Vancouver, British Columbia, Canada, 08 October 2008 – Canfor Corporation (TSX:CFP) announced today that due to the continued poor demand and low prices for plywood across North America, it will be closing indefinitely its Tackama plywood plant in Fort Nelson, British Columbia, once the existing log and veneer inventories are depleted. This is expected to occur by the end of October. Approximately 290 employees will be affected by this closure. The plant has an annual capacity of 220 million square feet (3/8-inch basis) of plywood.
The current market conditions and future outlook for plywood prices are not encouraging, with no evidence of a turnaround in the near future and consequently Canfor must curtail production to address the reduced market demand.
“This difficult decision is in no way a reflection on the good efforts and performance of our employees at the Tackama site who have continued to make operational and cost improvements throughout these unprecedented and challenging market conditions and we would like to thank them for their efforts,” said Jim Shepard, Canfor’s president and CEO.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with interests in Alberta, British Columbia, and Quebec in Canada, and in North Carolina, South Carolina, and Washington in the United States. The company is the largest producer of softwood lumber in British Columbia, while also producing oriented strand board (OSB), plywood, remanufactured lumber products, and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, 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.