VANCOUVER, BC, Sept. 4,
2024 /CNW/ - Following a thorough review of operating
conditions, including the persistent challenge accessing economic
fibre, ongoing financial losses, weak lumber markets and increased
US tariffs, Canfor Corporation (TSX: CFP) announced today the
closure of its Plateau and Fort St.
John operations located in northern British Columbia. These closures will impact
approximately 500 employees and will remove 670 million board feet
of annual production capacity from our BC operations.
Don Kayne, President and CEO made
the following statement today:
"Our company has proudly operated in BC for more than 85 years,
supporting jobs and economic activity in communities around this
province. During that time, we have always been prepared to manage
through challenging times and market fluctuations, recognizing the
cyclical nature of our business. However, in recent years,
increasing regulatory complexity, high operating costs and the
inability to reliably access economically viable timber to support
our manufacturing facilities has resulted in hundreds of millions
of dollars of losses in our BC operations.
The operating challenges we face have been further exacerbated
by increases in the punitive US tariffs announced on August 13th – tariffs that are
expected to more than double again next year. Continuing to operate
under these conditions would prolong the punishing anti-dumping
duties and put additional operations at risk. As a result, we are
making the incredibly difficult decision to close our operations in
Vanderhoof and Fort St. John.
We are devastated by the decline in our province's foundational
forest industry, and we recognize the impact these closures will
have on our employees and their families, as well as our First
Nations partners, contractors, suppliers, communities and
customers. We are committed to supporting our employees and will
work with our union partners on an employee transition plan,
including severance. The wind down of operations is expected to be
complete by the end of the year.
With the dramatic reduction in available timber supply, we will
explore opportunities to divest some of our northern BC tenure,
which may help support other BC forest companies facing the same
significant challenges in accessing economic fibre.
Finally, we will continue to do all we can to advocate for
changes that will allow our industry in BC to once again be able to
thrive in the future."
Forward-looking statements.
Certain statements in this press release constitute
"forward-looking statements" which involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any future results, performance or
achievements expressed or implied by such statements. Words such as
"expects", "anticipates", "projects", "intends", "plans", "will",
"believes", "seeks", "estimates", "should", "may", "could", and
variations of such words and similar expressions are intended to
identify such forward-looking statements. These statements are
based on management's current expectations and beliefs and actual
events or results may differ materially. There are many factors
that could cause such actual events or results expressed or implied
by such forward-looking statements to differ materially from any
future results expressed or implied by such statements.
Forward-looking statements are based on current expectations and
Canfor assumes no obligation to update such information to reflect
later events or developments, except as required by law.
About Canfor Corporation.
Canfor is a global leader in the manufacturing of high-value
low-carbon forest products including dimension and specialty
lumber, engineered wood products, pulp and paper, wood pellets and
green energy. Proudly headquartered in Vancouver, British Columbia, Canfor produces
renewable products from sustainably managed forests, at more than
50 facilities across its diversified operating platform in
Canada, the United States and Europe. The Company has a 70% stake in Vida
AB, Sweden's largest privately
owned sawmill company and also owns a 54.8% interest in Canfor Pulp
Products Inc. Canfor shares are traded on The Toronto Stock
Exchange under the symbol CFP. For more information visit
canfor.com.
SOURCE Canfor Corporation
