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Rubber and Wood June 04, 2019 12:30:17 PM

Canfor Corp. Announces Permanent Closure of Vavenby.Sawmill

Paul Ploumis
ScrapMonster Author
The closure of the Vavenby sawmill is expected to affect 172 unionized employees.

Canfor Corp. Announces Permanent Closure of Vavenby.Sawmill

SEATTLE (Scrap Monster): Canfor Corporation announced its decision to permanently close its Vavenby sawmill in British Columbia. Further, it has reached agreement with Interfor towards sale of forest tenure associated with the sawmill. The sawmill closure is expected to complete in July this year.

The employees of the mill facility were intimated about the closure via a letter dated June 3, 2019. In the letter, the company states that it has been facing considerable log supply constraints in the region for a long time. The non-availability of sufficient fibre supply to support the ongoing mill operation coupled with high log costs have made the operations uneconomic, thereby forcing the company to arrive at the difficult decision.

The closure of the Vavenby sawmill is expected to affect 172 unionized employees. The company plans to start winding down operations starting June 4, 2019. The dates of termination of employees will be distributed in a staggered manner depending on the role of job handled by them.

Meantime, Interfor has announced that it has reached an agreement to purchase from Canfor, the forest tenure associated with the Vavenby sawmill for a sum of $60 million. The transaction, subject to various approvals including that of the Province of British Columbia, is expected to close in Q3 this year.

The Vavenby sawmill has a production capacity of nearly 250 million board feet per annum. The closure will reduce Canfor’s total number of sawmill facilities in Canada to 12.

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