Buchanan Forest Products is shutting down the its sawmills in Nakina and Longlac, Ontario in July.

The closures - blamed on a strong dollar, weak prices and a slumping U.S. housing market - will put more than 120 employees out of work. Currently there is only one shift operating at the mills.

A Buchanan executive says there is a slim hope the mills may reopen, but lumber prices would have rise and energy prices would have to drop.

At one time Buchanan Forest Products was one of the largest employers in the forestry sector in the region, operating nine lumber-producing facilities as well as Terrace Bay Pulp. The majority of those sawmills, including three in Thunder Bay are now either shut down or clearing out old inventory.

Buchanan vice-president Hartley Multimaki says Terrace Bay Pulp will not be affected by the shutdown at the Nakina and Longlac operations.

Sources:
2 More Mills Closing (CKDR Dryden)
Buchanan confirms layoffs in Nakina and Longlac (Thunder Bay's Source)