Interfor Announces Production Impacts in British Columbia Due to Log Supply Constraints
July 29 2021 - 6:00PM
INTERFOR CORPORATION (“Interfor” or the “Company”)
(TSX: IFP) announced today that it is expecting production
disruptions at its B.C. Interior sawmills during the third quarter
of 2021 due to the ongoing impacts of wildfires and other factors
on log supply.
“The wildfires in the B.C. Interior and the related provincial
state of emergency and government-mandated curtailment of all
forest harvesting activities are expected to have a significant
impact on Interfor’s operations in the next several weeks or
more. This is an active situation, and we are closely
monitoring the implications for our operations. We are also doing
what we can to help, working cooperatively with the provincial
wildfire service and local communities to support the firefighting
efforts. At this time there are over 230 Interfor staff and
contractors and over 90 pieces of contractor-owned heavy equipment
dedicated to assisting the B.C. Wildfire Service in their efforts,”
said Andrew Horahan, Senior Vice President of Western Operations at
Interfor.
Based on current information, Interfor is expecting to curtail a
minimum of 50 million board feet of production across its B.C.
Interior operations in August, with the possibility of further
downtime in September and beyond, depending on evolving weather
conditions. The latest forecasts from the B.C. Wildfire Service
indicate a strong likelihood of warmer and drier than normal
conditions persisting across much of B.C. over the remainder of the
summer and early fall. Over the past twelve months Interfor’s B.C.
Interior operations produced approximately 725 million board feet
of lumber, representing about 26% of the Company’s total
production.
Interfor is also monitoring the evolving wildfire situation in
the U.S. Northwest and related impacts on log supply to its
operations in Washington and Oregon. Currently there are no
immediate threats to Interfor’s employees or its operations, but
the latest forecasts indicate that drier than usual weather is
expected to be predominant over the region for August through
October.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking information about the
Company’s business outlook, objectives, plans, strategic priorities
and other information that is not historical fact. A statement
contains forward-looking information when the Company uses what it
knows and expects today, to make a statement about the future.
Statements containing forward-looking information in this release,
include but are not limited to, statements regarding weather
forecasts, wildfire threats, production capacity and other relevant
factors. Readers are cautioned that actual results may vary from
the forward-looking information in this release, and undue reliance
should not be placed on such forward-looking information. Risk
factors that could cause actual results to differ materially from
the forward-looking information in this release are described in
Interfor’s annual Management’s Discussion & Analysis under the
heading “Risks and Uncertainties”, which is available on
www.interfor.com and under Interfor’s profile on www.sedar.com.
Material factors and assumptions used to develop the
forward-looking information in this report include volatility in
the selling prices for lumber, logs and wood chips; the Company’s
ability to compete on a global basis; the availability and cost of
log supply; natural or man-made disasters; currency exchange rates;
changes in government regulations; the availability of the
Company’s allowable annual cut (“AAC”); claims by and treaty
settlements with Indigenous peoples; the Company’s ability to
export its products; the softwood lumber trade dispute between
Canada and the U.S.; stumpage fees payable to the Province of
British Columbia (“B.C.”); environmental impacts of the Company’s
operations; labour disruptions; information systems security; and
the existence of a public health crises (such as the current
COVID-19 pandemic). Unless otherwise indicated, the forward-looking
statements in this release are based on the Company’s expectations
at the date of this release. Interfor undertakes no obligation to
update such forward-looking information or statements, except as
required by law.
ABOUT INTERFOR
Interfor is a growth-oriented forest products company with
operations in Canada and the United States. The Company has annual
production capacity of approximately 3.9 billion board feet and
offers a diverse line of lumber products to customers around the
world. For more information about Interfor, visit our website at
www.interfor.com.
Investor contact and further information:
Rick Pozzebon, Senior Vice President & Chief Financial
Officer(604) 689-6804
Mike Mackay, Vice President of Corporate Development &
Strategy (604) 689-6846
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