Federal Energy Minister Promotes Mass Timber in B.C. Visit
Published: November 10, 2025
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In a significant display of support for sustainable construction practices, Federal Energy Minister Tim Hodgson, accompanied by Stephen Fuhr, Canada’s Secretary of State for Defence Procurement, visited Castlegar, British Columbia, on November 10. Their visit centered around the impressive new mass timber production facility operated by Kalesnikoff Lumber, which is setting a compelling example for the future of Canadian construction.
A New Era in Timber Production
The newly launched facility, which spans an impressive 100,000 square feet and represents a $30 million investment, officially opened its doors in June. This project was bolstered by a crucial $3 million investment from Natural Resources Canada’s Investments in Forest Industry Transformation program, showcasing the federal government’s commitment to revitalizing the timber sector.
The Kalesnikoff facility specializes in mass timber production, which encompasses the creation of value-added, low-carbon building components. These include prefabricated wall and floor systems and, notably, entire modular construction capabilities. Utilizing advanced techniques like glued-laminated timber (glulam) and cross-laminated timber, the facility aims to meet the increasing demand for sustainable building materials in a range of structures—from homes and apartment buildings to public institutions such as schools and libraries.
Supporting Canadian Materials
The government’s 2025 budget reflects a strategic shift towards prioritizing Canadian materials in the construction industry. This initiative not only supports local economies but also incorporates mass timber and softwood lumber into federal procurement processes. Companies contracting with the federal government will be required to source Canadian lumber, promoting domestic production and sustainability.
Hodgson emphasized the significance of this transition during his visit. He highlighted the Liberal government’s "Build Canada Homes" initiative, which aims to kickstart 500,000 housing projects per year over the next decade. By encouraging the use of mass timber products in these constructions, the government hopes to lower housing costs significantly.
The Future of Construction
During his visit, Hodgson stated, “The Prime Minister has been very clear that he wants the bulk of that new home development to be through manufactured homes because it drives down the cost. He wants those manufactured homes to use mass timber, because that again will drive down the cost.” His remarks underline a forward-thinking approach to housing, emphasizing not just quantity but quality and sustainability.
Mass timber constructions are not only cost-effective but also known for reducing construction times and enhancing precision and predictability throughout the building process. These advantages are crucial in addressing the current housing crisis in Canada.
Financial Support for Transformation
The government’s commitment to transforming the timber industry is further bolstered by financial allocation in the 2025 budget. This includes up to $700 million in loan guarantees over two years to provide companies with the necessary financing and credit support to navigate this period of transition. Additionally, starting in 2026-27, $500 million over three years will be directed towards renewing and expanding Natural Resources Canada’s forest sector programs, focusing on market diversification and new export initiatives.
A Vision for the Future
Minister Hodgson concluded his visit by expressing optimism about the potential of facilities like Kalesnikoff Lumber to reshape the future of construction in Canada. “When you look at a facility like this, you can see that the goal is attainable,” he remarked. “This is the opportunity—we need to change the way we build. We are here because this is the future.”
As Canada moves towards a more sustainable building future, the investments in mass timber and the commitment to local resources could pave the way for a robust and environmentally friendly construction industry, making strides in both housing availability and ecological responsibility.


