Canfor reports lumber production cutbacks
Canfor announced that challenging marketing conditions is forcing the company to make temporary reductions in production in British Columbia.
Production capacity will be reduced through a two-week curtailment beginning Sept. 26 at the majority of solid wood facilities in British Columbia and will be followed by the resumption of reduced operating schedules until the end of 2022.
This is expected to result in a reduction of approximately 200 million board feet of production capacity.
“We are temporarily curtailing production in BC due to reduced market demand,” said Don Kayne,. We will leverage our global operating platform to prioritize the requirements of our customers,” said Don Kayne, president and CEO of Canfor. “To limit the impact on employees, they will have the opportunity to work during the downtime to complete maintenance projects and other site activities.”
On Aug. 31, Canfor also reported that it was reducing production at its facilities in Sweden.
Effective Sept. 12, the reduced operating schedules will result in a 15% decrease in production capacity and are anticipated to be in effect through the fourth quarter.
“Rising inflation and mortgage rates in Europe, which are expected to persist into the fall, is impacting demand for lumber and as a result, we are reducing production capacity, Kayne said. “We are committed to continuing to meet the needs of our customers.”
The decrease in Swedish production capacity will be achieved through reduced shifts. The Vancouver, British Columbia-based company said it will continue to assess and make adjustments to operating schedules based on changes in market demand.
Canfor maintains interests in British Columbia and Alberta, Canada along with operations in North and South Carolina, Alabama, Georgia, Mississippi, Arkansas and Louisiana. The company primarily produces softwood lumber and owns a 54.8% interest in Canfor Pulp Products, Inc.
In July, Canfor unveiled plans for a $210 million state-of-the-art sawmill complex in southern Alabama.
