INCREASING VALUE-ADDED OPPORTUNITIES FOR SASKATCHEWAN’S FOREST INDUSTRY

The provincial government is commissioning a new research program designed to help develop the best global markets and new value-added products for Saskatchewan's forest industry.

FPInnovations, the country's leading not-for-profit forest research institute, has been contracted to analyse best matches between Saskatchewan's existing and potential wood products, and those in demand in global markets. FPInnovations will also make recommendations to industry and government on value-added products and processes that fully and sustainably utilize the province's timber resource.

The contract is worth $3.2 million over three years. The monies come out of the value-added research component of the Community Development Trust Fund, which the federal government established to deal with challenges from the downturn in Canada's forest industry.

"Forestry is clearly in transition as a result of industry-wide challenges in the global marketplace, including the problems of the last few years in the U.S. housing market," Energy and Resources Minister Bill Boyd said. "Many value-added diversification opportunities still exist in non-U.S. markets and this research will help us connect those opportunities to our forest companies and our excellent forest resource."

In its first year, the FPInnovations program will include a detailed analysis of future market opportunities outside the U.S. and collaboration with individual Saskatchewan forest companies on new products, including renewable energy.

"FPInnovations recognizes the urgency for transformation in the forest products sector and is working diligently at creative solutions that span the forest-to-market value chain," FPInnovations President and CEO Pierre Lapointe said. "As this research will facilitate new value creation in the marketplace, we are excited to be working with Saskatchewan's government and forest industry."

"Bringing FPInnovations' expertise to analyse Saskatchewan challenges and opportunities makes good sense," Meadow Lake OSB Limited Partnership President John Thorlakson said. "The targeted goals of this initiative are what's needed to diversify and strengthen the province's forest products industry."

This research initiative is designed to be consistent with all of Canada's obligations under all of its international treaties, including the Canada-U.S. Softwood Lumber Agreement of 2006.

FPInnovations was created from the merger of three Canadian forest sector research institutes. It has research laboratories in Quebec City, Montreal and Vancouver, with technology transfer offices across Canada, including Saskatchewan.

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For more information, contact:

Bob Ellis
Energy and Resources
Regina, Phone: 306-787-1691
Email: robert.ellis@gov.sk.ca