Canfor to Close Fox Creek, AB, Sawmill

On Tuesday, Canfor Corporation announced that it will permanently close its Fox Creek sawmill in Alberta, citing prolonged weak market conditions, high US softwood lumber duties and tariffs, and reduced fiber availability following recent wildfires and the end of the province’s mountain pine beetle management strategy.

The mill was rebuilt in 2011 as a single-shift operation after being destroyed by fire in 2008. It processed additional timber made available through Alberta’s strategy to reduce pine beetle-susceptible forests. Canfor said wildfire-damaged timber in the region is now largely exhausted, leaving insufficient fiber to sustain the operation over the long term.

The closure will remove 120 million board feet of production capacity. Operations are expected to conclude by late summer.

Susan Yurkovich, President and CEO of Canfor, said:

“This is a difficult decision which we know will have a significant impact on our employees, their families, contractors, and the community. This decision reflects the challenges facing our operation and does not diminish the dedication and contribution of our Fox Creek team. We are committed to helping those impacted navigate the transition ahead, including seeking opportunities for impacted employees at our other operations.

Canfor has proudly operated in Alberta for more than 70 years, and we remain committed to pursuing opportunities to strengthen our operations in the province, including our Grande Prairie and Whitecourt sawmills and our value-added manufacturing facilities at Spruceland and the newly acquired PinkWood. Our goal is to ensure these operations can run fully and successfully compete in the global marketplace, while generating jobs and supporting communities across the province.”