Following a shutdown of its mill in MacKenzie, British Columbia, forest products company Canfor will reopen the mill on a modified shift schedule. While the move will bring back 320 jobs, 130 jobs will be eliminated.
Canfor reported losses of $38.8 million in the second quarter, compared with $39.2 million in earnings last year. This decision will result in the reduction of 150 million board feet of capacity, the company said, and is part of an overall cost-savings strategy.
The mill's closure initially was slated for mid-August. The company is planning to have the mill operating under the new configuration by the end of next month.
“We have been very clear that we needed to significantly reduce our delivered log costs and improve efficiency at the mill in order for us to continue operation,” said Jim Shepard, interim CEO for Canfor. “Through the hard work of our employees and the valuable support of the union and the Provincial government for improving access to fiber, we have made tremendous progress in this regard."