Vancouver, British Columbia, Canada, 26 April 2012 -- Canfor Corporation (TSX:CFP) announced today that it will be proceeding with capital improvement projects totalling approximately CAD 40 million in its sawmill facilities in the Kootenay region of British Columbia. These investments represent the first major component of a multi-year capital investment program, aimed at enhancing productivity and cost performance in Canfor’s British Columbia Southern Interior mill facilities.
The investments announced today are concentrated on the Radium sawmill, located in the community of Radium Hot Springs. Approximately CAD 38.5 million will be invested in a new planer facility, the installation of a biomass energy system, and modifications to the existing sawmill. The balance will be invested at the company’s Canal Flats sawmill to improve drying capacity.
“These investments are critical to support the restart of our Radium division, which was indefinitely closed in May 2009,” said Don Kayne, Canfor president and CEO. “The fiber in the Kootenay region is amongst the best in the world, and these investments will secure our ability to make top-quality products here to supply global markets.”
The capital project at the Radium mill will commence in May 2012, with start up anticipated in the fourth quarter.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with operations in Alberta, British Columbia, and Quebec in Canada, and in North Carolina, South Carolina, and Washington in the United States. Canfor produces primarily softwood lumber and also produces oriented strand board (OSB), remanufactured lumber product, bleached chemithermomechanical pulp, and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Products Inc., which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.