Extended operations bring relief, but Commonwealth Plywood’s fate still unclear
Tashi Farmilo
Local Journalism Initiative
Published January 15, 2025.
RAPIDES-DES-JOACHIMS – Commonwealth Plywood, originally expected to close in December 2024, continues to operate into 2025, but its long-term future remains uncertain as the company evaluates its viability on a monthly basis. While the mill’s continued operation has brought relief to the local community, significant challenges persist.
Joël Quevillon, vice-president of forestry at Commonwealth Plywood, outlined the key factors influencing the mill’s future. “The situation is reviewed monthly, but we hope to continue until spring,” Quevillon wrote. “Our ability to operate depends on fibre availability, fibre costs, the market price for our products—primarily white and red pine—and the mill’s performance.” He noted improved performance during late 2024 allowed operations to extend into the new year.
Quevillon described external pressures that have made it difficult for the mill to remain sustainable. “The Quebec government withdrew an important contribution for forestry road construction under the Programme de réhabilitation des chemins de contournement des cours d’eau en milieu forestier (PRCCM) and PRCM programs. This decision was made during one of the most difficult market periods, significantly increasing supply costs,” he explained. “At the same time, our fibre allocations have been reduced by more than 30% over recent years, which further limits our ability to produce.”
While the company hasn’t requested financial assistance, Quevillon acknowledged the precarious situation. “We’ve had to issue closure notices to employees because the necessary changes aren’t happening quickly enough,” he said, adding that the company is working with committees alongside the provincial Ministry of Natural Resources and Forests to address these challenges.
Mayor Lucie Rivet Paquette is cautiously optimistic. “The mill still running is very good news for us. They were supposed to close in early December, but here we are in January and operations are ongoing. It’s day by day, week by week, but everyone is still working, and that’s what matters,” she said. “Right now, there’s no confirmed shutdown date, and as long as they’re operating, it’s good news for the community.”
Adding to these challenges is the looming possibility of new tariffs on Canadian softwood lumber by the United States, a critical market, which could further strain the industry by reducing demand and cutting into profit margins. Discussions between Canadian and U.S. officials continue with no resolution reached, leaving companies like Commonwealth Plywood facing another layer of uncertainty,