B.C. helps fund wood tech company growth

Key Takeaways:

• The B.C. government, through the Manufacturing Jobs Fund (BCMJF), is investing over $97 million into the province’s value-added forestry and manufacturing sectors. This support is enabling companies like Spearhead Timberworks, Westlam Industries, Mercer Celgar, and Greyback Construction to expand operations, adopt advanced technologies, and create or protect over 3,500 jobs—many in regional, remote, and Indigenous communities.
• Investments are fostering innovation and modernization in mass timber, engineered wood, and bioproducts. Companies are using advanced technology and sustainable practices to boost productivity and international competitiveness, particularly in areas like curved glulam production and small-diameter log processing.
• The initiative comes at a time of economic pressure due to U.S. tariffs on B.C. lumber, which currently sit at 14.4% with threats of an additional 25%. These investments aim to mitigate impacts such as mill closures and layoffs by stabilizing the sector, securing supply chains, and enabling long-term growth through diversification and innovation.

The Whole Story:

As U.S. tariffs rattle B.C.’s forestry sector, the province is looking to support and grow the industry.

Through the BC Manufacturing Jobs Fund (BCMJF), the Government of B.C. is contributing as much as $11 million toward four forestry-sector capital projects in the province. The goal is to help B.C.-based forestry-product manufacturers grow their businesses by constructing new production facilities, purchasing new equipment and adding new high-value product lines, while creating and protecting hundreds of jobs.

“These timely investments into our province’s manufacturing and forestry value-added sectors will help strengthen homegrown B.C. companies, which in turn creates stronger local economies and sustainable jobs,” said Diana Gibson, Minister of Jobs, Economic Development and Innovation. “We’re working alongside industry to build a stronger, more resilient economy that works better for people and communities.”

Spearhead Timberworks Inc., near Nelson, specializes in the design and fabrication of highly advanced timber architecture. Spearhead is strengthening its capabilities, backed by as much as $7.5 million from the B.C. government to drive its expansion. This includes construction of a new purpose-built facility and implementation of advanced technology that will increase its competitiveness on the international stage, adding state-of-the-art production lines for specialized curved and double-curved glulam.

The province explained that the Kootenay region is quickly establishing itself as a hub for British Columbia’s growing mass-timber economy, uniting a network of local sawmills. The network includes but is not limited to Harrop-Procter Community Cooperative and J.H. Huscroft Ltd., value-added wood manufacturers, such as Kalesnikoff Mass Timber Inc., and progressive training in wood design, digital fabrication and sustainable construction delivered through Selkirk College.

“Over the past 35 years, we’ve honed our craft in advanced timber fabrication, completing over 450 projects worldwide and building a reputation as trailblazers in our field,” said Josh Hall, partner at Spearhead Timberworks Inc. “This investment from the Province will help us showcase B.C.’s remarkable wood resources globally, while creating long-term jobs at home. We’re honoured by the trust placed in us and excited to continue contributing meaningfully to our community and timber industry.”

More forestry-sector manufacturers receiving funds from the BCMJF include:

• Langley – Westlam Industries Ltd. is a wood-product manufacturer that specializes in construction-grade plywood. Westlam’s products play an important role in the housing and commercial building sector in B.C. and Canada, ensuring a strong local supply of key building materials. It will receive as much as $1.5 million to construct a new production facility and install new automated equipment that will introduce automation, improve fibre utilization, and increase output and productivity, while creating 46 jobs.
• Castlegar – Mercer Celgar Limited Partnership is a kraft pulp mill and biorefinery that produces premium pulp and generates bioenergy for the BC Hydro power grid. The company will receive as much as $1.75 million to modernize its small-log line and install equipment capable of processing smaller-diameter logs and a wider range of low-grade fibre. This investment will help maximize the value of fibre inputs and secure more than 400 jobs at the facility, making it one of the largest employers in the region.
• Penticton – Greyback Construction Ltd. is a commercial, residential and industrial construction contractor that is diversifying into prefabricated housing construction. It will receive as much as $235,000 to renovate a former mill site and purchase equipment that will vertically integrate and streamline production of prefabricated exterior walls and floors while creating 12 jobs, helping to create more homes quicker in B.C.

“British Columbia’s forestry companies and workers show what innovation, craftsmanship and hard work looks like,” said Ravi Parmar, Minister of Forests. “Spearhead, Westlam, Mercer Celgar, Greyback Construction, and many, many more across the province are stepping up and investing in their workers and their communities, and we’re right there with them. The Manufacturing Jobs Fund creates jobs, strengthens supply chains and supports people in their incredible work around this province.”

BCMJF has also accelerated transition within the forestry-product sector to high-value manufacturing. The program has incentivized more than $680 million flowing into forestry-product manufacturing, leading to the direct creation and protection of more than 3,500 forestry-sector jobs, many in regional, remote and Indigenous communities. Nearly one-quarter of all wood-product manufacturers in B.C have applied to the program, demonstrating that producers are investing in the future of forestry in the province.

BCMJF has also led to increased production of mass timber, engineered wood and bioproducts, with B.C.-based companies leading the way in innovative uses of waste wood, residuals and available fibre for high-value, high-demand products and exports. The province has partnered with 73 forestry-product manufacturers with more to come, dedicating more than $97 million to the industry in collaboration toward a stable, sustainable forestry sector in B.C.

The support comes at difficult time. The imposition and threat of escalating tariffs from the U.S.—currently at 14.4% for B.C. lumber, with the potential for an additional 25%—have created significant uncertainty, leading to mill closures, layoffs, and reduced shifts across the industry