Canfor exiting B.C. mill
Forest products company has completed 49% purchase of Elliott Sawmilling.
Canfor Corporation reported that it will close its Vavenby sawmill in British Columbia this July.
The company also said it has reached an agreement to sell the forest tenure associated with the Vavenby sawmill to Interfor for a price of 60 million Canadian dollars (US$45 million).
“Due to the current and long-term log supply constraints we face in the Vavenby region, along with the high cost of fiber, we have made the very difficult decision to permanently close the sawmill and sell the associated forest tenure to Interfor. The ongoing depressed lumber markets have expedited this decision,” said Don Kayne, president and CEO of Canfor. “We deeply regret the significant impact to our employees, contractors and the communities, and will be working to support them through this difficult time.”
The Vavenby sawmill has an annual production capacity of approximately 250 million board feet. Following the closure of Vavenby, Canfor will have 12 sawmills in Canada, with total annual capacity of approximately 3.55 billion board feet.
The Vancouver, British Columbia-based forest products company also announced that it has completed the first phase of purchasing of Elliott Sawmilling Co.
Canfor is paying $110 million for the operation and expects to complete the balance of the acquisition within one year.
Located in Estill, S.C., Elliott has a production capacity in excess of 210 million board feet with the operation consisting of both large and small log lines.
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