VANCOUVER, BC, Feb. 15, 2022 /CNW/ - Today Canfor Corporation
(TSX: CFP) announced the permanent reduction of 150 million board
feet of production capacity at its Plateau Sawmill to resize the
facility and align it with the available, sustainable timber supply
in the region following the devastating impacts of the Mountain
Pine Beetle infestation and other constraints on the timber
harvesting land base. The reduction in production capacity will be
achieved through a partial plant closure and the elimination of one
of the three production lines in the mill.
The capacity reduction is expected to impact approximately 70
employees at the facility and is anticipated to take effect at the
end of the second quarter of 2022 following the depletion of
existing log inventory. Canfor will mitigate the impact to affected
employees by offering employment opportunities at other Canfor
locations, along with relocation and transition support.
"As the allowable annual cut has decreased in the region, it is
necessary to resize the facility to align with the sustainable
fibre supply," said Don Kayne,
President and CEO, Canfor. "I want to thank our Plateau employees
for their ongoing dedication and hard work, and we are committed to
providing comprehensive support to those employees impacted by
today's announcement, including offering jobs at other Canfor
facilities. We will work to minimize the impacts this decision has
on our employees, their families, our contractors and the
community."
Canfor will establish a community support fund and will work
with the District of Vanderhoof to
identify projects and initiatives that will best support the
community through the transition.
In addition, Canfor is investing $14
million in the Plateau facility to enhance manufacturing
flexibility and efficiency of the two remaining production lines
and position the smaller scale operation for long-term success.
Following the completion of the capital investment and the closure
of the production line in the second quarter, Plateau's annual
production capacity will be 370 million board feet.
Forward Looking Statements
Certain statements in this press release constitute
"forward-looking statements" which involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any future results, performance or
achievements expressed or implied by such statements. Words such as
"expects", "anticipates", "projects", "intends", "plans", "will",
"believes", "seeks", "estimates", "should", "may", "could", and
variations of such words and similar expressions are intended to
identify such forward-looking statements. These statements are
based on management's current expectations and beliefs and actual
events or results may differ materially. There are many factors
that could cause such actual events or results expressed or implied
by such forward-looking statements to differ materially from any
future results expressed or implied by such statements.
Forward-looking statements are based on current expectations and
Canfor assumes no obligation to update such information to reflect
later events or developments, except as required by law.
About Canfor Corporation
Canfor is a leading integrated forest products company based
in Vancouver, British Columbia
("BC") with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi, Arkansas and Louisiana, as well as in Sweden with 70% interest in Vida Group.
Canfor produces primarily softwood lumber and also owns a 54.8%
interest in Canfor Pulp Products Inc., which is one of the largest
global producers of market Northern Bleached Softwood Kraft Pulp
and a leading producer of high performance kraft paper. Canfor
shares are traded on The Toronto Stock Exchange under the symbol
CFP. For more information visit canfor.com.
SOURCE Canfor Corporation