Ottawa invests $12.4M in B.C. forest sector projects amid tariff pressure

The federal government is investing $12.4 million in 14 British Columbia forest sector projects aimed at advancing low-carbon wood technologies, expanding mass timber construction, supporting Indigenous forestry initiatives and increasing value-added wood manufacturing capacity.

Natural Resources Canada announced the funding May 14 in Richmond, B.C., as the industry continues to face pressure from U.S. trade measures, softwood lumber tariffs and ongoing mill closures and curtailments. The federal government said the projects are part of a broader effort to help forest sector companies transform operations, diversify markets and remain competitive.

The funding is being delivered through several NRCan programs, including the Investments in Forest Industry Transformation program, the Green Construction through Wood Program, the Indigenous Forestry Initiative and the Global Forest Leadership Program. Ottawa said those programs were renewed this year with a new $500-million federal commitment and are tied to broader federal priorities such as the Buy Canadian Policy and Build Canada Homes.

Several funded projects are directly relevant to Canada’s value-added wood and secondary manufacturing sectors. Spearhead Timberworks Inc. in Nelson will receive $7.5 million for Spearhead Advanced Timber, a project to build a new facility capable of producing double- and single-curved glulam and hybrid-glulam building components using locally sourced, underutilized hardwood fibre.

Yinka Dene Economic Development Limited Partnership in Burns Lake will receive $1.66 million for a demonstration plant producing novel wood fibre insulation and protective packaging. The project, a joint venture with Plantee Bioplastics Inc. under the name DicinFoam LP, will convert low-value wood waste such as damaged fibre, slash, bark, sawdust and shavings into biodegradable foam products for packaging and construction applications.

Other projects include $486,075 for BC Wood Specialties Group to support trade events and buyer connections for small and medium-sized manufacturers of B.C. value-added wood products, and $483,000 for the British Columbia Institute of Technology to expand mass timber trades training and address skilled labour gaps in wood construction.

Indigenous-led projects also received support, including $337,109 for Tl’esqox First Nation to install and commission an industrial wood-drying kiln and purchase a forklift to expand value-added processing of locally sourced timber.

Natural Resources Minister Tim Hodgson said Canada’s forests support jobs, housing and sustainable growth, and that the funding is intended to help protect the sector while building future capacity.

However, the announcement also drew criticism from some in the industry. According to CBC News, Prince George wood manufacturer John Brink called the $12-million funding announcement “an insult,” saying his workforce across three plants had fallen from roughly 400 people to about 30 over the past year and that he had been unable to access promised support.

Brink said the announced funding is “peanuts compared to what is required,” reflecting broader concern among small and medium-sized wood manufacturers facing U.S. tariffs, shrinking liquidity and reduced operating capacity.

The federal government says Canada’s forest sector supports nearly 200,000 workers, including more than 11,000 Indigenous workers, and contributes more than $20 billion to GDP. Since August 2025, Ottawa says it has introduced more than $2 billion in measures to protect and transform the sector, including loan guarantees, tariff-related support and forest sector transformation funding.

B.C. Forests Minister Ravi Parmar said the latest investments are a step in the right direction, but urged Ottawa to bring the same level of commitment to forestry that it has shown to other sectors.