Canfor will close its Isle Pierre sawmill located near Prince George, British Columbia, Canada. The closure will take effect in the third quarter of 2020 following a wind down of operations. The closure is a result of an insufficient supply of economically viable timber following the Mountain Pine Beetle epidemic, coupled with the major global economic downturn as a result of the COVID-19 pandemic. Source: Timeberbiz
“Unfortunately, the ongoing economic devastation caused by the COVID-19 pandemic has resulted in the urgent need for Canfor to make this difficult decision,” Don Kayne President and CEO said.
“We know today’s announcement will have a significant impact on our employees, contractors, their families and the local communities, which we deeply regret. We will work hard to redeploy as many employees as possible to other opportunities throughout the company.”
Based on the current one-shift operation, Isle Pierre sawmill has an annual production capacity of approximately 120 million board feet.
Canfor’s Houston sawmill remains closed with no specific opening date set. The company has said that it continues assessing the production capacity against customer demand as it was hit by reduced demand with the COVID-19 pandemic.
Initially the closure was until the end of April but extended to May.
Canfor first announced COVID-19-related cuts and temporary closures at the end of March which affected Houston and other locations. Those closures, including at the Houston mill, were then extended to the end of April and now into May.
The company’s Prince George operations are to be shut for four weeks in July.
Canfor’s operations in Chetwynd and Elko reopened at four days a week but its operations at Polar and Radium remain closed.
However, these troubles for Canfor do not stem only from COVID-19 but also from bark beetle infestations, the high cost of wood and US tariffs.
