VANCOUVER, BC, Jan. 25,
2023 /CNW/ - To better align manufacturing capacity
in British Columbia with the
available long-term fibre supply, Canfor Corporation (TSX: CFP) is
restructuring its B.C. operations by permanently closing its
Chetwynd sawmill and pellet plant
and temporarily closing its Houston sawmill for an extended period to
facilitate a major redevelopment on the site. The Company intends
to build a new, modern, globally competitive manufacturing facility
that employs state of the art technology to produce high value
products from the sustainable timber supply in the region. Project
planning, scoping, preliminary engineering and budgeting are
underway. The Company will undertake a comprehensive evaluation of
the availability of economic fibre and a thorough project financial
analysis, supporting a final investment decision by the end of the
second quarter of 2023. Both facilities will be closed following an
orderly wind down of operations that is expected to conclude early
in the second quarter of 2023 and will remove approximately 750
million board feet of annual production capacity.
Don Kayne, President and CEO
made the following statement:
"We are making these difficult but necessary decisions to create
a more sustainable operating footprint in B.C. Our goal is to match
our mill capacity with the economically available fibre for harvest
to enhance our ability to compete and to operate throughout the
market cycles. This is what will ultimately create greater
stability for our employees and communities, while ensuring we can
continue to provide the high quality, low carbon products that are
in demand by our customers around the world.
We recognize that today's announcement will have both temporary
and permanent impacts on employees, families, contractors and
communities. That's why we are putting in place a comprehensive set
of support mechanisms to help minimize the impacts of this
transition. In addition, we will be working with our industry
partners and Indigenous Nations to ensure that fibre currently
processed at the Chetwynd facility
is utilized to support other local and regional manufacturing
facilities, helping them to be more sustainable and to keep people
working in the Peace Region.
Canfor has been proudly headquartered in British Columbia for more than 80 years and,
while we have and will continue to look for opportunities to
diversify our product offerings and reach to keep pace with our
growing customers, we have also invested significantly here at
home, spending approximately $2.1
billion in our B.C. operations over the last 10 years. The
Houston investment would represent
another significant commitment and be amongst the largest capital
expenditures in a new wood products manufacturing facility in
B.C.'s interior in two decades.
While the near-term outlook in B.C. remains challenging given
the mid-term fibre supply constraints, this province remains an
important part of our diversified operating platform, allowing us
to serve customers around the globe, while providing good family
supporting jobs here. The changes we are announcing will help make
us smaller but stronger in B.C. and help ensure we can continue to
contribute to the economy and quality of life here in the Province
for decades to come."
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 55 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., which is one of the largest global producers of market
Northern Bleached Softwood Kraft Pulp and a leading producer of
high performance kraft paper. Canfor shares are traded on The
Toronto Stock Exchange under the symbol CFP. For more information
visit canfor.com.
SOURCE Canfor Corporation