Canfor to reduce capacity at Plateau Sawmill
by CM Staff
After resizing and investments, the company expects its annual production capacity will be 370 million board feet.
VANCOUVER — Canfor Corporation says it will permanently reduce the 150 million board feet of production capacity at its Plateau Sawmill to resize the facility and align it with the available timber supply in the region.
The company says its’s decision follows the effects of the mountain pine beetle infestation and other constraints on the timber harvesting land base.
In order to reduce the size of the Plateau Sawmill, Canfor will partially close off the plant and eliminate one out of their three production lines at the mill.
The company says it expects plans to resize their facility will affect 70 jobs at sawmill. Canfor plans to mitigate job loss for affected employees through relocation to other facilities and transition support.
“As the allowable annual cut has decreased in the region, it is necessary to resize the facility to align with the sustainable fibre supply,” said Don Kayne, President and CEO, Canfor in a statement.
“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.”
Canfor says it will invest $14 million in the Plateau facility to improve manufacturing flexibility and efficiency of the two remaining production lines. After resizing and investments, the company expects its annual production capacity will be 370 million board feet.