Three-way supply agreement supports Corewood Sawmill

August 3, 2017

By: The Working Forest Staff

Tahtsa Group has rebuilt and upgraded Corewood Sawmill in Houston, B.C., to operate cooperatively with Canfor and Pinnacle Renewable Energy. An article on HoustonToday.com explains that Corewood will use low-grade material that is unsuitable for commodity lumber from a local Canfor mill. Corewood will extract value from the material in the form of other wood products. Pinnacle Renewable Energy will receive residuals from Corewood for wood pellet manufacturing.

“The five-year supply agreement with Canfor and the off-trade with Pinnacle’s pellet plant supports the new investment in Houston,” according to Klaus Posselt, president and CEO of the Tahtsa Group. “Canfor and Pinnacle have been very fair and supportive.”

The article says the heart of the Corewood operation is an Optimil canter which was purchased from a mill in the United States. The sawmill will be able to process log diameters from four inches to 20, and the larger stems will be set aside for transportation to Tahtsa’s Sheraton Mill in Burns Lake.

Read the full article here.

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