Canfor Corp. Declares Major Cutback in Sawmill Production

SEATTLE (Scrap Monster):  Vancouver, B.C.-based Canfor Corporation has joined other companies in the region cutting production at sawmills. In addition, the company has decided to reduce its capital spending and postpone the earlier announced mill upgrade projects. The above actions are in the wake of rapidly spreading COVID-19 pandemic.

In a press release, Don Kayne, CEO, Canfor Corporation stated that the principal focus of the company is to ensure the safety and well-being of its employees. The announced production cuts and capex cuts are necessary to protect the long-term sustainability of its businesses, Kayne noted.

Effective March 30, the company will reduce Canadian sawmill production by approximately 70 million board feet. This will be implemented over a three-week period. Consequently, sawmills across the B.C region will see temporary plant curtailments and reduced operating hours. In addition, Canfor has also decided to slash 50 million board feet of production from U.S. mills and 17 million board feet from its Swedish mills.

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The overall capital spending in the U.S. and Canada will be further reduced by $20 million. This would mean that the 2020 spending will be nearly $100 million less than that in 2019.

Meantime, Canfor announced that the company might be forced to take further measures, depending on the duration of the pandemic and its impacts on the economy.