North America since last quarter. Other sectors increased wood use and capacity, including lumber. Several lumber mills closed since September: Weyerhaeuser in New Bern, NC; West Fraser in Lake Butler, FL; Interfor in Meldrim, GA and Summerville, SC; Canfor in Mobile, AL; and Teal-Jones in Antlers, OK. Openings and expansions offset closures. Re-openings included Sigurdson Forest Products in British Columbia and DR Johnson in Prairie City, OR. Carthage Timber Products in Carthage, AR; and RFOR in Bellemont, AZ are commissioning new sawmills. Regionally, most of the wood use decline came from mills in the U.S. South. “This quarter, wood-using capacity declined by 1.9 million tons in the region; of this, 1.7 million tons was from sawmill and chip mill reductions. Overall, this is a small decline, as it reduces wood use in the region by only half a percent,” explained Pat Jolley, Product Manager of Forisk’s Mill Capacity Database. He added, “The net decline for the chip sector is a ripple effect from recent pulp mill closures that occurred over 2024.” Forisk’s North American Forest Industry Capacity Database (“Mill Capacity Database”) compiles mill capacity for softwood and hardwood lumber, structural panels (OSB and plywood), engineered wood products, pulp, veneer, wood pellets, chip mills, and nonstructural panel mills by region across five North American geographies: U.S. North, U.S. South, U.S. West, Eastern Canada, and Western Canada. Updated quarterly, the database includes detailed information for over 2,300 facilities, including location, mill type, wood use estimates, and species. It also provides ownership and capacity data by year for 2013-2023, with estimates for 2024-2026. Forisk’s Mill Capacity Database is available as an annual subscription or as a one-time purchase. For more information or to subscribe to Forisk’s Mill Capacity Database, please contact: Nick DiLuzio, ndiluzio@forisk.com, 770-725-8447.  About Forisk Consulting: Forisk delivers forecasts and analysis of forest industry markets and timberland investments. Firms participate in Forisk’s research program by subscribing to the Forisk Research Quarterly (FRQ), Forisk Wood Fiber Review, or the North American Forest Industry Capacity Database; supporting benchmarking studies related to forest operations and mail capacities; and attending educational workshops.   Forisk Consulting | www.forisk.com

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