Weyerhaeuser Group announces sale of Princeton sawmill in British Columbia, Canada; SPF supply chain in China changes

Weyerhaeuser Group sold its core sawmill in British Columbia for C$120 million. China's SPF imports will face supply adjustments in the third quarter.

Weyerhaeuser sells Princeton sawmill in BC: in-depth analysis of the impact on China's timber supply chain and prices

Published: May 21, 2025 | Source: LumberFlow Industry Research Department

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Overview of key events: Weyerhaeuser reaches acquisition agreement with Gorman Group

Seattle time, May 21, 2025, Weyerhaeuser Company (NYSE: WY), a leading global forest products companyOfficial announcement, has reached an agreement with Gorman Group to acquireCAD$120 million in cashThe Gorman Group, the owner of Gorman Bros. Lumber Ltd., headquartered in West Kelowna, BC, is a family-owned wood product manufacturer with more than 75 years of operating history in Canada. The transaction covers Weyerhaeuser's production facilities, all related timber license assets in BC, and working capital, and the final price will be adjusted according to customary conditions.

It is worth noting that Gorman Brothers Lumber is currently the largest customer of Princeton Sawmill and the two parties have a long-term cooperative relationship. The transaction is expected to close onThird quarter of 2025Completed. The transfer of forest rights permits will take place in the following months.

Transaction motivation and expectations of both parties: Seeking long-term stability

Devin W. Stockfish, President and CEO of Weyerhaeuser Company, emphasized in a statement:

“The sale of the mill to a local buyer with deep roots in the region is extremely important… We are confident this will be a seamless transition that will position the sawmill for future success in a challenging operating environment – providing long-term certainty for the mill and the wider community.”

Nick Arkle, CEO of Gorman Group, said:

“Weyerhaeuser’s Princeton operations will be a natural fit with the Gorman Group…This move will strengthen our company, support the sustainability of good jobs in our community, and help us continue to develop the world-class wood products for which we are known.”

Statements from both parties indicate that in the current "challenging operating environment" facing the BC timber industry (generally believed to involve factors such as log supply, costs and market fluctuations), the transaction is intended to seek long-term stability and development prospects for the mill's operations.

LumberFlow expert interpretation: Analysis of the in-depth impact on Chinese timber importers

Although this transaction is a regional merger and acquisition, given BC's position as a major export center for North American softwood to China, its potential impact cannot be ignored. LumberFlow Research Department believes that Chinese wood importers should focus on the following aspects:

1. Product structure and supply continuity assessment

Short-term continuity：Gorman Group is the largest existing customer, and it is expected that the initial transaction will be completed by the production operations of Princeton Sawmill and the existing product lines (which may include products that are of interest to the Chinese market)SPF – Certain grades in the Spruce-Pine-Fir category) will maintain a high degree of continuity, with a low risk of short-term supply disruptions.
Long-term product mix adjustment: Gorman Group has made it clear that its strategic focus is on "high-value wood products for the home improvement and renovation market". This indicates that the product mix of the mill may shift toHigh value-added, kiln dried (KD), special specifications or deep processed productsFor Chinese buyers who rely on the plant to supply standard grade or commodity grade SPF, they must pay close attention to the specific trends of its future product structure adjustments and their potential impact on procurement plans.
Impact of regional product mix：The change in Princeton Sawmill’s business strategy may indirectly affect the overall composition of British Columbia’s exports to China and is worthy of strategic assessment by Chinese importers.

2. Supply stability and price dynamics outlook

Supply stability：The transaction aims to improve the stability of factory operations, which is a positive signal for downstream buyers. If the Gorman Group can effectively integrate resources and improve efficiency, it will be helpful to ensure long-term supply.
Price Influencing Factors：However, the macro challenges faced by the BC lumber industry, such as cost pressures and log supply constraints, remain. These factors will continue to have an impact on export market prices, including China. The new owner's pricing strategy will jointly determine future price trends with regional industry fundamentals.

3. Changes in China’s market channels and cooperation models

As a mature wood product manufacturer with a global brand reputation, Gorman Group may integrate existing channels or seek to expand international markets including China with new brands and new models after taking over Princeton Sawmill. Chinese importers should pay attention to these potential changes and explore new cooperation opportunities.

Analysis of the impact of logistics links

LumberFlow estimates that the impact of this transaction on logistics will be characterized by short-term stability and long-term potential adjustments:

Short-term continuity: It is expected that the existing inland transportation and export logistics arrangements from Princeton Sawmill to shipping ports such as the Port of Vancouver will remain stable in the initial stage of the transaction and will not have an immediate impact on the shipping schedules and booking processes of existing Chinese importers.
Long-term adjustments possible：If the product structure shifts to high-value, customized products, it may affect order volume, packaging requirements and transportation frequency, and thus affect logistics solutions and costs. Importers need to pay attention to whether Gorman Group will integrate and optimize the logistics resources of its factories.
Limited macro impact: The transaction of a single sawmill is not enough to have a macro impact on the overall container rates or ship capacity from British Columbia to China, but it reflects the industry's trend of seeking stable operations, which is of positive significance for maintaining the stability of the regional logistics chain.

LumberFlow's Strategic Advice for Chinese Importers

In response to the sale of Princeton Sawmill by Weyerhaeuser, LumberFlow recommends that Chinese timber importers adopt the following strategies:

Establish communication channels: After the transaction is completed in the third quarter of 2025, take the initiative to establish contact with the Gorman Group to clarify its future production plans, product specifications (especially SPF grades), export strategies to China and cooperation terms for Princeton Sawmill.
Assessing risks and opportunities: Based on the Gorman Group's "high value" product strategy, carefully evaluate the impact on its own procurement. Confirm the continuity of supply of standard grade products, while actively exploring the potential for cooperation in high value-added products.
Review existing contracts: If there is a long-term contract with Weyerhaeuser Princeton Sawmill, it is necessary to confirm the transfer terms of the contract between the new and old owners to ensure your own rights and interests.
Strengthening supply chain resilience: Consider this change an opportunity to review and optimize BC’s procurement strategy. Given the industry challenges in the region, this should continue.Supply chain diversification, consider the feasibility of purchasing similar specification materials from other regions such as the northwestern United States, Europe, Russia, etc. to hedge regional risks.

Continue to track global forestry M&A trends and accurately grasp supply chain changes.Visit now LumberFlow.com And register to get customized market intelligence and in-depth analysis to help you make smarter business decisions.

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