'The next 18 months are gonna be very hard': Quebec forestry
Last Updated: Wednesday, October 11, 2006 | 1:21 PM ET
CBC News
There could be more mill closures in Quebec and more job losses in coming months as the forest industry adjusts to deflated demand for softwood lumber, analysts say.
Several forest products companies have announced significant closures and layoffs across the province this fall, with the latest announcement coming Tuesday from Abitibi-Consolidated, one of the largest operations in Quebec, which will shut down four mills and cut 700 jobs at the end of October.
The combination of an unsatisfactory solution to the softwood lumber dispute with the U.S. and a sluggish softwood market because of low housing starts has dragged lumber prices down to decade lows.
Several other Quebec forestry companies face a similar predicament, Bouthillier said. In early October, Tembec announced it was cutting 400 jobs, and Krueger announced 200 people temporarily laid off would not return to work.
http://www.cbc.ca/canada/montreal/story/2006/10/11/qc-forestrylayoffs.html