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Kalesnikoff secures land and $6.7M grant for new Castlegar facility

A new mass timber facility will be built near the West Kootenay Regional Airport

Kalesnikoff Mass Timber’s expansion project is moving forward as the company has secured land from the City of Castlegar and a $6.7 million grant from the provincial government.

Kalesnikoff has entered into a lease-to-purchase agreement with the City of Castlegar for a new facility on a 7.5-hectare portion of 195 Highway 3A near the new FedEx building at the West Kootenay Regional Airport Lands.

“We appreciate the city’s support, efficiency, and collaboration as we considered and finalized this location,” said Kalesnikoff’s chief financial officer Krystle Seed.

In a public Notice of Disposition, the City of Castlegar said the property will be subject to a three-year lease-to-purchase agreement with monthly base rent set at $39,770 and applied toward the purchase price of $2.25 million. The money received for the purchase will flow into the city’s land reserves fund.

The grant is coming from B.C.’s Manufacturing Jobs Fund.

“We welcome this up to $6.7 million grant and the province’s ongoing support of mass timber and value-added wood products that can be used in sustainable construction projects including affordable housing, schools, workforce housing and other much-needed infrastructure,” said Chris Kalesnikoff, Kalesnikoff’s chief operating officer.

“We are proud to achieve significant economic and social benefit from our existing and limited local timber supply. Mass timber construction is one small but important solution to the bigger forestry issue of ongoing uncertainty around allowable fibre and we look forward to ongoing discussions with government to increase certainty and supply.”

RELATED: New mass timber rules boost for Castlegar manufacturer

Brenda Bailey, Minister of Jobs, Economic Development and Innovation said, “We’re taking action to increase the available supply of housing that’s needed throughout B.C. by partnering with sustainable mass-timber producers like Kalesnikoff. Through the B.C. Manufacturing Jobs Fund, we are showcasing and growing our made-in-B.C. advanced wood products while creating stronger local economies and sustainable jobs.”

Kalesnikoff says the new facility will add over 100 local jobs to the company’s current employee base of about 320 people across the two existing mass timber and sawmill facilities. It will be constructed using Kalesnikoff’s own mass timber technology and products.

This new expansion will focus on prefabricated mass-timber and cross-laminated timber modularized building products that will be used for rapid housing construction.The new product line will allow Kalesnikoff to offer complete wood solutions for prefabricated housing and multi-story family structures using mass timber.

Kalesnikoff plans to open the new facility later this year.

Betsy Kline

About the Author: Betsy Kline

After spending several years as a freelance writer for the Castlegar News, Betsy joined the editorial staff as a reporter in March of 2015. In 2020, she moved into the editor's position.
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