Canfor to Reduce Production Capacity at Plateau Sawmill by 150 Million Board Feet

Canfor Corporation announced on Tuesday (2-15-22) the permanent reduction of 150 million board feet of production capacity at its Plateau Sawmill 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.

Canfor says that the reduced capacity will impact approximately 70 employees at the Plateau facility and is anticipated to take effect at the end of Q2 2022, following the depletion of existing log inventory. Canfor will mitigate the impact to affected employees by offering employment opportunities at other Canfor locations, along with relocation and transition support.

In addition, Canfor announced 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.

In commenting on the Plateau sawmill’s reduced production capacity, Don Kayne, Canfor’s President and CEO said, “As the allowable annual cut has decreased in the region, it is necessary to resize the facility to align with the sustainable fiber supply. 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.”