Higher lumber prices improved second-quarter operations, while weak pulp demand, elevated inventories and lower pricing increased losses and contributed to mill closures.
Canfor
The closure will end production at the Fox Creek facility after weak lumber markets, U.S. softwood lumber duties and tariffs, wildfire-related fibre constraints, and the end of Alberta's mountain pine beetle strategy reduced the mill's long-term viability.
The Prince George facility will close in late Q4 2026 and directly affect approximately 300 employees.
The facility will operate as a wholly owned subsidiary and add 120 employees to Canfor’s operations.
The deal adds a plant with 46 million linear feet capacity and 120 employees.
Institutional investment, fast-growing Southern Yellow Pine and advanced sawmill technology are positioning the Southeast as a steady supplier for engineered structural products.
The closures will leave Vida operating 13 sawmills across central and southern Sweden.
Lumber pricing rises on tighter supply, but weak demand, duties, and disruptions cut shipments and keep both lumber and pulp operations under pressure.
Transaction values former shares at 0.0425 Canfor share or $0.50 cash, delisting from TSX effective March 18.
Lumber demand stayed weak through most of the quarter, while scheduled maintenance reduced pulp output.
Lumber segment faces $215 million hit from European log supply pressures while pulp and paper takes $106 million charge.
No alternative bids were received from 15 potential buyers contacted before the January 19 deadline, confirming Canfor Corporation’s planned purchase of remaining shares.
Offer price represents a 25% premium to current trading value, with deal expected to close in Q1 2026.
North American housing weakness, high duties, and soft global pulp prices drive lower production and margins across all regions.