Canfor to cut production by 10 per cent

Canfor announced today it will be curtailing sawmill operations in British Columbia during the fourth quarter due to log supply constraints, log costs and current market conditions.

The curtailment is expected to reduce Canfor’s B.C. production output by approximately 10 per cent throughout the quarter.

“We have made the difficult decision to curtail our B.C. sawmill operations over the fourth quarter due to log supply challenges following another difficult wildfire season, uncompetitive log costs and declining lumber prices,” said Don Kayne, President and Chief Executive Officer, in a statement posted to the company’s website. “We are working to mitigate impacts on our employees as much as possible.”

Lumber production will be reduced over the quarter through a decrease in operating days. This will be achieved through immediate short-term curtailments at some facilities, along with extended downtime at Christmas. Canfor has 13 sawmills in Canada, with total annual capacity of approximately 3.8 billion board feet.

Last month the United Steelworkers Local 1-2017 started rotating strikes at CONIFER represented mills in the Interior, including four Canfor mills – Fort St. John, Houston, Isle Pierre and PG Sawmill. Pickets were up at the PG Sawmill last week.

Steelworkers have been without a contract since June 30.