CASTLEGAR, B.C. — The Province of British Columbia is supporting the development of a new mass-timber production facility that will create 90 sustainable, local forestry jobs in Castlegar and continue to grow and position B.C. at the forefront of this emerging wood-manufacturing and housing-construction sector, government officials said.

“We're taking action to increase the available supply of housing needed throughout B.C. by partnering with sustainable mass-timber producers like Kalesnikoff,” said Brenda Bailey, Minister of Jobs, Economic Development and Innovation. “Through the BC Manufacturing Jobs Fund, we are showcasing and growing our made-in-B.C. advanced wood products while creating stronger local economies and sustainable jobs.”

Through the BC Manufacturing Jobs Fund (BCMJF), the Government of B.C. is contributing as much as $6.7 million to help Kalesnikoff Mass Timber Inc. grow its operations by establishing a new prefabricated mass-timber and cross-laminated timber modularized building facility, and purchasing new machinery to drive production of building components that will be used for rapid housing construction. Currently servicing commercial building projects, the company’s new product expansion will allow them to offer complete wood solutions for prefabricated housing and multi-story family structures using mass timber.

Kalesnikoff has also signed a lease-to-purchase agreement with the City of Castlegar for the new facility.

“We are also happy to announce that we have been working closely with the City of Castlegar and can confirm that we have signed a leasing agreement for the new facility which will be located on a 7.5-hectare portion of 195 Highway 3A in Castlegar near the new FedEx building at the West Kootenay Regional Airport Lands. It will be constructed using our own mass timber technology and products. We appreciate the City’s support, efficiency, and collaboration as we considered and finalized this location,” said Krystle Seed, CFO, Kalesnikoff Mass Timber.

The new mass timber facility will ultimately add over 100 local jobs to Kalesnikoff’s existing employee base of about 320 across the two existing mass timber and sawmill facilities. As announced on March 6, Kalesnikoff looks forward to opening the new facility later this year

“We appreciate this investment in 90 new jobs, empowering us to continue to expand our mass-timber offerings and benefits locally and across the North American construction sector,” said Chris Kalesnikoff, chief operating officer, Kalesnikoff Mass Timber Inc. “Mass-timber intersects jobs, technology, resources and sustainability, and these new products will help our customers across North America address the urgent demand for residential housing, schools and other critical infrastructure.”

Kalesnikoff’s expansion aligns with the Province’s BC Builds commitment to lower construction costs, speed up timelines and deliver more affordable homes to B.C. residents. Mass timber is clean and sustainable for building, making high-value use of B.C.’s renewable forestry products with a lower carbon footprint when compared to traditional building products such as steel and concrete. Mass timber building products and systems can significantly reduce construction time and increase the supply of low-carbon housing throughout the province. The Province’s Mass Timber Action Plan has increased global demand for these products and removed barriers for companies such as Kalesnikoff to expand supply.

The BCMJF is part of a series of programs the Province introduced to support sustainability in B.C.’s forestry sector. In January 2023, the Ministry of Forests introduced a program to establish a dedicated fibre supply for small and medium-sized manufacturers, and to increase the flow of fibre and find ways to expand local production of high-value wood products. A strong made-in-B.C. wood-manufacturing industry diversifies the forestry sector, creating new jobs and protecting existing jobs while buffering against global market challenges.

“Kalesnikoff has been a fixture of the West Kootenays for over 80 years and continues to lead the way when it comes to adopting the made-in-B.C. wood manufacturing that maximizes the value from B.C.’s forests,” said Katrine Conroy, MLA for Kootenay West.