MACKENZIE, B.C. – Canfor announced Thursday more capacity reductions in Mackenzie and Prince George.
The Mackenzie sawmill will be placed on an indefinite curtailment effective immediately due to the high cost of fibre and poor lumber markets. On top of that, Canfor says challenging operating conditions have made the mill uneconomic under current conditions.
The Isle Pierre sawmill in Prince George will be permanently reduced from two shifts to one shift effective September 20, 2019. The capacity reduction, which is due to insufficient timber supply as a result of the mountain pine beetle epidemic and associated decline in the annual allowable cut, will enable the mill to better align its production capacity with the sustainable fibre supply in the region.
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“We deeply regret the impacts that these capacity reductions will have on our Mackenzie and Isle Pierre employees, contractors, their families and the local communities,” said Stephen Mackie, Senior Vice President of Canadian Operations, Canfor. “The BC forest industry is continuing to face very significant challenges. None of our temporary or permanent curtailment decisions have been made lightly, nor are they a reflection on the hard work and dedication of our employees.”
In combination, these curtailments will reduce Canfor’s annual production output by approximately 400 million board feet, which is in addition to previously announced reductions.