San Group bets on \u0027high\u002Dvalue\u0027 future with new Port Alberni sawmill
“What it means to us is we see a very bright future,” said Kamal Sanghera, CEO of the Surrey-headquartered San Group. “We can see the light through the tunnel to how to survive.”
Sanghera estimates San Group will have spent between $120 million and $150 million on its Port Alberni operations by the end of this year, which will eventually support some 250 jobs between two sawmills, a remanufacturing mill and shipping facilities. Its plan was to build a second high-tech, highly automated sawmill — the facility that opened Friday — engineered to process small logs, from three-to-14-inches in diameter that are typical in Vancouver’s second-growth forests that are becoming ready for harvest.
“We are doing everything in-house, start from the forest, all the way from harvest to home,” Sanghera said, using the company’s slogan to describe its strategy for integrated production.The idea is to harvest timber, which San Group buys on the open market, then turn out products to the specifications of its customers, with larger dimensions turned out by one mill and smaller dimensions at the new high-tech mill.
It is an attitude that is ahead of the reckoning that B.C.’s coastal forest industry will have to deal with as it struggles with increasing costs in the production of commodity lumber.Article content continued“They are doing what many others are thinking of doing,” said Brian Hawrysh, CEO of B.C. Wood, a not-for-profit trade association for value-added wood producers. “And that’s how we extract more value out of the fibre.
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