VANCOUVER, BC, Jan. 11,
2023 /CNW/ - Following extensive analysis of its
operating footprint and the long-term supply of economic residual
fibre, Canfor Pulp Products Inc. (TSX: CFX) is announcing the
decision to permanently close the pulp line at its Prince George
Pulp and Paper Mill, which will result in a reduction of 280,000
tonnes of market kraft pulp annually. The Specialty Paper facility
at the site will continue to operate.
"In recent years, several sawmills have permanently closed in
the Prince George region due to
reductions in the allowable annual cut and challenges accessing
cost-competitive fibre. This has had a material impact on the
availability of residual fibre for our pulp facilities and we need
to right-size our operating platform. As a result, we have made the
very difficult decision to shut down the pulp line at Prince George
Pulp and Paper Mill and will continue to operate the Specialty
Paper facility," said Kevin Edgson,
President and CEO, Canfor Pulp.
Over the next few months, the Company will be following an
orderly wind down process. The pulp line is expected to close by
the end of the first quarter of 2023 and is anticipated to impact
approximately 300 positions across the organization by the end of
the year.
"We greatly appreciate our valued team members who have been
helping to navigate a very challenging business environment," said
Edgson. "We understand and regret the impact today's announcement
has on our employees, their families, the businesses that support
our operations, and the local community. We will be working in the
weeks and months ahead to support our employees through this
transition."
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 Pulp Products
Inc.
Canfor Pulp Products Inc. ("Canfor Pulp" or "CPPI") is a leading
global supplier of pulp and paper products with operations in the
central interior of British
Columbia ("BC"). Canfor Pulp owns and operates three mills
in Prince George, BC with a total
capacity of 1.1 million tonnes of Premium Reinforcing Northern
Bleached Softwood Kraft ("NBSK") Pulp and 140,000 tonnes of kraft
paper, as well as one mill in Taylor,
BC with an annual production capacity of 230,000 tonnes of
Bleached Chemi-Thermo Mechanical Pulp ("BCTMP"). Canfor Pulp is one
of the largest North American and global producers of market
northern softwood kraft pulp. CPPI shares are traded on the Toronto
Stock Exchange under the symbol CFX. For more information visit
canfor.com.
SOURCE Canfor Pulp Products Inc.