Kelowna Company Acquires Princeton Lumber Mill From Forestry Giant Weyerhaeuser
The proposed acquisition of the Princeton Lumber Mill by a firm based in West Kelowna, which is owned by forest industry leader Weyerhaeuser, has received praise from British Columbia’s Forests Minister Ravi Parmar.
“I am pleased with the Gorman Group’s acquisition of Weyerhaeuser’s activities in Princeton,”Parmar stated in a press release issued on Wednesday.
Within the local area, family-run forest businesses form the backbone of both the timber sector and our economic foundation. Historically, significant processing facilities were predominantly managed by large corporate entities. However, this dynamic has shifted with West Kelowna enterprises leading the change. Businesses such as the Gorman Group see promise in forestry’s prospects and recognize British Columbia as an ideal location for investing in these futures.
On Wednesday, Weyerhaeuser declared its intention to sell the Princeton mill to the Gorman Group for $120 million in cash. This transaction encompasses Weyerhaeuser’s production plant, related timber licenses within British Columbia, along with the worth of operational funds.
The Princeton mill’s biggest client is Gorman Bros. Lumber.
Gorman has consistently been an excellent customer and strategic ally, and we are confident that this transition will proceed smoothly,” stated CEO Devin Stockfish of Weyerhaeuser. “This move aims to enhance the mill’s readiness for upcoming challenges while ensuring long-term stability for both the facility and the wider community.
The Gorman CEO, Nick Arkle, stated that acquiring the mill aligns perfectly with their third-generation family business.
We’ve maintained a robust relationship with the Princeton operation for numerous years, and we have personally witnessed the expertise, dedication, and excellence embodied by its staff. It’s clear that as a collective unit, we’ll achieve more than what individual efforts could accomplish alone. We’re excited about joining forces with First Nations, governmental bodies, local communities, and every member of our workforce to turn this into a triumph for British Columbia.
Weyerhaeuser stands as one of the biggest private holders of timberland globally and among the leading producers of wood products across North America.
The Gorman Group operates across four divisions in southern British Columbia, which include two sawmills, one remanufacturing facility, a plywood plant, and a pole plant.
It also has a remanufacturing facility located in the northern part of Washington State.
Since the year 2000, the number of individuals working in forestry—which was previously one of British Columbia’s biggest sectors—has decreased by fifty percent, as stated in a report released by the BC Council of Forest Industries.
The primary cause of these employment reductions has been a 55 percent decrease in the provincial timber harvest, influenced by factors such as forest fires, pine beetle outbreaks, and government conservation measures impacting the supply of logs available for cutting.