Canfor closing 2019 with more cutbacks
Sawmills in British Columbia will be shut down for two weeks through early January.
Canfor Corporation announced that it will be curtailing operations at all British Columbia sawmills at the end of December.
All mills, with the exception of WynnWood, will be curtailed for two weeks from Dec. 23, 2019 through Jan. 3, 2020, with operations resuming on January 6. WynnWood will be curtailed for five days.
The curtailments are due to the high cost of fiber and continued weak lumber markets, which are making the operating conditions in British Columbia uneconomic, the company said. Canfor is based in Vancouver, British Columbia, Canada.
“We deeply regret that our employees have been impacted by multiple curtailments in 2019, we know it has been a difficult year for our employees, contractors, their families and the local communities,” said Stephen Mackie, senior vice president of Canfor’s Canadian operations, Canfor. “The curtailments are not a reflection on our hard-working employees or contractors. We appreciate all of their efforts and continued commitment to safety during these difficult times.”
The latest round of curtailments will remove almost 58 million board-feet of production output and are in addition to all previously announced capacity reductions. Throughout 2019, Canfor – along with a number of major lumber producers in British Columbia – has curtailed lumber production operations while citing weak demand and sagging prices.
Last month, Canfor entered into an agreement with Great Pacific Capital Corp., which will result in the company going private.
Under terms of the deal, Great Pacific and its affiliates will acquire all of the outstanding common shares of Canfor it does not already own for a cash price of 16 Canadian dollars per share (US$11.78). Great Pacific already owns approximately 51% of Canfor.
The total deal is valued at approximately C$982 million (US$723 million).
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