Canfor Corporation Announces Production Curtailments Company Wide.

Canfor Corporation has announced the measure it will be taking in response to the COVID-10 outbreak.  Canadian operations: Effective March 30, Canadian lumber production will be curtailed by approximately 70 million board feet, or approximately 40%, over a three-week period. These reductions will be implemented across several British Columbia sawmills through a combination of temporary plant curtailments and reduced operating hours. U.S. operations: Canfor Southern Pine operations will be taking a series of actions to reduce operating capacity by approximately 40% or 50 million board feet over a four-week period. The capacity reductions will be achieved through the implementation of variable shift schedules and reduced operating hours across the southern pine mills. European operations: Commencing next week, Swedish lumber production will be curtailed at two sawmills by 50% over a four-week period, representing a decrease in production of approximately 17 million board feet. Canfor also announced reduction in their capital expenditures.  Effective immediately capital expenditures are being reduced by CAD $20 million for Canadian and US operations which, when taken together with an already lower capital budget for 2020, results in a year-over-year reduction in capital spend of approximately $100 million across lumber operations compared to 2019.

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.