EACOM comments to ERO #019…

EACOM comments to ERO #019-0132

With 6 manufacturing facilities in Northern Ontario, EACOM is the largest softwood lumber producer in the province. The Company has invested more than $85 million in Ontario since 2012; notable investments include the rebuild of the Timmins sawmill, the restart of the Ear Falls sawmill and the acquisition of the I-Joist mill in Sault Ste. Marie. With this company growth, our workforce today includes more than 800 Ontarians.

Forestry companies across the province require certainty of wood supply to support continued investments. Ontario faces long-term supply issues as a result of legislated reductions in forest management on Crown lands. In addition, the closure of several pulp and newsprint mills have exacerbated the situation, limiting wood utilization across the province. Access to wood is so difficult in Ontario that EACOM is forced to go all the way to Michigan, USA to supply our Nairn sawmill located near Sudbury.

In September 2018, EACOM saluted MNRF’s announcement of a forestry strategy. It remains our intention to work with MNRF in support of this strategy to help address important competitiveness challenges related to the affordability and accessibility of wood supply.

EACOM welcomes new investment in Ontario’s forest products sector. That said, we question this proposal for a new sawmill as described in ERO #019-0132. It is noted that the facility would consume +400,000m3 of hardwood and SPF on an annual basis, the sources of which are completely unclear. For example, the proposal suggests that wood supply would come from the Temagami Forest, where we know there to be no surplus SPF volume available. We are concerned that MNRF would consider issuing a sawmill licence if the proponent is not able to demonstrate certainty of access to wood supply.

It is frustrating that the feasibility of this proposal is challenged by a lack of wood supply when Ontario is so rich in forests. There are important opportunities for MNRF to reduce red tape so that EACOM doesn’t have to buy wood in the USA and Ontario can confidently welcome investments in the forest products industry. EACOM looks forward to working with MNRF to support economic growth by ensuring adequate wood supply for the existing industry and new entrants.

Christine Leduc
Director, Public Affairs