Canadian hardwood lumber producer Buchanan Forest Products fears its may have to close its Northern Hardwood plant if a rival’s plan to open a C$235m OSB mill goes ahead.
Buchanan says Kruger’s proposed mill in north-western Ontario could leave its own plant in Thunder Bay without enough poplar resources to continue.
But Kruger says only 3.7% of the extra 450,000m3 of additional hardwood needed for its OSB mill would come from the region.
The Ministry of Natural Resources says existing long-term wood supply agreements give Kruger the right to harvest poplar from Crown forests used by Buchanan.
Kruger’s OSB facility is designed to replace its old plywood and waferboard mills in Longlac.
