CellFor, a producer of varietal loblolly pine showing impressive gains in growth, straightness and disease resistance, has filed for bankruptcy in Canada and for protection from creditors in the U.S.
The housing decline has resulted
in a decline in demand for lumber, resulting in a decline in demand for sawtimber stumpage, resulting in a decline in clearcutting, followed by a decline in planting, followed by a decline in seedling demand and ultimately the filing of bankruptcy by Cellfor. And has resulted in a not so Merry Christmas nor Happy New Year for CellFor employees.
About two years ago I did a blog post on the "Future of the Forest Industry" which included a graph of the "Southern Tree Planting Trend". The graph shows that the planting decline actually started in 2002, well before the housing collapse which continued and exaggerated the decline. See that post.
Although the proceeding was filed in Canada, a subsequent ORDER was made on December 22 by a U.S. Bankruptcy Judge for protection of creditors. If you would like to see if you are a creditor, you can check here. You will probably recognize some of the names. Another list of employees and vendors can be found here. I know that you will recognize some, or many, of these names. One of the names on this list is Greg Hay, a person that I worked very closely with at The Forest Technology Group. Greg is the only forester that I have ever met that is also a well trained and disciplined sales person and I have a level of respect for him that I have for very few people. If there is a bright spot in all of this, it is that some very good people, and perhaps some technology, is now available. --Brian
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