Canfor cutting sawmill production
Canfor Corporation announced the permanent reduction of 150 million board feet of production capacity at its Plateau Sawmill.
The Vancouver, British Columbia-based lumber and pulp producer said the move is necessary to resize the facility and align it with the available, sustainable timber supply in the region following the devastating impacts of the Mountain Pine Beetle infestation and other constraints on the timber harvesting land base.
The reduction in production capacity will be achieved through a partial plant closure and the elimination of one of the three production lines in the mill.
The capacity cut is expected to impact approximately 70 employees at the facility and is anticipated to take effect at the end of the second quarter following the depletion of existing log inventory.
The company said it will mitigate the impact to affected employees by offering employment opportunities at other Canfor locations, along with relocation and transition support.
“As the allowable annual cut has decreased in the region, it is necessary to resize the facility to align with the sustainable fiber supply,” said Don Kayne, president and CEO of Canfor. “I want to thank our Plateau employees for their ongoing dedication and hard work, and we are committed to providing comprehensive support to those employees impacted by today’s announcement, including offering jobs at other Canfor facilities. We will work to minimize the impacts this decision has on our employees, their families, our contractors, and the community.”
Canfor is also establishing a community support fund and will work with the District of Vanderhoof to identify projects and initiatives that will best support the community through the transition.
Additionally, Canfor said it is investing $14 million in the Plateau facility to enhance manufacturing flexibility and efficiency of the two remaining production lines and position the smaller scale operation for long-term success.
Following the completion of the capital investment and the closure of the production line in the second quarter, Plateau’s annual production capacity will be 370 million board feet.