Interfor Corporation to Exit Quebec Operations

SEATTLE (Scrap Monster): Plans to cease operations in Quebec, Canada, were disclosed by Interfor Corporation. The corporation intends to sell its three manufacturing sites in the area. The corporate office in Montreal will also close. Subject to obtaining the required regulatory approvals and other normal closing conditions, the transaction is anticipated to close in Q4 of this year.

The plans follow the company's approach of concentrating on the areas with the greatest potential for growth in the future. The region's limited supply of economic fiber played a role in the decision to discontinue operations in Quebec.

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The company has reached a final agreement with Chantiers Chibougamau Ltée, a forestry company based in Quebec, in accordance with the exit plan, to sell its sawmills in Val-d'Or and Matagami, as well as its Sullivan remanufacturing plant in Val-d'Or, along with all related forestry and business operations. The estimated value of the cash transaction is $30 million.

According to a company news release, Interfor's planned closure of its corporate office in Montreal will enable the company to fully realize the synergies related to its acquisition of EACOM Timber Corporation.

Further to the transaction, Interfor will own and operate five sawmills and one I-Joist EWP facility in Ontario and two sawmills and woodlands management business in New Brunswick.