Canfor Corporation Reducing Sawmill Production
Vancouver, British Columbia, Canada, 28 May 2009 -- (MARKET WIRE) -- Canfor Corporation (Toronto:CFP.TO - News) announced today that it will be indefinitely closing its Vavenby, Radium, and Rustad sawmills once existing log inventories are used and finished products shipped. This is expected to occur over June and July and may vary by operation.
Approximately 570 employees will be affected by the decision. The mills have a combined capacity of 560 million board feet of production on an annualized basis. This represents 11% of Canfor's total lumber capacity. After considering the effect of this announcement, Canfor will be running at approximately 50% of total rated lumber capacity.
"These decisions are never easy, but are taken in the face of a market downturn that is unprecedented in terms of both duration and intensity. Canfor must continue to restructure its production capabilities to match the demands of the market and ensure the needs of key customers continue to be met," said Jim Shepard, Canfor 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 produces the most softwood lumber in British Columbia. It also produces oriented strand board (OSB), 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.