The Past Businesses |
Riverside Sawmill
The family business is Lumby-based Riverside Forest Products, which may become the largest producer of plywood in Canada. Riverside recently reached a tentative agreement with Fletcher Challenge Canada to buy its two Okanagan divisions. The deal is contingent on financing and the Ministry of Forests approving the transfer the Fletcher Challenge timber rights. "There's no way I could reach my goal of senior management, especially after this acquisition, without an education," the 21-year-old Vernon resident said. Although considered a risky deal - the price tag is $60 million and the two mills in question lost $44 million last year - Steele is confident his father, Gordon, and co-owner Gerald Raboch are going to succeed. "It's neat to see the company grow. It means a lot for the mills to have local ownership. The jobs and profits will stay in the area." The deal to purchase marks another, larger milestone on the road to success for the company jointly owned by the Steeles, originally of Vancouver, and the Rabochs of Enderby. Jerry Raboch moved to Canada at age 15, living with his uncle while awaiting his parents to emigrate from Czechlosovakia. However, the eruption of World War I prevented them from leaving. Raboch married another Czechlosvakian and together they settled down on a farm in the Trinity Creek area east of Enderby. The couple made ends meet whichever way they could, logging by horse to make rough lumber, railroad ties and poles. Three sons were born, Gerald, Henry and Alvin. Raboch bought a portable sawmill in 1947 for $1,250 as well as a rickety logging truck. He kept enough money to live on and used the rest to steadily build up the company with equipment and acquisitions. At first it was a partnership with Kingfisher Sawmill, then the purchase of a planing mill near Ashton Creek, all in the same vicinity. In 1952, Raboch Sawmills Ltd. was incorporated. In 1957, the Rabochs, which had begun to use the name Riverside, bought out their partners. By this time a business relationship had formed with Steele Lumber that would later prove to be critical for both companies. The Steele family moved to BC from Ontario in 1908, with Bill Steele being born in Vancouver. The son of a Irish father and Scottish mother decided not to carry on the family business of manufacturing automobiles and mill machinery and instead, in1953 formed Steele Lumber. The business started as a transit wholesaler, buying from independent sawmills and shiping direct to the customers. In the late 1950s and early 60s, many of the independent Southern Interior mills consolidated and took over their own sales, as the major companies were already doing. With less and less mills to buy from Steele took a step toward achieving an assured supply by joining forces with the Raboch clan to form Riverside Forest Products in 1962. The deal was needed on both sides - Riverside needed a large infusion of cash to buy debarking systems to meet forestry regulations. The stronger company continued to grow with a steady list of acquisitions. Phyllis Raboch, Riverside's human resources manager, said the industry was rapidly changing and adaptation was the key. "You have to progress. If you stand still, you're gone - either sell out or close out." A combination of market demands and government restrictions meant companies had to get bigger to survive. "You had to consolidate the timber base." In 1962 it was Salmon Arm Lumber and Timber. Ganzeveld Brothers Sawmill north of Armstrong was brought into the fold in 1964, as was Long Lake Timber near Vernon. The Long Lake deal led to the founding of S&N Timber in 1964, the site of the present day Riverside mill near Lumby. The buy-outs continued: Monashee Lumber in 1966, Crossing Lumber in '67, Balestara and Schnyder in '68. In 1972, IMI Sawmills erected a portable mill on the Lumby site to complement the Riverside operation. In 1973, Riverside constructed a veneer plant. In 1974, IMI was bought out. In 1977, R.V. Schmidt Lumber was purchased. In 1983, Riverside purchased 50 per cent of Cantree Plywood Corp. near Vancouver. Jerry Raboch had retired back in 1965 leaving son Gerald in charge of operations. About the same time, Gordon Steele was graduating as a Registered Industrial Accountant. Moving to Lumby, he took charge of the books while Bill Steele remained in Vancouver in charge of sales. In 1986, Bill Steele retired and Steele Lumber Sales was moved from Vancouver to Lumby. Today, several of the family members are involved. Alvin Raboch left teaching in 1980 to return to the family business, where he is presently the private log buyer. Henry Raboch stayed with the company until his death in 1989. Kathy Steele married Brian Craig, who became lumber salesman in the company. Their son Tyler has already started working in the woodlands division during summer breaks from high school. Kari Steele has also spent several summers in the woodlands division. And Marty Steele has spent five summers in the woodlands. During the summer break from UBC this year, he is relief superintendent in the sawmill. The owners are not the only families that have stayed with the company a long time. Mechanic Cobalt Tokairin's father started with the Raboch family and now his son Sheldon works as a heavy duty mechanic in the company. John Bednar and son Peter are long-time employees. Louis Bouwmeister Sr. is now retired but Louis Jr. is maintenance foreman. Alf Henderson of the former Monashee Lumber retired in 1986, with sons David and Bob continuing the tradition in the woodlands division. From Steele Lumber, sales manager Rick Kampf is one of the long-time employees. Rob Giblack |