Hodgson’s Chipping Ltd. will be closing up its operation in Truro, Nova Scotia this spring.
The company has been in business for over 40 years and has progressed from being a two-man and one-horse logging show to one of Nova Scotia’s largest logging contractors.
Over the years, the company has focused on producing wood chips for Northern Pulp and NewPage Port Hawkesbury.
The company isn’t in financial trouble, yet, but they feel there is no other likely outcome for their business.
Among the current problems facing the company are:
- Nova Scotia’s decision to reduce clearcutting by 50% over 5 years
- Low price paid for chips and wood by the mills
- High cost of fuel
- Labour shortage
- Shortage of viable softwood
Hodgson’s Chipping Ltd. supplied 85% of its product to Northern Pulp, while the other 15% went to NewPage Port Hawkesbury.
Company president McKay Hodgson said Nova Scotia’s regulations on the forestry industry, such as the recent mandate to reducing clearcutting by 50% over five years, are going to kill the business. In fact, McKay’s eldest son Vaughn, one of 4 sons who help run the business, believes the new forestry regulations kill of all of Nova Scotia’s pulp mills.
“The government came up with the genius idea of controlling the way the wood is cut in Nova Scotia without our input.
“It (would have) cost us more money to produce that wood because of those regulations. It was going to be on our backs to do the extra work that had to be done. Northern Pulp was not going to pay for it.”
“With the way the pulp companies in general treat the contractor, there’s going to be more to follow.”
“They treat them with no respect. Zero. They just think that there’s a never-ending supply of contractors, that when one lies down or goes under there’s just going to be somebody else to fill his boots.”
~Vaughn Hodgson
The closing of the NewPage mill hurt Hodgson’s Chipping, leaving the company out $142,000.
Concerning the labour shortage, Vaughn Hodgson told The Chronicle Herald, “The people are leaving Nova Scotia because we can’t afford to pay them really what they’re worth, because we’re not getting enough money to do what we’re doing.”
Mike McLarty, Timberlands Manager for Northern Pulp, said it will be “challenging” to find an alternative supplier when Hodgson’s closes.
Hodgson’s Chipping Ltd. plans on phasing everything out between now and mid-April. All the equipment will be auctioned off through Ritchie Bros. Auctioneers near the beginning of May.
“We have some 160 pieces going in the auction,” said McKay Hodgson. “There’s trucks, processors, forwarders — machines that haul the wood out of the woods — chippers and grapple skidders.”
Hodgson’s Chipping Ltd. employs about 70 people.
Sources:
Forestry firm to close, leaving 70 jobless (Chronicle Herald)
Local forestry contractor citing government for spring closure (Truro Daily)
The Chipping Route (Canadian Biomass)