Canfor Declares Capacity Reductions at B.C. Sawmills
Rubber and Wood | 2019-07-19 08:30:04
The above capacity reductions are likely to reduce Canfor’s annual lumber production by approximately 400 million board feet.
By Paul Ploumis
SEATTLE (Scrap Monster): Canfor Corporation announced further capacity cuts at two of its British Columbia sawmills. The company has declared indefinite curtailments at its Mackenzie sawmill and permanent elimination of one shift at its Isle Pierre sawmill.
The indefinite curtailment of operations at Mackenzie sawmill will be in effect immediately. The press release notes that the mill has become uneconomic, due to several factors including high cost of fibre, weak lumber market conditions and challenging operating conditions.
The number of shifts at the Isle Pierre sawmill will be reduced from two to one, with effect from September 20, 2019. The permanent shift reduction is due to insufficient timber supply. It must be noted that the supply has been impacted due to mountain pine beetle epidemic and reduced annual allowable cut. The cut in shift will help the mill to better align its production capacity with the available supply.
Stephen Mackie, Senior Vice President of Canadian Operations, Canfor expressed deep regrets on the impacts caused by the capacity reductions on the sawmill employees, contractors, their families and the local communities. The company has been forced to take the decisions, which are mainly attributed to the current challenges faced by the B.C. forestry industry.
The above capacity reductions are likely to reduce Canfor’s annual lumber production by approximately 400 million board feet.
