The COVID-19 outbreak has negatively impacted global demand for forest products and disrupted supply chain networks. As a result, Canfor Corporation has implemented the following changes to its operating schedule. These curtailments and variable operating rates will be assessed weekly and adjusted as needed in response to rapidly evolving market conditions, changes in customer demand and the state of the COVID-19 response globally.
Effective March 30, Canadian lumber production will be curtailed by approximately 70 million board feet, or approximately 40%, over a three-week period. These reductions will be implemented across several British Columbia sawmills through a combination of temporary plant curtailments and reduced operating hours.
Canfor Southern Pine operations in the U.S. will be taking a series of actions to reduce operating capacity by approximately 40% or 50 million board feet over a four-week period. The capacity reductions will be achieved through the implementation of variable shift schedules and reduced operating hours across the southern pine mills.
Commencing next week, Swedish lumber production will be curtailed at two sawmills by 50% over a four-week period, representing a decrease in production of approximately 17 million board feet. This is primarily in response to the lockdown announced in Britain, which has resulted in a suspension of UK bound shipments and a partial redirection of product to other global markets.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia, Canada. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market northern bleached softwood kraft pulp and a leading producer of high performance kraft paper.
