Canfor says more production cuts are necessary
Canfor Corporation said it will curtail lumber production by 75 million board feet between Sept. 3 and the end of 2019.
Cutbacks will take place at the company’s Houston, Polar, Prince George and Fort St. John sawmills. Additionally, Canfor’s Plateau and Houston mills will transition to a four-day work week in September, which will remain in effect until market and economic conditions support a return to the full operating schedule of five days per week, the company said.
The curtailments are due to the ongoing low price of lumber and the high cost of fiber. These curtailments are in addition to all previously announced capacity reductions. The Vancouver, British Columbia based lumber producer isn’t alone in reducing production as major softwood lumber producers battle falling board prices.
In the meantime, Canfor’s board of directors has created a special committee to reviewing and evaluating the recent acquisition offer from Great Pacific Capital Corp.
Earlier this month, Canadian billionaire Jim Pattison made an offer to take Canfor private for about $981.6 million Canadian dollars (US$740.69 million).
Pattison’s company, Great Pacific Capital Corp., already owns 51% of the Vancouver, British Columbia-based forest products company.
Cutbacks will take place at the company’s Houston, Polar, Prince George and Fort St. John sawmills. Additionally, Canfor’s Plateau and Houston mills will transition to a four-day work week in September, which will remain in effect until market and economic conditions support a return to the full operating schedule of five days per week, the company said.
The curtailments are due to the ongoing low price of lumber and the high cost of fiber. These curtailments are in addition to all previously announced capacity reductions. The Vancouver, British Columbia based lumber producer isn’t alone in reducing production as major softwood lumber producers battle falling board prices.
In the meantime, Canfor’s board of directors has created a special committee to reviewing and evaluating the recent acquisition offer from Great Pacific Capital Corp.
Earlier this month, Canadian billionaire Jim Pattison made an offer to take Canfor private for about $981.6 million Canadian dollars (US$740.69 million).
Pattison’s company, Great Pacific Capital Corp., already owns 51% of the Vancouver, British Columbia-based forest products company.