More lumber production cuts at Canfor
The latest production moves will impact two British Columbia sawmills.
Canfor Corporation announced further capacity reductions at two of its British Columbia, Canada sawmills including an indefinite curtailment at its Mackenzie sawmill and the permanent elimination of one shift at its Isle Pierre sawmill.
The indefinite curtailment at Mackenzie, which is effective immediately, is due to the high cost of fibre, continued poor lumber markets and challenging operating conditions that have combined to make the mill uneconomic under these conditions, Canfor said.
The Isle Pierre sawmill will be permanently reduced from two shifts to one shift effective Sept. 20. According to Canfor, the capacity reduction is due to insufficient timber supply as a result of the mountain pine beetle epidemic and associated decline in the annual allowable cut. The company said this move will enable the mill to better align its production capacity with the sustainable fibre supply in the region.
“We deeply regret the impacts that these capacity reductions will have on our Mackenzie and Isle Pierre employees, contractors, their families and the local communities,” said Stephen Mackie, senior vice president of Canadian Operations, Canfor. “The BC forest industry is continuing to face very significant challenges. None of our temporary or permanent curtailment decisions have been made lightly, nor are they a reflection on the hard work and dedication of our employees.”
In combination, these curtailments will reduce Canfor’s annual production output by approximately 400 million board feet, which is in addition to previously announced reductions.
Some of the largest lumber producers in British Columbia, including Canfor, have been cutting back production and closing mills for the past three months. The companies have all cited a soft demand and low prices as the primary catalysts behind the curtailments.
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