Minister Hodgson and Secretary of State Fuhr highlight budget investments in Canada's forest sector Français
CASTLEGAR, BC, Nov. 10, 2025 /CNW/ - Canada faces a rapidly changing and increasingly uncertain world. The ruled-based international order and the trading system that powered Canada's prosperity for decades are being reshaped -- hurting companies, displacing workers and causing major disruption and upheaval for Canadians.
Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, and the Honourable Stephen Fuhr, Secretary of State (Defence Procurement), met with forest sector and mass timber workers at Kalesnikoff in Castlegar, B.C., to highlight Budget 2025's Buy Canadian Strategy and investments in Canada's forest sector.
The Government of Canada is helping the forest sector and softwood lumber industry transform to remain competitive though measures that will help unlock its full potential while keeping pace with increased need for housing and major infrastructure construction. These include:
- Up to $700 million over two years on a cash basis, available now, in loan guarantees administered by the Business Development Bank of Canada, to help ensure companies have the financing and credit support they need to maintain and restructure their operations during this period of transformation.
- $500 million over three years on a cash basis, starting in 2026–27, to renew and expand existing Natural Resources Canada's (NRCan) forest sector programs focused on market and product diversification (including new export initiatives).
- Prioritizing the adoption of Canadian materials -- including mass timber and softwood lumber -- in construction and changing federal procurement processes to require companies contracting with the federal government to source Canadian lumber.
During the visit, Minister Hodgson and Secretary of State Fuhr toured Kalesnikoff's mass timber and modular mass timber facilities, which manufacture high-quality B.C. lumber from Kalesnikoff's mill into value-added, low-carbon building components including prefabricated wall and floor systems. These materials are building key infrastructure across British Columbia, including several projects funded by NRCan's Green Construction Through Wood program.
Through initiatives like Build Canada Homes and the federal government's commitment to reach 500,000 housing starts a year in the next 10 years, Kalesnikoff has gained further momentum in advancing modular housing construction, combining expertise in engineered timber with modular design. Build Canada Homes will use mass timber products made from Canadian wood, like the product produced by Kalesnikoff -- substantially reducing our reliance on export markets by using more of our wood at home. This method of construction will also use advanced construction techniques to reduce build times and costs and increases precision and predictability while accelerating the creation of affordable, high-performance, sustainable housing solutions that support the growing demand across the country.
Earlier this year, the federal government supported the construction of Kalesnikoff's new 100,000-square-foot modular mass timber facility with a $3-million investment through NRCan's Investments in Forest Industry Transformation program.
In the face of global uncertainty, Canada's new government is focused on what we can control. Budget 2025: Canada Strong is our plan to transform our economy from one that is reliant on a single trade partner to one that is stronger, more self-sufficient and more resilient to global shocks. Our plan builds on Canada's strengths -- world-class industries, skilled and talented workers, diverse trade partnerships and a strong domestic market where Canadians can be our own best customers. We are creating an economy by Canadians, for Canadians.
We are building Canada Strong. This is a plan to build the major infrastructure, homes and industries that grow our economy and create lasting prosperity. This is a plan that will protect our communities, our borders and our way of life. This is a plan to empower Canadians with better careers, strong public services and a more affordable life. We are building a stronger economy so that Canadians can build their own future.
To do that, Canada's new government is delivering an investment budget. We are spending less on government operations and investingmore in the workers, businesses and nation-building infrastructure that will grow our economy. Budget 2025 delivers on the government's Comprehensive Expenditure Review to modernize government, improve efficiencies and deliver better results and services for Canadians. It includes a total of $60 billion in savings and revenues over five years and makes generational investments in housing, infrastructure, defence, productivity and competitiveness. These are the smart, strategic investments that will enable $1 trillion in total investments over the next five years through smarter public spending and stronger capital investment.
Countries across the world are facing global economic challenges -- and Canada is no different. Budget 2025 is Canada's new government's plan to address these challenges from a position of strength, determination and action. It is our plan to take control and build the future we want for ourselves, as a people and a country. It is our plan to build Canada Strong.
Quotes
"The global uncertainty we are facing demands bold action to secure Canada's future. Budget 2025 is an investment budget. We are making generational investments to meet the moment and ensure our country doesn't just weather this moment but thrives in it. This is our moment to build Canada Strong, and our plan is clear -- we will build our economy, protect our country and empower you to get ahead. When we play to our strengths, we can create more for ourselves than can ever be taken away."
The Honourable François-Philippe Champagne
Minister of Finance and National Revenue
"Canada's forest sector is a cornerstone of our economy and a source of pride and livelihoods in communities across the country. Budget 2025 is about investing in what makes us strong -- and that includes the workers, businesses and innovation driving this sector forward. Our new Buy Canadian Policy will ensure public dollars will grow Canadian industries, strengthen our supply chains and support homegrown innovation. When the government spends, we will select Canadian suppliers by default -- backing Canadian lumber, Canadian jobs and Canadian leadership in sustainable construction. This is how we build a more resilient economy -- one that's made in Canada, for Canadians."
The Honourable Tim Hodgson
Minister of Energy and Natural Resources
"In times of global uncertainty, leadership means investing in what makes us resilient. Budget 2025 is not just a response to disruption -- it's a blueprint for renewal. By supporting Canada's forest sector and prioritizing Canadian-made materials, we're reinforcing the foundations of our economy and our communities."
The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)
"We look forward to participating in urgently needed government infrastructure projects. Kalesnikoff is a legacy forestry company that has successfully evolved into construction with manufacturing and design expertise transforming high-quality B.C. timber through our sawmill, advanced downstream in our mass timber facility into cross-laminated timber wall and floor panels and glulam beams. These components are then fully assembled into site-ready modules that are ideal for multi-storey homes, community infrastructure, schools and other much-needed buildings."
Chris Kalesnikoff
Chief Operating Officer, Kalesnikoff Mass Timber Inc.
Related Links
- Measures to transform Canada's softwood lumber industry - Natural Resources Canada
- Green Construction through Wood (GCWood) Program - Natural Resources Canada
- Investments in Forest Industry Transformation (IFIT) - Natural Resources Canada
- Kalesnikoff Opens North America's First Pre-Fabrication and Modular Mass Timber Facility
- Government of Canada Supports Groundbreaking Mass Timber Building Construction in Vancouver, B.C. - Canada.ca
- New Multi-Use Airport Hangar Debuts Innovative Wood Design in Canada - Canada.ca
- Canadian Mass Timber to Make Vancouver Schools More Earthquake-Resistant - Canada.ca
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SOURCE Natural Resources Canada
Media may contact: Natural Resources Canada, Media Relations, 343-292-6096, [email protected]; Greg Frame, Office of the Minister of Energy and Natural Resources, [email protected]
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